'Just-in-time' trend places warehouses under pressure

Warehousing has come under severe pressure as companies increasingly implement the ‘ just-in-time’ inventory model in an effort to improve supply chain efficiency and reduce costs. “Requests for specific warehouse requirements have become far more prevalent. Clients do not want to stockpile products so the trend of importing as and when they require stock on a ‘ just-in-time’ basis is increasing,” said Kelly Roberts, warehouse manager for Project Logistics Management (PLM) Warehousing. She said this placed warehousing and logistics operators under pressure to provide solutions that supported this model in order to prevent loss of production due to a shortage of product. Roberts said for this reason 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 or containers. Fluent procedure, where cargo moves quickly, is what is needed for clients who are no longer holding large amounts of inventory.” Furthermore, with delays at South African ports, 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,” said Roberts. “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.” She told FTW that the abnormal cargo market in warehousing was increasing steadily. “We have positioned ourselves to accommodate this aspect of the business. Our relationship with logistics operators such as Project Logistics Management and Nakati Holdings has required us to become proficient in the handling of abnormal and project cargo.” INSERT & CAPTION Requests for specific warehouse requirements have become far more prevalent. – Kelly Roberts