Use case: Wholesale merchant to manage significant volume increase

A German importer of fitness equipment is facing significant growth rates. Warehouse capacity does not fit the anticipated volume. In addition peak season is imminent. He has three options:

  • Lease of additional warehouse capacity
  • Contract a logistics company to hold warehouse and handling capacity
  • Find flexible short-term warehouse capacity through the Log-hub marketplace

The company decides to find flexible space with Log-hub. A lease contract would create significant upfront cost. Due to unknown future space requirement, lease would result in future idle space or shortage. A typical contract with a logistics provider would include a fixed volume commitment creating higher costs.

By entering into a temporary contract via Log-hub with pay-per-use, the wholesaler realizes significant savings, turns fixed into variable cost, remains flexible and can adjust space volume immediately to future capacity requirements.

Use case: B2C E-Commerce company to manage market entry

A US-based garment retail company is planning market entry in Germany. Market research is ongoing. Growth perspective is to establish 10-15 stores within 3 years. To manage supply chain there are three options:

  • Lease their own warehouse
  • Contract a logistics provider
  • Find flexible short-term warehouse capacity through the Log-hub marketplace

Precise future volumes are unknown so far and the locations of the stores will be determined based on the results of the pop-up store phase. Therefore, a solid basis to lease warehouse space does not exist so far. Furthermore the company does not want to contract a single logistics provider for the time being.

The company decides to book flexible short-term space with Log-hub. Starting with flexible space in Cologne for the provision of 3 pop-up stores in Berlin, Düsseldorf and Munich the company chooses a flexible and lean warehouse set-up. After final definition of the number and the location of stores, warehouse capacity will be complemented with flexible space provided through the Log-hub marketplace.

Use case: Tier 1 Automotive supplier to manage conversion of production

Due to a considerable orderbook an Automotive supplier plans to modernize the production in his site in Nordrhein-Westfalen. A 2-month halt in production must be managed. Therefore, the supplier plans with an increased production during the 4 months prior to the production halt. In addition, the production in the site in Sachsen shall be increased during the 2-month production halt. Own warehouse capacity is not sufficient. There are strict delivery obligations in place with the OEM’s, and any delivery delays must be avoided.

To manage the conversion there are two options:

  • Short-term lease of additional warehouse capacity
  • Find flexible space through the Log-hub marketplace

The short-term lease of a warehouse would cause significant cost upfront and would mean paying for more space than required.

The company decides to book 2 flexible spaces with Log-hub: 4000 places for pallets and lattice boxes for 4 months and additional 2000 pallet places for 3 months. The company remains flexible, saves cost and can react immediately to conversion delays and changes in customer demand.