Clare Bottle is the Chief Executive of the UK Warehousing Association. In her role, she works to build a better future for the warehousing sector by empowering young people to access career opportunities, helping members to embrace sustainable solutions and upholding the reputation of the logistics industry with policymakers and the public .
We had the opportunity to sit down with Clare and gather her insights about the current challenges in the warehousing sector, her predictions for the industry and the role that simulation can play in empowering strategic and operational decision-making.
How are the labour shortages evolving across the sector, and what impact are they having on warehouse operations?
Shortages can impact on efficiency and productivity, and for more than 80% of UKWA members, recruitment is in their top three concerns. The industry has a perceived reputation for offering poorly-paid roles with little progression. But actually, many of our members offer above minimum wage salaries and there are numerous growth opportunities for entry-level staff, and that’s a story that doesn’t get told too often outside our sector.
Are you seeing a shift in the types of skills warehouse businesses are looking for?
The core functional skills in warehousing have become more about tech literacy, such as engaging with screens. Many people today have a good level of tech literacy but don’t realise the value this offers to the workplace. We’re helping our members develop their workforce’s skills with the Certificate of Professional Competence, which focuses on warehouse management systems and technologies such as simulation digital twins.
How are members dealing with the pressure to reduce emissions while maintaining service levels and cost efficiency?
There is a lot of focus on the adoption of sustainable electrical energy. Yes, there’s an upfront cost to these solutions, but long-term savings can be assured and service levels can be maintained. For example, efficiency-led automation tools, such as robotics, conveyor belts and cranes, are all electric battery-operated, which can help organisations meet the ever-stricter requirements being set by the Minimum Energy Efficiency Standards (MEES).
Are members showing more interest in automation and digital tools and what are the drivers?
Automation adoption rates vary, but interest is high. Some of the big players such as DHL have purpose built automated factories. With the smaller companies, retrofitting is more common. Cobots are being integrated into picking and packing tasks to achieve cost efficiencies, taking over the repetitive tasks from humans and empowering them to focus on other areas, ensuring their roles remain protected.
Do you think the concept of the ‘smart warehouse’ is becoming more tangible, or is it still largely aspirational for many businesses?
At one time, a smart warehouse would have been a completely abstract idea, but it’s becoming a lot more concrete in modern times. Many setups now have inventory automated mobile robots to provide real-time stock information, while simulation digital twins are growing in popularity. There is no lack of desire for integration of smart technologies, but companies are often waiting for something that’s easy-to-use, scalable and provides a clear ROI.
Where do you think simulation can add the most value to warehousing operations?
With simulation, decision-makers can access digestible data which drives high-quality, informed strategic decisions based on real foresight. Warehouses can predict future disruptions and fine-tune their plans in a digital environment to navigate them effectively, alongside continuous tuning for multi-year growth plans. Simulation also allows businesses to assess whether their warehouse operations are operating within the right guardrails, and make necessary adjustments to help control resilience and risk.
How important is it for simulation to be accessible to warehouse teams without needing technical expertise?
It was previously the case that technical skills and expertise were needed to operate such systems. The history was this push and pull between the techy people who didn’t have operational experience and the operational people who didn’t have tech experience.
But many modern solutions are much more intuitive for operational staff to use, helping to draw them into that technical world.
Do you see simulation playing a wider role in improving transparency and communication with customers or stakeholders?
Among its many capabilities, simulation software acts as a visual communication tool to achieve buy-in from customers. If we think of 3PLs, they might need to show a customer the detailed steps as to how they’ll achieve what they’ve been tasked to do. It builds trust as it helps customers to see exactly why investment in an extra night shift or warehouse move might be needed. A compelling visual can help stakeholders understand a proposal and ultimately win them round.
What do you see as the biggest growth opportunities for warehousing businesses in the next 3-5 years?
The continued growth of eCommerce is going to create more opportunities for warehouses. To meet demand, they need to maximise occupancy where possible and focus on being flexible and service-oriented. About 10% of the warehouse floor is a throughput area, and for ecommerce, about three times more space needs to be dedicated to picking and packing goods for delivery to home addresses, with buildings needed closer to end consumers.
To access these future opportunities, simulation is going to be invaluable because it shows operational people the art of the possible. Teams can see beyond existing operational constraints and model changes that can be quickly communicated with other stakeholders, enabling quick decision-making in a sector that needs to keep up with evolving customer demand and changing trends.
