11 October 2022

Just In Time: The End?

Last month (September 22) we had a record 4.6 million units of stock on hand. That was an increase of 25% on the same month in the previous year. 

We expanded our total storage footprint by 2,500 m2. We racked an additional 1,500 m2 for pallet storage in the existing warehouses. These decisions amounted to investments of over one million dollars.

We also ordered more materials-handling equipment, but of course none of that is available immediately and we will just have to wait. Today, we decided on an aggressive recruitment initiative aiming to increase our warehouse staff by about twenty people, as soon as possible.

Our decisions confirm our commitment to continue to be a leading 3PL service provider delivering high quality services to our clients at a competitive cost.

Our staff have been very dedicated, many working extra shifts and overtime (over 900 hours/week, company-wide) to compensate for the reduction in labour available. Despite that, we have had increasing difficulty in keeping up with KPIs, agreed with our clients in more gentle times. The reality is that the old days of just-in-time are unlikely to return any time soon.

Given the way the market has changed in the last two years, we can no longer pursue a KPI of same-day delivery for orders received before noon. That KPI will now be to ship the order by 6pm on the following day. For large Indent shipments, we will assign a target of 21 days for completion, subject to negotiation in each case. 

We are in the process reviewing all KPIs and service charges agreed with each client and will discuss yours as part of the annual review cycle.

Daniel Silva

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