Not all members of the British International Freight Association (BIFA) operate warehousing, and the scale of operations for those that do varies considerably.
Nonetheless, says Steve Parker, Director General of the trade association for UK freight forwarders and logistics companies, many of the issues that need to be addressed are common whether their operation is large or small.
Warehousing and logistics management is constantly evolving and addressing all of the issues in just a few words is quite a challenge. As we near the end of Q1 2023, here is a snapshot of some of the trends.
For several years, labour shortages have been a big concern for BIFA members that operate logistics warehousing and it does not look like that will be resolved anytime soon.
Naturally, a rise in the cost of labour accompanies the shortage. Faced with rising costs, operators of warehouses must be creative to be considered an attractive employer and we are seeing the integration of autonomous mobile robots (AMRs) to help attract, train and retain employees, and improve productivity.
Various forms of robotics have been used in warehouses for several years now, and the adoption rate is accelerating. AMRs help by reducing unnecessary walking, increasing fulfilment speed, and enabling staff to get more done in less time.
Consumer expectations are driving a trend toward inventory with a larger number of SKUs. In addition, the pandemic-induced supply chain disruptions are causing a shift from a just-in-time model to just-in-case operations. With shifting consumer behaviours and more SKUs on hand, there is a greater need for flexible and configurable fulfilment solutions that support mixed picking methods.
Millennials born between 1981 and 1996 are rising into leadership positions and having grown up with the internet and smartphones, they have different expectations than their predecessors. In addition to more work-life balance, this new generation of leaders wants more purposeful work, which can be provided through increased automation of the fulfilment process.
The emergence of E-commerce sales and the associated higher order volumes, expedited shipping and less hands on the floor, means operations need help getting orders out the warehouse door. At the same time BIFA members are finding that the reverse logistics associated with E-commerce can be a complicated process.
Over the last few years, risk management in warehouse operations has risen in prominence and sees BIFA members taking preemptive action to minimise disruption to operations such as delays, product damage, and threats to employee safety.
As we approach Q2 2023, versatility and risk mitigation will be top of mind for warehouse managers.
Comments are closed.