Christmas is coming, whether we like it or not! Christmas can be a challenging time for all businesses, but particularly for seasonal businesses such as the warehousing and distribution sector.
Retail sees a 20% increase in the run up to the festive period, with many warehousing and distribution companies receiving 50% of their annual sales in one quarter.
Due to demand, seasonal overheads such as supporting staffing costs to cope with the demand, additional picking equipment and escalating utility costs, will increase.
So how do you cover your expanding costs? Particularly when your customers are not going to pay you any quicker. When everyone around you is enjoying the season of goodwill, ploughing their way through 10 million turkeys and eating 6,000 calories in just one day, how do ensure you cashflow is supported?
What can you do to support your own business? Here’s some tips you might find useful:
- Unit Layout - Ensure your goods in and goods out are methodically placed within your unit so goods flow smoothly throughout your facility without any disasters.
- Storage Capacity - Look to move goods that are not required during your peak periods to quieter areas of your unit.
- Maintenance - Make sure all your equipment is fully functional and tested before the start of your peak period - breakdowns are costly mistakes are often avoidable.
- Forecasting, Planning Loads & Deliveries - Are there any patterns or lessons you can learn from last year’s deliveries? For example, key delivery dates, volume projections, additional picking bots.
- Transportation - Ensure that as many runs as possible deliver and collect, rather than separate journeys for maximum efficiencies.
- Operating Hours - Look at increasing operations 24/7 during peak times for inward and outward loads.
- Staffing - It’s more cost effective to work out additional staffing on a daily basis, employing on how many you need on the days you need, not weekly if there are lull days. Look at ‘stay on’ bonuses to seasonal staff and/or days in lieu to permanent staff or agreed maximum overtime rates.
This is where Calverton Finance can support you, alongside our very own bunch of elves that we like to call Our People. We have vast experience in supporting warehousing and distribution companies, providing cashflow solutions between £25,000 and £500,000, without the need for personal asset security.
We specialise in financing seasonal businesses with our ICON (In Case Of Need) facility. You can use this funding facility as and when you need it. Supporting you through this seasonal high.
We also support your cashflow with additional options for credit control support and Bad Debt Protection (BDP).
For more information please contract Sharon Simpson (Director) on 07787 530940 or Emily Revill (Head of Sales) on 07584 631190.