Warehouse of The Future

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

Globally, warehouses are experiencing rapid changes due to innovation in technology, changing consumer demands, and environmental concerns. As a result, operators of warehouse and distribution centers need to consider the future of their operations to remain competitive, efficient, and sustainable.

Technology is Key to Efficiency

The warehouse remains a crucial part of the supply chain, where goods of all shapes and sizes are stored, sorted, and shipped to customers. Over the years, advancements in technology have transformed traditional warehouse operations into a highly automated and efficient hub for the movement of goods. In the future, as these technologies both evolve and become more attractive for investment, warehouses are set to become even more streamlined, leading to faster delivery times, increased productivity, enhanced inventory accuracy, and improved customer satisfaction.

In this article, we will explore the types of technology shaping the warehouse of the future and their effect on warehouse operations. Whilst the guide looks towards ‘future warehouses’, such technologies are available to the market – and the SME – today.

Technology for the Warehouse of the Future

With storage capacity, supply chain disruption and a labor shortage just some of the ongoing challenges faced by the warehousing industry, operators are looking to advanced technologies that can alleviate common issues such as errors in order fulfillment and repetitive manual tasks.

In order to assess which type of technology is most suited to your operations and supply chain, we need to begin with data. Having enhanced, real-time data of your existing operational processes and product movement, will enable 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, 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 humans would otherwise be unable to, so 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.

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 pre-defined 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 fulfillment 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 optimize warehouse layout.

Augmented Reality (AR)

AR is gaining significant traction as an adaptable technology for the future warehouse. AR involves overlaying digital information onto 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 can provide warehouse workers with real-time information about inventory locations and picking instructions, reducing errors and improving efficiency.

Digital Twins

Digital twins are virtual replicas of physical objects or systems. For warehousing, through the development of a digital twin, businesses can leverage their operational data using integrated AI and machine learning algorithms to assess existing processes and impacts of possible supply chain and consumer demand changes, as well as simulate and test different layouts or storage configurations to maximise efficiency. Furthermore, digital twins can be used to trial new technologies for example, using automation or robotics, all in a virtual world with zero impact on operational downtime.

Warehouse Automation

Warehouse automation involves the use of 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 can 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 can be used to improve safety and efficiency. For example, voice-enabled devices can allow workers to communicate with each other and receive instructions hands-free, while smart glasses can 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 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 fulfillment centers as well as last-mile logistics in urban areas.

Warehouse Transformation through Technologies

Technological advancements and innovation are set to play a significant role in the way logistics businesses and future warehouses operate. Through the adoption of new technologies like robotics and automation, which are based on the analysis of large quantities of accurate data intelligence, warehouses will be able to deploy automation to streamline processes, improve accuracy of stock inventory and order picking, enhance supply chain management and remain responsive to the ever-changing consumer demands. All to a level never achieved before.