From a tried-and-true approach to automation, the evolution of warehousing is remarkable. Manual processes, a focus on cost-cutting, and a lack of technological investment characterize the conventional model. While this model has served businesses well in the past, it’s considerably slow, labor-intensive, and more prone to human error. As the demands of commerce grew, so did the need for an agile, efficient, and adaptable warehouse solution – making it pivotal for CXOs to learn the potential impact of modern technologies on business operations and how they are shaping the future of commerce.
Enter the rise of automation. With the help of technology, warehouses can streamline their operations, reduce the risk of human error and improve the speed and accuracy of their operations. Automated systems, such as robots and conveyor belts, have replaced manual processes, freeing workers to focus on more value-adding tasks. Not to forget, the growth of e-commerce and online shopping has challenged businesses to emphasize the need for an agile, flexible, and adaptable warehouse that can keep up with the demands.
Comparing the Conventional and Modern Warehouse
As the world of commerce evolves, CXOs must understand the significance of choosing the right approach. With the rise of e-commerce and growing demand for fast delivery, a new, modern approach is challenging the traditional warehouse model. The question is, which approach is right for your business?
- Manual Approach vs. Automation: Manual warehousing has been around for centuries, and it’s a tried-and-true approach. While this model has served warehouses well in the past, it’s no longer efficient. On the other hand, the modern warehouse model is characterized by automation and a focus on speed and efficiency.
- The Approach to Data Management: The traditional warehouse model is devoid of data, leaving businesses with little information on how to optimize their operations. In contrast, modern warehouse models leverage a data-driven approach to efficiency, giving companies the information needed to make informed decisions.
- The Approach to Technological Investments: The conventional model is characterized by a lack of technological investment, which limits its ability to adapt to changing demands. Cut to modern solutions, with automation, and warehouses can quickly adjust to the evolving demands – reducing downtime and improving the supply chain.
Technological Innovations Aiming To Disrupt Warehousing
Do you know what’s standing between your warehouse and optimal efficiency? It’s human error. According to The 2017 E-Commerce Fulfilment Report by Peoplevox, 46% of the issues in warehousing stem from human mistakes, costing a staggering $1.75 trillion in lost revenue. Here’s how businesses are attempting to reduce this overhead:
- Automation Improves Warehouse Agility: The Peerless Research
Group’s 2019 Operations Survey foresees the willingness to apply automation, with 23% of respondents adding automation to contain costs. Solutions like WMS and collaborative robots are improving optimal inventory levels and maximizing space utilization. - Business Intelligence and Predictive Analytics: Artificial Intelligence & Machine Learning enable data-driven warehouse processes. From CoBots that optimize delivery and picking routes to predictive data analysis that reduces in-aisle congestion, AI is rapidly driving business intelligence in modern warehousing.
- Robots Reduce Overhead Costs: Warehouse robots augment human work, reduce physical strain, enable faster order fulfillment, and improve employee morale.
From Manpower to Machinery – Future of Warehousing
A recent study by Accenture found that businesses that invest in digital technologies for their warehouses can expect a 20-30% improvement in their routine operations. By doing so, companies embrace the benefits of a more intelligent, efficient operation. Invest in modern warehousing technology today and stay ahead of the curve.
Stay tuned to Rucha Yantra’s Knowledge Corner for more content related to next-gen technologies and their impact on business.
