In a modern world where customers demand faster deliveries, productivity is one of the most important aspects every logistics expert considers. But how does one achieve flexibility in warehouses, be cost-effective, and provide a fast return on investments to do more in the same space for a lower cost?
Industry experts are debating the big industry question: To automate or not.
“Warehouse automation has been a hot topic lately. It is not enough to rely on traditional sortation and conveyors systems,” argues Maersk’s global head of innovation, Erez Agmoni.
Creating flexibility in warehouses
Maersk is using drones to improve inventory management in traditional facilities, which helps with accuracy and efficiency. It’s also using warehouse automation in traditional racking systems to lift and transport goods across the warehouse, avoiding the use of additional floor space.
There is an unprecedented speed that’s taking over the pick and pack processes. Supply Chain Management Review uses Ocado’s grid solution to explain how urgency has changed how warehouses are managed.
The grocery fulfillment can put together an order of 50 items in just five minutes. Using a human to do exactly the same work will take at least 10 minutes longer.
Efficiency through automation
Experts suggest the industry is poised for a “new industrial revolution,” which makes warehouse automation necessary. Ranjit Gangadharan, the global technology executive at Capgemini Engineering, says warehouse automation targets the heart of the problem.
“With automation, warehouses can operate round the clock without the constraints of fatigue or human error,” says Gangadharan. His company has over 60,000 engineers and scientists in over 30 countries, specializing in infrastructure and transportation.
“Every process, from inventory management to order fulfillment, is optimized for speed and accuracy, ensuring that goods flow seamlessly through the supply chain and reach their destination faster than ever before,” says Gangadharan.
Logistics revolution
Introspective Market Research (IMR) projects that smart warehousing will reach $36.9 billion by 2030. It gives businesses “real-time visibility” into their operations and allows logistics experts to optimize procedures and make quick adjustments.
“Smart warehouses can also eliminate the bulk of human error and improve facility safety and security. Overall, the key advantages of a smart warehouse are its capacity to save time and money, enhance profitability, and improve client and customer happiness,” states the report.
According to analytics by IMR, smart warehouses can process over 60,000 orders a week. Experts estimate the UK alone would need 92 million square feet of warehouse space this year.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
