Most businesses start small and gradually grow over time. Unfortunately, many supply-chain departments don’t plan for this and fall into the same trap: sales grow, but intralogistics can’ t match the spike. With consumers demanding immediate results, competitive prices, easy transactions and stress- free returns; production warehouses need to move faster than ever before. Despite leaner supply-chain budgets, its imperative internal operations are flawless, flexible, and financially sound to meet these escalating demands.
Digitisation, globalisation, and rapidly evolving customer expectations and the growing e-commerce are reinforcing the trend towards an outsourcing strategy for intralogistics in many small and medium-sized enterprises. Third-Party Logistics companies (3PLs) that own and need to master their solutions in traditional intralogistics processes can not only offer business customers the latest warehouse technologies, but also need to ensure improved warehousing, including staff recruitment, the procurement of warehouse space, the installation of sustainable warehouse technology, and finally a fast ROI.
A DHL Supply Chain research study found that 48% of companies use a combination of internal and outsourced logistics solutions. Since 3PL companies manage several customers simultaneously, they need reliable solutions that can cover a wide range of customers and goods, but which can also be reused modularly. Only in this way, their business partners can keep sustainable focus on their core business without worrying about all the complex challenges of their supply chain.
3PL’s and large-scale companies that manage all the order fulfilment and order processing, including receiving, processing, delivery, picking and packing, must efficiently execute the combined processes and guarantee the ultimate goal of customer satisfaction! Unfortunately, this is not always the case.
Managing multiple customers makes the entire order fulfilment and order processing even more complex. Products of different sizes must be handled accurately, with 3PL and large-scale companies with their own warehouses, it’s a struggle with the continuously changing e-commerce delivery demands and seasonal spikes. At the same time, there has been an ongoing increase in orders since the pandemic, primarily due to e-commerce sales.
While all these stress points take place behind the scenes, the results are visible to stakeholders and consumers. If your stress buttons are to reach maximum and sustainable growth and financial success is the goal, then it’s time to consider automation, which offers highly adaptable and reusable solutions. Scalable, modular solutions are the safety net to prevent failure. Automation enables businesses to expand their intralogistics as production demands grow. Step by step, warehouses can add and modify, starting small and then expanding when necessary.
Click here to read the latest on warehouse solution Guide for 3PL. As a global leader in intralogistics and a leading supplier of automated storage and retrieval systems we are here to assist. Feel free to contact us direct for more information or visit us at www.kardex-remstar.co.uk
