Warehousing in Toronto Archives

Discover the latest Warehousing in Toronto trends and how they’re changing the way businesses operate. Learn about the new technologies and strategies that are making an impact in Toronto’s warehousing industry.

The next big revolution in Warehousing is taking place as we speak. Warehouses are becoming increasingly automated, with robots and machines taking on many of the tasks that have traditionally been done by human workers. This is making warehouses more efficient and reducing the cost of doing business. But what does this mean for the future of warehousing? And how will it impact businesses in Toronto? In this blog post, we will explore the implications of automation in warehousing and discuss how it is changing the landscape of the industry.

As businesses in Toronto seek to become more competitive, they are looking for ways to reduce costs. One way to do this is by automating tasks that have traditionally been done by human workers. This includes things like picking and packing orders, loading and unloading trucks, and sorting and organizing inventory. By doing these things with machines, businesses can save money on labour costs.

Automation as a Necessity

Warehousing and Transportation are the hub and spoke of the Logistics Industry. It has now evolved to a stage where Automation of mechanical tasks is necessary to maintain and lower cost of operation, accuracy of data and timely delivery of product and information to maintain feasibility of warehousing as an operational part of business. Warehousing Companies may choose to automate all or certain parts of their operation from product storage to dispatch.

Automation is not just happening in warehouses; it is also happening in other parts of the supply chain include procurement, payment processing and post purchase buyer or supplier feedback.

Although the implications of all this automation are far-reaching. For one thing, it is putting pressure on businesses to find other ways to cut costs. This could lead to more job losses in the future, as businesses look for ways to reduce their labour costs even further. Additionally, the rise of automation is likely to have a profound impact on the economy and society as a whole. We will need to adapt to a world in which machines are doing more and more of the work that has traditionally been done by human beings.

Robots: Friend or Enemy?

Robots and Robotic Process Automation can be a boon to Warehousing in Toronto as it provide immense support in terms of reliable material handling as well as reduce the chances of accidents in warehouses by performing the riskier tasks instead of human workforce. Robotic conveyor belts are just the beginning of this era and with the right advancements, design and training, Warehouse Robots can become a highly valuable assets to Warehousing Companies with reduced cost of operations and the ability to provide a higher quality of service to clients. The apprehension around introducing robots in replacement of general labour may have socio-economic side effects however if an advancement is required for the next revolution of an industry, there may be socio-economic reforms that can upskill and re-employ displaced individuals instead of considering labour replacement with robots, as the only resort.

Warehouse Management Software: Essential Workplace Tool

In the current market of Warehousing in Toronto, it is imperative that Warehouse and Fulfilment Companies use comprehensive Warehouse Management Software Systems to ensure smooth warehouse operations and proper material handling in a single or multiple warehouse location.
A smart warehouse management software can help streamline various minute aspects of the daily tasks calendar as well as provide assurance to the client of timely activities and security of material storage. Most warehouse management softwares are cloud based and provide real time data, accessible from any device at any time.

Artificial Intelligence & Machine Learning

With hyper growth of companies in the last decade, a consistent pattern has emerged which showcases the importance of Predictive Analytics and related tools being used to predict supply chain behaviours and perform pre-emptive actions like forecast based orders, inclusion of external factors and contingencies and as the order volume increases within this intelligent framework, it also adopts and adapts to new behaviours thereby creating stronger forecasts and options to managers to better handle any unforeseen circumstances like out of stock situation or factory lockdowns. ERPs and Inventory Management Softwares today are able to utilise tailor-made Artificial Intelligence and Machine Learning Algorithms to order buffer stocks, perform inventory audits on random, conduct cost-benefit analysis and to some extent marketability of products based on sales patterns.

With the ability to cater to such crucial use cases of Warehousing in Toronto, it’s evident that more companies should adapt to tailor-made A.I and M.L in their supply chain strategies.

Summary:

Warehousing in Toronto is evolving at a rapid pace in terms of Automation, Physical Robots, Robotic Processing Automation, Artificial Intelligence and Machine Learning as they become a key part of supply chain efficiency and we should prepare our businesses to adapt and upskill their teams to improve processes, reduce risk and reduce cost of operations.

Warehousing in Toronto

Since after the pandemic, several costs of conducting a business have increased due to limited availability, supply chain bottle necks and resulting factors like increase in gas prices and shortage of working labour. The warehouse and logistics industry too has been several affected in many ways. One of the primary reasons has been the spike in demand for Last Mile Delivery, Shipping and Warehousing in Toronto – customers which and pro-longed several kind of purchases online from ordering Takeout Food to Shoes, customers across the globe have realized the potential savings from ordering online vs visiting stores in person, thanks to the global pandemic. With an unprecedented demand for Warehouses, Logistics, Last Mile Shipping, Storage and Labour, the warehousing industry was not ready and has since been strained in resource allocation.

Here are some observations we have made from businesses with small to large operations and the perception they have when they evaluate working with a Warehouse in Toronto:

1. Warehousing in Toronto is Cheap

Due to a sudden spike in demand for logistics including warehouse storage, product movement, delivery, IT infrastructure, general labour, technically qualified labour and capital investment in warehousing infrastructure, businesses need to realise that Warehousing in Toronto is priced close to any other metropolitan city in North America and is not distant in terms of input costs. Several cost components have not just increased but multiplied from 1.5x to 3x since the beginning of the pandemic including Business Insurance, Rentals, Labour and Gas Prices. Although a vast majority of this is caused because of supply chain disruptions but it seems the overwhelming demand for warehouses may dominate this trend and prices are unlikely to reduce anytime in the near future.

2. We Can Get A Place In Any Warehouse We Want

Warehousing in Toronto is spread across the GTA (Greater Toronto Area) and encompasses all kinds of warehouses classified from Tier 1 to Tier 5 – such rating is provided based on various factors including their infrastructure, size and category of warehousing. Based on our observations, the ‘premium’ Tier 1 and Tier 2 class of warehouses do not even entertain customers below a certain business requirement because their style and cost of warehousing, right from their internal processes to Warehouse Management Software systems, is so high that considering small to medium volume clients would be a loss-making proposition for them instead of a revenue opportunity.

3. Same Day Shipping is Normal

Each order received by a warehousing company follows the same process whether the order is for a single item pick up or a large trailer load – clients must realise that expecting to ship out products the same day is unrealistic and that the warehousing company will either schedule an order for the next business day or charge the client a ‘Rush Fees’ for same day shipping. Many clients expect that shipping out a small order should be not be a time taking affair however, clients must also realise that their may be other client tickets ahead in the day’s schedule already. From the time a new order is received, any company which provides Warehousing in Toronto, Brampton, Mississauga or the GTA – would have very similar processes involving physically picking, labelling and shipping a single or multiple product.

4. Ocean Freight Lead Time has Normalized

Like many countries, Canada too depends largely on import of goods from countries like China, India, France, South Africa, etc – most of which are goods imported by sea. Due to a prolonged and an increasing backlog of customs clearance, warehouse space and limited staff at the ports, timelines are extended by up to 60 days from their normal course of time. Importers must pay attention to the movement of their freight and add suitable buffer periods to ensure a steady supply chain.

5. Amazon FBA Prep Inventoyr Lead Time is Instant

Amazon Warehouses are known for their size of operations and efficiency amongst even the prominent companies which provide Warehousing in Toronto however the unprecedented spike in e-commerce orders, labour shortage and movement of trucks may also have impacted the world’s biggest marketplace. FBA Sellers seldom presume that once the products are delivered to the FBA warehouse, the inventoyr status would get updated and would be ‘ready for sale’ instantly however the reality is that FBA Warehouses may also be swamped with incoming shipments and the FBA Seller’s merchandise may only become available from 1 to 30 days from the time of checking in the inventoyr in the receiving area.

6. Self-Operated Warehouses are Cheaper than Outsourced Warehousing in Toronto

It is common for growing businesses to consider commencing their own warehouse operations based on the assumption that a warehouse they operate themselves, owned or leased, may turn out to be cheaper however the reality is that there are several direct, indirect and unforeseen expenses that warehouse operators have to consider. With growing demand for warehousing in Toronto by virtue of the location and feasibility of freight movement, if a business was to acquire or lease a warehouse, just the initial investment is capital and time intensive which seldom works out to be difficult for businesses that have use only for their own warehousing requirements.

7. One Warehouse Can Handle All Our Requirements

Every kind of warehousing demands a specific type of warehouse infrastructure, personnel training, insurance coverage, software as well as pricing structure. Presuming that a single warehouse space can handle any and all kind of product movements and business use cases would be incorrect. The reality is that each of the following Product Types and Warehousing Requirements would have those many permutations which would require a unique warehouse plan and price structure:

Product Types	Warehousing Requirements
General Merchandise (Dry)	Short Term Storage
Hazardous Goods	Long Term Storage
Medical Goods	Daily/Weekly/Monthly Movements
Food Items (Consumables)	Warehousing for E Commerce
Lumber/Tire Storage	Pick and Pack

8. Prime Location Warehouses are Rare to Find

Companies that require warehousing services, generally start searching for warehouses outside city or densely populated areas assuming that Warehouses in Prime Locations would either too expensive, unavailable or simply do not exist. However, the reality is that are several prominent companies which provide Warehousing in Toronto, Warehousing Mississauga and Warehousing Brampton and have seen a recent rise in services especially because of the highway connectivity and feasibility they provide to long term freight movement costs including Trucking or even Parcel Pickup Services.

Conclusively, I feel that Warehousing in Toronto is undergoing a transition for the better and companies should be prepared the digital transformation accelerated due to the pandemic but definitely has a positive economic impact for all stakeholders to grow and learn together.