JIT model puts pressure on warehouse operators

As more and more companies implement the just-in-time inventory model in an effort to improve supply chain efficiency and reduce cost, warehousing has come under severe pressure. According to Kelly Roberts, warehouse manager for PLM Warehousing, requests for specific warehouse requirements have become far more prevalent in recent times. “Clients do not want to stockpile product and the trend of importing as and when you require on a just-intime basis is increasing. This is putting warehousing and logistics under pressure to come up with solutions that support this model to prevent loss in production due to a shortage of product.” Roberts said in this regard management and communication remained central to successful warehouse operations. “Good communication in the warehouse is key to speeding up the process of accessing cargo and containers. Fluid procedures where cargo moves quickly is what is needed for clients who are no longer holding large amounts of inventory.” Also, with delays at South African ports not uncommon, warehouse efficiency has to be optimal. “Delays at the port just place warehouses under additional pressure. We work very closely with the port terminal operators to manage delays and minimise downtime as much as possible,” she said. “Ultimately it all comes down to service levels and as long as these are maintained, rates will remain competitive even with newcomers entering the market all the time.”