We have to reinvent supply chains - Intralogistics & Logistics - Densified Storage Hubs (DSHs) / Dense Storage - Densified/Compact Storage Solution

The current pandemic has made one thing clear to us: our supply chains are vulnerable. They are vulnerable to disruptions and shortages that can quickly impact the supply of people and businesses.

This realisation is not new. How our supply chains can be optimized and made resilient to future challenges has long been discussed. But recent events have shown that we must act now.

We must reinvent our supply chains - so that they are resilient to all kinds of disruptions. To do this, we need a paradigm shift in the way we manufacture, transport and store products.

Logistics and warehousing play a central role in this process. The challenge is to design supply chains so that they are as flexible and adaptable as possible. To do this, we must move away from traditional models of production and distribution and find new ways to produce, transport and store goods.

One way to do this is to introduce micro hubs. Micro-hubs are small, flexible storage and distribution centers that operate close to customers or production facilities. They enable companies to adapt their supply chain to the needs of their customers, thereby preventing bottlenecks and disruptions.

1. They offer a high level of flexibility: Micro-hubs can be quickly adapted to the needs of customers. This means companies can adapt their supply chain to current circumstances at any time.

2. They reduce transport routes: Since micro-hubs are operated close to customers or production facilities, they reduce transport routes and therefore also costs.

3. They enable better use of resources: Micro-hubs use resources more efficiently than traditional logistics models.

Micro-hubs are a good way to make our supply chain sustainable. But there are other measures that can be taken to make our supply chains resilient to disruptions:

• The introduction of high-bay warehouses: High-bay warehouses offer a high level of flexibility when storing all kinds of goods
• How buffer warehouses are changing logistics

The COVID-19 pandemic is often blamed for exposing the weaknesses of global supply chains. In reality, it has only exacerbated existing problems. Supply chains were vulnerable to disruption long before the pandemic. However, the pandemic made these weaknesses much more visible.

The pandemic has shown how dependent global supply chains are on individual countries, regions and even cities. Some companies have had to stop production entirely because they relied on components or raw materials produced in an area affected by the virus. Other companies have had to reduce production because their employees could no longer come to work or because demand for their products suddenly fell sharply.

The pandemic-related disruptions to global supply chains have led to an increase in prices for many goods. Many companies have been able to increase their prices because demand for their products remains high, while other companies have had to increase prices to cover their rising costs.

The COVID-19 pandemic has also shown how vulnerable supply chains are to political decisions. In some countries, borders were suddenly closed or trade restrictions were imposed, significantly disrupting supply chains. Political decisions can also lead to disruptions in supply chains, even if there are no pandemic causes.

All of these factors clearly show that existing global supply chains are no longer sufficient to meet the needs of people worldwide. The pandemic has shown us that we need to reinvent our supply chains.

Is the global supply chain torn apart by ongoing problems and regional crises? – Image: Xpert.Digital / Iaroslav Neliubov|Shutterstock.com

We recently wrote about it: “As has already been described countless times, globalization has put a lot of strain on the supply chain structure and made it vulnerable to unexpected and unexpected crises beyond its control. But also in the relatively short time there was no strategic awareness. This means that there is no relaxation in sight along the supply chain in logistics or intralogistics in the future either.”

Now it's time to act. Anyone who does it now is late - and there are quite a few of them! As early as 2012, 16.2% of the companies surveyed stated in a survey that they had no solutions or strategies for supply chain risk management. A reaction should be made now at the latest, because the current situation will continue. And what many people don't even consider: the danger of a chain reaction and the possible consequences of further crises resulting from it are real. Can anyone seriously say this is it?

Fragile supply chains: Supply chain under pressure – Image: Xpert.Digital / Travel mania|Shutterstock.com

Global supply chains are still strained by the pandemic. Many countries have introduced numerous anti-pandemic measures, which have caused severe delays in value and supply chains. For example, control and quarantine zones in logistical hubs have led to delivery backlogs of goods. As a result, many supplier companies were hindered in their production and were no longer able to fully meet their delivery obligations. And missing supplier parts can quickly have a massive impact on production processes. Added to this are the absence of workers due to illness or travel restrictions.

The global supply chain situation is tense. Many companies are struggling to cover rising transportation, labor and real estate costs while meeting demand for faster delivery times. In addition, the economic situation is made more difficult by the trade conflict between China and the USA.

But there are solutions: high-bay warehouses, densified storage hubs (DSHs), the Konbini storage system (local decentralized hubs) and micro-hubs are some ways to increase supply chain efficiency and save costs.

The COVID-19 pandemic has plunged supply chains worldwide into crisis. Many companies are struggling with bottlenecks in the procurement of materials, components and semi-finished products. At the same time, we are seeing a surge in online demand as more people order from home. The ongoing uncertainty about the further development of the pandemic represents a challenge for many companies that they have never experienced before.

For a long time, supply chains were relatively stable - there was little change in product variety or demand volume. However, a change has been observed in recent years: seasonal fluctuations or unpredictable events that disrupt the supply chain are becoming more and more common. With the pandemic, we are now seeing that these unstable conditions can become the norm. Therefore, we must reinvent our supply chains to be prepared for this changing reality.

Densified Storage Hubs (DSHs) are an extension of the traditional high-bay warehouse where storage height is increased to create more storage space in a more compact area. DSHs offer higher storage density, enabling more efficient use of existing space. The increased storage density also means more goods can be stored in a shorter period of time, resulting in increased productivity.

DSHs are often used in combination with Konbinilager (CL) and/or Micro-Hubs (MH). This combination allows companies to use their warehouse space more effectively while increasing the flexibility and efficiency of their supply chains. By combining different types of warehouses, companies can also reduce costs by no longer needing different locations for different types of storage.

Densified Storage Hubs (DSHs) are an evolutionary storage solution that offers more storage capacity in smaller areas. DSHs are made possible by concentrating storage space in compact, high-shelf warehouses and using state-of-the-art technologies such as smart cabinetry. This novel storage solution offers a number of advantages over traditional storage methods, including:

• More efficient use of floor space and labor
• Improved inventory traceability and allocation
• Increased flexibility to adapt to changing business needs
• Reduced costs for construction, maintenance and operation

In a perfect world, high bay warehouses (AS/RS) would be designed and built close to consumers. The reality is often different. The AS/RS are often installed further away from customers, which leads to longer transport routes and higher costs. For this reason, corporations have begun to develop DSHs – densified storage hubs that make it possible to install high-bay warehouses closer to end users.

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