Supply Chain Disruption: How it affects you, your business and how we must increase overhead to remain viable.

In a world where every item is wanted right now or yesterday, we continue to see growth in the e-commerce sector. However, the failure we see currently is the constant interruption in the supply chain due to ongoing wars, tariffs and more. We want to discuss this topic further and see what options you have to mitigate these disruptions and reduce overall costs upfront.

Supply Chain Disruption
From what we can see via the market trends, costs continue to rise due to the factors mentioned above. With these constant interruptions we must look at ways to reduce our costs and creative ways to save. Many years ago, we would see warehouses stocked high with goods because it took a while to get items. In recent years that trend began to be reduced heavily as we became complacent on being able to get the goods very quickly for our clients. Sadly, as we see today, more warehouses are going back to the ways of old, simply because we can purchase at a lower cost today and have the merchandise, raw material or whatever it is needed to provide your goods or services.

Although we are seeing this happening, especially in the world of e-commerce, this increases your overhead costs. When that happens, companies start to look at their other high costs and cuts must be made to mitigate. Thus, this sometimes results in layoffs and/or the integration of new automated systems, pick modules, robotics and more software driven systems.

With that being said, one of the most cost-effective ways to increase space is utilizing a pick module (Multi-Level Mezzanine supported by racking). Pick modules, can increase your usable space in the warehouse now, without having to reduce your overall workforce, since this is a very cost-effective way to gain that very much needed area. Next Level, a steel solution manufacture, produces pick modules, mezzanines and more to help you with this. Also, keep in mind that a pick module can be paired up in the future with these automated systems to further increase efficiency.

If you have looked into today’s automation space, you are aware of the upfront costs to go automated. If you are looking to do these optimizations in steps, we recommend you start here with a plan to expand year over year and gradually make your changes to help you mitigate your costs, and grow your business.

Reach out to Next level today for a free consultation on how we can improve your space.

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