< Previous20 Business Link www.blmforum.net WAREHOUSING AND DISTRIBUTION The increased demand placed on the warehousing and distribution sectors in the wake of the pandemic continues and, with the Christmas trading period rapidly approaching, and a dearth of drivers, operators need to act now to ensure they can meet this demand and avoid shortages. T he coronavirus crisis has led to a spike in consumer demand for everything from food, drink and consumer goods to home appliances. Not only has this placed greater stress on retailers, but also on the entire supply chain. Growers and producers have been forced to turn in longer hours and bolster production and capacity to keep up with demand. One of the industries that has keenly felt this rise is warehousing and distribution. Now, in the run up to Christmas in the second year of COVID, demand and driver shortages will likely lead to a severe lack of resource availability, leading to a spike in storage costs. Keeping up Keeping up 20-23.qxp_Layout 1 30/09/2021 11:23 Page 1www.blmforum.net Business Link 21 WAREHOUSING AND DISTRIBUTION © Shutterstock /Studio Dagdagaz As retailers and supermarkets significantly expand their storage and warehousing footprints, operators can take measures now to improve warehouse and distribution efficiencies, leading to time and cost savings, and avoid a repeat of last year. It’s critical for operators to regularly undertake warehouse assessments. This is a means of assessing whether one’s warehouse operation is productive and efficient in meeting both its operator’s needs and those of its customers. It’s a crucial step to identifying and instigating efficiencies as it’s almost impossible to improve something without first being able to measure it. There are five basic parts to any assessment. The first, and perhaps most obvious, is the walkthrough and observation of the operation. It’s a look-before-you-leap step, walking the facility floor right through to loading bays in order to identify inefficacies and where best to focus improvements. This is then followed by the second step of gathering data of necessary information and metrics, and the third of interviewing key staff members. This step is particularly prudent for an operator to gain valuable insight into individual processes and operations. 22 Á 20-23.qxp_Layout 1 30/09/2021 11:24 Page 222 Business Link www.blmforum.net WAREHOUSING AND DISTRIBUTION They might be the overseer, but a staff member who, for the sake of argument operates a forklift all day, will have a more acute awareness of hindrances when it comes to using said forklift. Combined with other interviews and the data gathered in the previous steps, this will create a valuable web of information where patterns can be seen, and action can be taken. The fourth step is to report the analysis to determine current productivity and service levels, while the fifth and final stage is external benchmarking to look for areas of potential improvement. Once the assessment is complete, it’s then time to take steps to address and improve on the areas of inefficiency discovered. But what exactly can warehouse operators do to boost efficiency and create a leaner, more streamlined site? A warehouse management system has become indispensable for modern warehouses and distribution centres. Basically, this is a software application that helps to control and manage day-to- day operations in a warehouse. It guides inventory receiving and put-away as well as advising on inventory replenishment and can also optimise picking and shipping of orders. Not all warehouse management systems are created equally, however, so it’s important to buy from reputable providers. Some of the best ways to boost operational efficiency aren’t software related, in fact they’re downright low- tech. Expanding one’s warehouse can provide more storage space, which has becoming an increasingly important topic as we approach Brexit, but this can incur considerable expense. It’s better to first make more efficient use of existing space. By adding taller units and investing in high-reach forklifts, a warehouse operator can utilise its vertical space and keep more inventory in the same space. Yes, there is some cost in this approach, but it is significantly less than a whole site expansion – or opening another warehouse altogether. © Shutterstock /Roman Zaiets 20-23.qxp_Layout 1 30/09/2021 11:24 Page 3www.blmforum.net Business Link 23 WAREHOUSING AND DISTRIBUTION Similarly, it’s important to pay attention to warehouse layout in order to make navigation for staff and forklift operators easier. Of course, this makes navigation easier, but it also helps to minimise potential health and safety hazards. This isn’t a one-off issue, but rather part of continuous improvements where managers and site operators regularly check and assess their warehouses to see if and where improvements can be made. However, it isn’t only site operators that need to be cognizant of these issues, but all staff and managers so it’s therefore important to make sure all staff are properly trained. All of these improvements in the warehouse or distribution centre will have a cumulative effect and these efficiency gains are passed along to logistics and freight forwarders. Coupled with improvements made by logistics operators, the supply chain becomes leaner, more streamlined and much more efficient. As we approach the Christmas trading period in another year of living in a pandemic, this will matter now more than ever. © Shutterstock /Petinov Sergey Mihilovich D Davies Turner Celebrating 150 years of pioneering service Your worldwide freight and logistics partner T: 01709 529709 W: www.daviesturner.com E: RotherhamSales@daviesturner.co.uk YEARS 20-23.qxp_Layout 1 30/09/2021 11:24 Page 424 Business Link www.blmforum.net SUPPORTING BUSINESS GROWTH P andemic or not, late payments continue to impact businesses. Fortunately, there are lifelines available to ease the burden and lessen the strain. Invoice finance is the simplest means of releasing cash tied up in a businesses’ outstanding invoice. It sees a business sell its invoices to a third party who will advance some of the funds it is worth up front for a cut. Thousands of businesses already rely on this kind of financing to maintain a healthy cash position, whilst others use it to take back control of cashflow issues that arise from late and unpaid invoices. Perhaps the biggest draw is that businesses can be paid most of an invoice within forty-eight hours instead of the typical thirty- to ninety-day period specified on most invoices. Asset-based finance, on the other hand, is a specialised method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as capital – essentially, any loan to a company is secured by one of that company’s assets. This option is commonly used to pay for expenses when there are gaps in a company’s cashflow, but it is also frequently used for start-up financing as well as refinancing existing loans, financing growth, mergers and acquisitions, as well as management buy-outs and management but-ins. Although it’s not suited to meet every business requirement, it can prove useful for those that have stretched their credit limits with vendors and reached lending capacity at the bank. Companies can also take out loans to fill the gap and bolster cashflow, though some companies may already be at their limit with their banks or otherwise don’t meet the requirements for securing loans with traditional lenders. In these situations, companies can turn towards alternative lenders and finance providers. Private equity, for example, is where investors provide long-term equity capital investment in a company in return for either shares, a percentage stake in the business and/or, sometimes, a seat on the board. Although many businesses might be loath to dilute their ownership, private equity does offer a good option of raising capital for businesses that aren’t ready to list on the stock exchange. Another form of private finance is an Securing a lifeline Although financial aids put in place by the government to ease the economic burden of the pandemic have all come to an end, there are a myriad of other financial lifelines open to businesses to cover losses, as well as measures that can be implemented in-house to support future growth. Cooden Tax Consulting – helping SMEs for almost a decade Cooden Tax Consulting have been helping companies across the UK for eight years to claim the most valuable tax relief that a SME can claim. The area of Technology Tax Relief and Research & Development Tax Relief is highly specialist and does not fall comfortably under the remit of most accountancy practices. Director and founder Simon Bulteel has extensive knowledge and experience in assisting creative, industrial and technological companies make a claim under Technology Tax Relief schemes. Cooden Tax Consulting is able to work with you to identify eligible companies within the creative, industrial and technological sectors and is focused solely in the areas of R&D Tax Relief, Patent Box and Video Games Tax Relief. It is able to enhance your customer offering, by undertaking complex Research & Development Tax Relief claims for your clients. To find out more, visit www.coodentaxconsulting.co.uk. © Shutterstock /Panchenko Vladimir 24-27.qxp_Layout 1 01/10/2021 11:55 Page 1www.blmforum.net Business Link 25 SUPPORTING BUSINESS GROWTH © Shutterstock /fizkes 26 Á angel investor – a high net worth individual who makes use of their own personal disposable finance and makes their own decision about making an investment. Angels would normally take an equity stake in a business in return for providing equity funds. As well as capital, angels can also provide their experience, knowledge and contracts, making them especially attractive to early-stage businesses. Every investor is different and will therefore provide differing amounts, but typical investments range from between £10,000 and £500,000, though deals of up to £2 million are becoming more commonplace as angels group together in syndicates. Although angels are one of the most significant investors in start-ups, that shouldn’t deter more established firms from making enquiries. It’s important to keep in mind that securing an angel can be a difficult and protracted process, as well as being harder to research and contact compared with a private equity firm. Although securing finance of one form or another is a way in which companies can strengthen cashflow, there are other options such as reducing overheads and operating costs Bring Dexter & Sharpe your business ideas to turn them into a reality Most people starting up in business do so because they have a good proposition and the enterprise and commitment to see it through. Most, however, are not experts in the legal and financial aspects of running a business and such matters can appear daunting. Fortunately, you do not need to be an expert in these fields to succeed in business, but you do need the support of a team of trained experts. Dexter & Sharpe will help you to: * decide on the most suitable structure for your business * prepare a business plan, cash flow projections, budgets, and trading forecasts * assess the finance requirements, advise on the best sources of finance and draw up the necessary proposals * set up a recording system for your internal use and for complying with statutory requirements * keep on top of bookkeeping, VAT, payroll and other accounting requirements * and more! To find out more, visit www.dextersharpe.co.uk. © Shutterstock /Rawpixel.com 24-27.qxp_Layout 1 01/10/2021 11:55 Page 2DO YOU WANT TO GROW YOUR BUSINESS? MODAL Training Centre, Middleplatt Rd, Immingham, DN40 1FN Fully funded business support is available to small to medium sized businesses in logistics, ports or renewables, or a support service for these sectors. We provide support in: • Marketing, branding and SEO • HR advice such as workforce planning, reviewing contracts and GDPR • ISO accreditation as well as health and safety audits • Leadership/management development • Creation of training plans for employees • Business plan and financial forecast creation • Improving efficiencies within the business • Accessing new markets • Access to match funding grants. To receive fully funded support and one-to-one consultancy, find out if your business is eligible by contacting our business advisors on 01469 428449 or email GAINSupport@modaltraining.co.uk gainingadvantage.com 26 Business Link www.blmforum.net SUPPORTING BUSINESS GROWTH and downsizing. Depending on the company and, indeed, the severity of the financial shortfall, this approach may be pursed independently or in conjecture with invoice financing or a loan. In this current financial climate, with the effect of the pandemic, and with the end of the furlough scheme forcing many employers’ hands, a lot of businesses may soon be looking at redundancies as a necessary way to improve and increase their cashflow. Payroll is often the biggest expense for a business so, in times such as these, it’s often one of the first places bosses or financial advisors will look at to save money. It’s a simple but effective method – a company can save tens of thousands of pounds a year by letting staff go, be that through shuttering whole departments, or consolidating multiple job roles into one. Although nobody wants to lose their jobs, it’s often necessary for companies to take such measures to stay afloat and to continuing trading through this period of increased economy strain and uncertainty. However, it’s worth noting that there are other ways to cut payroll costs without letting staff go – such as cutting salaries, turning full-time staff into part- timers, cutting bonuses, enacting leaves of absences and shortening the working week. One of the key decisions that company bosses have to contend with – especially during lean times when they’re trying to save costs – is whether to take on new staff or upskill existing employees. Of course, there’s pros and cons for both choices but, regardless of the decision, there will be a learning curve. New employees will need to familiarise themselves with a company’s operations and culture, whilst existing staff will need to take time out of their duties to learn new skills. But the benefits of training are legion. The benefit of training is that it’s flexible, working as much around a company’s needs as possible. While there are specialists training facilities, many training providers will also come to an employer’s office or site. Yet, in the last year and a half, online training has grown in popularity and prevalence. Although online training has existed in one form or another for decades with many people – from students right through to senior staff – taking advantage of it. Since the first lockdown, however, it has exploded in usage as apprentices look to maintain their learning, companies complete their employees’ training, and individuals that are now based from home – or have been made redundant in the wake of outbreak – to upskill. Outside of the pandemic, the appeal and 24-27.qxp_Layout 1 01/10/2021 11:55 Page 3www.blmforum.net Business Link 27 SUPPORTING BUSINESS GROWTH Save money and go green with Business Lincolnshire Protecting the environment doesn’t have to cost your business the Earth. In fact, going green can save you money and help your business to run more efficiently than ever. The Business Lincolnshire Growth Hub’s Resource Efficiency programme makes being eco-friendly easy, with expert advice and funding support to help you implement changes that can cut running costs and grow your business, without harming the planet. The Growth Hub’s Resource Efficiency expert will conduct an on-site audit of your business and identify green improvements you can make to save money, such as investing in changes or renewable technology. These long-term savings can be used to boost your business, allowing you to invest in growth plans. Making sure your business meets environmental standards can help you to attract investors, as well as future-proof your business against policy changes and price hikes. The Growth Hub’s Resource Efficiency Adviser David Knight says: “My role is to help small-to-medium-sized businesses across Greater Lincolnshire and Rutland to understand the resources they are consuming, and to make realistic changes – both large and small – to improve their consumption. “We create a comprehensive report that details where businesses can cut costs, and by how much, that can save the planet while saving them money.” Interested in making your business more environmentally friendly? Visit the Business Lincolnshire website to find out more: www.businesslincolnshire.com. © Shutterstock /NicoElNino popularity of online training lies in its flexibility. From a home office or smart device, it can be worked around any schedule, fitting in with other engagements and appointments. It can also even be undertaken on-the-go, turning that daily train or bus commute into a learning opportunity. That same flexibility is what gives online training an edge, allowing an uninterrupted learning stream for all manner of individuals while they observe social distancing regulations. Small surprise that many traditional training providers have made the transition to online learning, in part or in full. No doubt misconceptions existed around online training before the pandemic with some employers perhaps reluctant to use them over the misguided perception that they aren’t the equal of in-person training or lack the range of subjects. This couldn’t be further from the truth. Online courses cover a diversity of subjects from health & safety, administration and quality assurance right through to management and everything in between. Because of the nature of e-learning and the flexibility we’ve already touched on, it means training providers are uniquely positioned to get creative with their content and how it’s delivered. This ‘out of the box’ thinking offers a great opportunity to make courses and learning content more engaging, memorable and, thusly, more effective. It also means that content can be continually refreshed and updated with the latest research and findings in a way that traditional location-based courses simply can’t compete with. Providers also have access to analytic data from which they can see what does and doesn’t work about the courses they provide and, crucially, the way in which they’re delivered. From securing capital to upskilling staff, there’s myriad means of support for companies to help secure themselves in the present and pave the way for future growth. © Shutterstock /Phongphan 24-27.qxp_Layout 1 01/10/2021 11:55 Page 428 Business Link www.blmforum.net FACILITIES MANAGEMENT Although managing any facility is a complex, multi-faceted job, part of it involves responding to the unique requirements of a facility and meeting regulatory changes. In particular, the latter concerns worker wellbeing and overall site safety, both of which have become much more intricate and pressing in a world beset by COVID. To that end, any facilities manager worth their salt will ensure that their facility not only meets the health, hygiene and safety levels required by law but, often, go beyond. One such example includes investing in hygienic flooring. Not only will this instigate and help preserve a safer, more hygienic environment for existing occupiers, but will also serve to entice potential new occupiers to a facility. After all, having high hygiene levels is something worth shouting about and, in times such as these, will help to allay Running smoothly Whether concerning hygiene, security accessibility, efficiency will be front and foremost for facilities managers. Running smoothly 28-31.qxp_Layout 1 30/09/2021 11:26 Page 1www.blmforum.net Business Link 29 FACILITIES MANAGEMENT © Shutterstock /Gorodenkof f anxieties and instil confidence. The best hygienic flooring solutions are stable to steam cleaning – ensuring they fit within an efficient cleaning process that is both swift and robust – be resistant to boiling water and process liquids, meaning they’re an ideal accompaniment to manufacturing industries such as food, cosmetics and pharmaceuticals. But where all workers within a facility are concerned, hygienic flooring boasts a nominal thickness and anti-slip properties, so there’s very little danger of tripping, slipping and falling. Although this helps to minimise accidents and possible fatalities, it by no means eliminates threats entirely. Facilities managers must therefore be vigilant at all times and alert to possible hazards. For this reason, it’s worth taking the time to walk around a facility, looking at what works and where improvements can be made. It would be difficult to trust in a boss who’s never in the workplace, and it’s the same for a facilities manager. How can they be expected to run a tight ship if they never visit the facility they’re supposed to managing? As we’ve already touched on, hygiene is critical for facilities managers to focus on, but it can also form part of their environmental strategies. It’ll come as no surprise that cleaning companies and hygiene firms employ some harsh 30 Á 28-31.qxp_Layout 1 30/09/2021 11:27 Page 2Next >