Iron Mountain interview: Rising warehouse costs?


Iron Mountain’s Warehousing & Logistics division – a third party logistics provider – operates eight large warehouses in the UK, one in Ireland, and two in Europe. In this interview with Maria Torrent March, the company’s Managing Director for Warehousing & Logistics Europe, we discuss costs, access to automation and realigning supply chains.

Kirsty Adams (KA): What trends are you seeing in UK warehousing and how are they different to the rest of Europe/the world?

Maria Torrent March (MTM): Well, some trends are pretty universal. We have global trade changes all those geopolitical factors, trade agreements and regulatory shifts that are constantly in the news. E-commerce is steady. Sure, it’s not growing as rapidly as during the pandemic, but it’s definitely not going away.

We’re seeing more delivery channels emerging. Sustainability is another big one. It looks slightly different in each market, but it’s a global conversation now. The workforce challenges are interesting – they’re more market-specific.

In the UK, we’re dealing with higher costs, cost of hire and labour availability issues. But when you look globally, every market is different.

KA: So some trends are universal?

MTM: No, each region has its own nuances. Some markets have more available labour, lower costs. But the core challenges  ̶  like ecommerce growth, sustainability, innovation  ̶  those are fairly consistent worldwide.

KA: What are the key trends in automation and digitalisation?

MTM: The cost of automation has reduced, making it more accessible to companies, especially SMEs. It’s becoming a necessity rather than a nice-to-have due to market challenges and increased costs. I think companies – from  a 3PL perspective – should only invest when they can scale with their customers. Don’t just go all in.

KA: How are costs changing for warehouse operators? Are they only going up?

MTM: Costs are rising in areas like labour (due to regulatory changes) and energy. Higher energy costs are pushing all of us to look for cleaner energy. Solar panels on the roof is one of the most logical things you can do. However, technology costs have become more flexible, with more modular and subscription-based options available.

KA: How is geopolitics impacting supply chains?

MTM: Our customers have really had to think about this a lot over the last few years, starting with the pandemic. Geopolitical events are forcing them to reorganise supply chains.

And we have to put ourselves in their shoes. For example, are they looking to have different suppliers in different markets? How do we support them in mitigating risk? It helps that we’re a global company. It’s all about flexible solutions, not long-term contracts, if that’s not right for them.

KA: How is Iron Mountain using robotics and AI?

MTM: We work with partners like Dexory and they provide robots for inventory checks. We also use technologies like AutoStore. It helps us with the labour shortages we are seeing in the UK’s warehousing sector. We also have AI-driven platforms like the Digital Experience Platform (DXP) to automate workflows and improve data accessibility. This helps customers make decisions quicker. If a customer wants absolute certainty of the products stored in a warehouse, at any time, we can do that.

MTM: What advice would you give to supply chain strategists, Ti’s core audience?

KA: Embrace technology, find flexible and scalable solutions. Or engage with a 3PL to do that for you. Find strategies which mitigate risks by reducing dependencies, and don’t lose sight of sustainability goals. It’s not going to go away.

KA: Any final thoughts on the industry?

MTM: Yes, there is genuine collaboration now. Previously, companies were very secretive, 3PLs would not talk to each other. Now, the lines between vendors, suppliers, and clients have blurred. Collaboration has become a reality, not just a buzzword.

Author: Kirsty Adams

Source: Ti Insight 


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