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Companies that provide on-demand warehousing in the form of short-term contracts have experienced an uptick in demand as a result of the pandemic, which industry analysts say is explained by supply chains looking for agility and flexibility in their operations. Still, some question the value and say traditional 3PLs provide better long-term partners.
Figures provided by Flexe show its enterprise users the retailers and companies that use the warehouse network grew 128% year over year in 2020. Its operator network grew 50% YoY to reach more than 1,500 locations across North America.
Flexe Chief Technology Officer Dave Glick said retailers have gotten a front-row seat to supply chain volatility over the last year. One way they ve sought resiliency is to increase the amount of inventory on hand, Glick said.