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Global brands turn to virtual warehousing

Retailers and brands are choosing virtual warehousing coupled with a strong omni-channel supply chain system to meet the challenge of a constantly evolving product demand. Virtual warehousing allows inventory to be physically housed anywhere – including a distribution center, a temporary facility, or the back room of a store – and distributed on an as needed basis.

With virtual warehousing, a brand’s supply chains work as a network, and this network is then considered for fulfillment. So when an order arrives, the network is consulted, irrespective of where the product is stored, to identify the best possible way to fulfill the order as quickly as possible.

A supply chain is sporadic and can fluctuate at any given time for any given reason. Consumers are fair weather, fickle and their needs can change instantly. What this has meant for suppliers is that some inventory may be critical and in high demand in one geographic area in the supply chain but too expensive and slow moving for stocking in another location. The suppliers that are winning are those that have decentralized their supply chain to meet consumer demand.

With the right omni-channel planning and Enterprise Resource Planning integration, big retailers can segregate inventory, provide transparent financial ownership and tracking, secure inventory availability per channel and even share warehouse shelf space.