Strategically Manage Excess Inventories with Flexe Inventory Surplus Markets

Retailers and brands face an inventory crisis

In 2021 and early 2022, retailers and brands increased inventory levels to meet consumer demand and mitigate shipping challenges. Some retailers saw inventory levels expand as much as 43%. Now, economic uncertainty, excess inventory, congested ports and tight industrial capacity create a new set of challenges.

After slow summer sales, many retailers and brands hold inventory longer or find other strategies to offload goods. Many retailers face weaker holiday sales as consumers say they plan to spend slightly less this holiday season as they struggle with higher prices and economic uncertainty.

Retailers and brands struggle to right-size inventories with vacancies at all-time lows

Excess inventories require additional—often unforecasted—storage solutions. The challenge: Industrial storage space is at a record low. Rent rates continue to spike. Warehouse capacity contracted again in August, with the industrial vacancy rate dipping to 2.9%. Costs lept to $9.40 per square foot—a 3% increase over Q1 2022. And vacancy rates dropped to 0.6% in some port markets.

Leading retailers and brands recognize traditional supply chains can’t adapt to market demands quickly or flexibly. Navigating inventory surpluses requires both speed and flexibility.

Beat inventory challenges with Flexe Inventory Surplus Markets

Leading organizations overcome the capacity crisis with Flexe Inventory Surplus Markets. Retailers and brands leverage Inventory Surplus Markets to store surplus inventories near port markets—and save up to 57% on storage fees. No term commitments. No fixed costs.

Karl Siebrecht, Co-Founder and CEO at Flexe, explains: “The biggest opportunity for retailers and brand manufacturers is moving surplus inventory to lower cost capacity and labor markets. We found that customers can save up to 57% in warehousing costs in Inventory Surplus Markets—all without long-term commitments.”

Flexe leverages warehousing capacity in port-adjacent markets on the East and West Coast, with higher vacancy rates and flexible terms. Inventory Surplus Markets allow retailers and brands to position inventory closer to its final destination. Shorter transportation lanes reduce costs.

Flexe Inventory Surplus Markets transition inventory from:

• Los Angeles / Long Beach to Inland CA
• New York / New Jersey to Central PA
• Savannah / Charleston to Atlanta / Charlotte

Los Angeles / Long Beach to Inland CA

With 34% of the national import volume the Los Angeles / Long Beach market has a 0.6% warehouse vacancy rate. The Inland CA Flexe Inventory Surplus Market has 3.9% warehouse vacancy and cost savings up to 57%.

New York / New Jersey to Central PA

To navigate logistics disruptions shippers pivoted imports to the East Coast. Now vacancy rates hover at 0.7% in New York/New Jersey. The Central PA Flexe Inventory Surplus Market has 3.5% vacancy and cost savings up to 57%.

Savannah / Charleston to Atlanta / Charlotte

Southeastern ports provide gateways for peak season imports. With the Savannah vacancy rate at 0.7% and Charleston vacancy rate at 0.5%, import surges overwhelm warehouses.

The Atlanta / Charlotte Flexe Inventory Surplus Market provides cost-effective capacity closer to major metros than the overloaded ports of Savannah and Charleston.

In Action: National manufacturer stores excess inventory in Inventory Surplus Market

A leading national manufacturer struggled with a glut of inventory in port-side containers. They needed dynamic capacity for 3-6 months—fast. The solution: Flexe Inventory Surplus Markets.

Flexe worked with the manufacturer to secure cost-effective capacity, move inventory to the Inventory Surplus Market and facilitate the first outbound shipment in just 10 days. Speed and flexibility means the manufacturer gets lower operating costs and meets its distribution goals.

Time is running out: How Flexe Inventory Surplus Markets bridge the gap

Even with warehouse capacity at record lows and inventories at record highs, leading retailers and brands access urgent capacity and expand distribution and fulfillment networks.

Flexe Inventory Surplus Markets utilize North America’s largest warehouse network through a single integration. With Flexe Inventory Surplus Markets, organizations reduce risk, preserve capital and avoid long-term leases.

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