Planning for demand

A recent forecast from property experts Cushman and Wakefield indicates that the warehousing sector is set for a busy 12 months. The report, published in January 2016, states that demand for warehouse units and food store areas in the UK is likely to increase by six per cent in 2016, with demand largely being driven by the rise of the multi-channel retail environment. 

This is great news, but increased demand in this sector isn’t without its problems. In fact, if you mention the word ‘demand planning’ to any organisation, they are likely to break into a cold sweat. The truth is, many businesses still don’t have a strategy for planning for demand and, for a lot of warehouse managers, demand is not always something that can, in fact, be planned – for example, seasonal demand alone can be highly unpredictable. The life of a warehouse manager is literally one where you can be busy one month, and quiet the next. So, what’s the alternative to demand planning? How can you plan, instead, to be more reactive to demand?

One of the solutions is to consider temporary buildings as a fast and cost-effective answer to fulfil storage needs – and this needn’t be just an interim measure. A temporary building can be installed quickly and be just as durable and effective as a permanent warehouse, with all the same features such as insulation, PVC coating, translucent roofing, etc. As an example, Husqvarna, a UK manufacturer of garden tools, recently approached us with their requirement for additional storage space in order to respond to surging demand from the export market. The extra capacity was needed to store components ready for manufacture in order to complete just-in-time deliveries. Spaciotempo installed a temporary building that met all their requirements, and which went alongside an existing temporary building previously installed, which is still in operation. 

Of course, with any kind of reactive warehouse extension project you also need to consider planning permission – two more words to bring you out in a sweat. Under legislation that came into effect in England on 6 April 2010, the erection, extension or alteration of an industrial building or warehouse is considered to be a permitted development, not requiring an application for planning permission. However, this can be misleading because your project must meet certain criteria regarding height (no more than 5m), curtilage (within 10m) and floor space (no more than 100 square metres.) Ireland has similar restrictions. For this reason, we would always advocate that you obtain planning permission before any extension project. In many cases, we have been able to push this through on behalf of our customers. The good news is that planning permission is quicker and easier to achieve for temporary structures than permanent structures, because of their temporary nature.

Of course, when it comes to reactive demand planning, there are many things you can also do yourself to improve your warehouse processes. Material Handling expert Cisco-Eagle recently revealed that a third of compensation claims in warehouses are caused by musculoskeletal complaints brought about by poor warehouse ergonomics. But poorly thought out ergonomics causes more issues than accidents, they can seriously slow down a logistics operations too. It’s important that the design and lay-out of your temporary warehouse makes the best use of time and energy in order for the warehouse to function at optimum levels of operation. This will also help reduce any potential health and safety risks. When planning your temporary warehouse space, consider the width of your aisles, how high components are going to be stored and how shelving is laid out. For example, are components that are order-picked most frequently stored at the back of the warehouse or at a higher level? In addition, strive to reduce or eliminate floor-level lifting, stretching to reach loads above arm level, and putting people in positions that require excessive bending or stretching over sustained periods of time. Not only will this slow your operation down, but it will also help you maximise space and reduce the risk of injury to your team. This is something that your project management team can discuss with you in the early stages of planning your temporary structure. At Spaciotempo, we are the only temporary building specialist able to offer ‘clear and open span’ in our buildings. This means we do not use snow wires, which can cut across the eave height and minimise height storage, helping you better maximise your space. 

Demand for warehousing and storage is an encouraging sign of supply chain growth in the UK, but brings with it additional issues. Global market expansion and specific regional needs, coupled with the proliferation of products and the changing needs, demands and expectations of consumers makes it more critical than ever for businesses to react to market demand. Demand planning is not just something that you leave to technology and, it’s often impossible to apply a formula. Instead, it’s time to start thinking about reactive demand planning and the quick tasks you can do today in order to grow your business tomorrow.