This year, 2023, won't be any different in terms of warehouse operators being able to predict demand patterns accurately. A new survey commissioned by ProGlove found that 39% of respondents felt they could accurately predict trends and activity for the holiday season.
Forecasting demand is one of the cornerstones of successful warehouse management. Yet, 51% of respondents stated that forecasting demand was their biggest inventory management concern.
Unfortunately, 2022 was not a year for predictability, and 2023 is already continuing on a similar trajectory. The war in Ukraine, inflationary pressures and the impact of the Covid outbreak in China on global supply chains are just a few factors creating an uncertain environment for warehouses this year.
The survey found that 1 in 5 (19%) respondents stated they weren’t prepared for the peak holiday season in 2022. Looking ahead, less than 2 in 5 (38%) expect supply chain issues to be largely resolved next year. The research, therefore, demonstrates that warehouses must develop resilience to counteract what is expected to be a turbulent year ahead. Instead of focusing on the external factors they can’t control, organizations need to look at their internal operations and focus on what they can control.
Building resilience in the warehouse
When asked whether they felt adequately prepared for the changing retail patterns of the peak holiday season, just 12% of those surveyed said they felt ‘very prepared’. Employees are looking for the tools to build preparedness from the shop floor to the C-level. By factoring external instability into their operations as a constant, businesses can move beyond fretting and look to building advanced solutions.
Ilhan Kolko, CPO of ProGlove, commented in a statement, “Resilience comes from a well-equipped, motivated and safe workforce with transparent and extensive knowledge of their roles and processes. Investing in human-centered technology, and seeking out efficiency gains built around the human worker, can provide the stability warehouses are looking for. The findings in our survey confirm what has been self-evident to those in the warehousing and logistics industry for a few years. External factors are wreaking havoc on the ability of businesses to predict demand and prepare for new challenges.”