Why should you choose on-demand warehousing?

Regarding warehousing, there are two main types of storage: conventional and on-demand. Both have their benefits and drawbacks, but on-demand warehousing is becoming increasingly popular for businesses that need more flexibility in their storage solutions. So, what is on-demand warehousing? And why should you choose it for your business? Read on to find out.

Why is On-Demand Warehousing essential?


On-demand warehousing is the new trend among entrepreneurs who want to customise their spaces and scale them as and when needed. The pay-per-use model allows a company to avoid long-term contractual agreements. This fulfilment model works well for businesses looking for temporary storage solutions and can utilise shared space at a warehouse company in India. 


There are many reasons why on-demand industrial warehousing services are essential for businesses. Perhaps the most important reason is that it allows businesses to adjust their inventory levels quickly and easily in response to changes in customer demand. This is a critical capability for businesses that operate in highly competitive markets where customer demand can change rapidly and unexpectedly.


Another critical advantage of on-demand warehousing is that it can help businesses to reduce their overall inventory costs. By increasing or decreasing their inventory levels quickly and easily, companies can avoid maintaining high levels of inventory that may not be needed in the current market conditions. This can lead to significant cost savings for businesses over time.


Finally, built-to-suit warehouses can also help businesses to improve their customer service levels. By having quick access to additional inventory when needed, businesses can avoid stock-outs and other disruptions, such as damage to perishable goods that can lead to lost sales.

Benefits of On-Demand Warehousing

There are plenty of reasons to choose on-demand warehousing, but here are some of the most significant benefits:

1. On-demand warehousing is flexible and scalable.

You can scale up or down as needed, which is perfect for businesses that are growing or experiencing seasonal fluctuations. There’s no long-term commitment required so you can adjust your storage needs as your business changes.

2. On-demand warehousing is cost-effective.

You only pay for the storage space you use, so it’s a very efficient way to use your resources. And since you’re not locked into a long-term contract, you have the flexibility to move your goods to a different warehouse if you find a better deal elsewhere.

3. On-demand warehousing offers greater control over your inventory.

With on-demand warehousing, you have 24/7 access to your inventory data, so you can always know what’s in stock and where it’s located. You can also set up alerts to know when items are running low, so you can reorder before they run out entirely.

What solutions does On-Demand Warehousing offer?

On-demand warehouses can be rented by the day, week, or month, so you only pay for the space you need.

There are many solution on-demand warehousing provides, which includes:

1. Flexibility – On-demand warehousing gives you the flexibility to increase or decrease your storage space as needed. This is ideal for businesses that experience seasonal fluctuations in inventory levels.

2. Financial health – Renting on-demand warehouse space can be up to 50% cheaper than traditional warehousing options. A warehouse in Chennai would be more cost-effective considering the viable options for supply chain, multi-modal transports, and several industrial hubs. Hiranandani Industrial Parks offers lucrative warehousing services in Chennai at the Red Hills location, a strategic location with all the factors in proximity. 

3. Convenience – On-demand warehouses are typically located near major transportation hubs, which makes it easy and convenient to get your products to and from the warehouse.

4. Scalability – With on-demand warehousing, you can easily scale up or down depending on your needs. This makes it an excellent option for businesses that are growing or downsizing.


On-demand warehousing is an excellent incentive for start-ups with financial limitations but needs a robust foundation.

On the other end of the spectrum, large-scale companies can benefit from on-demand warehousing when their distribution sector needs temporary storage in other cities. This way, they can broaden their reach without investing in a vast space. 

Since Chennai is a rapidly developing industrial city, an on-demand warehousing facility in Chennai would be a feasible option for short-term storage solutions.


1) Which type of warehouse is best?

Answer: It depends on your specific requirement, tenure, scaling, and geographical advantage. After determining these parameters, you can deduce which setup suits you best. But if you specifically need temporary storage, then on-demand warehousing is the most suitable arrangement. 

2) What is good warehousing?

Answer: Good warehousing accounts for features that complement your business needs. These include specific dimensions for a warehouse, energy-efficient features, internal road infrastructure, an apron, a canopy, a proper docking facility, turning radius dimensions, and sustainability. When you define your requirements, you know what you want in a warehouse. However, Grade A quality warehouses are the new standards for efficient spaces. 

3) What are the three benefits of warehousing?

Answer: Although there are several benefits and functions of warehousing, these are the following significant advantages–

  1. Provides built-to-suit storage spaces that cater to your business according to industry requirements. 
  2. Helps in inventory management and keeping track of stocks, restocking, and expired products.
  3. It is the epicentre of all business operations, including the base point for further supply chain and logistics.