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Supply Chain Resiliency: Why Now Is the Time to Invest in Flexible Systems


Ecommerce isn’t going away, and consumer demands are only increasing. Because of this, retailers are facing problems related to rapid market and inventory shifts paired with ongoing shortages of warehouse space. Retailers who want to excel in an increasingly competitive modern eCommerce market and volatile supply chain need to understand these challenges and invest in solutions that will easily scale as their business and the market demands them to.

Warehouse Space Shortage Calls for Optimized Storage & Picking Solutions

Just-in-time inventory management systems were frequently used pre-pandemic by many retailers. As shoppers returned to the aisles, shelves lay baron across the globe. The eCommerce movement quickly boomed, as shoppers raced to get the items they wanted and needed across an environment of supply-chain restrictions within local distances. This rapid change in buyer demands forced many retailers to switch their operations from the just-in-time system to a just-in-case system for fear of lacking buyer’s needs.

Big retailers like Target and Walmart are raising red flags when it comes to inventory. Today the just-in-case model has plagued them with excess stock. Consumers aren’t buying at the same pace as right after doors re-opened amid a slowing pandemic. As recently reported in the Washington Post, big-ticket and trendy items that retailers predicted would sell quickly are now sitting in warehouses where space has become a major concern.

As warehouses overflow, retailers are forced to slash prices, often at a loss, to move items off the shelves. Meanwhile, commercial real estate prices continue to surge while available space remains limited. A move to integrate the right warehouse technology can increase the space in retailer’s warehouses—without additional real estate investment—and still serve the consumer with easy access to inventory.

Companies like Modern Beauty are introducing state-of-the-art technology into their fulfillment processes to condense traditional warehouse aisles into a single vertical storage structure saving huge amounts of space. The solution condenses an average 1M+ square foot warehouse into a single, vertical storage structure that saves upwards of 85%space. By doing this, Modern Beauty and other retailers using this solution can drive revenue while increasing the speed of fulfillment and optimizing increasingly scarce warehouse space.

Why Business Leaders Need to Make Investments in Systems That Create Flexibility

Warehouse system evolution that creates flexibility and scalability is how retailers will meet the needs of the consumer snow. Rather than incremental changes to an already flailing system, an investment into a modern commerce solution results in:

● Reduced warehouse footprint
● Lower operational costs
● Fewer human touch points resulting in higher order accuracy

Inventory needs will continue to fluctuate, and the changes may be hard to predict. Meanwhile, investing in a more resilient supply chain can set your business up for success under any market conditions. Leaders who invest in systems that can create flexibility will see improvements not only in the warehouse but throughout the entire business.Technology is the future of warehouse management and scalable solutions are the answer for businesses that want to stay on top of modern commerce. Now is the right time to make investments in warehouse automation technology that will save both time and space.