Flexe has warehousing capacity “at your fingertips”, with storage rates more profitable and often closer to the customer
Six of the top ten retailers and four of the top five consumer packaged goods companies work with Flexe
Seattle, Washington – (September 29, 2022) – Today flexiblethe leader in programmatic logistics, announced Flexe Surplus Inventory Markets. Now, retailers and brands can immediately reposition and store excess inventory in flexible, cost-effective home markets through a unique integration with the Flexe technology platform.
Supply chain bottlenecks, increased manufacturing levels, inflation and reduced consumer demand have generated billions in canceled retail orders. Unsurprisingly, these record inventory levels combined with high rental rates squeezed operating margins.
Representing 65% of national imports, warehouse demand is concentrated near the congested ports of Los Angeles/Long Beach, New York/Newark, Charleston and Savannah. As a result, these warehouse markets have average vacancy rates of 0.60% versus 2.9% nationally, as well as high rents. Asking rents in Los Angeles/Long Beach, for example, rose more than 35% year-over-year to average $17.53 per square foot versus $9.40 per square foot nationally, according to CBRE.
“Storing inventory in primary markets has never been more difficult and expensive,” said Karl Siebrecht, co-founder and CEO of Flexe. “Retailers and brands now have the ability to move excess inventory to lower cost capacity and labor markets within weeks. We have found that this flexibility and speed allows customers to significantly reduce warehouse costs . »
Markets for Flexe Surplus Inventory – Central Valley, CA (Bakersfield, Fresno and Stockton); Central PA (Lehigh Valley, Harrisburg); Charlotte, North Carolina; Rock Hill, South Carolina; and Atlanta, GA – have significantly higher vacancy rates and lower costs with flexible terms. For example, a 40ft container of palletized goods costs approximately $561 to store per month in Los Angeles/Long Beach. However, based on recent Flexe pricing data, storing these pallets costs around $367 per month in Central Valley, CA.
Surplus inventory marketplaces allow retailers and brands to position inventory closer to its final destination. Flexe works with corporate customers to optimize temporary and ongoing warehousing needs, take advantage of low spot market rates, and move inventory from constrained port areas like Charleston or Savannah to Flexe facilities in Charlotte or Atlanta.
“Every brand has struggled with unpredictability in recent years. First, a rapid shift to e-commerce, followed by a healthy stocking of retail shelves. Now brands face a new challenge: to stock excess inventory,” said Michael O’Donnell, President and CEO of Inland Star Distribution Centers, a Flexe warehouse partner with facilities in several excess inventory markets. “With Flexe, we are rapidly launching new capacity programs managing excess inventory, seamlessly mix and route merchandise to fulfillment centers, stores, or even fulfill e-commerce orders”
To access the capacity of the Flexe Inventory Surplus Market, visit flexe.com.
Flexe solves the toughest omnichannel logistics challenges for the world’s biggest retailers and brands. The integration of technology, open logistics networks and elastic business models enable Flexe customers to move quickly, at scale and with precision. Founded in 2013 and headquartered in Seattle, Flexe brings deep logistics expertise and enterprise-grade technology to deliver innovative e-commerce fulfillment, retail distribution and network capacity programs to the Fortune 500. For more information, please visit www.flexe.com.
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