As a result of the coronavirus pandemic, global supply chains have been thrown into the spotlight. The major concern was the well-being and safety of employees and contractors along the supply chain. Food warehouse managers have shown their ability to adapt in the face of a global closure after seeing the consequences of the stoppage. Workflow modifications have been implemented in order to preserve safety while dealing with the increased demand for online services.
Food ERP was only accessible to companies who were prepared to put in the effort to use it. As a consequence of this, they were able to respond quickly to market developments and adjust their company strategy when others were forced to follow a different route. By 2021, no industry will be left unaffected. Risk management solutions that are dependent on a company’s capacity to adapt swiftly to changes in the marketplace will assist in defining the new normal in the near future.
The employees will be the primary focus of any warehouse upgrades that take place. As a consequence of the changes in design, the layouts of fulfillment centers have been modified to address growing concerns about social isolation. Additional elements such as floor markings and plexiglass barriers have been included as part of the plan’s implementation to help limit the spread of the virus.
The warehousing business is in desperate need of transformation. Some of these changes may be directly impacted by the pandemic, while others may be influenced by the social and economic changes that have resulted as a result of the disease’s impact.
Warehousing facilities serve as supply chain hubs, where inventory is accumulated to serve as a safety net in the case of unanticipated demand spikes and dips. When the market or the external environment is uncertain, there is a greater need for storage facilities and services to process, pick, pack, and transport goods. Less lean will be used in the future, and more safety stock will be kept on hand. A larger demand for warehouse space will be created as a result of the increased inventory. It’s feasible that Food ERP’s warehouse management capabilities will assist you in managing both larger and more numerous warehouses or that it will assist you in managing both large and many warehouses.
Before the pandemic outbreak, the majority of food warehouse managers had employed lean manufacturing as a best practice. Just-in-time delivery has many benefits, including keeping inventory prices low and making the most of available space. In part due to this lean strategy, numerous companies experienced inventory shortages and, in some cases, were forced to cease production completely when COVID-19 hit. Food ERP is critical for food manufacturers to minimize future stockouts. In light of the possibility that inventory shortages would result in production shutdowns, food ERP will allow warehouse managers to keep larger amounts of buffer stock. The quantity of inventory on hand will increase, but the precise amount will depend on many factors. Produce ERP will play a critical role in anticipating the demand-supply cycle, which will assist food producers in planning for the buffer stock.
According to Forbes, COVID-19 boosted e-commerce growth for four to six years after its implementation. Compared to last year’s same month, internet spending increased by 77% in May 2020, demonstrating that food ERP systems are worth their weight in gold. Historically, electronic commerce has relied on warehouses and delivery hubs, but the current spike in demand has strained many of these facilities. According to the most recent available figures, e-commerce will continue to thrive even if COVID-19 takes a step backward.
The long-term impact of increasing e-commerce orders has had a significant impact on the order profile of the warehouse. A move from selecting cases and pallets for retail locations to putting individual components into boxes will be required for these purchases. The transition from full-case to split-case picking will have a substantial impact on material flow, operations, and storage systems due to the change. A food enterprise resource planning system (ERP) as well as an efficient warehouse management system must thus be established.
As a result of storage consolidation, many benefits accrue to the company, including a reduction in total inventory needs across the supply chain by reducing the quantity of safety (buffer) stock required at each site. External hazards become more likely to be encountered when items are concentrated in a single (or a few) warehouses.
Collectively, these two elements have had a significant impact on warehouse operations across the world. Because of the high labor intensity associated with the food-producing industry, a disease outbreak in packed warehouses is more likely to arise. Enterprise Resource Planning (ERP) in the food business has assisted warehouse owners in developing effective solutions, such as segmenting their workforces and splitting shifts and a variety of other sanitation initiatives. If you’re concerned about the possibility of a Coronavirus pandemic, you may prefer a greater number of smaller warehouses where outbreaks can be isolated and the spread of infection can be minimized.
After coming to grips with COVID-19, there is no longer any sense of security in our lives. In the case of a calamity, food producers are putting in place backup plans for backup plans on top of backup plans. For warehouses and distribution centers to be as adaptable and flexible as possible, they will need a warehouse management system that is coupled with Food ERP. In particular, the focus will be on making optimum use of available space and managing their most major cost – their people resources.