The COVID-19 pandemic unexpectedly hit America hard, which spiraled toward an economic crisis. While the economy continues to recover into 2023, Economic Experts say the United States hit a recession in the summer of 2022 and will likely hit another in the coming year or two. In the face of an economic recession, supply chains must be prepared to adjust their operational management strategies. Automated Storage and Retrieval Systems (ASRS) provide a reliable means to reduce costs and optimize your supply chain operations to make them recession-proof.
Recession Affects
When a supply chain hits a recession, the company, customers, and suppliers are affected, and each impacts the other. The relationship between a company, its customers, and suppliers can become strained as businesses react to an economic crisis. Customers worry about product availability and cost reliability, and companies must adjust their supply chains in response, often cost-effectively. Organizations need to recognize this mutual dependence on customers and suppliers before entering a recession to maintain trust, respect, and loyalty during any difficult times that may arise.
5 Ways to Use ASRS to Recession-Proof Your Operations
1. Consumer-Centricity
When a company faces a recession, it’s essential to remain customer-centric. Automated storage and retrieval systems (ASRS) help companies stay focused on customer needs by providing faster order fulfillment times and reducing labor costs. ASRS systems also allow for higher accuracy when dealing with orders, which can increase customer satisfaction levels. Additionally, focus on providing top-tier customer service to build customer trust and loyalty.
2. Identify ASRS Bottlenecks
With automated systems, companies can identify process bottlenecks quickly and accurately. This helps improve efficiency as well as reduce costs associated with manual processes that are slow and prone to errors. By identifying bottlenecks in a supply chain, companies can adjust their operations to become more efficient during a recessionary climate.
3. Reduce Labor Costs
Automated storage and retrieval systems can drastically reduce labor costs by automating tasks once done manually. This reduces overhead and increases accuracy while freeing up warehouse personnel for other tasks that require human intervention, such as customer service or product development initiatives.
4. Optimize Your Current Space with ASRS
Many companies assume they need more space to operate efficiently during a recession; however, this is not necessarily true. With automated storage and retrieval systems, companies can optimize their current space instead of investing in additional space for their operations. ASRS can maximize space and add 2x more storage capacity, saving money while providing greater efficiency throughout the process.
5. Integrate Reliable Inventory Management
ASRS provides efficient inventory management so businesses can track stock levels easily without manually monitoring them at all times. Inventory Management system integrations ensure accuracy while reducing labor costs associated with manual tracking methods. It also provides an accurate view of what products are being sold most often so businesses can adjust accordingly if needed during a recessionary period.
McMurray Sterns Recession-Proof ASRS Solutions
With the possibility of an economic crisis in the coming years, it is now more critical for businesses to be prepared for future recessions. ASRS solutions allow organizations access to reliable inventory management solutions, reduced labor costs, increased process efficiency through bottleneck identification, consumer centricity through faster, more accurate order fulfillment, and space optimization.
McMurray Stern is a leading provider of storage solutions, making it easier for organizations to improve efficiency, production, and organization. Our automated storage solutions, including VLMs, AGVs, robotics, and more, are designed to be flexible for ease and adaptation in any situation. With diverse experience across various industries, McMurray Stern experts are ready to help. Contact us today to get started: https://mcmurraystern.com/contact-us/
