Tag Archives: warehousing

Inventory is a ‘high risk’ for retailers: Morgan Stanley

A study by Morgan Stanley consultants indicates that there is way too much inventory in retail outlets. They believe it’s an overshoot of almost 20%. That means that inventory needs to be liquidated by these firms, and also that they will slow down reordering.

The implication for transportation is less demand for it. That’s consistent with the downturns on prices we see for goods movement in both ocean shipping and domestic trucking.

Too much inventory can be good for retailers like TJMaxx and Ross that can help liquidate inventory of more upscale retailers. They will have good supplies of products to move at a discount.

It is interesting to see how directly supply chain and logistics activity correlates with inventory levels. While it’s not always the case, right now the connection is direct.

Rachel Premack Tuesday, October 11, 2022

Inventory is a ‘high risk’ for retailers: Morgan Stanley – FreightWaves

Monopolist gatekeepers keeping warehouse power in the shade

In the UK, using warehouse roofs for solar power could produce over 13 trillion watt-hours of energy. Even one-third of this would fulfill the UK’s commitment for 2030.

The issue: regulators have handed power over who and how to connect to the national grid to the District Network Operators, who get to decide the cost and access.

Rooftop solar for warehouses would need dozens of requests for access from DNO’s and they would be in a position to set the cost at a level where it would be impractical.

Gavin van Marle proposes that control be given to the state regulator Ofgem. That would break up DNO control and allow a fair price to be set. And it could make a big difference in solar power generation.

The alternative is trying to install solar on vacant farmland, which has its own set of regulatory hurdles and protests. Few would care if solar were on top of warehouses.

It’s an interesting conundrum, and one we hope the UK acts on soon. We could do more of the same in the US.

By Gavin van Marle 08/09/2022

Monopolist gatekeepers keeping warehouse power in the shade – The Loadstar

Amazon’s workforce turnover is so high that it could run out of people to hire by 2024

In many markets, Amazon’s desire for warehouse workers seems to be exceeding what’s available. this is according to an internal report obtained by Vox.

Warehouses everywhere churn through workers. Many workers see warehouse work as a stop on the way to something bigger. Most see it as repetitive and offering little chance to grow; a way to pay the bills but not a final destination. That makes it already hard to keep workers— there’s no allegiance to exploit.

And since every warehousing operator needs workers, it’s easy to just jump across the street, probably for more money, or at least a signing bonus.

Many US warehouses today operate with a temp workforce, turning over the recruiting and hiring to a firm that specializes in providing warehouse workers. The workers work for the temp firm, and are placed on 90-day contracts with the warehouse operator. It simplifies recruitment, but makes the job of safety and training more complex. Of course we can ask how much knowledge is needed for a warehouse job. but equipment operation and machine operating skills, and even picking and placement practices take knowledge specific to the individual warehouse, and must be trained for.

Increasing wages would probably help retention some. A portion of workers are motivated by that. Work rules and quality of management are also very important and can aid worker loyalty. But bosses are often not skilled in making workers toe the line, but also feel wanted.

It’s a nasty problem for Amazon. The leak of the report is worthwhile reading for logistics and warehouse professionals.

By Jason Del Rey Jun 17, 2022, 7:00am EDT

Amazon’s workforce turnover is so high that it could run out of people to hire by 2024 – Vox