An efficient transport, warehousing and distribution network delivers a competitive edge and crucial customer satisfaction. It’s the part of the operation that fulfils the sales contract and the needs of customers. Therefore it must be constantly monitored to keep it lean and streamlined.
Successfully growing your business sometimes means you outstrip your warehouse capacity. Optimising storage and rationalising stockholding is the first step to freeing up space. A new warehouse is the only option once all avenues have been exhausted. Ensure you choose wisely.
Available space inevitably gets used up under normal operating conditions. It’s almost a law of nature, just like Parkinson’s Law (work expands to fill the available time). Opportunistic bulk discount purchases, overstocking, old stock or just inefficiency eats up costly space. Suddenly you cannot add new lines that consumers are demanding. Your stock represents too much capital. Business is constrained by your warehouse capacity but expanding to an additional facility may not be feasible at this point. The only option is to increase storage space by better utilisation of what you have available. Where do you start?
Your warehouse is the central hub of your logistics supply chain. Many of the costs and tasks associated with supply take place in and around the warehouse. Therefore, delays and inefficiencies at the warehouse level invariably have a knock-on effect. A warehouse that is well planned and set out according to the needs of your business is an invaluable asset. Therefore, it is a helpful exercise to consider the use of space in your warehouse and whether a redesign would be beneficial.
Topics: Warehouse Space