Questions facing a Growing Warehouse…

by Press Release on 2011-06-08 01:24:16

Increasing demand on warehousing and distribution functions are among the key pressure points for businesses. As a business grows and pursues new markets, more pressure will be placed on the warehouse and the staff to perform. Often we see daily tasks associated with a growing warehouse become a lot more complex.

A growing warehouse always places additional pressure on staff. In addition to the extra work load and coping with additional staff coming and going, new technology is often thrust on staff to learn, while at the same time they are expected to maintain efficiencies and drive down costs.

It is common to see the management of manufacturing or importing businesses dragged away from their core function to oversee or help out within the warehouse. This is a symptom of a warehouse in need of change.

Another sign of a growing or stressed warehouse is when space starts to become critically valued.  There are also more hazards in the work place as activity increases and the workable space shrinks.

Outsource ?
Businesses whose core function is not warehousing will come to a point where they need to question if warehousing is distracting them from what they do best.

It’s at this stage decisions need to be made to either review their supply chain, consider reinvesting in more warehousing staff and infrastructure or outsource.
 
Advantages of out-sourcing include avoiding the need to increase a business’s investment in warehousing infrastructure, technology and staffing. Avoiding the need to manage and maintain the rigorous Health & Safety Standards associated with warehousing can also be attractive.

Companies like Hobbs Global Logistics Solutions in Orbit Drive, Albany have been helping business’s who are in growth mode or whose warehousing leases are due for review.   

“We have a 9000sqm warehouse at the airport, combined with specialist warehousing technology and staff, we’re purpose built to take on other companies’ warehousing functions” says Keith Hobbs of from Hobbs Global Logistics Solutions.

“Our clients’ sleep easy knowing their logistics are handled professionally, allowing them to concentrate on tasks that they do best”. says Hobbs.

Or In-source?
In-sourcing or reinvesting in warehousing infrastructure has also been a common trend within
New Zealand companies. Or maybe it’s our Kiwi obsession with real-estate?

Regardless, the main advantage to in-sourcing is that a business has total control and responsibility for the delivery of its product. It maintains all contact points with customers and they can control negotiations with related suppliers like freight companies.

Whatever the reason, in-sourcing is a decision that should be thought through, as there are as many hidden pitfalls as there are advantages to growing your own warehousing operation opposed to outsourcing it. An area to look at carefully at is what technology that you choose to drive your operation.

“A WMS (Warehouse Management System) should be the corner stone of your warehousing operation. Historical usage data is critical to deriving value to you and your customers as this information supports more informed stock reordering and purchasing decisions.” Having a third party holding this data in their business can be risky. So choose your partners wisely” Says Mike McCarthy from eStock (NZ) Limited)

Mike McCarthy
Director - Sales & Service
eStock (NZ) Limited
www.estocknz.com