Demand for specialised e-commerce warehousing is growing as the number of online purchasers in South Africa is expected to increase from around 11.7 million to 21.52 million by 2029.According to Statista’s Digital Market Outlook, this growth will be supported by increased Internet penetration, up from the present 76% to around 98% in 2029.For warehouse operators the first challenge is space – due to the diversity of products expected by online shoppers, e-commerce requires up to three times more storage area than traditional warehouse operations. Retailers transitioning from physical shops to online sales will also need around three times more storage space than previously. The e-commerce transition is not confined to retail, with business-to-business volumes also growing. To keep costs down and reduce delivery times, the warehouses must be close to the customer base. This often means having to invest in more expensive real estate. “Customer expectations for faster delivery times are increasing day by day,” writes Aakanksha Gupta, a senior content specialist at Warehouzez.“By choosing warehouses in prime locations, companies can minimise transit times and shipping costs, thus enhancing the overall customer experience. “This shift in location strategies requires careful consideration of factors such as access to distribution networks, proximity to customers, and space availability.”The next requirement is systems. Purchasers expect a seamless experience from the time they place their order to delivery.Warehouse operations must therefore be connected to both the e-commerce platforms of their users and the delivery companies responsible for putting the product in the hands of the client.Real-time inventory management is needed within the warehouse to track stock to prevent stockouts or overstocking.The systems also have to process single orders – coffee machines no longer go out in pallets, but as single units. This system should also connect with the e-commerce platform to inform buyers if delays are expected in delivery due to supply shortages. The bottom line is that delivery needs to be both speedy and accurate.Warehouses will increasingly have to work 24/7/365 to meet customer expectations, because the doors of e-commerce stores are never closed. The complexity of the warehouse operations is seeing retailers partnering with third-party logistics providers. Smaller retailers are making use of on-demand warehouse services, which give customers access to shared warehousing and logistics services on a pay-per-use basis. ER
