Retailers considering lower quality warehousing
To build resilience in their supply chains a lot of retailers are being advised to stockpile. “Six
months ago such action would have been a bad idea,” explains Tim Crighton, Partner, Logistics and Retail at Cushman & Wakefield.
In the short term inventory increase is likely to happen until firms understand how they can deal with the effects of the virus on their stock levels. Ultimately Lean will return to the supply chain as retail can’t afford to have too much stock laying around.
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In the end of April the UK Warehouse Association announced the country has around 2-3 weeks of warehouse space available. Companies are forced to stock goods for longer, but the country might be running out of affordable spaces to use.
‘There is pressure on the supply at the moment. Some retailers could opt in for a lower
quality storage space,” Crighton adds. We have seen some landlords decide to be more
flexible and allow shorter term deals to provide the much needed space to retailers.
Read the full analysis by Tim Crighton for free HERE...