Cracking the Code: Solving Distribution Challenges in 2025

Challenge # 1 – Labour availability and costs

Managing labour and its costs in distribution centres will again be a challenge in 2025. This has been the primary issue for distribution managers for the past ten years. Luckily, the marketplace has responded, and if you roam the tradeshow halls of ProMat or LogiMAT, you will see a wide range of solutions primarily geared toward relieving an operation’s dependency on labour and related costs.

It is important to understand that every solution is different in scope and size, and what might work for the retail market might not work for the food and beverage market. Knowing your business requirements and objectives can help you evaluate solutions and growth opportunities.

Finding the right balance with the right partner

Working with a partner like FORTNA can help you identify key objectives and create a short- and long-term automation plan to elevate your operations. The right partner will assist you with choosing the right balance of automation and manual processes required to solve your operation’s labour challenges. Understanding the technologies that can be leveraged quickly and into the future can help an organisation strategically plan and integrate automated solutions. Robotics, scanning devices, inventory management, and software are some of the many solutions that FORTNA considers helping curb labour costs and boost productivity.

Challenge #3 – Minimising downtime

No matter how optimised your distribution system is, if it experiences unplanned disruptions and downtime, it can cost an organisation productivity, customer satisfaction and overtime labour costs. In most cases, downtime is due to neglect in maintenance processes or a lack of adequate spare parts. While optimising your operation for peak performance, don’t forget to optimise your maintenance operations.

Proactive vs. reactive maintenance

When analysing your maintenance operation, are they actively performing preventative maintenance activities or consistently responding to emergencies? Understanding maintenance cycles, equipment wear and tear, and the root cause of system failures can distinguish between a successful and disappointing 2025. Here are a few proactive ways to address your maintenance programme.

• Assessments – Having a third party come into your facility and thoroughly assess your operations can help you identify potential trouble spots and opportunities for improvement so you can mitigate issues before they create a downtime event.
• Parts – Many downtime events are triggered by not having a spare part in stock to fix the failed one; this can extend the time your system is not running. Working with a single parts partner can ensure you have all your critical spare parts in stock, and they will work with the part vendors on lead times, warranties and obsolescence.
• CMMS software – A computerised maintenance management system (CMMS) is software designed to streamline maintenance operations. Work order management, spare parts inventory, and asset tracking are just a few benefits that a CMMS can deliver. This software can also deliver reporting and analytics on activities, costs and performance, aiding in decision-making and developing future strategies.