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The Warehouse Environment is Changing

The five Vs are also having an impact on organisations’ warehousing strategies – from location and number of sites, to size, layout and configuration.

  • Location strategies are being driven by the need for closer proximity to customers to meet expectations for shrinking delivery windows, whilst simultaneously reducing  transport costs.
  • Increasingly, the trend for facility footprints are almost  half bulk warehousing, while a quarter consist of smaller warehouses, followed by cross-docking operations and refrigerated facilities.
  • While warehousing real estate costs varying enormously from region to region, companies are carefully evaluating their operations based on transportation costs and links, as well as throughput and storage capacity needs, access   to labour (permanent and seasonal) and an  increased  focus on sustainability.
  • Different warehouse spaces demand new thinking – with the proliferation of mezzanine floors and ever higher  racks, as well as more materials handling equipment such as forklift trucks.
  • Rising delivery volumes creates more vehicles, making efficient yard management vitally Whether goods are inbound or outbound, the efficient movement of trailers is essential to business performance.
  • The rapid and dynamic nature of the industry is forcing many organisations to limit their  business  planning  to  2-3 year horizons, meaning that any investments in warehousing technology must provide a payback with months, not years.

Empowering employees with the right tools to handle increases in throughput and order complexity and navigate the changing warehouse space will enable organisations to operate efficiently and meet challenging KPIs.

Read More:- The Warehouse Manager’s Guide to Improving Efficiency