Is flexible warehousing the answer to preventing warehouse shortages?

Throughout 2020, supply chains have faced unprecedented challenges, due at least in part to the COVID-19 pandemic and the uncertainty surrounding the UK's exit from the European Union. With importing and exporting at an all time high, it’s perhaps unsurprising that the UK’s warehouse industry is feeling the pressure.  

Shortage of warehouse space is at an all time high and this year the industry has seen consumer and business behaviour change more than ever before. The market trends that have been accelerated by the pandemic have continued to support the surge in demand throughout the remainder of the year, and this huge uptake has meant that the existing supplies of warehouse space are rapidly running out. And whilst the uptake has increased greatly throughout this period, it’s anticipated that this may be a longer-term issue.

A report undertaken by IBISWorld suggests that upwards of 45% of industry experts believe that consumer buying behaviour has changed permanently, with a further 38% believing that the purchases too have switched focus. The report goes on to predict the expected growth of the industry over the next five years, with industry revenue projected to grow at a compound annual rate of 1.8% to £19.6 billion. It’s therefore highly plausible that the positive uptake in units that has been prevalent this year will continue to rise, with a solution required to ensure that the supply chain can keep up. 

What’s clear is that communication and visibility need to be at the core of the supply chain in order to succeed. Despite strain on logistics, such limitations should not be held accountable for effecting the overall experience of a business. Retailers, suppliers and carriers alike must look to their communication channels to ensure complete visibility throughout this period to avoid the potential complications that come with attempting to meet a surge in demand. 

Flexible warehousing allows businesses to scale flexibly and cost-effectively by using a third-party logistics provider. Being able to control the space you have access to ensures unused warehouse space is not wasted; the entire supply chain can benefit from this if done efficiently. By storing stock across various regional warehouses, completion and delivery times can be reduced, and overall pressure spread across locations. 

Suppliers and retailers alike need to assess if their existing end-to-end solutions support the increases in volume that the 'new normal' has allowed for. If this year has shown anything, it’s that the ability to be flexible and agile within all aspects of the supply chain is key. By using digital interventions, businesses are able to invest in the next generation of supply chain control towers, which in turn will provide stronger visibility, can optimise delivery networks, support inventory, improve cost-to-serve and ultimately support service levels across entire supply chains to maximise the process.

Richard Tucker, vice president of sales at Trident Worldwide, comments: “Globally industries are experiencing unprecedented changes in customer behaviour due to COVID-19 and this is creating a huge impact on the supply chain. Flexible warehousing allows suppliers and warehouse owners alike to manage shortages in warehouse space efficiently whilst ensuring that businesses have the resilience to adapt to customer’s buying trends.

“Here at Trident Worldwide, we are transforming the flexible warehousing concept by providing warehouses with the best cloud-based WMS platforms to help them automate and optimise their operations. This system will open up flexible warehousing potential for all, with businesses no longer restricted due to complicated WMS integrations or limitations and overall simplifying their supply chain process.”

Trident Worldwide adds that, for many organisations, the ‘new normal’ will require flexible warehousing, market leading technology and continuous innovation, collaboration and visibility to deliver the all-important customer promise. Only with this changes will we see the new-age of warehousing and logistics. Visit: https://www.trident-ww.com/