Wigan warehouse poses potential shift in logistics strategy

The recent sale of a 322,000-square-foot Wigan warehouse in the Wheatlea Industrial Estate could signal a shift in the UK logistics industry away from huge warehouses towards smaller, more flexible distribution centres.

The Wigan warehouse, previously linked to the Asda supermarket, has been sold for redevelopment. This is part of a more nationwide trend away from large warehouses. Warehouses are under pressure to enable more efficient deliveries, which can require using more regional distribution centres rather than larger, less well connected hubs.

According to the cargo company CargoForce, many warehouse operators are using outdated logistics systems. They say that over-reliance on single-site warehouses can be inefficient and more costly to run compared to more agile business models. What it suggests is required are more flexible operations with logistics centres closer to customers. A CargoForce representative said:

“The sale of a major site like the 322,000+ sq ft Wheatlea facility in Wigan reflects how quickly UK logistics infrastructure is changing. These assets are being repositioned for higher efficiency, greater automation, and faster distribution capability.”

Spreading inventory across several sites is effective if it reduces the risk of congestion and capacity constraints. The need for long-haul transport is less if the inventory is closer to demand, which means faster and cheaper deliveries.

A good warehouse equipment manufacturer is constantly evolving manual handling and storage equipment designs to increase productivity, but, according to CargoForce, a more agile distribution model is also essential for achieving a competitive advantage, especially in e-commerce companies.

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