There are times when warehouses that handle online orders have a peak demand and require extra storage racks to hold more stock.
Extra sales occur at Christmas, but this is not the only peak time. Clothing retailers such as Crew Clothing and Joules sell more when they launch their new seasonal ranges. We are seeing another example right now, as the coronavirus outbreak has caused many people to stock up on food and other essential items.
Increasing capacity by installing extra warehouse racks for the extra stock required is one way to respond to peak periods, but there are others.
Flexible picking strategies
Seasonal demand can increase multi-item orders. For example, when pupils return back to school after the summer break, parents purchase pens, pencils, erasers, notebooks and other equipment their children need. Picking systems need to be flexible enough to deal with both single-item and multi-item orders.
Most of the time, multi-orders are packed and shipped in the same box, but some companies are more concerned with speed and send orders out in more than one box, absorbing the extra shipping costs.
Design for peak demand
Warehouses should be designed to anticipate peak demand, even though this means that during normal demand periods, sections of the warehouse racks may be empty. If there is spare space, order more racks from a warehouse racks manufacturer even if you do not need the capacity now. If there is an unanticipated period of peak demand, the warehouse will then have enough storage space for extra stock.
A UK-based warehouse storage racks manufacturer can rapidly respond to orders for more racks, with in-house metalworkers who can make extra racks and deliver them quickly.
Plan ahead
Warehouse owners need to have plans to scale up their business systems in anticipation of peak demands. Sometimes peak demand is the result of a marketing drive when sales staff have significantly increased the customer base. If items run out of stock because of extra demand, these new customers will be disappointed and leave, so have systems that can deal with sales increases.
Use automation
Automated warehouse management systems can increase efficiency by supporting pickers and packers to efficiently locate items and pack them quickly and securely ready for dispatch. Not every warehouse can afford robots, but logistics management software is a cost-effective way to monitor the flow of goods from when they arrive in the warehouse, are picked and packed, then reach their final destination – the customer’s address.
Have flexible staffing
Peak demand creates a staffing issue. The warehouse may have enough stock and an organised and efficient system for handling orders, but if there is not enough staff, orders won’t get processed quickly enough. As well as employing temporary staff for peak periods, part-time staff may be able to increase their hours temporarily. Administrative staff can be trained in picking and packing in order to help out at busy times. Staff can be trained in ways to make their work better organised and speedier.
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