How warehouse bottlenecks are being tackled in the FMCG sector and beyond
The Fast Moving Consumer Goods industry (FMCG) sector is one that by definition requires swift transportation from the point of manufacture to consumers. Supply chain disruptions in recent years have nonetheless revealed pain points where these goods are not as fast moving as they should be. For instance, delays at warehouses or regional distribution centres (RDCs) are still more commonplace than they should be.
The problems generated by inefficient loading and unloading practices have consequences for both shippers and carriers, and in some countries, namely Spain, shippers may even have to fork out for compensation to carriers on an hourly basis. Moreover, carriers have also been known to avoid certain warehouses due to their reputation for delays.
Depending on the situation in the market, shippers could end up choosing from a noticeably narrower range of carriers, or even having to pay higher rates as a result of their facility’s well-known slow loading and unloading processes. These issues ultimately impact shippers’ bottom line, putting the role of efficient loading and unloading at warehouses into sharp focus. Many businesses have thus recognised that it is worth investing in a solution to address the problem.
One digital solution that’s risen to prominence here is the dock scheduler, which is designed to increase a warehouse’s operational capacity, plan resources in advance, and digitalise communication for better collaboration between the logistics department, the warehouse and the shipper’s transport partners.
So in this CargoON blog post, we’re diving into the issue of RDC operations to answer two key questions; whether warehouse loading and unloading delays are really a significant problem, and how dock scheduling can help.
Warehouse delays – are they really a big deal?
The post-pandemic supply chain disruptions of 2020 and 2021, sparked by factors including labour shortages and demand fluctuations, were very much when grumblings over RDC delays gained traction.
In September 2021 for example, the problem of RDC delays was mentioned in UK Parliament, where MP Ben Lake told then-Transport Secretary Grant Shapps that many lorry drivers from his constituency had experienced long delays waiting to unload at delivery centres. The Welsh MP added that stopping such delays would help to retain drivers and improve driver welfare.
“I’ve been contacted by a number of drivers in Ceredigion who believe that a long-term solution to the crisis must include improving delivery times at distribution centres,” wrote MP Ben Lake on Twitter, referring to his speech in Parliament.
In November 2021, the British Retail Consortium also warned that RDC delays were being compounded by labour shortage problems. Meanwhile, one European nation where frustration over RDC delays has been particularly vocal is Spain. Indeed, the Spanish Government has even introduced legislation to compensate carriers. Back in the spring of 2022, it was revealed every hour that a truck stands still at an RDC, regardless of whether loading or unloading takes place, the road transport firm operating the truck will have to be compensated to the tune of €38.60. The legislation entered into force just a few months after FENADISMER, Spain’s road transport association, decided to name and shame the RDCs it understood to have the worst waiting times in the country.
By far the worst offenders at the time (late 2021) were the Carrefour supermarket RDCs in Dos Hermanas and Ribarroja, and the Día supermarket RDCs in Azuqueca de Henares. Horrific waiting times of 4-5 were commonly reported at each. Naturally, these long waiting times can generate congestion in and around warehouses while also frustrating hauliers keen to unload and pick up their next load. Indeed, the latter problem may even be so pronounced that carriers decide to avoid some facilities completely, resulting in shippers potentially losing access to reputable carriers. Numerous cases of this behaviour were reported in the UK during the 2021 retail supply chain crisis, with one unnamed haulage company telling The Grocer that it had been boycotting a major German discount supermarket for “not being flexible” and turning away trucks that turn up late. In addition to this, according to reports in the UK, established haulage companies like Fowler Welch, FreshLinc and Turners were among a group of carriers who decided to end deliveries to specific retailers.
The aforementioned examples show how in some countries, RDC delays can lead to costly fines while also endangering partnerships with trusted carriers – consequences that no FMCG shippers would want to experience. Admittedly, the recent economic downturn has relieved the pressure to some extent since the stresses of 2021. However, it would be naive to think that the problem of RDC delays has gone away.
A report by the Office of Inspector General for the U.S. Postal Service (USPS), published as recently as this summer, found that poor scheduling was contributing to USPS postal delays. The report highlighted several problems, including delays in planning transportation schedules and a lack of coordination between inbound mail and dock operations, resulting in extended wait times for truck drivers.
“The challenges were significant and caused an immediate and significant decline in service performance in the Atlanta region,” the audit report states. “Specifically, the Postal Service had challenges executing operations under its new plant design, resulting in congested dock conditions and truck drivers waiting hours to unload mail.”
How dock schedulers can help
The very problems referred to in the report by the Office of Inspector General for the U.S. Postal Service are being addressed at numerous FMCG companies via the use of a dock scheduler.
CargoON’s Dock Scheduler, for example, has been known to reduce waiting times at warehouses by up to 70%. The efficiencies are a result of several factors. First and foremost, by utilising a dock scheduling system, loading docks can be effectively managed via designated time slots. This is purported to not only boost warehouse efficiency tangibly, but also nurture stronger partnerships with carriers. Improved efficiency can additionally alleviate tensions among warehouse staff and minimise prolonged waits resulting from coordination issues.
Furthermore, a dock scheduler streamlines communication by centralising information, enhancing interactions among logistics departments, carriers, and warehouses, thus ensuring seamless operations as per a predetermined timetable. These tools not only evenly distribute workloads throughout the day, but also enable drivers to reserve and adjust arrival times based on transport statuses.
Certain dock scheduling systems also grant access to detailed reports containing key performance indicators, promoting a holistic understanding of all warehouse processes and facilitating ongoing enhancements.
Real world examples of dock schedulers in action
A number of major FMCG shippers have already embraced dock scheduling and are reaping the benefits. Dawn Foods, a well known American wholesale manufacturer and distributor of breads, baked goods, mixes, and other food products, is a case in point. In a CargoON case study, Ronny Sauer, the company’s European Supply Chain Analyst, revealed earlier this year that Dawn Foods had cut down on the number of cases in which all trucks arrived at the same time:
Shippers in other sectors are also utilising dock schedulers, especially those that need huge volumes transported quickly.
Centrum Pali, for example, the largest Polish manufacturer of precast reinforced concrete piles and pile foundations for overhead contact line support structures, has turned to the solution to cut its loading and unloading times. Wojtek Kośnik, Centrum’s Pali’s Key Account Manager, is a proponent of the system, and says he has no regrets after using a dock-scheduler for over 3 years now:
