Warehouse vacancy rates in the U.S. have reached a record low of 3.6%, according to recent data from CBRE, an American commercial real estate services, and investment firm. Between rising demand, labor shortages, and limited warehouse capacity, there’s no shortage of challenges for the logistics industry.
As retailers look ahead to the holiday season, the question remains: will there be warehouse space for storage even if products arrive on time? According to the same report from CBRE, the U.S. will use over 1 billion square feet of storage space this year, compared to 800 million last year. Five hundred million square feet of storage is in the development stage, but that won’t help with this year’s holiday rush.
The additional warehouse space alone won’t solve this multilayered problem. But, in the meantime, supply chain teams can take control of their operations with more efficient processes to mitigate the effects of limited warehouse capacity.
Inventory management and forecasting are key
When space is limited, the last thing supply chain leaders need is products that sit on the shelf for months at a time. Inventory management is about stocking the right products in the right place— at the right time. Supply chain leaders need inventory visibility to achieve this, which means better forecasting to anticipate demand.
Part of the solution is the ability to see a trend unfold in real-time and forecast future demand so supply chains can avoid production and distribution bottlenecks. Powerful business intelligence tools and real-time data to identify changing needs and analyze future trajectories make this possible.
Data is on your side
Data is power for logistics teams that don’t feel in control of their operations. Real-time insight into the state of the supply chain enables teams to dig deeper into information about product supply and demand, key performance indicators (KPIs), and other shipping variables that affect when—and how quickly—products arrive and move through warehouses.
A cutting-edge transportation management system (TMS) offers this information in a centralized, easy-to-use platform with built-in business intelligence capabilities. As a result, logistics teams can streamline operations, anticipate blindspots more efficiently, and leverage data to make smarter future decisions.
The right partner can make all the difference
A little support never hurt anyone—especially in the face of unprecedented challenges. The team at
CTSI-Global can help supply chain leaders better prepare for potential delays and warehouse capacity issues with their proprietary Honeybee TMS™ solution.
From order management and shipping execution to load optimization and event management, this solution provides much-needed visibility into how shippers can increase their efficiency. In addition, the ability to visualize, synthesize, and analyze real-time data trends into actionable insights has never been more effortless.
Make room for streamlined operations amidst the ongoing warehouse crisis. Contact us today to get started.