In February 2020 online retail spending accounted for 19.7% of all retail spending. In January 2022 that percentage had risen to 27.1%. * This is a growth of 37.5%.
Customers demand rapid delivery of their purchases and so this is driving the necessity to automate the logistics industry.
So why can’t the logistics world get automated?
*Statistics from the Office for National Statistics
The problematic issues
- May 2021 saw the shortage of micro-chips start to bite world-wide with major firms having to cut production. Big names including Ford, General Motors and Jaguar Land Rover, Nintendo and Samsung have had to cut production and lay off workforces. The net result is a huge backlog of orders for micro-chips **
** The Economist
- Covid reduced workforces in three ways:
Foreign nationals returned to their home countries and haven’t returned
People fell ill
People continue to fall ill
- Whilst there is an increased demand for an online shopping service the workforce is reduced and under pressure.
- The automation industry can’t move quickly to automate the logistics process because of the global shortage of micro-chips.
- The companies that install automation processes and machinery are hamstrung by shortages of stock and a reduced workforce.
- Automation will happen but estimates of a 3-year waiting time have been aired.
So, what do you do, and who can you call if you are wanting to automate your business?
The Logistics Improvement Group have a history of over 40 years of successfully helping logistics companies move forward and can help you prepare for automation.
Automation – the steps needed to be taken.
Before any automation can be installed there are several steps that need to be taken that will take time:
- Business Transformation – the Planning stage
Business Transformation requires data gathering, analysis, financial assessments and calculations before the ultimate project outcomes and costs can be put to the Board for approval.
- The Building stage
Very often transformation will mean locating a suitable site and designing a purpose built facility. This will mean the recruitment of new staff and management as well as the planning for the location of new machinery and equipment.
- Managing the whole Process
The process of transformation needs to be managed independently, allowing the company to continue working as normal. This management process will be agreed with the Board at every stage. The LiG team will ensure that milestones are agreed and reached and the whole project brought in on time and within budget.
- Outsourcing and tender management
Part of the process will inevitably involve an element of outsourcing and tender management. LiG can handle this on the behalf of the company so that they are only involved in the final stages, thereby saving time and money.
There is a lot of work and time needed before any actual automation can begin.
So, while the automation companies play catch-up, LiG can make sure that all the ground work has been done and you are ready for when the automation can be installed.
We are always happy to help.