The 5 challenges that companies face when redesigning the logistics operations of their warehouses

For some years now, driven by the rise of new technologies and increasingly demanding customers, logistics operations have taken on a central role within companies. As advisors with more than 50 years of experience globally – and more than 30 in the region – we can say that rarely have we witnessed a transformation scenario as significant as the current one.

This growing visibility into the strategic value of logistics in the supply chain has encouraged many leaders to rethink their processes, infrastructure, resources, and ways of serving both internal and external customers from their warehouses.

Today, the market has stopped thinking of logistics as a satellite function, limited to the entry and exit of boxes, to give it the place in the scene that it really has: a key link to achieve customer satisfaction and, consequently, influence their repurchase decision.

In this context, companies face multiple challenges when embarking on projects to redesign their warehouses and make them more efficient.

From our experience, these are the 5 most frequent and decisive challenges. Proper management of each of them is key to reducing the uncertainty that can sometimes slow down initiatives and compromise the success of projects

1. Moving from perception based on experience to the precise datum of reality: Where are we today? What is our real situation?

Answering these questions objectively is not easy. It involves a detailed analysis of historical data and field surveys. Moving away from averages to focus on actual preparation profiles, assortment analysis, location mapping within the warehouse, and breakout reports, among others, is key to avoiding a biased diagnosis.

2. Identify opportunities that generate significant impact: Where do we start with all the opportunities we have? ?

Change the picking method? Adding endowment? Expand the docks? Implement a Warehouse Management System? All together? These are some of the frequently asked questions that come up in meetings with clients undertaking optimization projects.

Without a doubt, all opportunities deserve to be studied and, ideally, taken care of. In a context where resources are limited, the ability to identify those "pains" of the operation with the greatest potential is the first step to the success of the project.

3. Unraveling the labyrinth of technologies and technification alternatives

Nowadays, the technification of logistics processes seems to have no limits. Search engines and artificial intelligence offer multiple alternative solutions when thinking about technifying operations. There is even a very wide range of suppliers with products that at first glance seem comparable, from big names in the industry to emerging competitors.

We frequently hear phrases such as: "The competition doubled shipments with such a robot" or "They implemented this technology, but it doesn't work".

Currently, almost all the processes in a warehouse could be technified, and this situation tends to generate apparent needs: Is it really necessary? Does technification add significant value?, are some of the questions we must answer.

Our perspective is clear: there is no one technology that is universally "better" than another. What does exist are solutions that are better suited to an operation, depending on its characteristics. It is often the case that there is no single technology to optimize an entire operation, but we need to combine them to maximize results. Understanding which technology best aligns with our needs, also evaluating its cost and repayment, is essential.

4. Getting Down to Earth: Forward-Looking and Staged Implementation Plan

Proposals must start from the present, but look to the future. Every decision today should bring us closer to where we want to be tomorrow.

That is why it is essential to design a transition plan that includes gradual, staggered stages that accompany the real growth of the business. Not having this vision generates uncertainty and makes it difficult for boards of directors or shareholders to approve projects.

5. From paper to the real world: effective implementation

Even the simplest projects can overwhelm teams if there is no clear leadership to coordinate and manage each stage of the process.

From technical documentation to vendor contracting and tracking, implementation is often the biggest challenge for our customers when it comes to combining their usual tasks with the specific workload and know-how that implementation demands.

There are many cases of conceptually brilliant projects that fail because of poor execution.

Our vision is decisive: without specific leadership and well-defined roles, there is no successful implementation. To meet the times, scope and budget, it is essential to form a team with specific execution and coordination skills.

From the identification of the need to the implementation, there are multiple skills that we need to develop as a team, together with the client, when embarking on a warehouse optimization project. Having strategic partners who provide know-how, vision and experience is key to designing an efficient and, above all, sustainable solution over time.

At Miebach, our passion is to accompany our clients with the expertise and global outlook that characterizes us, and that we have been strengthening for more than 50 years. .

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