Page 9 - Logistics News - September - October 2021
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current situation, this is not always possible and is Collaborative partnerships
often not the most effective solution in any case. For To meet the drastic increase in volumes required
an increase or decrease in headcount to be effective, today and in the future, expansion needs to happen
productivity and performance need to be at a level of rapidly. There are many elements to consider outside
at least 95 percent. Therefore, improving productivity of human resources, and the infrastructure needs to
is the first step that any warehousing provider should support efforts to maximise capacity. In addition, as
take – and this includes training, process optimisation volumes increase and resources are under pressure,
and warehouse capacity utilisation. it can become challenging to meet service level
agreements.
If warehouses are too small, and there is too
much stock on hand, work areas will be congested. Transparency and effective planning are critical
On the other hand, if there is not enough stock, – this is not a short-term fix, but a long-term view
then warehouses will not be able to fulfil orders. of where the industry is going and how it can be
Both scenarios result in lost revenue. The key is adapted. The more organised and well-run the
to maximise volume over minimal time. Having a warehousing provider, the greater their likelihood
BPO partner not only ensures that processes are of survival, because agility around rapid market
streamlined, but also that staff are trained to the changes has become a hallmark of success. When
level required to be highly productive. On top of this, BPO providers collaborate with warehousing and
should additional resources be required, the BPO logistics suppliers and communicate effectively, L O GI S T I CS NEWS
provider will assist by scaling their workforce up or the entire process can be strategically planned and
down as demand necessitates. executed for maximum mutual benefit. •
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