Warehouse management in times of war: changes and challenges
Warehouse management in times of war: changes and challenges
The impact of external factors is again shaking industries, habits, and this time our security. The revolutions of 2004, 2013-14, the heavy snowfalls of 2013, the covid-2019 restrictions in 2020… None of this compares to the current military threat. Forced changes in one way or another affected almost all areas of business, including retail. Significant transformations have also taken place in the processes associated with warehouse management.
We will talk about how to adapt supply chain logistics to today's realities in this article.
Actual problems of warehouse management and logistics
Through all of the above experiences, many of us have been preparing ourselves for new challenges. And this time we were not at a loss - we supported relatives, colleagues, and, of course, our defenders.
At the moment, each of us has a challenge. Dozens of organizations have lost warehouses, hundreds of companies are still having to rebuild their supply chain, and many manufacturers are moving production facilities and helping their employees and their families relocate.
Among the urgent problems that businesses face today, it is worth highlighting:
- loss of storage facilities, in particular the physical destruction of logistics centers;
- limited supply from production - many enterprises have closed or cannot produce or provide the required volume;
- difficulties with the delivery of goods caused by a shortage of gasoline, spare parts, carriers, drivers, and other factors;
- shortage and large rotation of personnel in logistics at all levels of the supply chain;
- changes in prices for basic goods, materials, and raw materials.
In total, according to various estimates, about 400,000 square meters of warehouse space have been destroyed or damaged in the Kyiv region. This is 20% of the entire Kyiv region area. There are also significant losses in other regions of Ukraine.
Let's see what you should pay attention to set up warehouse logistics to work in the new conditions.
Decentralization of commodity flows
Supply chains with a high level of supply centralization have been hit hard. Currently, such networks are taking measures to decentralize commodity flows. All networks have to act according to the situation and pay considerable attention to daily operational issues to maintain operations, and also try to plan the next steps.
System companies manage to respond in a balanced and immediate way to changing working conditions and new external influences. For companies using industrial WMS and TMS solutions, moving a warehouse is not a difficult task. For example, an object with an area of 50 thousand square meters can be moved to a new location in a few days, if there is a suitable room, as well as the availability of the required amount of transport and human resources.
Forecasting solutions and inventory replenishment systems in such cases help to unload facilities and quickly reorganize deliveries to new areas. And with timely preparation, retail outlets may not even feel a shortage of supplies.
In special cases that require the decentralization of supply, restocking systems can be reconfigured to direct supply for a certain region or use exceptions for certain categories of goods, such as dairy products, juices, and mineral waters.
This also includes the systematic management of replacements in product categories of strategically important goods. Such a systematic approach in the current situation makes it possible to plan logistics more accurately and optimize the increased logistics costs.
Welcome to check your logistics business processes: download the checklist 'Warehouse Process Management: WVO' and see where and how improvements can be made.
Purchase of logistics services
In the absence of automated warehouse management systems and employees capable of carrying out changes of this magnitude, the purchase of logistics services may be a possible way out for the company. This step can not only reduce the risks for the company's survival but also help it to ensure the movement of commodity flows for as long as possible.
National and international logistics operators often provide a full package of services. The shortage of warehouse space, especially in Western Ukraine, will change the priority of development companies toward the construction of logistics parks.
But it is worth noting that this approach is most effective when opening new directions, and covering new regions, where the key factor is the speed of entering the market. Also, the purchase of logistics services will be appropriate if there is a lack of professional staff at the initial stage, and in cases of difficulties with the administration of processes.
Use of automated warehouse and distribution center management solutions
The use of automated solutions in intralogistics that can standardize and improve the operation of new warehouses is an important step towards the operational management of both the distribution center as a whole and individual processes within it.
When choosing a warehouse management system, it is important to pay attention to the following features:
- the ability to quickly launch and scale to new facilities;
- availability of solution support in the form of a local team of integrators;
- support for variations in the topology of the object and the possibility of providing logistics services to third parties;
- deployment of the solution both on servers and in the cloud if necessary;
- ability to work with various types of equipment (terminals, scanners, printers);
- support for voice technology and other important processes that minimize errors when performing warehouse operations.
In the current difficult situation, the following key factors for the mobility and success of the logistics business emerge:
- Automation of supply chain management (forecasting and auto-order solutions).
- Security of information flows (cloud storage, service assistance from leading cybersecurity companies).
- Implementation of new technologies using the best world practices (robotization of processes, conveyors, etc.).
- The use of deep analytics at all stages of decision-making (inventory management, choosing a location for a warehouse complex, choosing new methods for selecting goods, and much more, leads to correct operational decisions based on data analysis and modeling).
All these methods can help to optimize warehouse logistics, taking into account the limited human resources, as well as free up funds from the supply chain and direct them to other priority tasks.
C4R's portfolio includes solutions that allow not only high-quality and fast launch of new facilities, but also a prompt reconfiguration of existing ones, adapting them to new realities. The company's specialists are ready to provide advice and share experience in reorganizations, to introduce partners who can provide assistance and necessary assistance in the processes of restoration and optimization of warehouse logistics management. Write to us at [email protected] or fill out the form to order a callback.
Author of the material Vladimir Adamov,
Head of Logistics at Consulting for Retail