Published February 23, 2023
As e-commerce sales and the frequency of disruptions continue to grow, so does the warehouse automation market, with research firm Interact Analysis forecasting a 19% compound annual growth rate (CAGR) between 2024 and 2027. While automation can help combat many supply chain challenges, including space and labor shortages, equipment is just one component of a company’s logistics operations. With so many moving parts, developing and implementing a successful warehouse design is a daunting task. While some companies may be tempted to choose a partner based on upfront investment, a poorly designed warehouse can end up costing millions of dollars down the road. Below are five ways a full-service supply chain consulting and implementation firm can increase the value and ROI of your warehouse design project.
Supply Chain Consulting Firms Provide Strategy Planning
Unlike equipment vendors, supply chain consulting and implementation firms go beyond the four walls to ensure your warehouse operations align with your overall business strategy now and into the future. This vital planning stage enables supply chain consultants to design a flexible solution capable of supporting your current and future operational needs while also contributing to your long-term business success.
Supply Chain Consulting Firms Provide Unbiased, Holistic Approaches
Supply chain consultants aren’t in the business of selling automation. While equipment vendors will develop a warehouse design based on the material handling systems they offer, supply chain consultants are focused on what works best for your entire logistics strategy. Their unbiased approach takes a holistic view of your warehouse operations—processes, people and technology—to identify areas for improvement and create an optimal design for your unique requirements.
Supply Chain Consulting Firms Have The Expertise
Since their focus goes beyond just systems, supply chain consulting firms possess a depth of knowledge and real-world experience across many different industries, companies and applications. This wide-ranging design and implementation expertise enables them to accurately assess a client’s current operations and determine best practices to deliver projects that improve performance and achieve the desired ROI.
They Can Get Better Pricing
When working with an equipment vendor or distributor, you are beholden to their specific systems. Selecting the wrong equipment can not only cost companies millions of dollars in extra capital investment, but also decrease cost savings and revenue through lost efficiency and productivity. In addition to their end-to-end expertise, supply chain consulting and implementation firms can help companies navigate the large equipment market and get the best price on systems based on their longstanding relationships with a wide variety of vendors. This allows supply chain consultants to create a custom solution tailored to each company’s unique needs at the best possible cost.
They Provide Single Sources of Responsibility
Warehouse design and implementation is a complex project with many moving parts and is most successful when one party is responsible for the complete process. By working with an end-to-end consulting and implementation firm, companies have a dedicated team and single source of accountability throughout the entire project, from initial planning and design to implementation and lifetime support. This ensures the project is completed within the expected timeline and budget without interruption to ongoing supply chain operations. In addition to owning the entire process, full-service supply chain partners also utilize a comprehensive warehouse execution system (WES) that integrates all equipment and processes, further reducing risk and ensuring a seamless implementation from start to finish.
For nearly 50 years, Tompkins Solutions has helped hundreds of companies transform their warehouse operations and create successful supply chain strategies. Contact us today to learn how can help you design and implement an optimal distribution center.