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.
As another week draws to a close and we take one step closer to being able to enjoy our favourite hospitality spots without a raincoat or umbrella, we dive into the world of logistics and eCommerce to find the top industry stories from this week. Martin meets Business Leader To kick things off, earlier this […]
Sustainable Solutions We love to be able to offer our clients access to a range of sustainable services, from specialist marketing to custom packaging, and delivery. This is why we’re fortunate enough to have a range of sustainable e-commerce sellers that use Huboo. For more information on any of the partners mentioned below, email [email protected] […]
5 years ago, I (Alex) started up a digital marketing agency aimed at growing small businesses using digital tools & online platforms. At this time, I was following a plant-based diet with a strong passion for environmentalism, and was keen about doing things in a way that would leave a positive impact on our planet. A […]