On our DWM&H blog we talk a lot about different strategies to help improve warehouse logistics. A lot of the time, these approaches involve implementing solutions to help get a leg up on the competition, reduce inefficiency, and take advantage of emerging technologies like artificial intelligence and automation—they are essentially proactive. They come from asking yourself the question: what can I do to get better today? This is a very useful perspective to have when looking to streamline your business and its supply chain; however it can also be important to think reactively as well. What unexpected challenges might come your way in the future, and what can we do to prepare for them?
NEXT WEEK’S FORECAST
Forecasting has been a buzz word in the warehouse industry for a while now, and it is one of the hallmarks of reactive planning. Typically, we talk about forecasting as the use of software to model anticipated changes in supply, demand, price changes, shelf time, etc. When you implement a modern and intuitive suite of software that accurately tracks all of the independent variables at work in your business, forecasting becomes not only predictive but reactive. Today’s logistics algorithms can run future scenarios so that you can better prepare for what is coming down the pike. Look no further than the inflation that is currently taking its toll on the economy. With the right forecasting software, you can ask important questions like: what does 3% inflation do for my customer demand and my overhead costs? You can ask questions like: what does a 4% wage increase for my workers do to my overall budget? Does this type of an increase make automation more feasible? Getting reliable answers to these sorts of questions is vital to future-proofing your business, and there is a lot of untapped potential in this type of reactive forecasting.
CONTINUOUS CHANGE
It is easy to lose sight of the long-term picture when it comes time to implement automated solutions. A new conveyor system or a new set of mobile sorting machines are sexy in the moment, and they certainly can make a huge difference, but we have to remember that change is continuous. The cell phone that you had five years ago is a lot different than the one you have today. It probably needed different charges and cases that you don’t use anymore. When it comes time to implement a new solution in your warehouse, remember your cellphone. Remember that this is not the last upgrade that you will ever do, and that at some point the system you are installing will become outdated and have to be replaced. You don’t want to go through a reorganization of your floor plan to implement a sorting system that will become out-of-date in five years, forcing you to do another reorganization. Our team at DMW&H has a wealth of experience in planning for these unforeseen bottlenecks, and helping you avoid them while still utilizing modern solutions.
SIZE AND SCALE
One of the biggest challenges in future-proofing your business is estimating size and scale. It is difficult to know how delivery and storage systems might change in the future. In recent years we have seen the rise of micro-fulfillment centers, changes in demand for brick-and-mortar stores, and other unexpected trends that have drastically changed the variables of warehousing. At DMW&H, our main goal is to leave our customers with flexibility when it comes to this challenge. Organizing your warehouse so that it is adaptable to these future changes is crucial to rolling with the changes.
