How to Ensure Your Warehousing and Logistics Strategy is Recession-Proof
It’s no secret that the next few quarters are looking uncertain for the warehousing and logistics industry, and with the Black Friday peak out the way, many warehouse occupiers are looking towards early 2023 with some unease.
Here we break down the simplest short and long-term strategies to implement in your warehouse to help recession-proof your business in 2023:
On-shoring
While the past thirty years have seen a push towards warehousing off-shore to reduce costs, the supply chain disruption faced by almost all Western companies is forcing reconsideration.
Increasing your UK warehousing space in lower-cost regions will safeguard your supply chain from the bullwhip effect of rapidly altering supply and demand in the coming year.
Consider moving to a UK 'freeport' – this government initiative gives occupiers near the major port cities a whole suite of tax relief measures which are sure to fortify your profits in the coming years.
Sustainability - Think Long-Term
Sustainability is often put on the backburner in times of economic downturn, but the trend towards greener warehousing and logistics will continue indefinitely. Pausing your sustainability drive in the short-term might seem like an attractive prospect, but once the economy picks up again you are sure to be on the back foot compared to your competitors who ringfenced their sustainability projects from austerity cuts.
Customers and clients are placing progressively more emphasis on choosing companies who demonstrate sustainable practices, and with good reason. If you’re due to upsize or downsize your warehouse in the coming year, consider newer properties with a high BREEAM rating. BREEAM have a useful search tool where you can find the assessment score of potential buildings here.
Go Thrift-Shopping
Increasing your current warehousing space might seem like a no-brainer to stabilize prices, but you might not know that mezzanine floors and racking often come onto the market second-hand.
The floors are a fraction of the price of new mezzanine and quickly increase your storage square footage without the associated costs. Now might be a good time to review your pallets too, as recycled plastic pallets have a longer lifespan, are less vulnerable to moisture, and are great for closed-loop inventory control.
Keep up the Automation Drive
The mantra here is the same as with sustainability – if you put off that big automation project because of inflation and recession, once the economy is in growth mode again, you’ll be lagging behind your competitors. Think long-term and keep researching the latest technologies which will improve efficiency in your warehouse and you can begin offsetting some of the increased overheads you’ll be seeing next year.
Logisticomms VideoAudit technology is specifically designed to use your current security systems to increase profits from day one. Co-opt your CCTV to your WMS and instantly view the whole of your stock's journey through the warehouse, from picking through packing and loading. Not only can you instantly disprove claims of non-despatch and mis-picks, you can improve workplace health and safety, reduce inefficiencies and automatically monitor inventory - all vital in 2023. For 3PL and warehouse solutions providers, VideoAudit gives your prospective clients peace of mind from viewing their stock remotely on their mobile device. To discover how VideoAudit will improve commercial returns in your warehouse, email hello@logisticomms.com
Identify Profit Leaks from Reverse Logistics
Reverse logistics are an unavoidable part of any warehousing business, but the associated profit leakage can be minimised.
Many retailers now opt to charge customers for returns and keep tabs on those accounts which often buy more than they intend to keep, or fraudulently claim to have received incorrect items.
Logisticomms VideoAudit technology is designed to reduce the burden of reverse logistics, by seamlessly integrating with existing CCTV and WMS to give you a complete overview of your outbound goods. The footage can be searched by item barcode, consignment number, or even transport numberplate, to instantly disprove claims of mis-picks, mis-packs and non-delivery. To reduce the cost of reverse logistics in the coming year email us at hello@logisticomms.com for your free, no-obligation technology demonstration.