How Does Flexible Warehousing Help Retailers Build Resilience?

adam • July 10, 2023

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How Does Flexible Warehousing Help Retailers Build Resilience?

Today, retailers must be acrobatic in their warehousing and delivery strategies to meet changing and growing consumer demand. Flexible warehousing is a valuable tool that can make it easier to deliver valuable inventory when and where consumers want it. Flexible warehousing is also a key first step to building a more resilient supply chain that wins loyalty by delivering desired goods quickly and efficiently.

In 2022, Retailers Learned the Importance of Inventory Management the Hard Way

The last few years have thrown inventory management into complete disarray. From panic over-buying in 2020 to the overactive demand of 2021 and an inventory glut in 2022, retailers are struggling to maintain the proper inventory management system to anticipate and meet demand accurately.

For food retailers looking to meet changing consumer tastes and seasonal trends, flexible warehousing can be a valuable tool that makes it possible to meet demand without overpaying for warehousing and fulfillment.

With the Inventory Crisis Here to Stay, Retailers Innovate

It doesn’t have to be this way. Obviously, consumer demand is variable and always will be. However, when appropriately applied, flexible warehousing can enable innovative businesses to quickly meet increased demand without overpaying.

What is Flexible Warehousing?

Flexible warehousing helps shippers respond to changing demand and market conditions while maintaining a nimbleness that cannot be so easily achieved with traditional warehousing setups. Two types of flexible warehousing can be utilized to make food supply chains more resilient.

The first kind allows shippers to rent warehouse space on short-term contracts. Typically, when shippers pay for warehousing space, they sign contracts that commit to paying for it for several years. This means they have to project their shipping and warehousing needs (and thus, consumer demand) over several years. As we’ve seen, that’s not an exact science, and it means that shippers need to pay for the maximum amount of warehousing space they anticipate they might need. In practice, this can result in empty warehouse space for much of the year and a warehousing crunch during the busiest times. And it can make it difficult for companies to grow sustainably. With flexible warehousing, shippers can rent additional warehouse space on short-term leases during busy times or as their business grows. Shippers using flexible warehousing are not left paying for that space when they don’t need it, nor do they struggle to deliver goods when and where they’re desired.

The second form of flexible warehousing makes it easier for retailers to deliver goods during times of massive volumes. If a business experiences a huge rush of incoming demand that’s entirely beyond its usual capacity, it can use flexible warehousing to help meet that demand. Flexible warehousing services can store goods and fulfill shipments on behalf of a company. This is particularly useful for companies that experience outsized demand for short periods of time, such as a company selling turkeys around Thanksgiving. Since demand is relatively small the rest of the year, they operate a small staff. Rather than scramble to hire additional temporary labor, they can outsource fulfillment to flexible warehousing specialists who can simply and affordably fulfill those orders.

Flexible Warehousing Lets Growth-Minded Food Retailers Think Big

Flexible warehousing is a terrific tool for increasing the on-demand scalability of warehousing, especially for food retailers who may be looking for temporary storage after having secured reefer trucking capacity. With these tools to store and deliver perishable goods more efficiently, food retailers can confidently meet demand without overstocking or overspending on warehousing. They can also reduce food waste through improved inventory management. Since warehouse space can be easily attained, there’s no need to overstock select items in anticipation of future demand. And by making it easier to dispatch orders and keep on-demand items in warehouses, a flexible warehousing plan helps businesses turn inventory into cash more efficiently.

Freight Brokers: The Secret Weapon for Great Inventory Management

When it comes to better inventory and warehouse management, Entourage Freight Solutions (EFS) is the go-to for intelligent, cost-effective solutions. Their team of freight management experts can help companies forecast demand and plan shipping for a flexible warehousing solution that fits their needs. EFS covers everything from FTL to drop trailers, focusing on perishable food items. EFS’s suite of technologies helps them track market capacity and rate trends, and they also make it possible for EFS to meet shipping needs as companies respond quickly to market demand. Make it easy to plan a dynamic, flexible supply chain with EFS.

Flexible Warehousing is Changing Food Retail. Are You Ready?

Flexible warehousing and efficient transportation management boost competitiveness by delivering customers' desired goods at an affordable price point. This dynamism helps companies consistently deliver the goods customers want and build customer loyalty.

In an increasingly uncertain world, flexible warehousing will enable smart companies to keep up with changing demand and production conditions. It will also build resilience for the food retail industry so that we are all better prepared to handle supply chain disruptions like the ones we’ve seen in recent years.

A good freight broker partner can make it possible to build a resilient and efficient flexible warehousing system. With its wide-ranging expertise in food freight and flexible warehousing planning, EFS is the smartest choice for companies looking to build smart, resilient supply chains. Contact EFS today.

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Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.