In 2022, we have seen the impact of war in Europe on logistics operations and experienced the effects of a disastrous economic budget in the UK. These events will continue to dictate business agendas into 2023 and Eric Carter, Solutions Architect at Indigo Software shares 4 issues that warehouses should be mindful of in 2023.
Be prepared for continuing supply chain uncertainty
It’s likely many of the supply chain issues we’ve come to regard as par for the course will continue and warehouse managers need to adapt their ways of working accordingly. Expect delays at ports, strike action, raw material shortages and more. China, the world’s last major economy still enforcing strict zero-Covid measures, has only recently started to ease back away from these as the dire consequences to the economy that these lockdowns produce is finally being recognised. It’s guaranteed that shortages in some areas will continue and be exacerbated as the winter in the northern hemisphere closes in. New trends like just in case planning and lumpy inventory management will remain as companies hedge their bets and over order on stock to see them through difficult periods. A Warehouse Management System (WMS) will help ensure inventory management is as accurate and efficient as possible, essential when stock levels are running higher than the norm.
Identify ways to reduce the warehouse carbon footprint
ESG reporting is increasingly central to helping companies improve their competitive edge. COP27 may have been regarded as a disappointment in terms of tangible agreement from world leaders about reducing emissions levels, but having a clear green strategy is an absolute must for every business. Companies that prioritise investing in renewables, moving towards net zero and having more sustainable product alternatives, are the ones that will attract the greatest loyalty – from customers, investors and employees. Using a WMS system can make a big contribution to net zero targets in a range of ways. There’s the obvious eliminating paper processes, but also, very importantly, a WMS captures operational data around peak periods and can help to identify ways to reduce energy consumption, helping warehouses run more sustainably and cost efficiently.
Warehouses will need to flex and flow
In 2023, companies will be looking to reduce the traditional reliance on people, speed up the turnaround of incoming goods and make inbound logistics processes much more efficient. When conditions are challenging, we all need to become more flexible and adaptable – warehouses are no exception. Right from the numbers of employees needed at short notice for order fulfilment, to the amount of space required for incoming stocks, warehouses need to be flexible and agile.
In 2023, being agile will mean having the bandwidth and resilience to adapt quickly to sudden changes, respond favourably to emerging trends and have enough buffers in place to cope with negative developments. One of the best ways to maximise flexibility and agility is with a WMS, especially when it comes to staffing levels. Inflation and Brexit have made it more expensive to recruit operatives and this trend will continue in 2023. Hiring in extra labour during busy periods is a sunk cost, whereas once the right technology is in place, the potential operational savings can continue indefinitely. We expect to see increased investment into inbound automation, traditionally a very labour-intensive aspect of warehouse management.
Compact and bijou warehouses
As anyone who has ever had a small bedroom will appreciate, orderliness is the key to managing in a confined space. The same is true of warehouses. One long term trend set to continue is for higher numbers of smaller warehouses, especially in densely populated urban areas. It means companies – especially e-commerce providers – can offer micro-fulfilment services, shorter delivery windows and a generally more responsive service. These offerings will be essential competitive differentiators in 2023 and using a WMS ensures that smaller warehouse footprints are tightly controlled and higher stock volumes can be stored in a smaller space.
We expect a very interesting year in 2023 and invite readers to discuss their warehouse challenges with our team of supply chain consultants. Together we can identify how to improve your warehouse processes and take full advantage of what WMS technology can offer.
INDIGO SOFTWARE
UK: 0191 375 6700
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