Supply Chain Shifts

Covid-19 drastically changed just-in-time shipping trends. Shifts in the economy and supply chain have caused major slow-downs in production across the US and the world, making guaranteed shipping impossible.

Just-in-time shipping is so backed up that companies are now stocking products in bulk to continue operating throughout the supply chain unpredictability. This way, their business isn’t left in limbo waiting for vital products when a shipment is pushed out 24 weeks (or more).

Loaded cargo ship

What is Just-in-Time Shipping?

“Just-in-time” shipping is a strategy that states what it is – products ship just in time as needed rather than being warehoused or stored. This approach is known as “lean inventories” since companies keep their warehouses sparse. 

The alternative to just-in-time delivery is stocking or warehousing, which requires a warehouse facility. 

Just-in-time shipping requires close coordination with product suppliers to ensure timely delivery. This whole system proved challenging when the supply chain went awry in 2020. 

Solutions to Delayed Shipping

Cargo truck on mountain road

Warehouse Stocking

The most apparent solution to delayed shipping is stocking. One benefit to stocking in a time like this is its flexibility for continued production despite disruptions to the supply chain. According to this Modern Materials Handling article, people also call inventory stocking “safety stock” or “just-in-case” inventory. 

However simple “stocking” may seem, it entails much more than just putting products in a room. Warehouse relocation or complete redesign is often necessary before a facility is ready to begin stocking products.

Warehouse Relocation

Rising inventory levels are forcing manufacturers and distributors to reconsider their storage options or, in some cases, relocate entirely. The material handling industry has seen a boom of new business opportunities as companies seek warehouse design experts and warehouse relocation services.

Warehouse Layout Design 

We at AK offer invaluable warehouse layout design services to help our customers overcome the just-in-time shipping dilemma. By maximizing their current storage space with pallet rack systems and other warehouse storage solutions, we eliminate the potential of needing to relocate.

Automated Guided Vehicle carries a box

Automation

One of the primary responses has been to invest in warehouse technology and automation. There are all sorts of automated systems designed to increase warehouse capacity and efficiency – and the technology is only advancing. Technologies like Automated Guided Vehicles are becoming more and more common in warehousing today. Automation is a great way to free up more space in an existing facility. 

If you have any questions about just-in-time delivery or require warehouse design to begin stocking products, contact us at 800-722-5908. We look forward to hearing from you!

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About AK Material Handling Systems

We deliver value to our customers by providing the absolute best combination of quality products, helpful customer service and competitive pricing. We specialize in warehouse layout & design, pallet rack systems, engineered sales, mezzaninesmodular offices and completed turn-key warehouse systems. For more information email us or call (800) 722-5908