Latest News

  • Enter the LEEA Awards 2023 to celebrate your excellence
  • Jungheinrich UK goes mobile to transform the carbon footprint of its engineer audits
  • Yale launches new identity focused on Lift Truck Technologies
  • Some good news in GB Spring Budget, but Government must do more says UKWA Chief
  • Short-term space is critical to a successful warehouse strategy
  • Home
  • News
  • Materials Handling
  • Health & Safety
  • Notice Board
  • Multimedia
    • Audio
    • Book Review
    • T.V.
    • Video
  • Contact Us
  • About Us
  • follow
    • Facebook
    • Twitter
    • Google+
    • Pinterest
    • RSS Feed
    • Linked
    • Youtube

Mega Deal Season: a warehousing nightmare? Or is it time to wake up?

Nov 01, 2019 Warehousing Ireland e-commerce, Logistics, News, shipping, Storage, Warehousing Comments Off on Mega Deal Season: a warehousing nightmare? Or is it time to wake up?


By Steve Purvis, Operations Director at Bis Henderson Space

Autumn has traditionally seen a fight over temporary warehouse space as retail supply chains build up stocks in anticipation of Christmas, however, 2019 promises a perfect storm. Not only are firms scrabbling to make emergency provisions against a Halloween Brexit, there is the growing phenomenon of the Mega Deal Season – far beyond Black Friday and Cyber Monday.

‘Black Friday’ arrived from the States, where there has long been a tradition of sales the day after the Thanksgiving public holiday, falling this year on 29 November. These were ‘door-busters’ – sales worth queuing for to get offers only available in-store and for one day only. The following ‘Cyber Monday’ started as a response by the nascent online retailers who, strange to recall, were unsure if their new business model would actually catch on.

Now, Black Friday and Cyber Monday have merged into one Mega Deal Season. The sales period has lengthened to a week or even a fortnight, sometimes with ‘dynamic’ discounting, and it’s increasingly an on-line rather than in-store event. Commercially, it makes very little sense. Why discount goods that should be selling at full price pre-Christmas and before the party season begins? Every year some major retailer says ‘never again’. Nonetheless, Black Friday is here to stay, and it’s big.

In supply chain terms, a Mega Deal Season offers a significant improvement over the short sharp spikes of Black Friday and Cyber Monday, as the peak is spread over a longer period. But commercially, the season is often seen as a race to the bottom, as businesses chase sales whatever the cost. Some retailers have looked to soften delivery lead times to spread the load, but increasingly, service and speed of fulfilment is pursued as a critical differentiator in a congested market place.

One estimate is that 2018 saw on-line sales, on the Friday alone, rise by 7.3% over 2017 to reach £1.48 billion. Some sectors are especially engaged – consumer electronics, fashion, household goods – but the phenomenon is now far more widely based. This year Black Friday falls just after payday for many, which could give an additional boost.

Logistically, a single in-store ‘Sale’ day, ‘when it’s gone it’s gone’, was manageable by piling goods high in the shops. But now retailers have to build and hold stock, fulfil online orders and replenish physical stores over a period, which requires warehousing. Additionally any sales frenzy, especially on-line, exacerbates already excessive rates of returns, which also requires a lot of space. And space is at a premium.

Peter Ward, CEO of the UK Warehousing Association, said recently that there may be as few as 250,000 pallet locations available nationwide. Fortunately, that isn’t quite the full picture – more space is available, if you know where to look.

Relatively few warehouses actually operate at 100% capacity and so many operators could offer shared usage if they were so minded. Some exporters are prepositioning goods on the Continent in advance of Brexit, which may free up UK space. Some supply chains have their peaks at other times of year and may have unused capacity in the Autumn. Sadly, many physical retailers are retrenching, or even in administration, which again could free up capacity.

Securing such space – and of course the labour force to go with it – is not easy. Shared usage raises questions of site safety and security, insurances, compatibility of products and so on. Striking short-term deals with administrators, and often landlords, is rarely straightforward. And of course, the pressures and demands of Brexit have only exacerbated things.

Over many years, Bis Henderson Space has developed an extensive UK-wide network of ‘own account’ properties that have space available on a flexible basis and that are in prime locations. By tapping into these flexible resources businesses can confidently prepare for a Mega Deal Season with a more agile warehousing provision, free of the thought of any supply chain nightmares.

 

Tweet

  • tweet
Savilles Shedtalk JCB launches second electric Teletruk IMHX 2019

Warehousing Ireland

Related articles
  • Enter the LEEA Awards 2023 to celebrate your excellence
    Enter the LEEA Awards 2023 to celebrate...

    Mar 24, 2023 Comments Off on Enter the LEEA Awards 2023 to celebrate your excellence

  • Jungheinrich UK goes mobile to transform the carbon footprint of its engineer audits
    Jungheinrich UK goes mobile to...

    Mar 24, 2023 Comments Off on Jungheinrich UK goes mobile to transform the carbon footprint of its engineer audits

  • Yale launches new identity focused on Lift Truck Technologies
    Yale launches new identity focused on...

    Mar 24, 2023 Comments Off on Yale launches new identity focused on Lift Truck Technologies

More in this category
  • Enter the LEEA Awards 2023 to celebrate your excellence
    Enter the LEEA Awards 2023 to celebrate...

    Mar 24, 2023 Comments Off on Enter the LEEA Awards 2023 to celebrate your excellence

  • Jungheinrich UK goes mobile to transform the carbon footprint of its engineer audits
    Jungheinrich UK goes mobile to...

    Mar 24, 2023 Comments Off on Jungheinrich UK goes mobile to transform the carbon footprint of its engineer audits

  • Yale launches new identity focused on Lift Truck Technologies
    Yale launches new identity focused on...

    Mar 24, 2023 Comments Off on Yale launches new identity focused on Lift Truck Technologies


Tweets by @warehousingIrl

Recent Posts

UKWA National Conference: Why Digitalisation & Automation are Tools for Tough Times

UKWA National Conference: Why Digitalisation & Automation are Tools...

Feb 25, 2023 Comments Off on UKWA National Conference: Why Digitalisation & Automation are Tools for Tough Times

7-8 March 2023 – – Crowne Plaza, Stratford-upon-Avon Warehousing has been revolutionised by market forces that saw 17,145 high street shops close last year, with soaring energy...
New guidelines for high-quality paper carrier bags

New guidelines for high-quality paper carrier

Feb 12, 2023 Comments Off on New guidelines for high-quality paper carrier bags

Forklift market rebound causes gap between order intakes and shipments

Forklift market rebound causes gap between order...

Nov 24, 2021 Comments Off on Forklift market rebound causes gap between order intakes and shipments

The new Visuclean vinyl from Beaverswood

The new Visuclean vinyl from Beaverswood

May 01, 2021 Comments Off on The new Visuclean vinyl from Beaverswood

New Modulean Lite shadow boards from Beaverswood

New Modulean Lite shadow boards from Beaverswood

Nov 14, 2020 Comments Off on New Modulean Lite shadow boards from Beaverswood

Recent Posts

Beaverswood has hazards and restricted area marking safely taped

Beaverswood has hazards and restricted area marking safely taped

Nov 05, 2022 Comments Off on Beaverswood has hazards and restricted area marking safely taped

Quick and effective highlighting of hazards and restricted areas in industrial premises and offices is provided by yellow/black self-adhesive marking tape, now available from workplace...
RHA launches tail lift safety guidance

RHA launches tail lift safety guidance

May 15, 2021 Comments Off on RHA launches tail lift safety guidance

Axial Properties Ltd fined €80,000 following serious incident in Clonee warehouse

Axial Properties Ltd fined €80,000 following...

Nov 22, 2020 Comments Off on Axial Properties Ltd fined €80,000 following serious incident in Clonee warehouse

New Modulean Lite shadow boards from Beaverswood

New Modulean Lite shadow boards from Beaverswood

Nov 14, 2020 Comments Off on New Modulean Lite shadow boards from Beaverswood

How to safely buy a used ATEX forklift

How to safely buy a used ATEX forklift

Jul 12, 2020 Comments Off on How to safely buy a used ATEX forklift

Newsletter

Recent Posts

  • Enter the LEEA Awards 2023 to celebrate your excellence
  • Jungheinrich UK goes mobile to transform the carbon footprint of its engineer audits
  • Yale launches new identity focused on Lift Truck Technologies
  • Some good news in GB Spring Budget, but Government must do more says UKWA Chief
  • Short-term space is critical to a successful warehouse strategy
  • Warehousing: Do more in the Same Space to Protect Revenues
  • Arvato Supply Chain Solutions operates additional sites in the USA with green electricity
  • Doosan Bobcat’s new Global Brand Strategy: Forklifts & Portable Power branded Bobcat
  • Manchester self-storage facility destroyed by a major fire in 2022 will now be rebuilt with sprinkler system
  • How pallet live storage keeps grocery store shelves supplied 
  • UKWA submits proposals to Chancellor for Spring Budget
  • Clark presents new low-lift truck for light duty applications
  • BYD Forklifts: the perfect recipe for Devenish
  • UKWA National Conference: Why Digitalisation & Automation are Tools for Tough Times
  • Garbe Industrial Real Estate leases logistics property in Karlsfeld near Munich
Copyright 2020 Warehousing Ireland / All rights reserved