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ENWe Are Looking For A Warehouse But We Can’t Find One
Nowadays, just as people looking for a rental house say “we can’t find a house”, I hear producers and/or sellers complaining “we are looking for a warehouse but there is no warehouse”, “we are looking for a warehouse but we can’t find a warehouse” due to the breaks in the supply chain due to Covid 19, the development of e-commerce and even the effect of inflation.
Demand (Need) for Storage Space Increases
With the disruptions in the supply chain due to Covid 19, the development of e-commerce and even the impact of inflation, producers and/or sellers are increasingly complaining that “we are looking for a warehouse but there is no warehouse”, “we are looking for a warehouse but we cannot find a warehouse”.
The pandemic and post-pandemic supply chain issues have revealed that the center of gravity for supply should be closer to consumption. Turkey is the right country to be the supply chain country, especially in Europe. In this case, the need for storage space will be much higher in Turkey. Turkey is a NearShore country for European countries.
Another factor that will increase the need for storage space is the faster-than-expected development and growth of e-commerce. Along with the volume of e-commerce, both the number of users and the number of companies/businesses selling through e-commerce are increasing. According to the E-Commerce Information Platform data, the e-commerce volume of 136 billion TL, the number of orders of 1.3 billion and the number of enterprises of 68,457 in 2019 increased to 800 billion TL, 4.8 billion orders and 548,688 enterprises in 2022. Approximately 50% of the number of orders consists of products that need storage space. Millions of cargoes are delivered to homes/offices every day.
Insufficient Storage Space Supply
According to the internationally accepted storage area per capita m2 , there should be at least 40 million m2 of storage space in Turkey today, while the total storage space in Turkey can be estimated at 20-25 million m2 as of today, including factories, wholesalers, retailers, importers and logistics companies, in addition to the storage areas of logistics companies, of which 12 million m2 (all in Istanbul and Kocaeli provinces) can be measured. In the next 5 years, 25 million m2 of additional storage space will be needed.
Taking the UK, Germany, USA and Europe-wide “storage area per capita (m2/person)” data as an example, as of today, Turkey should have 40-60 million m2 of storage space and 35-40 million m3 of “temperature controlled” storage space if the GCCA Global Cold Storage Capacity Report is taken as a reference. In parallel with the population growth, 500,000 m2 and 1,000,000 m2 storage space should be added every year for Turkey in general and 105,000 m2 – 400,000 m2 storage space should be added every year for Istanbul for example.
According to reports from international commercial real estate specialists in logistics, such as Savills, Prologis and CBRE, for every €1 Billion worth of manufacturing investment, an additional 18,000 M2 of warehousing space may be required, 3 times more warehousing space for e-commerce than for regular retail, and approximately 116,000 M2 of warehousing space for every $1 Billion of e-commerce sales growth.
No Storage and the Need for Storage Space is Growing Rapidly
Both “no storage” and the need for “storage space” are increasing rapidly. So, are the storage areas not sufficient so that this problem is experienced and if not, what is the solution to this problem?
Unfortunately, not only in Turkey but also globally, the supply of storage space for logistics companies (3PLs) is not sufficient to meet the need and demand for storage.
The first solution that comes to mind may be the classical method, i.e. the construction of new warehouses, but this solution requires a large amount of investment and may take at least 5-10 years to realize and implement, or instead of this classical method, more radical, different and even immediately applicable solutions should be deployed and used. These solutions could be “on demand storage” offered by DepOrtak and Gray Storage solutions developed by DepOrtak that can be implemented today.
When the warehouses reach 85-90% occupancy, they actually go into a hidden “full” status. However, if demands can be managed in real-time and location-based, hundreds of thousands and even millions of m2 of storage space can be created from these empty spaces in a short time with Gray Storage. Thus, complaints such as “I am looking for a warehouse but there is no warehouse, I cannot find a warehouse” can be completely eliminated.
Finding a Warehouse is Easy with DepOrtak
Today, both physical challenges (lack of storage space) and cost concerns and changing customer demands (short delivery times) necessitate a sharing economy for storage space and the gray storage that will enable it.
The on demand storage solution offered by DepOrtak and the “Gray Storage” concept developed by DepOrtak create a complete sharing economy environment.
DepOrtak, which sets out with the vision of “There is a suitable storage space for everyone”, enables access to a large number of 3PL Storage Areas and Gray Storage Areas in different geographies within seconds, reviewing them within minutes and selecting the most suitable one for the joint use of existing storage areas such as warehouse or temperature-controlled warehouse and open land.
DepOrtak is the simplest, easiest, most effortless, fastest and most transparent way to search, review, compare and choose the most suitable storage space and storage-related services thanks to its location-based, real-time, smart filtering and smart booking technologies and artificial intelligence supported special algorithm that accurately matches those who need storage space for their products and those who need customers for storage space, and provides access to a large number of storage space alternatives without quantity or time limitations, for example, to store a product that takes up 1 M3 of space for 1 day.
DepCommon eliminates the cost and reduces the time required to find, inspect, compare and select the most suitable storage space from traditional methods to seconds instead of days or weeks.
On-demand storage solution, which is offered with the technology infrastructure and algorithms developed by DepOrtak, enables the utilization of vacant spaces by matching those who need storage space for their products (goods) and those who need storage space for their products (goods) in the storage areas of logistics companies and Gray Storage areas that will remain idle (will remain idle) or unusable for a certain period of time; to find storage space at the time, time, location, size and characteristics needed and to make the supply chain flexible.
With DepOrtak, a company can store its urgent storage space needs for 1,500 pallets in 1,500 different locations for as long as it needs (ignoring the transportation operation) and all steps related to these can be managed end-to-end, or it can store one parcel or pallet for only one day in multiple warehouses or temperature control warehouses or open land in any geography (location).
With the shared use of storage areas, those who need storage space can gain flexibility and use the storage areas with the desired characteristics at any time, in any place, at any time, for the desired amount of time, at low cost.
DepOrtak technology, which enables the formation of a digital storage network by connecting storage areas in a digital environment, supports the realization of the targets set within the scope of the Green Deal, which was adopted to protect the environment and reduce global warming, by managing and evaluating the empty spaces in the storage areas within this digital network live and in real time from a single center.
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