2020 will be a challenging year for warehousing and distribution according to Willie Nel, managing director of ZacPak. Soaring fuel prices, the fate of the looming e-toll system and higher labour costs are some of the issues affecting the market. “There is increased pressure on satisfying market demands while maintaining profitability and sustainability,” he said. “Customer demands have shifted, and instant gratification sells products and services. This will mean that distribution channels will need to be tweaked to ensure the quickest, safest and most transparent service available to meet this new level of customer demand.” Practically this means that an efficient network will require its warehouse space to be optimised with an above-the-norm stock rotation and a constant focus on speed and accuracy. Whilst there will always be a need for warehousing and effective distribution channels, the challenge going into the new decade will be to embrace what technology can do. “The focus will shift to integrating data and information exchange. Our customers all have different in-house and outsourced operators that run on different systems. The key to solving the supply chain segmentation is to consolidate these processes, rather than let them function in silos,” explained Nel. “It is with this in mind that systems integration will be a priority.” Omni-channel logistics, he said, was another development to keep track of. “It seeks to synchronise inventory and logistics – all functions of a distribution channel across all revenue channels to meet customer demands. The allimportant cost-to serve metric is increasingly forcing role players within the logistics chain to develop these complex omnichannel solutions.” He said there was an increasing demand for realtime freight visibility solutions. “One of the major challenges, both for start-up and major enterprises, is poor visibility when the inventory is already in transit.” According to Nel, effective warehouse management systems (WMS) are crucial to have a clear understanding of inventory status. “Without a firm foundation in inventory management, understanding supply versus demand becomes problematic,” he said. “Companies that do omnichannel the right way use inventory visibility as an accurate forecast of future demand and plan their supply chain activities accordingly.”
INSERT: Omni-channel logistics seeks to synchronise inventory and logistics. – Willie Nel
