Let us look at how consumer demand has led to warehouse collaboration. We talk a lot about ever-changing consumer buying habits, but for good reason, they have a huge impact on the warehousing industry.
The demands being faced by businesses mean we require smarter warehousing solutions to fulfil demand. The current ongoing economic pressure is creating customers who are seeking speedy delivery, excellent service AND are extremely cost-conscious, meaning warehouse managers are having to make difficult decisions.
With consumer needs in mind, solutions to such demands have been created, for example; single parcel home delivery, click-and-collect and same day delivery options have meant organisations have had to opt for smaller regional and shared distribution centres. The increase in sharing resources across the logistics industry is helping to drive economies of scale, to promote sustainability and have a positive impact on the bottom line. This comes with it’s own challenges, to identify efficiencies and maximise value in these processes, making assets, both owned and shared work as hard as possible.
Warehouse collaboration is nothing new, third party logistics companies have been offering collaborative spaces in warehouses for a while, but the process has been mainly reliant on relationships with providers and points of contact, rather than a desire to maximise storage potential. Finding warehouse collaboration space is now easier than ever, there are online platforms which have been developed where you can search for available storage space across the UK, arrange transportation to and from the warehouse site and add additional third party logistics services all under one company. For online platforms to be effective they need to offer a complete storage solution – meaning the stress is taken away from the company looking for space via warehouse collaboration.
The demand is real and continuous changes in buying behaviour across a number of industries, from retail to manufacturing, means modern supply chains require flexibility. These shared spaces provide rapid, flexible access to an increased geographic footprint, spatial options to meet fluctuating demand, access to leading-edge technology and the most obvious, cost management through the sharing of overheads and operational costs associated with facilities.
As the landscape of UK production changes on both a domestic and international level, it is crucial for the logistics sector to work together to create a collaborative culture where all involved will benefit.
An example of an organisation effectively undertaking warehouse collaboration space is Walmart’s Project Gigaton. This initiative by Walmart is working to take out a gigaton (one billion metric tons) of greenhouse gases from the global value chain by 2030. By creating the program and rewarding suppliers that make progress, Walmart is improving operations and sustainability throughout the supply chain. It’s strategic collaboration at its best.
Companies do not have to be the size of Walmart to create powerful partnerships, improve efficiencies and help the environment. Every company of any size can work together. It is just a matter of finding the right partners.
