Temporary building helps Kuehne+Nagel meet peak demand and reduce stock fulfilment times
Apr 12, 2016
A global logistics and transportation company has significantly increased its onsite storage space, improved the accuracy of data logging information, and reduced customer fulfilment times after investing in a temporary building solution from Spaciotempo.
Kuehne+Nagel serves customers all over the world using its global delivery network, with one such site operating in Heywood, Manchester. When one of the company's clients needed access to additional onsite storage to meet predicted peaks in supply and demand throughout the year, Kuehne+Nagel approached Spaciotempo with a brief to provide a cost effective alternative to third party warehouse rental.
Reducing customer fulfilment times and improving data logging accuracy
Previously, the business was having to rent additional warehouse space from third party suppliers in order to fulfil storage requirements from customers when its own facilities were operating at full capacity. Whilst providing a quick solution, holding stock across multiple disparate sites meant that time was wasted negotiating the movement of goods between multiple warehouses, as a result fulfilment times to customers were increased. This also caused inaccuracies in the data logging process. Previously when stock was moved between separate sites, identification codes for each load were inputted into a central system at each location. Not only was this a laborious process, but the risk of receiving discrepancies of data due to user error was high. Since increasing its onsite storage capacity with a temporary structure, Kuehne+Nagel has been able to streamline its data logging processes and reduce fulfilment times. Now when stock arrives on site, it is inputted into the system only once, improving the accuracy of stock records and making load planning simpler.
Mark Handel Contracts Manager at Kuehne+Nagel explains: "For all of our clients, it is important that they can have immediate access to their goods, something which was a priority for our merchandise client who at any one time could have upwards of 4,000 products stored at our site in Heywood. This is something we couldn't always provide, due to having to move goods between sites.
"Since installing the new onsite storage facility we have been able to ensure that we have instant access to our client's goods, significantly reducing stock fulfilment times, and improving the service we can offer to our clients."
The temporary solution is a 30 x 50 metre, free standing storage facility, with a wall height of 3.5 metres. It provides optimal storage for Kuehne+Nagel, and utilises block stacking of pallets, meaning that Kuehne+Nagel can take advantage of further storage for up to 3000 pallets. Installed in just 15 days, the temporary building has an aluminium frame, incorporating single skin steel cladding on the wall panels, making it a durable solution, while the inside vicinity is completely accessible by forklift truck, so goods are instantly accessible for the end client.
Mark Handel explains why the company is such an advocate of temporary structures to help its customers plan for demand peaks. He says; "Our clients require very responsive warehousing and logistics solutions. Operating across a number of sectors means we understand the way that supply and demand fluctuations can impact our customers.
"One of the businesses benefitting from this particular building works within the consumer merchandising sector and regularly operates at peak capacity for around six months of the year. This increase in supply and demand has meant that they soon outgrew the storage capacity of our main building, requiring immediate additional storage to ensure they could continue to meet increased demand; this meant that the possibility of building a permanent onsite building wasn't feasible. A temporary solution gives us a cost effective option that we can have installed and removed as required."
The temporary building from Spaciotempo has been installed indefinitely, providing Kuehne+Nagel with a long term solution for increasing storage demands. However, the installation isn't the first temporary building installed by Spaciotempo for Kuehne+Nagel, the company also completed the installation of another temporary building, complete with retractable tunnels at the company's site in Foston.
Scaling up on demand with temporary structures
A spike in business after winning a significant contract, saw Kuehne+Nagel's Foston site reach its maximum storage capacity; as a result the site required additional storage, quickly. Kuehne+Nagel contacted Spaciotempo with the brief to reconfigure and increase storage space on one third of its site in Foston with the installation of a number of temporary buildings over a 12 month hire period.
Spaciotempo installed four temporary buildings, all of which are connected using retractable tunnels. The temporary structures further link across to the company's permanent building at Foston and provide a flush finish, utilising racking as opposed to block pallet storage in order to maximise available storage capacity.
Area Sales Manager for Spaciotempo Dan Barker explains why temporary buildings are delivering instant results for Kuehne+Nagel. He comments; "We have worked alongside Kuehne+Nagel for a number of years, and have come to understand the way their business operates. Unpredictable changes, such as a seasonal peaks in demand, or a new contract win can mean Kuehne+Nagel has to react quickly to the needs of its customers. This way of working means that temporary buildings are the obvious choice for the company.
"Having the relationship we do with Kuehne+Nagel means we understand their needs with regards to flexible storage. The beauty of temporary buildings, is not only can they provide instant relief for any storage challenges, but once they are no longer required they can be dismantled just as quickly as they were initially assembled."
Mark Handel concludes, "As a business serving customers from a diverse range of sectors and industries we consistently need to ensure that we are completely reactive to their needs. If this means that they require additional storage fast, then we need to have the processes in place to accommodate these requests. As a business, this means we need to find suitable storage which can be installed quickly, and is also cost effective, factors which are met when looking at the installation of temporary buildings."
