Supply chain issues have hit Perth hard recently, with low stocks brought on by Perth storage being insufficient for many businesses being the root cause. Lean supply chains are great when they work, when they fail, everything falls apart, with once thriving businesses getting hit hard. Perth is widely known as the most isolated city in the world, though with air travel, good roads and a rail network as well, this is rarely an issue. When things run smoothly, and with what are normally predictable conditions, everything can be fine for Perth business, with supply chains working in optimal ways. For this reason, many have viewed storage as an after thought for their businesses. After all, when things can arrive easily on a daily basis, why do you need storage?
- How Having Quality Perth Storage Arranged Could Save Your Business
- Is Perth A Good Place To Operate A Lean Supply Chain Model?
- Reducing Supply Chain Challenges Through Having Reliable Perth Storage Facilities
- Will Storage Issues Cease As The Aftermath Of Recent Issues Clears?
- Reliable Perth Storage Facilities Help Eliminate Supply Chain Limitation And Keep Your Business Thriving
How Having Quality Perth Storage Arranged Could Save Your Business
COVID-19 triggered numerous supply chain issues since omicron hit Australia in December 2021, though COVID is far from the only thing to affect supply chains and delivery schedules. Recent storms and weather events have lead to rail network assets and roads being washed away, or rendered structurally unsound due to water damage.
On their own, these events would have been less likely to cause issue. Combined they have resulted in serious challenges for Perth businesses, and businesses in other parts of Australia with how the supply chain has been broken.
Many Perth businesses have hit issues from being low on stock, while other producers have hit issues with building stock piles that they’re unable to ship.
With issues like this having quality options for Perth storage facilities is wise.
Having moved to a system more in line with ‘kanban‘ where stock arrives as needed, following supply chain best practices, we have hit a point where conditions are far from perfect, and the system has fallen apart. ‘Kanban’ is a system that many in business have moved to adopt over several decades, and when things run smoothly it cuts down on inventory costs, and thus reduces spend on storage, creating business savings that impact the bottom line creating profit. Challenges come with ‘Kanban’ when the supply chain becomes interrupted, and there is insufficient product held in storage for operations to continue.
Is Perth A Good Place To Operate A Lean Supply Chain Model?
With usually predictable weather, most would argue that Perth can continue thriving when using a lean supply chain.
That isolated nature of Perth does mean that it is far more susceptible to supply chain issues than most places. In the UK and Japan most cities are very close together, often being less than an hour to another major location by road. Whereas for Perth, the next closest city Adelaide is 2,100km away, meaning that it can take days for fresh stock to arrive in storage and replenish what businesses need. Look at the Amazon model which operates on next day delivery for most of the world, in Australia next day delivery is incredibly unless the business is delivering within the city the order comes from.
Much of this meaning that while a lean supply chain is good from a business economics perspective, under ideal conditions. Any break from those ideal conditions, with lack of storage arising, can break businesses.
Reducing Supply Chain Challenges Through Having Reliable Perth Storage Facilities
Supply chain shortages are best overcome by having reliable storage options.
This brings us back to older storage and supply chain models along the lines of FIFO (First In First Out) and LIFO (Last In First Out), where stock was replenished into reliable storage locations, with greater stock being held, so as to ensure continuance of operations.
If supermarkets and other similar businesses had bigger storage facilities with higher stock levels nearby in Perth, then recent supply chain issues would have had far less impact.
When you run lean, you have less capacity to accomodate changes as situations change.
By keeping buffer stocks in storage, you can create a more thriving business which can adapt, and insulate, with evolving situations far more easily.
Will Storage Issues Cease As The Aftermath Of Recent Issues Clears?
Yes, and no.
Granted, as roads and rail networks are brought back into functionality, the supply chain can normalise, with road and rail deliveries resuming. This is only a small part of the issue though. There are still issues with waves of COVID-19, new strains and other potential wellness situations as yet unseen.
Add to this global supply chain issues, lack of shipping containers being but one issue, and more challenges can be seen with the existing model of supply chain as used by many Perth businesses. Realistically, while lean supply chain can be great from a theoretical perspective for businesses, in Perth having increased storage capacity, or flexible storage options is incredibly wise.
Perth storage options are diverse and plentiful, meaning that every Perth business can insulate itself from supply chain limitations. Provided businesses ensure they have adequate Perth storage in use. Depending on business type, such as e-commerce and other goods types, various options are easily accessible for reliable storage. Land mass is widely available in Perth and WA. Plus there are dedicated storage specialists in Perth that can assist businesses with flexible storage options, or aid with long term off-site storage when businesses seek to maximise on-site use of space for better revenue generation.
For small businesses this is especially true. When operating from offices or small units, where storage capacity is minimal, having cost effective off-site secure storage can greatly help your business stay in action when others lack stock due to storage limitations. As such, creating opportunity for business growth as a result of increased sales because competitors have issues.
Reliable Perth Storage Facilities Help Eliminate Supply Chain Limitation And Keep Your Business Thriving
Going out of stock can be very damaging for business, especially when restock times are unknown.
Businesses thrive when they have adequate stock to handle customer demand. Garnering better reputation and deeper rapport with customers, as a result of being able to supply when others are unable to. Think of any situation where one stockist has a monopoly on stock, customers flood to them, thankful of being able to get what they want.
With Perth having the location induced challenges that it does, there is every argument for ensuring Perth business has reliable Perth storage that can help it weather any supply chain issues that arise. So if your Perth business is facing issues due to lack of stock, as such insufficient storage for higher stock levels, then getting additional reliable Perth storage should be a high priority to ensure your business stays in business.