The COVID-19 pandemic has caused the overwhelming majority of businesses (regardless of industry) to pivot and adjust to the new, unforeseen and unique circumstances we find ourselves in. This is especially true in the warehousing and logistics industry, as warehousing significance is higher than ever with businesses moving inventory and changing systems to suit the shopping needs of these COVID times.
As such, warehouses have been granted more time to brainstorm ways to manage cash flow while also positioning themselves for success once the economy either gets back to normal or settles into whatever ends up being the new normal.
Here’s What Warehouses Are Doing to Help Current and Future Cash Flow
So what exactly are warehouses doing to manage and improve cash flow during COVID times? Let’s take a look:
• Warehouses are maximizing the value of their equipment. They’re doing in this in two ways, which coincidentally, may help other warehouses: They’re selling equipment that they no longer have a need for or are rarely using, and they’re purchasing used equipment that still has a lot of tread left in it. In regards to selling used equipment, warehouses can use third parties to help expedite the sale and find targeted buyers, such as auction services and used equipment sellers if they’re unable to sell it on their own.
• A chance to reimagine their operation. The downtime has provided warehouses with a chance to rethink their layout and improve their systems, which could help lead to an increase in production and a boost to the bottom line.
• Investing in new technologies. While tech can never replace the intrinsic value of the human element in workplaces, many warehouses are investing in new tech and automation to help improve operations and reduce the need to hire extra employees, which could be vital if or when there is another wave of COVID-19 infections.
Those are just some examples. What is your warehouse doing to manage and improve cashflow?
If you need help with your public warehousing needs, contact Affiliated Warehouse Companies today.