By Oliver Krajewski, Sales Manager UK, Element Logic
Economic uncertainty, geopolitical events, and the aftermath of COVID-19 have had a sweeping impact on logistics and supply chain operations, including warehouses. Additionally, changes in consumer behaviour have led to fluctuating demand across industries.
Rather than waiting for the situation to stabilise, businesses should take proactive measures to safeguard their warehouse operations. Here are four technology trends to consider while navigating global uncertainties amid growing consumer demand.
Warehouse automation and robotics
As technology progresses rapidly across all sectors, warehouses must invest in new and innovative technology solutions to keep up with rapid order fulfilment demands. In this regard, automation is an essential competitive factor. Apart from optimising throughput and storage density, it reduces overheads, adds flexibility to operational hours, and allows a more accurate and reliable warehouse operation.
Automated storage and retrieval systems (AS/RS), such as AutoStore, are among the most popular and effective options for warehouse automation. These storage-dense systems use goods-to-person technology to store and retrieve products efficiently, offering benefits like space optimisation, increased throughput, order picking accuracy, and reduced labour. Such benefits help businesses to stay lean and profitable in a world where warehouse costs and consumer demand are rising.
The AS/RS is connected to a Warehouse Management System (WMS) via a data-driven Warehouse Control System (WCS). The WCS can optimise daily operations, ensure the AS/RS is working effectively, and give vital feedback to a business to help further improve performance.
By introducing robotic piece picking technology, warehouses can benefit from near-perfect picking rates. New robotic piece picking technology, empowered with machine learning AI software, integrates seamlessly together with an AS/RS like Autostore. Together, they enable high-speed picking with total traceability and near-perfect picking accuracy. This reduces labour requirements, eliminates human error and helps to reduce delivery times for consumers improving customer service.
Piece picking robots can replace monotonous and physically demanding duties, enabling human workers to take on more value-added but less labour-intensive tasks. They can also be scaled up quickly with additional units, or reconfigured to handle diverse product types if product-picking demands outstrip a warehouse’s capabilities.
Some robotic arms have embedded AI and machine learning features, allowing them to refine their picking efficiency over time. By continuously learning from past performances and mistakes, the system can adjust to changing picking patterns and refine its capability to handle a diverse range of items more efficiently.
Autonomous Mobile Robots (AMRs) are another automation solution that are gaining popularity. These robots use sensors, advanced fleet management software, and vision systems to navigate the warehouse space safely, working alongside humans with predefined routes or instructions. AMRs are particularly useful for tasks that may be harmful or impossible for humans to perform.
While warehouse automation may, in some cases, require a significant upfront investment, the potential payback is substantial, with a typical return on investment in a well-suited application achieved within 1-2 years. Additionally, these machines do not tire or sleep, paving the way for 24/7 operations in “dark” warehouses, providing added value for money by sweating the assets installed to the max.
Data-driven warehouses
By harnessing real-time data and implementing advanced software with embedded machine learning and AI capabilities, warehouses can unlock critical insights for enhancing process efficiency, managing inventory, and understanding customer behaviour. Translating these findings into strategic business actions can markedly improve overall performance.
Actionable insights to extract from warehouse data include:
- Capacity planning: Data-driven software can automate notifications to alert warehouse managers about possible capacity constraints, prompting timely redistribution of resources. When data signals an overloaded area, such as a congested loading dock, managers can swiftly instruct staff at other stations to provide support.
- Digital twin simulations: Advanced software tools play a crucial role in capacity planning by constructing virtual models of the warehouse to test various scenarios.
- Predictive maintenance for cost reduction: By pre-emptively identifying potential equipment issues, warehouse operators can avert disruptions and maintain high operational continuity for automated warehouse systems.
- Robust transport planning: Using warehouse analytics software will lead to informed decisions that enhance transport efficiency in the end-to-end supply chain, ensuring resilient logistics.
- Gamification to stimulate employee engagement: Data-driven software can produce interactive and engaging activities that acknowledge staff efforts and boost morale, such as hosting a monthly contest for the highest number of orders picked from a particular location.
Automation for smaller businesses
Many people mistakenly believe that implementing a warehouse automation solution is excessively expensive and complex, only destined for large organisations with deep pockets. However, small businesses can benefit from this technology, too, particularly by leveraging Automation-as-a-Service (AaaS). This leasing model provides a more accessible, cost-effective path to improved warehouse operations with less risk.
Even early-stage or smaller companies can implement automation technologies, enabling rapid and sustainable growth without being overwhelmed by complex operational demands. Opting for AaaS means these businesses can remain cash-positive and allocate more funds towards growth and innovation in other facets of their company.
The adaptability and scalability of an AS/RS like AutoStore makes it highly compatible with an AaaS model, as it can fit into various spaces and is easy to scale according to business needs. Technologies such as Autostore can also be repurposed and relocated with ease. This contrasts with other more traditional automation systems, which tend to be more permanently customised and less adaptive, rendering them less suitable for AaaS.
Third-party logistics providers (3PLs) might also offer AaaS to their customers. With ever-changing client contract terms and operational requirements, an AaaS model would allow a 3PL to remain flexible and scale a solution around its end customer.
Micro fulfilment centres for faster deliveries
The growing consumer expectation for same-day or next-day deliveries and click-and-collect convenience is forcing businesses to revise their omnichannel distribution models. European retailers, especially in the grocery industry, are increasingly adopting small, localised warehouses, known as micro fulfilment centres (MFCs), to speed up delivery times.
An MFC has the potential to be located virtually anywhere close to end consumers. It could be within a retail store, a nearby building, or a ‘dark’ warehouse – a place reserved for stocking goods and where only staff members are permitted entry. Besides reduced pickup and last-mile delivery times, MFCs also enable enhanced inventory control, streamlined returns processes, and lower transportation costs and emissions due to the proximity to customers.
Two MFC formats – the dark store and the traditional retail storefront – will likely influence the evolution of logistics. The latter includes a designated area in the back for micro fulfilment operations. These centres often allow customers to collect their orders in person or opt for home delivery.
While the micro fulfilment concept is innovative, the reliance on manual labour can limit the efficiency of these centres, which restricts the pace at which items can be picked. Limited shelf space also means restricted stock volume. However, investing in a flexible and modular automated system can considerably improve storage density.
Embracing smart warehousing
The future of warehousing is full of promise. Keeping pace with emerging trends and technological advancements gives companies an edge to succeed in a dynamic and unpredictable commercial landscape.
Integrating automation, robotics, artificial intelligence, or other technologies allows businesses to improve efficiency and deliver first-class customer service. The secret to tapping into these transformative opportunities is to adapt to change and keep ahead of the pack.
