An Introduction to Flexible, On-Demand Warehousing: E-Space

This chapter discusses the reasons why the current 'contract logistics model' is not suitable for today’s fast-moving, adaptive supply chains. The context for the chapter is how the contract logistics industry currently works, before a new model, referred to as E-Space, is introduced. The model is an attempt to redraw the existing ‘contract logistics model’, and implement flexible, fast and agile supply chains which can free up manufacturers and retailers to meet the short lead times that consumers demand. In doing so, the model is designed to re-engineer the supply chain, rather than the current contract logistics approach which generally, in simple terms, is not adaptable. Thus, in order to meet consumer demand supply chains have not completely changed, but rather more inventory has been added in more warehouses, resulting in an ‘explosion of inventory across supply chains’ with products sitting in warehouses, costing money and losing value.