Persistent loadshedding has become the norm rather than the exception over the past few years and has had a devastating effect on South African households, businesses and industries. One of the industries severely impacted by loadshedding is the logistics and warehousing industry. What’s the solutions when loadshedding is killing your Distribution Centre and Warehouse operations?
Distribution centres and warehouses are critical links in the supply chain of any business, and they rely heavily on uninterrupted power supply to function effectively. Loadshedding, which is the deliberate, planned and controlled cutting of the power supply to sections of the national grid, disrupts the normal operations of these facilities with devastating effects that can impact the bottom line of businesses that rely on them.
Firstly, loadshedding can cause the disruption of operation at distribution centres and warehouses. These facilities rely heavily on electricity to power equipment such as conveyor belts, forklifts, and automated storage and retrieval systems. Without electricity, these systems cannot operate, which can lead to delays in processing orders, loading and unloading trucks, and moving goods within the facility. Once operations stop employees are in turn left idle which results in lost productivity and wasted resources including the cost of paying employees who are unable to work. The frequent power outages can also lead to employee demoralisation and frustration, leading to higher staff turnover rates.
Secondly, it creates safety concerns as power outages caused by loadshedding can put workers in distribution centres and warehouses at risk. For example, if the backup generators are not functioning correctly, workers may be left in the dark thus increasing the risk of accidents or injuries.
Thirdly, it can result in increased costs for distribution centres and warehouses. If backup generators are needed to keep operations running during power outages, this can lead to increased fuel costs. Additionally, if orders cannot be processed or shipped on time due to power outages, this can lead to additional costs, such as expedited shipping fees or penalties for late deliveries.
Lastly, it can have an impact on inventory management in distribution centres and warehouses. If the power outage is prolonged, it can affect the temperature and humidity levels in the facility, which can damage certain types of products. Many goods require temperature-controlled environments to preserve their quality, such as perishable goods like food and pharmaceuticals. When power outages occur, the temperature control systems fail, and the goods can spoil or become unsafe for consumption. This can lead to significant losses for businesses that rely on these goods, as well as potential health risks for consumers. This can lead to increased waste and lower profits.
“Overall, load shedding can have a significant impact on distribution centres and warehouses, affecting their operations, safety, costs, and inventory management. As such, these facilities need to have backup plans in place to ensure that they can continue operating during power outages caused by load shedding,” says Nicolas Kruger, Sales and Marketing Manager at QWIX.
While we can’t provide the ultimate solution which would be a consistent national power supply, we can offer you a solution, in the form of a “smart” QWIX warehouse management system, which will help you effectively work around loadshedding.
“A QWIX WMS helps by ensuring your Distribution Centre and Warehousing operations are running at optimal levels – when the power is on you are able to make the most of the power windows available to you”.
How would a WMS help your operation survive loadshedding and thrive in the future?
- By ensuring cold rooms and freezers remain closed and prioritise ambient work during loadshedding
- By prioritising housekeeping and cycle counts during loadshedding for better stock accuracy
- By optimising pick routes, it results in less power being used by material handling equipment
- By the optimisation of dispatch and outbound before loadshedding occurs so as to clear areas in which put-away and picking can be prioritised during loadshedding. This is, especially beneficial, in circumstances where dispatch doors cannot be opened during loadshedding.
It’s like the saying “make hay while the sunshines” – at QWIX we’re all about helping you operate optimally while the power is on so that you can overcome the losses incurred while it is off.
If this article has sparked your interest in beating loadshedding by implementing a QWIX WMS then give the QWIX team a call today.
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