Oakland Intermodal Services Company Discusses Trends
In the early phases of online shopping, it was basically brick-and-mortar businesses that felt cheated since their competitors did not have to deal with the costs that came with running a store-front and a warehouse. Online retailers had a simple – but not necessarily easier – route to high profit margins than some of their “B&M” counterparts. Like anything else, that has all changed.
Despite the advantages held by online retailers, disheartening information was reported from the commercial real estate firm CBRE. According to a report compiled by Jeffrey Havsy, the firm’s Americas Chief Economist, it was revealed that by the close of Q2-2016 the availability of retail warehouse space had dropped by almost 8.8% in terms of overall capacity. In addition to being the 25th quarter in a row that retailers have been purchasing up space at a faster rate than the contractors can set up new structures, 37 out of 57 major metropolitan markets reported losses in retail warehouse availability. The reason behind these changes are attributed to an ideal economic environment and shifting trends in distribution logistics. It is now the tendency to have the right products near consumers, and this requires more points of distribution rather than a single one.
The fact is that having the right products in the right place is not as easy as it sounds, particularly when the market is offering fewer and fewer options for retailers in need of such services. This might seem to be a far-fetched theory, but the truth is that brands are doing all they can to increase their profit margins with the dwindling rates of warehouse availability.
Online retail giants like Amazon have taken a technological approach to deal with the issue of fewer and fewer warehousing options. It has managed to roll out a fleet of automated robots throughout its fulfillment centers. Their 30,000 Roomba-like devices were produced by Kiva, which has now become an Amazon property. However, these bots cannot do everything that those charged with warehouse jobs can. Their primary role is to handle tasks that require brute force like moving and aligning shelves. But as you can imagine, this form of innovation is quite expensive and not all retailers have the luxury of huge capital reserves.
We Offer Bay Area Warehousing Services As a Solution
This is one of the main reasons why there is a need for warehousing companies that can offer warehousing, logistics, trucking, and intermodal services. Businesses in general that cannot afford major technological advancements on their own need such services right now. With over 40 years of experience, our Oakland logistics company understands these needs and requirements and can be a solution. For more information on how R&A Trucking can assist you, please contact us today at (510) 632-7112.
