‘This warehouse was designed to accommodate business growth for 5 years. It has been operational for 3 years, and I already see little space to walk. We have been hiring temporary godowns for the last 6 months, and it is a struggle to coordinate movements between the two locations’
This is something we hear from many perplexed logistics managers. Across India, many supply chains have gathered inventory, and are expanding into different warehouses in an ad-hoc manner. How is it that a space designed for 5 years becomes full in 3?
The answer (often) lies in the fact that when a warehouse is designed, it is designed assuming perfect systems. The forecasts will be accurate, supplies will be in-time, and warehouse operations will run with clock-work efficiency. Factors like product obsolesce and their piling inventory often escapes people’s mind, as do returns or damaged stocks.
But of course, there is…