How AIS Eurelo Can Help You Implement Warehousing Projects for Supply Chain Resilience

The impact of the global pandemic on supply chains has been one of the most significant and enduring effects of the crisis on industrial operators across Europe, and the challenges involved look set to continue for some time to come.

At AIS Eurelo, we are here to help customers throughout Europe as they implement supply chain resilience strategies, which often involve increasing warehousing capacity to store both raw materials and finished goods.

Why are we seeing increased costs and longer lead times?

Over recent years, a lean approach to operational management has encouraged many industrial operators to reduce their property assets, keeping minimal materials and finished product on site to cut overheads. It’s an approach that has worked well. Just in time order fulfilment and increasingly sophisticated data-based forecasting has meant that companies could rely on prompt delivery of materials and components, along with timely dispatch of finished products. The whole supply chain worked efficiently on this basis.

But the hiatus of the pandemic changed all of that. Breaks in production of raw materials and components, followed by the kick starting of key industries all at the same time, meant spikes in demand when supplies were low. As a result, prices rose rapidly, and, for some key materials and components, they are still rising. Availability of some items is still a huge challenge for industrial operators, coupled with extended lead times and higher prices. Driver shortages, port delays and the escalating costs of shipping have all exacerbated the issues too.

It’s a situation that has led to difficult decision making. Take a gamble on buying in bulk ahead of need and you risk losing out financially if prices drop, as well as covering the costs and operational considerations of storing materials and components until they are needed. Take a gamble on the possibility that prices will drop and availability will improve, however, and you risk issues with continuing price uncertainty and transport cost volatility, along with business continuity problems if supplies run out, which could result in unfulfilled orders and unhappy customers.

How can businesses improve supply chain resilience?

Improving supply chain resilience does not involve abandoning the lean management cultures that have been so instrumental in productivity and efficiency in for industrial operators across Europe; it simply means adapting to new challenges.

At AIS Eurelo, we are helping industrial operators to create stockholding capabilities, either on their main site or at strategic locations. Our expertise means that we can help with the installation of machinery such as, racking systems, conveyors, machinery and robotics, helping clients to achieve a fully operational storage facility within a very short project delivery phase.

And because we specialise in delivering projects throughout Europe, including projects that involve moving assets across borders, we can work collaboratively with clients on an agile basis aligned to their strategic requirements.

As a consequence, we are able to help clients to protect their operations against business interruption and future price rises. We can also help them to increase their stockholding, enabling them to maintain short lead times for their own customers.

Evolving landscape

The effects of the pandemic on supply chains and operational strategies looks set to continue throughout 2022, requiring continuing adaptability from industrial operators. At AIS Eurelo, we are here to help clients implement their plans quickly and efficiently to overcome the challenges of this evolving commercial landscape.