WAREHOUSING, HANDLING & STORAGE
T
John Perry, managing director, SCALA he rise of online and mobile shopping, while
without doubt hugely beneficial to the consumer, presents a challenge for businesses.
Namely, the ongoing eCommerce boom has created a need for retailers to expand their
distribution networks; the knock-on effect of which being a substantial spike in demand for warehouse space across the country. Indeed, recent research has shown that demand for warehousing space has almost doubled over the past decade.
This spike in demand means that storage space is now at a premium – a concerning issue only likely to worsen over the coming months, due to external factors such as UK businesses stockpiling goods in order to safeguard themselves against ongoing Brexit uncertainty.
But how can businesses go about managing the upcoming warehousing shortage? Let’s take a closer look at some of the solutions.
CONVERTING EXISTING PROPERTIES Amidst a backdrop of ongoing high street closures over the past few years, headlines announcing a major retailer or retail park undergoing a restructure tend to make for gloomy – and all-too- familiar – reading.
However, at the beginning of the year Ravenside Retail Park in North London bucked this trend when it was announced that the 128,000 square- foot space had been sold by M&G to warehousing company Prologis in a £51.4 million deal. Rather than downsizing, or closing its doors altogether, Ravenside Retail Park has been identified as a potentially-invaluable means of creating warehouse space for the future. While the space will continue to operate as a retail park for the foreseeable future, the long-term purpose of the acquisition – subject to environmental and community interests – is to convert the property into warehouses, allowing retailers and other businesses to better fulfil online orders.
32
There is clearly already appetite for this type of move across the retail and property sectors, with a 2019 survey from Savills finding that the majority of retail landlords are in fact considering ‘repurposing’ their retail property portfolio to better cope with the ongoing volatility being experienced by the sector. Almost a fifth (18 per cent) of retail landlords have already completed a repurposing project, and an additional 75 per cent would consider following suit.
This move points to an opportunity for forward- thinking businesses, that often do not have the capital to invest in building entirely new warehousing facilities, to adapt existing retail properties into storage space, allowing online orders to be fulfilled more efficiently. This investment is likely to be crucial in securing customer loyalty moving forwards, with more than a quarter (27 per cent) of consumers’ purchasing behaviour now influenced by the availability of premium delivery options.
MAXIMISING EFFICIENCIES INSIDE WAREHOUSES
While available storage space continues to shrink, there are also fortunately shorter-term, internal means for businesses to make the most of their existing facilities.
Firstly, companies should audit their current warehousing space to see if there are any
immediate gains that can be made from adjusting the layout. For example, when storing goods of varying size and weight, there is often scope for reducing aisle widths, increasing storage density, and varying beam heights. Automation can also be utilised to varying degrees to further improve warehouse space utilisation, layout and flow. It’s also important to consider verticality when looking for ways to create extra space. While a warehouse might appear ‘full’, spaces located higher up – such as those above dispatch areas,
FEBRUARY 2020 | FA 2020 | FACTORY&HANDL NGSOLUT ONS ORY&HANDLINGSOLI UTIONSI
loading docks and picking areas – can all create additional space if utilised correctly.
Research suggests that – dependent on current rack usage – warehouse space can be increased by as much as 50 per cent by adding decking and adjusting beams throughout the space to suit.
INVESTING IN NEW SPACE FOR THE FUTURE
A number of innovative solutions have also been proposed for solving the warehousing crisis. For instance, Amazon has previously filed a patent for ‘underwater warehouses’, which would store watertight packages under resevoirs, rivers and oceans. However, high-risk solutions such as this, which can lead to substantial financial loss if not successful, are only really feasible for larger businesses that can afford to absorb the costs of these undertakings. Smaller companies, on the other hand, simply do not have the working capital to spare for costly, largely-unproven concepts such as underwater storage.
To this end, it is advisable that businesses invest in developing additional industrial buildings to store their goods. While this solution is longer- term, and will not immediately bear fruit given that many larger warehouses can take around three years to move from the initial consideration stage to being fully-operational, the businesses that put these plans into motion now will be much better- prepared to deal with the fallout of existing space potentially running out a few years down the line. Through working in tandem with government, and exploring all opportunities – both internal and external – to make the most of current storage space available, while building for the future, UK businesses can offset the effects of the upcoming warehouse crisis, ensuring they are prepared for whatever the coming months may bring.
SCALA
http://www.scalagroup.co.uk/
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62
