Reports of the warehousing sector being at breaking point are quite alarming – but they aren’t shocking. For months now, we’ve understood there are major issues with several components of the supply chain that are going to cause problems.
It’s being called the ‘perfect storm’ as various elements of the supply chain have compacted, leading to displaced shipping containers, reduced shipping container production, increased shipping costs, HGV driver shortages, and now reduced warehouse space and staff shortages. The supply chain has been left creaking at the seams.
A central issue is that many traditional warehouses and fulfilment centres simply don’t have the flexibility to repurpose their space or staff to cope with peak season demand. However, a new breed of software driven fulfilment providers, like Huboo, are increasingly being utilised by retailers as they offer innovative peak season fulfilment solutions to alleviate such warehousing and staffing pressures. Part-fulfilment through third party logistics providers is also an increasingly attractive proposition for retailers as they can rest in the knowledge that storing, picking, packing and delivery is taken care of in a scalable manner.
Both store closures and an increased rise in online shopping during the pandemic has inevitably led to increased demand for warehouse space. Retailers need to think carefully about, and understand, their customers’ behaviour and ensure they are delivering on what they want, in more ways than one.
The trick is to stay nimble. And work with nimble partners. We should expect to see a real shift here, where retailers of all sizes are working with fulfilment operators that have trained warehouse operatives who can act as an extension of their business. It works well as it enables retailers to quickly increase their resource without the time or cost associated with training up staff or acquiring additional warehouse space, which as we know is already at a somewhat prohibitive premium.
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The peak season for online sales is now upon us. The busy last quarter of the year comes with several key dates vital for the success of any eCommerce store during this time. Read on to learn about these global recognised sales events and how best to prepare your store for them. November 11th: Singles’ […]
Huboo will be at The Retail Supply Chain & Logistics Expo at the London ExCeL on the 2nd & 3rd of March. What is the event? As one of the most revered global retail shows, The Retail Supply Chain & Logistics Expo boasts an incredible array of features designed to encourage business opportunities across the […]