Supply and logistics chains are never completely uniform in terms of demand and delivery. There are intermittent peaks and troughs, all of which require planning and solutions to be overcome. Through strategic use of modular logistics resources like van hire services, challenges can be flattened with ease, enabling businesses and other organisation to regulate expenses and demand fulfilment in an efficient manner.Events like the Birmingham 2022 Commonwealth Games create short term spikes in need for logistics, with various events supplies, sporting equipment, banners, communications equipment and more needing to be moved between locations so that things go smoothly. The issue for many is that events like this run for short periods of time, and as such rarely warrant investment in new assets which may only be required for just a limited period of time.The hire industry is nothing new, van hire and equipment hire have been around for quite some time. Though van hire has been mostly used by private individuals, or businesses that just need to do a quick job over a day or two, with leases being negotiated on larger events requirements.
Using Van Hire Facilities To Make Demand Spikes Easier To Deal With
If you are running an existing fleet of vans, and you see a demand spike of 20%, for example, for one week, two weeks or more, you have choices:
Is Pushing Existing Van Fleets Harder To Cope With Demand Wise?
Most van fleets are already highly stressed due to cost reductions and the need to improve margins.
As such, pushing resources that are already under stress is unlikely to prove wise.
Not least, when there are time constraints involved, being in multiple places at the same time places challenges on drivers as well. Something which can lead those drivers to break speed limits, or ignore rules of the road, placing lives at risk, and also putting their own license’s at risk. Which with the new rules of the road for 2022 in place, puts even greater risk of van drivers losing their licences.
Realistically, when your existing van fleet is already maxed out in terms of capability, pushing it harder is likely to be unwise, the extra pressure on people and resources is likely to result in unpleasant knock on issues. Potentially legal problems.
What Value Comes From Additional Long Term Van Leasing To Cope With Short Term Spikes?
Getting additional resources that spread the load is definitely a good idea.
Whether it is worth acquiring additional long-term resources is another matter though.
When you know that you have a short-term spike, any additional resources must be balanced against whatever revenue comes from that period, and the cost offset of additional leases compared with the marginal value of additional vans.
Again, this can lead to resources being over stressed, including people. Largely as the number of additional vans on long-term lease would likely be less than optimal for the load being experienced.
Again, van drivers needing to be in multiple places at once, with little time between places, hence infringements of road rules being the only way to meet constrained timings.
Unless a set of consecutive spikes are anticipated, acquiring additional lease vans is unlikely to be worthwhile. It would likely be expensive for the business in a way which is unbalanced with the benefit of those resources, which realistically yield insufficient benefit anyway.
Is Short-Term Van Hire The Best Way To Handle Short-Term Spikes In Logistics Demand?
With a short-term issue, a short term solution can be best.
Putting a long-term solution in place to cover a challenge which will only last for two weeks, will result in that solution becoming obsolete very quickly. Leading to stakeholders wondering why such measures were put in place.
Optimal solutions deal with problems efficiently, whether they are long or short term.
In the case of short term logistics spikes, this means that acquiring the right number of hire vans or other vehicles to handle that specific load is most wise.
Adaptive logistics have become vital in terms of modern supply chain management.
Greater use of facilities such as van hire enable greater adaptivity to meet short-term spikes with demand and workload.
When paired with use of recruitment agencies, which enable hire of additional manpower, i.e. drivers, so that efficient distribution of workload can be met, van hire becomes a very efficient means of meeting hire spikes in workload. These things combine to generate the type of adaptive solutions that are required, in order to efficiently manage spikes.
Events Logistics Benefit From Planning That Involves Modular Hire Systems
Whatever type of event is being managed, from major events such as the 2022 Commonwealth Games in Birmingham, simple trade shows, or even pop-up type events run for one off marketing of new products, having modular systems that flex to allow coverage of those events brings incredible benefit.
Commercial vans are expensive pieces of equipment, which suffer depreciation, and most businesses have minimal use for on a daily basis.
As with many items of equipment which are non-core business items, utilising hire options that can bring short-term solutions that span the period of requirement means that efficient solutions can be easily utilised.
With the variety of hire van options available, it is worth talking with logistics experts that understand the vehicles themselves along with task requirements, so that the most efficient solutions can be achieved. There are times when acquiring additional vehicles long-term can be good, though for many business cases, use of short-term van hire facilities brings far greater advantage.
For businesses handling events, talking with Squab Self Drive experts is a good way to achieve these optimal solutions, enabling your business to concentrate on what it does best, rather than spending a great deal of time analysing how to cover logistical requirements.