Whether its effects are temporary or permanent is not yet clear but there is no doubt that Covid-19 has had a huge impact on consumer behaviour. E-commerce has grown hugely since the start of lockdown, with some food and restaurant brands taking advantage of the trend by delivering direct to consumers. The rise of e-commerce has made the warehousing and logistics link in the supply chain even more crucial than ever.

This article was first published in the July 1st 2020 issue of Warehouse & Logistics News, subscribe to the magazine by clicking here.

Magic Madhouse, one of the UK’s biggest online retailer of trading cards, board-games and accessories, approached SEC Storage in search of a traditional multi-tier racking and pallet racking solution, to fill a much larger footprint than they currently occupied. Through the use of advanced data analysis tools, SEC was able to show that using standard componentry in a bespoke way; they would be able to provide an innovative storage structure that would simultaneously increase their overall capacity and improve efficiency within a far smaller footprint than initially was thought needed. With close to 100,000 stock keeping units (SKUs) in the warehouse, the key to the solution was offering a balance between the level of selectivity and the need to handle other aspects of the range such as board games and larger items which are dispatched more quickly. The SEC solution provided both the physical storage volume required, plus 100% selectivity for every SKU.

WMS provider SnapFulfil has introduced a new multiple billing software which aims to give 3PL firms detail, accuracy and clarity. The software allows users to set different rates for quantities shipped and then charge accordingly, which gives greater economies of scale.

Different options exist for warehouse owners who are running out of storage space and don’t want to build an entire new warehouse or raise the roof of their existing one. The evolution of MHE means storage aisle widths can be reduced by up to 50% by using VNA trucks and articulated forklifts. Many owners choose to install a mezzanine floor. If the mezzanine floor takes up less than half of the overall floor area, it may not require planning permission or need to be fire-rated.

It is highly likely that automation will play a greater role in storage. As e-commerce grows, so too does the volume of returns. Reverse logistics will be critical in sending the returned items back into storage as speedily and systematically as possible. Some considerations before investing in automation are the costs and the inflexibility. One option for warehouse operators is to go to a consultancy to help them navigate through the numerous equipment offerings on the market.

Another way to tackle the perennial problem of not enough storage space is to share facilities with 3PL companies. This saves building an extension to a warehouse and saves operators committing to long term leases. However, if there is room on the site it may be worth considering temporary buildings. A number of temporary buildings are available. They are quick to install and planning permission is not likely to cause a lengthy delay.

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