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How did Warehouses Perform After the Covid-19 Pandemic? The COVID-19 situation has drastically impacted the business in a bad way. Many companies are completely shut down after the pandemic situation. Some of the businesses have gone out of business. Fortunately, a few businesses are surviving well and are still providing great customer service. One of them is Turn14 Distribution. Warehouses have well survived in this uncertain climate, and flexibility is the key to dealing with it. It makes adjustments to meet customer demand as best it can. In this article, we have mentioned how warehouses worked after the pandemic situation. Have a look: Increased Use of Warehouse Automation After the technological evolution, everything becomes automated. After the COVID-19 pandemic, the warehouses also adopted an automation culture to overcome the losses. Warehouses manage the inventory counts, making space for work in process (WIP). It helps to speed up the order delivery. They also follow social distancing and decentralization. They will turn to automated storage and retrieval systems. It will help to recover the floor space and improve the efficiency of their workforce. Research shows that automated storage and retrieval systems (ASRS) can recover up to 85% of existing floor space in
comparison to standard shelving. Still, the warehouses require something exceptional to meet the post-COVID challenges. ASRS helps the warehouses resolve their labor challenges and handle the random spikes in demand. Keeping More Inventory on Hand
After the pandemic situation, most companies implemented the lean manufacturing concept. They received goods on time when they set the inventory costs down and used the space more efficiently. However, the lean strategy left most of the manufacturers with inventory shortages and, in some cases, caused production to stop completely. Still, the strategy that has proven best to balance between JIT inventory and safety stock will change. To avoid the lack of inventory in the future leading to production shutdowns, manufacturers started to keep the inventory (buffer stock) on hand. Yes, this is true; different factors work for every business, but overall inventory on hand will increase. This will only increase the warehouse capacity and space issues. Most of the warehouses struggled to make space for social distancing. But for on-hand inventory, they will need space to manage this additional inventory. Warehouse Capacity Increase For the pandemic situation, warehouses need to be more capable for tons of reasons. Everything like on-hand increased inventory, more space for social distancing, and increased meeting demand requires more storage capacity. Maybe this additional capacity is spread out in smaller, more local, or reorganized warehouses, but still, the whole capacity of total warehouse space will increase. In addition, warehouse managers use ASRS technologies to increase capacity to keep
more inventories on hand or to plan for the fulfillment of e- commerce orders. The New Importance of Inventory Visibility As per increasing demand for fast delivery, companies reorganize their warehouses (or influence retail stores for
distribution). Inventory visibility plays a vital role throughout the supply chain. The capability to know, in real-time, exactly what inventory is on hand at every warehouse is the key to filling and assigning orders efficiently. Some companies keep full eyes on the inventory in their supply chain. When the warehouses want to reorganize operations, the demand for real-time inventory visibility will increase genuinely. Conclusion The list does not end here, these are some of the strategies that warehouses have adopted to overcome the pandemic situation. Most companies treat their employees like a disposable community, which is not good. We need to consider them. Instead, if you are looking for Turn 14 Parts, you can connect with us for better results. You can select vehicle parts from us based on your needs and preferences.