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The Challenge
A Mumbai-based 3PL company handling FMCG and consumer electronics clients lost over ₹12 lakh in billable business during the Diwali season of 2023. Their warehouse reached full capacity in the second week of September — nearly three weeks before the peak inbound rush from clients. With no overflow arrangement in place, the ops team had to turn away two mid-size clients who needed temporary storage for festival season stock. One of those clients moved the business to a competitor. The operations director's post-mortem identified the root cause clearly: the company had no pre-arranged overflow buffer, and the cost of finding emergency space at the last minute was prohibitive.
What We Did
In 2024, the 3PL approached SafeStorage in August and set up a pre-booked overflow arrangement — 3,000 cubic feet reserved from October 1 through January 31. When client overflow came in from the third week of September, it went directly to SafeStorage. Goods were GPS-tracked on inbound and outbound, barcoded at induction, and accessible within 24 hours. The 3PL's ops team had access to live digital stock levels for every client's goods stored in the overflow bay. The arrangement was structured as a client-wise sub-account — each client's stock was trackable separately, making monthly billing reconciliation simple. The 3PL charged their clients ₹6 per cubic foot per month — a 50–100% markup on the SafeStorage rate, turning the overflow arrangement into a direct revenue line rather than a cost.
The Result
The 3PL accepted every client overflow request during the 2024 peak season — none were turned away. The overflow arrangement generated net positive revenue after SafeStorage costs. The operations director noted that having the space pre-booked changed the commercial conversation with clients: instead of saying "we might not have space," the team could say "we have overflow capacity available at ₹6/cft." One of the clients who had gone elsewhere in 2023 returned in 2024, citing the 3PL's new ability to guarantee space as the deciding factor. The total value of business accommodated through the SafeStorage overflow arrangement in the four-month peak period exceeded ₹18 lakh.
"In 2023 we turned away business because we had no overflow plan. In 2024 we pre-booked SafeStorage in August and didn't turn away a single client. We charged a markup on the space and made money from it. The entire arrangement paid for itself before the end of October."
— Operations Director, Mumbai 3PL Company