Many members of the British International Freight Association (BIFA) operate warehousing and logistics facilities which vary considerably in functionality and size.
Some are huge facilities, often situated alongside the country’s major road and rail arteries. Others may be short term storage facilities on trading estates across the UK. All play a crucial role in how BIFA members manage domestic and international supply chains.
Based on anecdotal evidence from our members, they face considerable challenges to the successful operation of their warehouses and distribution centres, although they know that these challenges can be mitigated by using modern technology. They also realise that these initiatives often don’t have to be very expensive or extensive to give a company the upper hand.
Members report that the top challenges, which their warehousing and distribution centres have to hurdle, involve: finding and retaining talent; forecasting demand; inventory management; operational efficiency; item damages; and productivity.
Productivity
Perhaps the biggest challenge involves human capital and retaining staff in an industry where lateral moves are common as workers search for better conditions. As e-commerce grows and more efficiency is expected along the supply chain, it can be difficult to provide a good environment for employees without help from automation. Without automation, the need for human labour only grows.
Inventory
The second biggest challenge probably involves inventory. That is, when it’s received, how it’s stored and how long it takes to ship it back out.
When inventory sits in a warehouse for too long, it loses value and has a higher risk of becoming spoiled or damaged.
Equally, if there is a low turnover rate in a warehouse or DC, inventory management becomes much harder, especially if there’s no digital system in place to track what’s being stored, where it’s located and when it arrived.
BIFA suspects that the challenges faced by both management and employees will decrease as automation increases, with workers becoming more productive and inventory management more efficient.
Environment and sustainability
The ever increasing focus on environment issues and sustainability is shaping the development of BIFA members’ buildings as they seek to reduce emissions and control costs. That includes the increasing installation of solar panels on rooftops offering huge potential for generating clean, affordable solar power, for example.
As I wrote this article, the UK Government made an important announcement that will make it easier for industries to embrace solar power. The 1MW restriction for industrial rooftop solar has been scrapped, meaning businesses won’t have to go through the hassle of getting planning permission for installations exceeding one megawatt. This change will streamline the process and save on costs associated with applying for planning permission.
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