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Maximising storage efficiency is crucial

08 Nov 2024 - by -
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Ve ssel and port delays are continuing to exert significant pressure on the warehousing and distribution sector, as uncertainty surrounding cargo arrival times leads to inconsistencies in operations. The unpredictability of the booking system at the ports has compounded these challenges, resulting in unreliable timelines for deliveries.This lack of reliability has created a ripple effect, causing delays that disrupt the smooth f low of goods in and out of warehouses. Companies are finding it increasingly difficult to manage inventory levels and fulfil customer orders promptly, leading to operational inefficiencies and heightened frustration among clients.According to Ravi Naicker, acting branch manager for logistics at SA CARGO, the impact of these delays not only affects daily operations but also threatens to undermine the overall efficiency of supply chains, while at the same time increasing cost.Inefficient use of available space is another common issue across many warehouses, leading to a shortage of storage capacity. “Maximising storage efficiency is crucial to ensure we meet the growing demand for warehousing services,” said Naicker.According to the company’s sales manager, Ashen Ramkissoon, there has been a notable shift in client preferences, with more customers opting to consolidate smaller cargo shipments for transport to the hinterland instead of relying on dedicated services as they did previously. This trend is largely driven by cost-saving measures, as consolidation effectively reduces overall logistics expenses.“We’ve also observed an increasing tendency among clients to containerise bulk, breakbulk and vehicles whenever feasible. This shift is primarily attributed to the declining number of bulk, breakbulk and ro-ro vessels calling at South African ports, making containerisation a more reliable and cost-effective option for cargo transport,” he explained. “Moreover, there is a growing emphasis on forecasting, inventory optimisation, and route planning, all of which are becoming increasingly critical for improving efficiency and maintaining competitiveness in the warehousing and logistics sector.”Ramkissoon noted that direct retail importers were increasingly opting to bypass warehousing wherever possible, favouring more direct distribution methods. Additionally, there has been a noticeable rise in inquiries for bonded warehouses for cargo destined for local markets, indicating a shift towards more f lexible storage and customs solutions.“The overall distribution landscape is evolving away from traditional processes, with a stronger focus on technology-driven solutions. These innovations are enhancing both warehousing and transportation capabilities, fostering more collaborative engagement across the supply chain, ultimately driving profitability and operational efficiency.”Both Naicker and Ramkissoon said they foresaw a continued shift in the warehouse and depot sector, largely driven by time and cost pressures. “Direct retail customers are increasingly opting to bypass warehousing altogether, while stock distributor importers are seeking more streamlined all-in-one solutions that minimise time and cost inefficiencies,” said Ramkissoon. “This evolving landscape highlights the need for logistics providers to adapt quickly and innovate to meet the changing demands of the market.” LV

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