'Automation not the only answer'

When it comes to warehousing, it’s
not about the latest technology but
rather what works for your company.
“Good warehousing does not mean
it has to be fully automated and
fitted with the latest technology,”
says Martin Bailey, managing
director of Industrial Logistic
Systems (ILS).
“In fact there have been instances
where we have seen automation
take away from the bottom line.
Not all the systems work and so it is
important to install what does work
rather than just having the latest
technology available.”
At the same time it is essential to
get the basics right and to ensure
the warehousing component is part
and parcel of the company’s supply
chain strategy.
Bailey advises companies to
look carefully at their long-term
business strategy before investing in
warehouse operations.
“What you need out of your
business is an essential question to
answer. It is only when you know
where you are heading that you can
determine exactly what you will need
to achieve that goal.”
Industry is increasingly
recognising the key role that
warehousing plays in the supply
chain, according to Bailey.
“Warehouses are no longer
just areas to store goods. A good
warehouse gives a company a
competitive advantage,” he says.
And it’s all about investing not
only in the correct infrastructure and
systems but also people to manage
and operate warehouses.
“South Africa’s warehousing
environment is a typical mix of
the developed and still developing
worlds. We have spots that are still
very much just a roof for goods,
but on the other hand we have
some warehouses in the country
that are right there with the best in
the world. In some cases we have
warehouses that are leading the field
globally,” he says.
“But that does not necessarily
mean the warehouse needs to be
fitted with all the bells and whistles."