Strategic and Inventive Warehousing

February 28, 2025
February 28, 2025

Urban centres in the United Kingdom continue to be remodelled and re-invented. In order to ensure that timely deliveries are available across the nation, warehouse and haulage operators must continue to review and develop warehousing locations and technologies.

Major cities and towns in the UK continue to expand meaning that warehouse and haulage-operators must continue to review and evaluate warehouse locations to ensure that they meet a number of criteria.Initially, a warehouse must be within a reasonable distance of an urban centre to ensure that common delivery destinations are within a reasonable driving time to prevent unnecessary labour and fuel costs. Secondly, as new warehouse development can be costly, they must be far enough away from an urban centre to ensure that land prices are reasonable. For example, a major warehouse in the centre of London may not be economically viable, but a warehouse in Watford maybe. Thirdly, warehouses need to be close to major road networks to ensure easy access for a variety of vehicles. They could be further positioned closely to alternative transport networks such as airports and railways. Finally, reliable options for staff commutes must be present. As not everyone who works in a warehouse may be able to drive, good public transport options should be nearby.

An example of a strategically positioned warehouse is the Amazon Fulfilment Centre in Melton near Hull - Yorkshire. The site, which cost £150M to develop, is located close to a number of significant transport links and a variety of communities. Further, the site has dedicated public transport links for light goods vehicle drivers and warehouse staff.According to a report by Hull Live, the facility employs ‘state of the art robotics’ to ensure that deliveries are fulfilled as soon as possible.

The transition to ‘smart warehousing’ can further offer a variety of benefits. Smart warehousing involves the integration of a variety of developing technologies, such as artificial intelligence, robotics and the Internet of Things (IoT), to automate traditionally human managed processes. For example, automated storage and retrieval systems can maximise space utilisation and significantly reduce the time required to retrieve an object. According to a report by Extensiv, transitioning to smart warehousing can significantly enhance operational efficiency, accuracy and decrease the number of errors. Whilst the implementation of smart warehousing technologies can incur significant investment in both the technology itself and reciprocal adjustments that may have to be made to existing warehouses, the benefits are clear. Additionally, the cost of implementing new technologies will be gradually recouped as human labour costs decrease and efficiencies increase.

Existing warehousing facilities must constantly be reviewed to ensure that they are properly serving urban centres. New warehousing facilities should be constructed mindfully andin adherence to the criteria described above. They should further employ smart technologies that, whilst costly, offer significant savings in the long run.