The current geopolitical situation continues to have a detrimental impact on the supply chain. A recent McKinsey Global Supply Chain Leader Survey suggests that disruptions in the movement of goods remain the norm, not the exception, for business, with nine in ten respondents saying they have encountered some form of supply chain challenges throughout 2024.[1]
These disruptions can be particularly detrimental for e-commerce businesses during peak season due to increased order volume and fulfilment overload. This has only been exacerbated as the e-commerce landscape continues to shift in response to demand, with peak now starting earlier and lasting longer than ever. According to Baazarvoice, 42 per cent of UK shoppers are buying early to avoid price increases, and a further 34 per cent are starting their Christmas shopping during major sales such as Black Friday and Cyber Monday.[2]
It is now vital to focus on optimising areas of the supply chain that can be controlled to mitigate the impact of these increasing challenges – one of these areas is maximising operational efficiency in the warehouse.
However, independent industrial research commissioned by Southgate Global, a leader in equipment, consumables and servicing solutions for packing and fulfilment operations, shows that more than half of organisations (57 per cent) experience bottlenecks in the warehouse at some stage of their operations.
Companies were asked, ‘How often do you encounter operational bottlenecks around your warehouse operations that you are unclear how to resolve?’. While supply chain issues were frequently noted by participants, the research shows that more complex equipment-related problems were also a commonly cited issue by businesses. Therefore, it is clear that off-the-shelf equipment is no longer overcoming a growing number of operational challenges.
Recognising this, Southgate has invested in its Design Services to work closely with organisations to identify their unique problems and design bespoke solutions to improve efficiency and eliminate bottlenecks. Its specialist team of design engineers and project managers work as collaborative problem solvers, working closely with customers at every step of the process, from initial surveys through to final implementation.
Phil O’Driscoll, Head of Innovation and New Product Development at Southgate, said: “As volatility in the supply chain continues, we’re seeing more organisations coming to Southgate looking for ways to maximise the areas of their business that are still in their control, such as their warehouses. And with equipment-related issues commonly cited as a key bottleneck, it is clear why organisations are turning to bespoke design solutions to help keep goods flowing.
“We see a growing number of customers seek our advice when their current equipment isn’t working to its maximum potential, or they are being faced with new challenges that existing options cannot resolve. Here, our experts can help build solutions that off-the-shelf products cannot fix. This approach means the solution is unique to the business and a key differentiator.
“As peak is now longer and more demanding than ever, identifying innovative ways to meet increasing demand, maximise equipment readiness and facilitate a rapid response in a dynamic and unpredictable global sphere is essential to having a competitive edge.” With decades of experience serving over 3,000 customers in more than 20 countries around the world, Southgate prides itself on its expertise and range of operational packing and fulfilment solutions that support some of the biggest organisations in the key sectors, including 3PL, e-commerce, retail, post & parcel and general manufacturing.
[1] https://www.mckinsey.com/capabilities/operations/our-insights/supply-chain-risk-survey
[2] https://www.bazaarvoice.com/blog/64-of-uk-shoppers-prefer-online-shopping-for-the-holidays/
