Emma Verkaik, Membership & Marketing Director of the BCMPA – The Association for Contract Manufacturing, Packing, Fulfilment & Logistics, has been learning from members how the complex but vital drive for the delivery of the next generation of modern warehousing is being addressed.
Today, the need for ever-improving efficiencies within third-party warehousing facilities reaches beyond mere profitability, flexibility and agility.
Of course, commercial expediencies have always been key to the provision of cost-effective services to brands, retailers and increasingly ecommerce sellers. Indeed, in the current climate of exorbitant energy bills and the shortage of skilled labour resources, the development of highly efficient, more automated, robust and scalable facilities has never been more essential.
However, the huge growth in the dependence of manufacturers and brands on the services of BCMPA members, has further added to the requirements of third-party packing, fulfilment, and logistics suppliers to meet additional challenges, including Environmental, Social, and Governance legislation (ESG), effective returns handling and recovery, quality assurance certifications, stock holding and process digitisation.
To address all these issues, BCMPA members are embedding automation, energy efficiency and flexible storage in their plans for new warehousing from the outset, to ensure that the next generation of capacity is both efficient and sustainability-friendly.
With initiatives that include solar energy and environmentally friendly construction, third-party contractors are establishing low-cost, highly efficient warehousing that delivers the extensive services and strong green credentials that their now customers seek.
Further, within these new facilities, third-party suppliers are providing enhanced IT capabilities that facilitate more effective stock holding and reporting, which also make the processes of more efficient and sustainable product recovery, reworking and repurposing easier. Thus, circularity is made more possible, with brands (in many sectors) able to offer repair and refurbishment services to customers, extending product life and sustainability credentials, by reducing the use of raw materials and associated energy and water consumption, and minimising waste to landfill.
These IT advances, when combined with increased levels of automation, are also seeing contract manufacturing, packing, fulfilment & logistics suppliers navigate the prevalent challenges in labour supply. Again, the integration of automation is forming a core part of third-party suppliers’ strategic planning for new warehousing. This automation provides for greater flexibility and reliability of supply for the ever increasing number of retailers who are engaging in collaborations with third-party packaging and logistics firms.
These collaborations are set to grow, both in terms of volume and contribution to the development of products for retailers, manufacturers and brands, as they see the huge benefits that working with highly skilled and expert suppliers offer in areas as diverse as white label production, alternative sustainable packaging materials, more effective returns systems and forward planning.
Truly, third-party suppliers are now an essential part of brands’, manufacturers’ and retailers’ strategic planning, and their commitment to providing reliable, scalable and cost effective logistics solutions is integral to their operations.
Emma Verkaik
Membership & Marketing Director
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