How a Paper Company Turned Empty Space into $8K Per Month

A leading paper company based in Long Beach, CA manufactures corrugate boxes for ecommerce brands.  They are growing quickly and decided to move into a bigger warehouse to support their future growth.  They signed a multi-year lease on a 20,000 sq ft warehouse just minutes from the port of Long Beach.

When signing the lease, they knew that they only needed 10,000 sq ft for the next year.  This is common as in the beginning of a lease, there is often a significant amount of empty warehouse space.  The rent payments for this empty space negatively impact operating margin.

Solution

The paper company’s Operations Manager contacted Flowspace and listed their empty space on the Flowspace website.  Shortly thereafter, Flowspace found two customers who needed a warehouse to store excess, slow-moving inventory for several months.

The paper company started receiving inventory within a day of approving the customers’ requests.  They managed the entire transaction on the Flowspace system, which means they didn’t need to do any technical work or worry about invoicing.

The paper company needed to provide the labor and space to unload and store the pallets;  Flowspace handled the rest.

Results

The customer with the inventory is happy because they did not have to sign a lease and are only paying for the space they are using, which is saving them thousands of dollars.

On the other hand, the paper company is generating $8K per month from their empty space, boosting their operating margin.

About Flowspace

Flowspace (www.flow.space) provides on-demand warehousing for business.  Backed by leading investors in Silicon Valley, Flowspace helps companies who need extra warehouse space and capacity find and manage it on a month-to-month basis.

Download the Flowspace Case Study

Flowspace Customer Testimonial: Story of a small business owner

We started Flowspace to help businesses find warehouse space when they need they need it most by offering clear, month to month pricing and an easy to use warehouse management system.  We love hearing from customers that we’ve helped out of difficult situations. Here is one customer’s story.

 

warehousing, short term warehousing, Flowspace
Flowspace customer evaluating inventory in in his Orange County, CA warehouse

From a Flowspace customer and owner of a small business:

As the owner of a small manufacturing business in Orange County, CA I wear a lot of hats. Purchasing. Operating. Negotiating. Selling.

I’m constantly putting out fires. But I’ve kept my nose to the grindstone long enough now that I’m growing quickly. With growth comes a whole new set of problems, and none bigger than the one I’m facing now:  Warehousing.

If things continue as planned, I’m going to outgrow my current warehouse and distribution center in the next year and will need to sign a new lease on a larger warehouse. The problem is, things never go as planned.

I’m negotiating the renewal of a contract for my biggest customer, who represents 30% of my sales revenue and over a quarter of my warehouse space. But what if I sign a lease on a new, larger warehouse and I don’t receive the contract renewal? That’s a risk I’m just not willing to take.

I need flexibility. I need a temporary warehousing solution to buy me some time for the deal to close before before I commit to a new long-term lease.

This is where Flowspace flat rate flexible warehousing is so useful. I ship my inventory, they receive it and store it until I free up the space to bring it back. If a surprise comes up and I need to ship some of that inventory to a customer, I can do it through their inventory software. This gets me out of a jam and allows me to focus on the things I do best, like selling and running my business.