COMBATING RECENT COST INCREASES
Significant changes have occurred in running warehouse operations over the past year: labour costs and taxes have risen, and many are adjusting to potential supply chain changes of unpredictable tariffs. There will likely be further cost challenges next year when the Employment Rights Bill comes into effect.
Following these changes, a significant proportion of warehouse operations will have experienced at least some drop in operating efficiency or cost increases relative to the original modelling. From the substantial NI increase (particularly affecting part-time staff) to inbound/outbound profiles adjusted to fit new market conditions, it is likely that some changes are needed to restore the cost-to-serve to its previous level.
Recent developments may even have triggered a tipping point at which a more fundamental change, such as a new or additional site location, new WMS, or a level of automation, becomes a viable option.
Making any change, regardless of size, to a warehouse’s layout or SOPs needs to be carefully planned and implemented. Without mapping out the implications of change, the knock-on effects of a missed step in the process can be costly and lead to significant service disruptions.
Davies & Robson Project & Interim Management can assist by providing: -
- Specialised Warehouse Project Managers to support operational change and warehouse optimisation.
- Project planning
- Implementation support
- Team training for a seamless transition to a new layout, shift pattern, or system and to ensure that the change is fully integrated.
If a comprehensive model of layout or capacity is required, our Logistics Consultancy division specialises in warehouse design and process development.
Examples of work and the types of warehouse issues addressed by our project managers' work are available here.
If you are looking to improve performance, reduce costs, or make changes to your warehouse operations, please contact us on (01327) 220862 or at johncashmore@daviesrobson.co.uk to discuss how we can support your change project.