Warehousing has undergone resurgence since e-commerce has boomed. Not so long ago, warehouses were frequently languishing part filled, or even empty. Now, warehouses are frequently full to bursting, and it’s difficult to know what to do with a warehouse which doesn’t quite seem fit for purpose any more. Read more
The UK now conducts over a fifth of retail transactions online which is a five-fold increase in the last 10 years and there is no sign, and no obvious reason, why this trend won’t continue to grow. Amazon recognised this 20 years ago but some of our best-known retail brands didn’t.
Consequently, Amazon’s share price is soaring whilst many high-profile retail brands are facing administration. The traditional model of retail on high streets is in rapid decline and e-commerce is where the battleground is now, starting in the warehouse. Read more
The objective of logistics network design is to create a logistics network where the material flow between source and demand points can move as quickly and as efficiently as needed. Of course, logistics is subject to a host of geographical and time constraints and the essence of good logistics network design is to build an optimal ‘path’ around these constraints.
In designing this path, the logistics network designer must consider the three ‘building blocks’ of the network – location strategy, transport strategy, and inventory strategy. Read more
As businesses evolve, customer order patterns change and customer territories expand, it’s not unusual for the distribution requirements of a business to change significantly. Over time, logistics networks often need to be ‘defragmented’, with existing warehouse facilities reconfigured, moved or closed and new facilities commissioned. This could be driven by the need for larger premises, an increased national footprint or the introduction of additional activities to the warehouse such as kitting, sub-assembly or expanded e-commerce sales. Read more
The optimal geographical positioning of a warehouse or distribution centre is the single most important logistics network decision. The positioning of single, or multiple, warehouse facilities and the allocation of customer demand to those facilities will have a long-term impact on transport cost, inventory cost, and service levels. Read more