- Posted on
- Becky
How was your warehouse this Black Friday? Are you dreading the Christmas rush? Most warehouses feel the strain of peaks but instead of getting overwhelmed, now is the time to make a change with some planning to help you manage seasonal demand in warehousing.
There are ways to reduce the impact and ensure your business remains profitable when the orders flood in. With our reliable storage solutions, we can ensure that your systems run smoothly – even when running at peak capacity!
What are seasonal demand fluctuations?
Throughout most of the year, it can be easy to predict product demand and implement accurate inventory planning. However, seasonal demand covers the busy periods in the warehouse when buying habits change due to external events. Most typically they happen during holiday seasons for example when customers are looking to order more such as presents at Christmas. But, it can also cover seasonal events when the consumer is looking to buy more such as items for their annual holiday.
During these periods inventory levels usually run higher with product demand potentially requiring different stock profiles. To run the warehouse successfully you need to implement careful planning to mete the surge in demand.
Why does seasonal demand in warehousing cause problems
the main problem is, the need to meet product demand fluctuations. Even though your warehouse can manage capacity for approximately 75% of the year, the other 25% suddenly requires solutions that can meet customer demand and xxx.
The main problem for warehouse owners trying to meet seasonal demand fluctuations, is the ability and flexibility to respond quickly. With customer demand buying earlier for large events such as Christmas, the additional stock requirements and need to hold excess inventory while also increasing pick speeds can place a great strain on the supply chain and the warehouse.
If your warehouse isn’t working at full capacity, here are some of the key areas to consider changing:
1. Warehouse Management – Designed For Speed
The Problem:
At busy times of the year, the key thing you need to unlock is faster picking methods. After all, get your stock from point A to point B in the quickest and safest way possible and it means the order will be despatched Just In Time.
Stock isn’t getting over to the picking and packing area as quickly as you need which is causing delays in getting orders out of the door – the last thing you need is disappointed customers. Even worse, your employees are complaining they can’t locate storage locations to pick the stock or it’s difficult to unload and movement between the zones in your warehouse is limited.
The Solution:
You need to create harmony and a smooth operation in the warehouse to reduce potential bottlenecks, maximise efficiencies and meet the increase in demand. Achieve this by ensuring movement between the different areas is seamless by implementing a racking design that aids the process. Adopt a logical approach – when stock arrives it moves quickly to the correct position for storing. When needed it will be seamlessly picked and moved to the packing area before leaving, on time, for the customer.
2. Flexible Storage Systems to Meet Market Trends
The problem:
In any warehouse, flexibility has to be the name of the game when it comes to your racking equipment. The design of your storage equipment must have the ability to grow with your business and maximise the potential of your warehouse space.
Your warehouse is full and there is no room to stock more goods but, as seasonal demand for items grows, your storage capacity is limiting the stock levels you can hold. Ideally, you want to avoid the heavy investment of moving premises with extra storage costs, especially with space unused during off-peak season operations. There is also the concern of what happens if there is supply chain disruption.
The solution:
Get your racking systems to drive efficiencies in your warehouse with a solution that matches your processes but also incorporates the flexibility to meet market trends and hold excess inventory when required. Work with warehouse storage experts like Teepee who will design a system that enables adaptability such as adjustable shelving, modular solutions or mezzanine flooring to optimise the available space. Different racking systems can also maximise the footprint of your floor such as Very Narrow Aisle (VNA) racking which utilises the height of your warehouse or Double Deep Racking which offers high-density storage by allowing you to create a depth of two pallets that sit back-to-back.
3. Faster Picking Times During Seasonal Peaks
The Problem:
Speed is the name of the game during warehouse peak season operations. The faster you get stock out the door, the more orders you can send and the bigger your profit. To meet expectations of timely deliveries and increase sales opportunities, your picking speeds need a boost, cut down on errors and prepare for seasonal planning.
The design of your racking is enhancing the throughput stock and orders are flowing through your warehouse but you still can’t seem to increase picking times. During normal periods, this isn’t a problem but during peaks with seasonal products, it’s quickly creating issues.
The solution:
The first thing you can do is to go digital with your stock control with inventory management software. You may already have a Warehouse Management System (WMS) in place but does the current system need a review? Can it deliver accurate forecasting and real-time stock inventory to meet fluctuations in demand patterns and eliminate wastage with excess stock?
The second step is automation. As the popularity of these systems increases, prices have been driven down. Even adding in only a few automated systems can quickly provide a large increase in pick time. Last but not least, see if your choice of racking can improve the situation. For example, push-back racking places the pallets on gravity tracks to enable high-density storage locations for several SKUs without needing to move large quantities of pallets to gain access
4. Staff Training
The Problem:
Prepare your team for working in areas with racking and it can provide multiple benefits. Not only will it keep them safe and provide them with the knowledge on how to look after the racking but they will also feel confident in working around the storage equipment.
The problem is, your team on the warehouse floor don’t understand the complexities of working around racking. They haven’t been shown how to read a load notice sign or how to place or remove stock from the racks. This can very quickly lead to damage which, in a busy warehouse when product demand is high, it can be a big problem (see Looking After Your Racking section below).
The solution:
Give your team the confidence they need to work safely in areas with racking and they’ll have the skills to work more efficiently. To achieve this, send them on a training course with experts within the racking industry. Ideally, you want to work with a company that designs and supplies storage equipment that will have a greater understanding of how these systems work and how to use them correctly. For example, our Racking Safety and Awareness Course will equip your employees with the tools they need to recognise damage on racking, correct loading methods and safe operating procedures.
5. Look after your racking
The problem:
Damaged racking is a disaster when the peak season operations periods hit. Ignoring even small damage on your racking is not an option and will likely lead to more serious issues. Getting damaged racking repaired will ultimately reduce order efficiency but throw in the busiest periods of the year and additional cost gains usually made at this time of year will instead slip away.
When you racking becomes damaged it can mean the whole bay being put out of action. But here’s the problem, your warehouse is at peak demand and you don’t have time to get someone in to repair it or consider how to work around a team fixing your racking.
The solution:
Take a proactive approach. This means implementing a regular inspection process with daily inspections by employees who work around the racking – our training can help prepare them for this task. Next, you need to appoint a member of your team to undertake the role of Person Responsible for Racking Safety (PRRS). Their job is to conduct regular, weekly visual inspections and maintain a written record of their findings to ensure your company is meeting Health & Safety Executive (HSE) requirements.
Finally, make sure you book a visit with one of our approved inspectors for your Expert inspection. Conducted at least once a year, the Expert inspection can only be conducted by a qualified inspector. Get one of our inspectors in and they will identify any problems and then provide actionable solutions to keep your warehouse racking safe and compliant with regulations.
Do you need help with strategic planning for seasonal sales?
If you’re ready to take your warehouse to the next level and get in shape for the peak season in 2025, now’s the time to implement an effective strategy that will help you to meet seasonal trends. Why not contact us and let’s have a chat about what problems your warehouse is facing and how we can help you meet product demand? With over 30 years of experience within the industry, we’re confident that we can find a solution to improve productivity in your warehouse.