Within warehouse functions, people typically account for over 50% of operating costs. Unchecked, the planned increase in NI will have a direct impact on profitability, particularly where margins are tight. The challenge therefore is how to mitigate these additional costs by improving productivity
The good news is that recent technological developments have reduced the cost of automation and mechanisation. In addition, a range of more tactical solutions are now available and suitable for conventional warehouses. Avoiding major disruption on implementation and reducing the high capital cost and longer RoI of full automation.
Technology aside, a tweak to a process in a supply chain or physical operation can often yield double–digit percentage savings. Particularly when many of the key volume, product profile, and delivery metrics may have shifted since the current setup was designed (or grew organically).
Whilst big savings are usually available somewhere in an operation, the key is obviously identifying them - then implementing them and bedding them in. And all without disrupting service in the process.
At Davies & Robson our Project & Interim Managers have significant experience and demonstrable track records of identifying tactical efficiency improvements across the supply chain; working with teams to deliver change. From presenting implementation plans to the board to providing leadership on new processes to the operational team, an experienced logistics interim manager is an invaluable resource for delivering changes whilst maintaining service levels.
Our consultancy team are specialists at modelling optimum layouts, systems, automation and logistics networks. For more significant reviews of supply chain operations and warehouse facilities they provide full operational overviews and scenario development for longer term business plans.
If the recent increases in labour costs have prompted you to seek further efficiencies in your supply chain, please contact us using the details below.
Or look at our case studies* for examples of how we may be able to support improvements in your supply chain operations.
