Future Trends

With the rise in technology, supply chain operations have gone through a lot of advancements. As warehousing and inventory management is an important component of all supply chains, we have noticed changes in the ways of carrying out warehousing operations. There is no doubt that better warehouse technology can be of greater help in the proficient management of warehouses.

It is predicted that over 85% of all businesses will be digital within the next five years. As such, warehouse operators and logistics firms need to react quickly by implementing the latest technical innovations. Not only will this ensure that these companies will be thoroughly futureproofed, but supply chains will be operating at peak efficiency – great for customers and businesses alike.

Some 66% of warehouses plan to expand their technology investments by 2018. With this in mind, here are 10 of the most exciting technological innovations in the warehousing sector that logistics and warehouse operators should keep an eye on.

Experts recommend usage of warehouse technology which will enhance throughput, reduce product damage, improve inventory control, enhance the visibility of stock location and optimize cost on resources. Effective warehouse technologies also serve as green measures and help in reduction of carbon footprints.

EDI communication continues to grow

Big data will be finding its way into warehousing in many ways in the near future. EDI (Electronic Data Interchange) looks to continue this trend. In short, EDI technology allows for sharing of documents, with a shared format, between two computer systems. This has already been taken on board by the warehousing industry, but looks set to expand in scope.

Popular uses for EDI in this sector include:

Purchase orders
Warehouse shipping orders
Warehouse stock transfer receipts
Warehouse shipping advice
Warehouse inventory advice

The benefits of EDI are many when integrated into a successful warehouse management system (WMS) – most notably, the seamless and highly visible flow of information between two different computer systems. No two business partners’ systems are the same. The standard format, and compatibility, of EDI documents allows for greater efficiency, visibility and collaboration between all parties for smoother operations.

Drones

Drones are pieces of tech that have seemingly been pulled from the pages of science fiction and made reality. Handy for a wide variety of applications, drones are set to make appearances in warehouses globally as firms seek to further increase levels of automation.

So why drones? They can aid with tasks that could require a large number of man-hours. One such use is for barcode scanning, according to drone specialists DroneScan. Warehouses are often stacked to the roof with inventory. This makes certain barcodes tricky to reach and could require the use of a forklift, cage and staff to scan them.

DroneScan is confident their 800g drones, carrying scanners, can count as much stock in two days than an 80-strong team, complete with lift trucks and handheld scanners, could in three days. Navigating inside warehouses safely is the final challenge to complete before drones are further adopted – but with major companies such as Amazon and Walmart looking to expand their warehousing operations with drone tech, the future is bright for these airborne aids.

RFID

Radio Frequency Identification (RFID) is already a major force in warehousing, but it will become more sophisticated in the coming years. For the uninitiated, RFID technology uses radio waves to feed information between tags attached to stock and readers that pick up the signal.

The benefits of RFID include greater stock visibility and transparency, which offers ease of inventory as well as a reduction in theft. The Fraunhofer Institute for Material Flow and Logistics, in Dortmund, Germany, seeks to combine drone tech with RFID to further automate the inventory process. By attaching a reader to a drone, inventory can be catalogued at a much faster pace. Floor space can also be saved as the RFID tech, plus the manoeuvrability of the drone, allows stock to be stacked as a high as possible.

On-Demand Warehousing

With warehouse vacancy rates dwindling, down to 10% of space needed in Russia and even lower in the UK and US, on-demand is the next step in collaborative logistics. FLEXE, which calls itself the “marketplace for warehouse space”, is a new system that seeks to offer the maximum warehouse space available for all customers.

The idea is simple. Register on the FLEXE website and you will be able to see available warehouse space posted by operators with room to spare. Likewise, operators can advertise their spare space to those who need it fast. Some spectators have called this the “Airbnb of warehousing” after the popular peer-to-peer accommodation service.

The idea is to offer businesses the ability to be more adaptive in their warehousing. Seasonal stock can be held separate from main warehouses, in order to save space, or returns can be handled and processed faster. All this is according to FLEXE whose revenue model is based off transaction fees. While only a presence in North America, FLEXE could easily change how the logistics industry provides adaptive warehousing in the future.

Cloud Computing

Cloud storage has revolutionised many industries and logistics is no different. By implementing self-updating and hosted computer systems, cloud storage offers many benefits to warehousing include cutting down on maintenance, infrastructure and labour costs that come from the installation and upgrading of warehouse management systems.

Many warehouses that are operating on “legacy systems”, i.e. those that are out-of-date or obsolete, will be making the switch to cloud technology for the reasons above. Another benefit is that cloud storage systems are often self-updating. This means that, instead of replacing talented tech-savvy members of the team once they leave, a system can be implemented that is cost effective and easy to use by all members of staff.

Of course, there are some considerations that should be kept in mind before making the switch to cloud computing. Who will own your data? Where will the data be physically stored – i.e., where are the servers located? Will it be truly cost effective? Logistics and warehousing companies are advised to think carefully before committing to cloud technology.

Omnichannel Operations

E-commerce and omnichannel solutions go hand in hand. As the future is most definitely digital, warehousing will have to adapt to meet the needs of this globally redefining commerce sector. The Radius Group, a Russia based warehousing and manufacturing real estate company, has implemented an omnichannel solution in their latest project.

A new 100,000 square metre facility is being constructed by the Radius Group, alongside French DIY retail giants Leroy Merlin, to meet Russia’s increased e-commerce demands. This facility will be the largest and, potentially, the most efficient distribution centre in the history of the Russian Federation.

The rise of omnichannel distribution goes hand in hand with the advances in RFID and EDI tech, whereas drones could also be hovering on the horizon too for greater efficiency and cost effectiveness.

Robots

Automation is key in the logistics and supply chain sectors. Often, the greater the automation in processes, the more efficient they become. Robots are playing a big part in improving levels of automation in warehousing.

Several worldwide robot manufacturers, including Kiva (bought out in 2012 by Amazon for $775 million to become Amazon Robotics), Swisslog and Grenzebach offer robotic solutions that make inventory, stock take and picking faster.

Take Amazon’s machines for example. Each has its own area to cover, learning where to take its inventory from, which is then picked and taken to a member of the warehouse staff for further distribution or directly onto trucks. Each small orange robot has what resembles a pallet on its back, so each can travel around the warehouse with ease.

By switching the man-to-goods process to goods-to-man, machines like these are just an example of how robotics can be used to revolutionise logistics.

Warehouse Construction

The construction of warehouses will be changed in the coming years. Single-envelope technology is poised to replace traditional methods and materials. By utilising composite panels in the construction, energy efficiency, air-tightness and durability are increased. These are key benefits, especially for cold storage facilities.

The largest example of this design is in Wisbech, UK. ISD Solutions, the UK’s leading specialists in cold storage design and construction, built their facility to improve the UK’s number of frozen food warehouses. Construction time and costs were reduced by 20% while building the 36,000 square metre space.

ISD Solutions are confident that their design practices will change the face of cold storage warehouse construction in the UK. And, with lower costs and build time, plus improved energy efficiency and a lower carbon footprint, composite panel technology will have global applications.

E-Commerce and Non-Store Retailing

In recent years we’ve seen increased pressure on retailers to provide immediate response and high-quality solutions to their customers’ demands. The online channel is helping to inspire and excite consumers with half of consumers using three or more channels and social media becoming more and more influential on consumer behaviour. Consumers are now less concerned by the acquisition of goods and are more concerned with the nature of those products and their real value forcing retailers to focus on quality and customer experience, part of which is the instantaneous availability of their chosen purchases. The shift in purchasing behaviours has changed the very nature of the warehousing and distribution industry with e-commerce providers now almost forming their own sector and third party logistics providers needing to offer return logistics capabilities as well as tracking abilities direct to the consumer on top of conventional solutions. The very definition of what many 3PL providers’ customers demand has now changed so significantly that this alone has had a substantial effect on the industry and now requires its own specialist solutions.

Communication and Tracking Accuracy

Development in consignment tracking technology now gives businesses access to greater volumes of information at much deeper levels than they used to – be that distribution information or stock data. With state-of-art tracking systems, not only are organisations able to use this data for their own benefit but it’s becoming increasingly popular to allow their own customers to access to certain information. With increased international trade, many supply chains are growing and now feature more than just one or two organisations. With tracking information available to all those involved, communication channels open up and data can flow seamlessly between parties. This means less time is wasted chasing information because it’s all there, logged in the tracking system, allowing planning to be carried out further in advance and more accurately.

Real-Time Data

An almost instant feed of information from a third party logistics provider to their customer, and then direct to the retailer or final consumer, has become a central part to many operations and is now a key part of many contracts. With real-time data, data-sharing becomes easier as the user looking for specific information already has access to it. Customer service levels have improved as it’s easier to effectively respond to customer queries. With this level of access, it allows for complete transparency between third party logistics provider and customer, forcing quality levels up and ultimately increasing customer satisfaction.

Route Planning and In-Cab Technology

Most logistics companies have adopted various forms of vehicle monitoring, from cameras to tracking devices, due to the endless benefits that they can provide. From a safety point of view, having the ability to know how your drivers are driving rather than just where they’re driving means logistics companies are able to not only identify areas that may cause an issue, but turn these into a positive training initiative. In addition, having the ability to know where your drivers are and that they’re safe allows logistics companies to show a greater interest in their employees, meaning staff satisfaction should be greater and staff turnover should be lower. From an efficiency stance, with data and real-time information more readily available, not only can consignments be consolidated but routes can be optimised due to an increased ability to plan in advance and to make changes at the click of a button.

Integrated Data

Imagine a system where your software talks to your suppliers’ software. A system where all your information is provided in one place and can be cross-referenced again your own data. Imagine that you could easily compare performance and optimise your stock levels, as well as predict your demand and accurately forecast your business growth with scalable figures. Well that’s available. Right now. Warehouse management systems are now fully integrable with transport planning, CRM systems and external databases. So you really do have the information you need at your fingertips, all at the click of a button.

Automated Material Handling(AMH) System

AMH is a trending warehouse technology which improves work efficiency & reduces human intervention to a good level. A list of AMH based machines like conveyors, stackers, cranes, forklifts, bins and barcode scanners can reduce the turn-around time and hence, increases customer service level for a long-term business arcade.

Paperless Pick & Pack System:

Covering the green aspect of warehouse technology, this system decreases the dependence on papers. While picking and packing orders, this android application can be used to pick products, process the order and make it ready for dispatch. Thus, it reduces the need to enlist and mark items on paper.

The Technologies of Modern Receiving

While new software, hardware and other technologies are being developed for warehouse management every day, these are a few of the best technologies in the warehouses of today.

Cloud-based Technologies: Many warehouses were slow to adopt cloud technologies due to perceived security concerns and the lack of others in the industry using the technology. But now many software companies are developing applications specifically for warehouse receiving and inventory that can be accessed via the cloud. They can be accessed on smartphones, tablets and computers, making this a highly versatile solution.

Voice Technology: One of the greatest new concepts that improves efficiency and makes work easier for the staff is voice technology. Warehouse workers are now able to use their voices to quickly pick, pack, replenish and ship merchandise.

Mobile Devices: For many years, the only handheld devices in warehouses were the old-fashioned barcode scanners. While many warehouses still use these devices, many are now adopting a better method using smartphones and tablets. Now workers can scan items, place them and track them all from one device.

RFID: Radio frequency identification technology (RFID), also known as Automatic Identification (AutoID) is a new automated data collection system that shows a lot of promise in warehouses. Although it consists of several different components, this new technology could be most beneficial in receiving. It allows for items to be automatically scanned in larger volumes– and at higher speeds– than any other method available. This can also help reduce costs, streamline processes and increase accuracy in all areas of the warehouse. It has just recently emerged as a possible solution for warehouses but does show great promise and could be the way of the future.

Mobile Workstations: One of the most innovative and practical solutions in modern warehouse receiving is the mobile workstation. These portable computers allow for employees to take the system with them all over the warehouse and take every step of the process in one trip. This helps to significantly boost dock to stock time as well as reduce labor costs. The ability to take the workstation anywhere the employee is working also greatly reduces the chances of mislabeled products, inaccurate inventories and other possible mistakes.