It looks like we all might experience a very different Christmas this year with all the COVID-19 uncertainty, however, Christmas is by no means cancelled. It is predicted that e-commerce sales are expected to increase 19% compared to 2019 sales, reaching £78.9bn. Meaning warehouse storage for e-commerce businesses could be pushed to the limits.
85% of retailers think that online sales will increase this holiday season compared to last, 55% of retailers said they are investing more in e-commerce website upgrades this holiday season compared to last year.
All of this is leading to some very serious concerns about the additional pressure that warehouse storage will be under during the festive period. We must remember that COVID has affected everything we know as ‘normal’. Consumers visiting stores directly this year just is not going happen – not to the levels we would expect. Warehouses are going be responsible for ensuring they meet consumer expectations and get packages out accurately and on time. With these predicted increases warehouses could potentially see:
- Excess stock levels
- Lack of space
- Low traceability and connectivity
- Excess procedures
- Incorrect time management
- Inaccurate inventory and outfitting
- Delays in the gathering process
- Issues with staff health (COVID-19 and the usual common winter illnesses that keep people away from work)
There are plenty of solutions to combat your warehouse storage solutions and improve logistics within your warehouse;
Mezzanine floor
Assuming you have the capacity to ‘build up’ a mezzanine floor is a storage solution win! It allows you to hold more stock, add offices and additional work or packing areas. Mezzanine floors can be single, two or three-tier depending on the space you have above and can be aesthetically pleasing as well as a cost effective solution – as it saves the expense of a warehouse relocation.
Warehouse shelving
Another obvious solution for your warehouse storage requirements – there are various types of shelving solutions, to ensure the right option is installed, you will need to understand what your product profile is and how you need to pick and access it. Working with STS on your project means we will advise of the best shelving solution for you.
Pallet Racking
Each racking solution has its own set of benefits but ultimately they will increase capacity by taking up less space, there is the possibility to extend racking solutions as your business grows, so the busier you get the more product you can store. Racking solutions for warehouse storage come in various forms, depending on your product requirements.
Conveyor Systems
Allow for safe movement of goods through your warehouse – products can be safely moved from the upper floors using spiral / gravity chutes / goods lifts Automated processes can be built into the system, such as weight checking, box sealing, etc, all of this can improve the efficiency of your warehouse
We also cannot forget that warehouses are struggling with the additional pressure of social distancing. Many operations are not up to full capacity, meaning that many businesses have to create more cost-effective, efficient solutions whilst maintaining a safe and healthy working environment for their employees and manage the uplift in e-commerce sales.
Bearing all of this in mind, businesses relying on warehouse storage should be looking at cloud based warehouse management systems which will allow them to reconfigure and process any changes, allowing the business to achieve the most efficient fulfilment operation. A cloud based warehouse management system will also eliminate time consuming paper based processes giving employees more time and flexibility to streamline processes meaning dispatch and returns can be dealt with efficiently and effectively and can be tracked from start to finish. E-commerce businesses in the UK see an increase in returns in January typically costing them £60 billion a year, which can account for up to 10% of the business, so an efficient returns management system is essential.
If you have not invested in a warehouse management system yet and you are finding that your operation is not running as effectively as it should, now is the time to start your research into finding a solution that is suitable for your operation.
We have touched on automation and warehouse management systems in a previous blog
If you would like to discuss any of the warehouse storage solutions in this blog please contact us here