Category: General News
Posted On: 11th December 2018 1:53 pm

As the whole country is now on ‘Christmas countdown’ we seem to have been building up to Christmas since the end of the summer holidays! Inbounds were notably increasing week on week as far back as September as clients looked to increase their stock-holding to guarantee timely order fulfillment this Christmas. Our busiest accounts at this time of year are with food and drinks clients, with our bonded warehouse our most busy. How one day has such an impact on a nation’s buying habits is quite extraordinary.

Despite the relative decline of the high-street, consumer spending on the internet shows no sign of relenting. What’s even more extraordinary is the lead in time for these goods. Whilst it’s widely known fashion designers work a couple of season’s ahead – you may not have considered the forecasting behind other products. Added to this, with the rise in e-commerce the offering at consumer finger tips is now so great it’s no longer feasible to keep the storage of such products ‘in-house’. At the same time, not holding the item in stock (and therefore risking an order delay) is not acceptable to today’s highly competitive market-place. As such, the requirement for the outsourcing of warehousing and logistics has dramatically risen in recent years. In fact, the image most people have in their head of products being picked from a local store is (nowadays) unlikely.

Throughout the country 3PL providers are offering order fulfillment for clients with various operations which the majority of today’s consumers are totally oblivious to. Here, in out of town locations, the cost of storing goods is lower so goods are stockpiled in order to guarantee timely order fulfillment when demand arises, with warehousing costs offset by a reduced cost of purchase or manufacture through bulk purchasing.

This year especially, with the uncertainty surrounding Brexit, we are seeing clients increase their stock holding over and above the usual Christmas buffer in a bid to reduce their risk to any future supply chain challenges.

This comes at a time where the availability of warehousing space throughout the country continues to falter behind demand – owing largely to the lack of investment in commercial property during the housing market crash. Here, Savills have reported a 71% drop in the supply of existing warehouse space since 2009.

It’s certainly an interesting time to be operating in this sector and, owing to our fortunes towards the end of 2017, we are confident in being able to service further large operations with outsourced warehousing and logistics services. At this time, we were able to secure further (adjoining) warehousing space to complement our already burgeoning offering from our Stockton-on-Tees site in the heart of the Tees Valley.

Last Christmas this additional space was still in the development stages and not in use. For this reason, Christmas 2018 is particularly exciting for us – especially as 2018 has seen us take on numerous new clients.

So, this Christmas, take a moment to step back and reflect on what’s under your tree and its provenance. True, some will be more fortunate than others and the routes to market will all vary. However, one thing’s for sure – the use of 3PL’ s is on the rise.


Order Fulfillment Warehousing

InBond Warehousing & Logistics Centre – Stockton-on-Tees

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