Storage and International Distribution Solutions

Published date01 May 1985
Pages25-26
DOIhttps://doi.org/10.1108/eb057404
Date01 May 1985
AuthorRonnie Roter
Subject MatterEconomics,Information & knowledge management,Management science & operations
Storage and
International
Distribution
Solutions
by Ronnie Roter
Managing Director
Intermark
Managers who are trying to concentrate their minds on for-
ward planning, marketing strategies and improvements in
production do not normally want to waste time and energy
worrying about things like stock control.
The storage of products awaiting distribution can be a par-
ticular problem, especially in the high-tech areas where
businesses are trying to keep their overheads to a minimum
and are operating from premises just large enough for the
day-to-day running of the operation.
It is not good for the company's image, or for staff morale,
to have packing cases piled up between desks and all around
reception areas but what are the alternatives? As well
as finding a physical place for the goods which is conve-
nient and secure, it also helps to have the services of a com-
pany which can look after things like inventories.
There are, of course, the big warehousing companies, but
they tend to deal in enormous quantities in order to be cost-
effective. Once products have disappeared into the depths
of a giant warehouse it is bound to take time to get them
out again, and time is often at a premium.
Most high-tech equipment is small, and much of it is fragile,
so a company needs to be sure that it is not being lumped
around on a forklift truck, sharing a pallet with a crate full
of car engines. In most cases the products are only a pro-
blem when they are about to be despatched to customers
or wholesale and retail outlets, since they can often stay
at the factory until
then,
so it makes sense to store them
somewhere where they can be despatched immediately to
their destinations when required.
Realising this, the David Martin Group, with its headquarters
in Colnbrook, have started to provide storage space for the
high-tech sector of its client list, which includes names like
Wang,
Honeywell and Digital.
The managing director, David Martin, explained:
We realised there was a need when we visited one of our clients
and found they had one entire office filled with products. We
could see that it was something which we could do for them,
saving them time and money.
It is a service which helps the client in two ways. To start
with,
we are supplying specialised warehousing under controlled
con-
ditions. They are not having to fight for space in giant
warehouses somewhere. Secondly, it means that we have the
products already packaged and in our hands when the client
wants them moved. That means that if there is an emergency
in New York or Frankfurt, with a breakdown costing thousands
of pounds an hour in machine down-time, we only need one
telephone call in order to put the necessary packaging on the
right plane.
If the client is storing the stuff himself, he has to find the right
part, make sure it is packaged correctly for air travel, fill in the
correct paperwork and get us to come and pick it up. That can
waste valuable hours and can cost everyone a lot of money.
Initially, the David Martin Group specialised in international
courier, air and sea freight services; it has offices in New
York, Brussels, Amsterdam, Paris, Madrid and Barcelona,
and a branch in Aberdeen.
It is not good for the
company's image. . .to have
packing cases piled up
between desks. . .
At exhibitions like Compec we have been amazed by just how
much interest is shown in the storage side of the business. It
is obviously a problem which a lot of young and growing com-
panies are coming across. Apart from anything else, there are
the security and insurance aspects. Offices aren't always the
best protected of premises and if every casual visitor can see
the place is stacked to the roof with easily movable goods, it
won't be long before someone turns up at a weekend with a
removal truck.
It is also possible that an insurance company will not be very
impressed when told that an unprotected office was being us-
ed as an official warehouse.
The David Martin Group itself relies heavily on the use of
new technology for its operation, with a hardware installa-
tion from Wang which sends every parcel on its journey
round the world. The system, which represents an invest-
ment of £100,000, computerises all their accounts func-
tions,
plus all their export, import and courier operations.
Every document which passes through the company is pro-
IMDS MAY/JUNE 1985 25

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT