Consistently meeting fluctuating demand in logistics
STORAGE , HANDLING & DISTRIBUTION SECURING PROFITABILITY
PRIME VISION
Consistently meeting fluctuating demand in logistics
Growth can ’ t last forever , and current market conditions are making the logistics sector face up to uncertainty . Whether dealing with high , low or wildly fluctuating demand , the question of securing profitability has the same answer : flexibility . With scalable and efficient automation solutions like robots and analytics software from Prime Vision , postal , e-commerce and delivery companies have all the tools they need to seamlessly introduce flexibility into warehouse sorting operations .
The demands of change
The convenience of online shopping and the special circumstances of the pandemic have driven a dramatic growth in demand across the logistics sector . These favourable market conditions are changing though . Rising inflation , high interest rates and cost of living crises in countries such as the UK have consumers scrambling to reduce their spending . A recent survey conducted by McKinsey & Company consultants found that nearly eight in ten consumers across five European countries ( France , Germany , Italy , Spain , and the UK ) would take action to alleviate the ongoing pressure on their incomes . ( 1 ) Among other things , this means less online purchases and deliveries .
Logistics companies can ’ t just downsize to meet these trends though - the situation is more nuanced . Periods of extremely high demand still define the market , especially during Christmas , Black Friday and Cyber Monday . These disproportionate spikes in demand must be met to secure profitability and safeguard
customer satisfaction . Consequently , postal , e-commerce and delivery
Disproportionate spikes in demand must be met to secure profitability and safeguard customer satisfaction .
The clincher for robots in an environment of fluctuating demand is that the fleet can seamlessly expand or contract depending on requirement .
companies need to inject flexibility into their operations to meet wildly fluctuating levels of demand .
Strategies for fluctuating demand
Fluctuating demand puts businesses in a quandary . With uncertainty regarding the future , companies are less inclined to make large investments in new facilities to increase capacity . However , when peak demand arises , it ’ s not as easy as adding more racking and hiring more employees . Existing warehouses usually have space constraints and there is an ongoing labour shortage in the sector .
Another approach is to set up smaller scale , temporary facilities that can pop up to meet peak demand and then shut down or relocate when it drops . However , these sites are very limited in terms of space , providing no room for equipment like conveyors or sortation machines . In fact , static infrastructure is far too costly and problematic for a temporary sorting operation anyway .
Thankfully , there are automation technologies available that allow businesses to introduce scalability , and therefore flexibility , into any warehouse operation .
Scaling with the market There are multiple approaches to scale up and down with demand , but robots are probably the most eye catching . Using onboard guidance
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