Can you afford rising Warehousing costs?

Can you afford rising Warehousing costs?

With warehouse costs increasing and set to rise further in 2017, a functioning and spacious warehouse has become the new hot property. If your business is lucky enough to secure what little spare warehousing there is left, those still searching will have to contend with chronic shortages as the demand from e-commerce continues to grow.

Kevin Mofid Director of logistics at Savils warned that of 420 million square feet of warehousing space in the UK, there is “very little on the market, and what there is, is going to see its rent increasing”. In 2015 Amazon was utilising 10% of all warehouse demand – this is only set to continue into 2017.

Location, location, location

James Nicholls, architect at Stephen George & Partners commented that whilst warehouse demand still centered around the Midlands, the nature of goods being dispatch is changing which is now being reflected in warehouse design with the call for longer, thinner and taller buildings. Location is of great importance for e-commerce, with some now offering same day delivery, so proximity to good network and distribution links are crucial.

Make the most of what you have

There is lots you can do to release more space in your existing warehousing. These can range from rationalising the stock you hold, having more of your fast moving items and less of what moves slower, to making physical changes to the building’s structure.

A simple inventory check will reveal this and good inventory management is the answer here. An example of when this goes wrong saw a mid-sized consumer goods supplier upon reaching a full warehouse brought in a consultant who revealed that 600 of the 3,000 pallets had not been used for 12 months. It’s time to rationlise and reduce obsolete product.

Perhaps you have the space to add another level such as a mezzanine and have an area of smaller products with spate pick lists. You may be able to use the space over the aisles themselves, creating tunnel racking which can improve load capacity between 5% and 10%.

Store it for FREE – the cheapest option!

At Acopia, we are happy to provide our clients with FREE storage facilities in our secure warehousing, giving you peace of mind that your product is ready whenever you need it. We can get your product wherever it needs to be and you are also more than welcome to collect directly from us.

Talk to us about  our FREE warehousing facilities on 0845 075 6111 today.

 

References:

Tompkins International

The Loadstar

 

 

 

 

 

 

 

 

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