Warehouse of The Future

A Guide to Technology Trends Set to Make an Impact on the Warehouse of the Future

Globally, warehouse operations and distribution centres are experiencing rapid change. The fundamentals of supply chain operations haven’t shifted – businesses still strive to be more efficient and more competitive. What’s new is the almost breathless pace of technological innovation.

Today’s digital developments, combined with changing consumer demand and the growing awareness of environmental concerns, are propelling us fast towards the warehouse of the future.

In this guide we examine the major areas of technological change that are reshaping how warehouses are designed and managed. What’s particularly exciting is that so much of the new technology is now available to businesses of all sizes, including SMEs.

Technology is Key to Efficiency

The warehouse remains a crucial part of the supply chain. Goods of all shapes and sizes are received, sorted, stored, and shipped to customers.

Advances in technology have transformed traditional warehouse operations into a highly automated and efficient hub for the movement of goods. The trends we’ve identified show that warehouses are set to become even more streamlined, leading to faster delivery times, increased productivity, enhanced inventory accuracy, and improved customer satisfaction.

Investing in warehouse operations may not be glamorous, but it offers many businesses a huge potential for significant returns. Going faster, being more efficient and having less wastage can all make a significant contribution to a more positive bottom line.

Warehouse of the Future Solves Today’s Major Challenges

Storage capacity, supply chain disruption and labour shortages are big problems facing the warehousing industry.

Today’s technologies help solve these problems. Repetitive manual tasks can be automated. AI can help unlock more efficient warehouse designs and assist with predicting future demand. Robots are increasingly taking on more of the literal heavy lifting in warehouses, and digital warehouse management brings down error rates in areas such as order fulfilment.

However, simply implementing these new tools won’t solve many of your warehouse challenges. You need to choose the systems and designs that will deliver optimal performance across your operation.

Achieving this begins with studying the data from your existing warehouse processes and product movements. Our projects begin with collecting and analysing as much data as we can. This enables intelligent decision making based on insights and predictive analytics.

This knowledge is vital to pinpoint the required investment in technologies such as automated systems, that will add value and efficiency, lower operating costs, and provide agility for the ever changing marketplace.

Artificial Intelligence (AI) & Machine Learning

AI and machine learning is a branch of digital warehouse technology that involves the use of algorithms to analyse data and make predictions or decisions. In warehousing, AI has the potential to integrate every element of warehouse processes, from goods-in and storage, through to picking, dispatch and last-mile logistics, to optimise operations, reduce errors, and increase productivity.

For most warehouses where inventory control is pivotal to its success, AI can be used to predict demand and adjust inventory levels accordingly.

The potential impact of machine learning in distribution centre design and management is immense. Machine learning allows connections to be made that we humans can miss, and it seeks continual improvement.

For example, it would not only analyse data to improve order-picking accuracy, it would also consistently evolve to become more efficient at this task over time.

Warehouse Management Systems (WMS)

A warehouse management system is the app that gives you full visibility of what’s in your warehouse and what’s going on in and around the warehouse. It tracks inventory as it comes in and when it leaves. It knows where items are located and it controls the processes around stock movements.

To operate at peak efficiency a warehouse management system is integrated with your other warehouse systems, such as automation and robotics. It should also be connected to other relevant business systems.

Warehouse management systems can be cloud-based or in-house. They are accessible on multiple devices, giving users access to the information they need at the moment it’s required.

Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs)

AMRs and AGVs are types of mobile robots that are used to move goods around warehouses without human intervention. Once programmed and integrated with warehouse management software systems, they can be used for tasks such as inventory management, picking, and transportation, reducing labour costs and increasing efficiency across operations.

AMRs use sensors and algorithms to navigate, while AGVs follow predefined paths around the warehouse space and have the in-built capability to interact safely with infrastructure and people.

Additionally, collaborative robots work alongside human workers to complete picking tasks in a warehouse. These robots are designed to be safe and easy to use and can help improve productivity, efficiency, and accuracy of put away or fulfilment operations.

Big Data

Big data refers to the large volumes of data generated by warehouses, such as inventory data, order data, and transportation data. By analysing this data, warehouse operators can gain insights into their operations and make data-driven decisions to improve efficiency, reduce costs, and enhance the customer experience.

For example, big data can be used to track inventory levels and product movements, allowing you to optimise warehouse layout.

Augmented Reality (AR)

AR is gaining significant traction as an adaptable technology for the future warehouse. AR involves overlaying digital information in the real world to enhance the user’s experience. In warehousing, AR can be used to improve accuracy and productivity.

For example, smart glasses equipped with AR technology provide warehouse workers with real-time information about inventory locations and picking instructions. This helps reduce errors and improve efficiency.

Digital Twins

Digital twins are virtual replicas of physical objects or systems. A digital twin can be used to run simulations of new designs and processes, without changing what’s happening in the real world.

For warehousing, a digital twin allows you to leverage your operational data using integrated AI and machine learning algorithms. These assess existing processes and the impacts of possible supply chain and consumer demand changes, as well as simulate and test different layouts or storage configurations to maximise efficiency.

Digital twins can trial new technologies, such as new automation or robotics, all in a virtual world with zero impact on operational downtime.

Warehouse Automation

Warehouse automation means using technology to automate tasks such as order picking, sorting, and transportation. Automation can improve efficiency, reduce errors, and lower labour costs.

For example, conveyor systems can transport goods around a warehouse, while robotic picking systems automatically pick and pack orders.

Larger-scale advanced automation such as Automated Storage and Retrieval Systems (AS/RS) can offer accuracy in order picking and are high-density structures to improve storage capacity and space optimisation.

Wearable Technology

Wearable technology involves devices that can be worn on the body, such as smart glasses or wristbands. In warehousing, wearable technology is used to improve safety and efficiency.
For example, voice-enabled devices can allow workers to communicate with each other and receive instructions hands-free. Smart glasses provide workers with real-time information about inventory locations and order picking instructions.

Another growing area for wearable technologies is the use of exoskeletons, designed to assist in manual operational tasks by physically supporting the user when lifting heavy or awkward goods.

Sustainability

Sustainability is an increasingly important consideration in warehousing and the logistics industry as a whole, due to environmental concerns and the growing emphasis on corporate social responsibility.

Sustainable practices are put in place to reduce costs and improve the reputation of warehouse operators.

There are a number of sustainable practices that a company can integrate within facilities such as using energy-efficient lighting, optimising packaging to reduce waste, and implementing green transportation practices – particularly important for e-commerce and fulfilment centres as well as last-mile logistics in urban areas.

The Route to the Warehouse of the Future

We’re helping organisations of all sizes on their journey to the warehouse of the future.

As firms see the opportunities presented by investing in data intelligence, AI, robotics and automation, they also want to be sure it will deliver significant returns.

Organisations come to us because they value our data analysis and warehouse design service. We have a track record of helping firms deploy automation that streamlines processes, improves the accuracy of stock inventory and order picking, enhances supply chain management and remains responsive to ever-changing consumer demands.

The warehouse of the future is already here. It’s allowing organisations to do more, to do it faster and more efficiently, and to stay ahead in their industry.

Let SEC Help You Reduce Warehouse Costs

We help businesses design and build warehouses that make them more competitive in their market. They’re more efficient, more cost-effective and more profitable. If you’d like a warehouse that’s all of these, and that operates in alignment with your business objectives – get in touch with us today.