For eCommerce companies seeking a differentiator that helps them stay ahead in the highly competitive industry, warehousing is a key focus area.
After all, online stores may look the same, but your order fulfilment process, when properly optimised, can set you apart from the rest.
Since emerging technologies like AI and IoT can help empower warehouse operations and facilitate faster turnaround times, they are worth learning about and implementing in your business.
With that in mind, let us look at the merits of implementing these warehouse technologies, different types of technologies to consider and the trends you must be aware of to future-proof your warehousing operations.
What are Warehouse Technologies?
With plenty of applications ranging from inventory management to order fulfilment, emerging technologies are shaping how warehouse operations are handled and optimised.
Since the late 20th century, warehousing has evolved from being an ancillary part of businesses to a strategic process. This evolution of the smart warehouse technologies market is exemplified by the average growth of warehouse technologies at 8.4% annually.
Thanks to technological advancements, logistics processes are faster and more seamless than ever, enabling managers to make informed decisions through predictive analytics and automation.
All these technologies contribute to smoother warehouse operations and are categorised under the umbrella terms “warehouse technologies” or “warehouse automation technologies”.
Some of the core benefits offered by warehouse technologies are:
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Reducing overall warehousing and logistics costs
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Expediting the steps included in a typical order fulfilment process
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Boosting the visibility of your goods so that it is easier to monitor stock in real-time
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Improving the overall efficiency of your order fulfilment and warehousing operations
Key Functions
Here are four key areas of a typical warehouse that can be enriched and optimised using smart warehouse technologies:
1. Inventory Management
One of the primary functions of warehouse technologies is managing inventory by automating processes, including tracking stock levels in real time and maintaining accuracy in inventory records. When utilised correctly, technology can help avoid issues like overstocking and stockouts.
2. Order Fulfilment
Warehouse technologies can help you automate multiple parts of your order fulfilment process, such as picking, packing and shipping goods. As a result, you can tweak your strategies to work better in boosting customer satisfaction levels.
3. Storage Optimisation
Connected warehouse technologies can help facilities optimise space and implement advanced solutions such as automated shelving systems and vertical carousels across multiple facilities.
4. Movement of Goods
Implementing automated warehouse picking technologies and equipment, such as conveyor belts and automated guided vehicles (AGVs), can help companies streamline the movement of goods within their warehouses.
7 Types of Warehouse Technologies You Should Know About
As we now know, warehouse technologies, when used correctly, can help you streamline and automate several parts of your warehousing processes effectively. That said, here are some of the primary types of warehouse technologies you will most likely deal with as a warehouse:
1. Warehouse Management Systems
Warehouse Management Systems (WMS) or Smart Warehousing tools integrate multiple technologies on a single dashboard to help companies handle all aspects of their warehousing strategies. Many WMSs leverage robotics, IoT, and automation to create highly centralised systems capable of constantly optimising themselves.
Modern Warehouse Management Systems are even equipped with IoT sensors that help companies manage the environmental conditions and repetitive tasks in a typical warehouse. As a result, these systems can boost throughput by eliminating human error and increasing predictive capabilities.
Example:
ShipBob’s WMS combines inventory and warehouse management features to offer companies features that can help streamline the storage and transportation of goods, routing, picking, and packing goods. The tool even has IoT sensors that alert managers when stock is running low so it can be promptly replenished.
2. Inventory Management Systems
Inventory management systems help you manage every aspect of optimising stock levels and the goods in your inventory. Implementing these technologies in a warehouse will help you monitor stock levels, demand patterns and turnover rates at a granular level.
Several advanced inventory management systems leverage AI to automate replenishment and predict reorder points to minimise issues and improve inventory performance.
Example:
Extended Warehouse Management (EWM) by SAP is a robust inventory management tool that utilises RFID and IoT to track inventory levels in real time and leverages heatmaps to identify stocking issues and improve your redistribution strategies.
3. Storage and Retrieval Technology
Automated systems such as carousels and vertical lift modules (VLMs) can help you maximise space and reduce the time spent picking goods. Organising your warehouse based on the insights from tools will help you streamline the picking process and help your personnel find, move and retrieve goods easily.
Example:
The Grid System implemented by AutoStore can help you store more inventory than usual in your warehouse and retrieve the items on your picking list within very short durations. The system governs The Grid, a customisable solution that can be tailored to meet the needs of any warehouse space.
4. Data Exchange Technology
Electronic Data Interchange has been around for a while; however, as automation is becoming more popular in warehouse management, data exchange technologies are being used extensively to automate order processing, shipment notifications and invoicing between warehouses, suppliers, and retailers.
Most of these data warehouse tools and technologies adhere to the local data protection laws and regulations, however, it is a good idea to ensure that they align with regulations in your country.
Example:
TrueCommerce is an EDI tool that seamlessly integrates with your supply chain solution to auto-generate and exchange important documents and information. You can even manage EDI compliance for thousands of suppliers at multiple locations by integrating it with your ERP solution.
5. Automated Guided Vehicles (AGVs)
Automated Guided Vehicles, or AGVs, are slowly being accepted and utilised in warehouse operations. AGVs are driverless vehicles that can help you transport goods on pre-determined routes and leverage AI-powered navigation. AGVs can help boost your material-handling speed and reduce labour costs, especially if you have a large warehouse. Some advanced AGVs even utilise AI and machine learning to optimise your transportation routes.
Example:
Autonomous Mobile Robots are similar to Automated Guided Vehicles and help warehouse personnel pick and move goods faster than manual methods. The one offered by Locus Robotics is touted as a great addition to warehouses.
6. Radio-Frequency Identification (RFID) Technology
When looking for a tool to help you track and manage your inventory effectively, consider implementing RFID technology and tags to maximise your inventory performance. The RFID tags are usually attached to goods and pallets and help you get real-time data about the location and status of specific goods using a reader.
When combined with IoT, RFID can help enhance the accuracy of your inventory records and significantly reduce manual efforts.
Example:
RFID Reader by Zebra is an efficient tool that combines design expertise and efficiency to empower a wide range of tags, devices, systems, and workers utilising RFID technology.
7. Wearable Technology
While plenty of tools and equipment are targeted at making your warehousing operations more efficient, some advanced warehouse technologies contribute to safer processes and policies for workers. Devices using wearable technology such as smart glasses, exoskeletons, and wrist scanners can help you boost overall productivity, the safety of your workers and warehouse security.
Example:
ProGlove’s MARK 2 is a wearable scanner that helps workers find goods easily in a warehouse, making them easier to pick. These scanners replace the older handheld barcode scanners and provide optical, haptic and acoustic feedback upon finding the correct item.
3 Emerging Trends in Warehouse Technologies
While the current technological innovations being implemented by companies paint a bright picture of modern distribution management and warehousing, the emerging trends that could transform these processes are even more exciting.
1. AI-Driven Predictive Analytics & Maintenance
As AI continues to get trained and become more intelligent, the latest data warehouse technologies give you access to accurate data that will help empower other areas of your operations as well.
A transformative strategy that has stemmed from predictive analytics is predictive maintenance, which can help you enhance your warehouse’s overall operational efficiency. Maintenance deficits and gaps can cause unplanned downtime, sudden spikes in resource requirements, and some cases, failure of equipment.
Predictive maintenance helps you minimise instances of such issues, helps you utilise resources more effectively, and even prevents workplace hazards by leveraging sensor technologies that analyse equipment data and forecast potential failures in advance.
2. Advanced Robotics and Cobots
Another revolutionary trend transforming flexibility in warehousing operations at scale is the implementation of collaborative robots, also known as cobots. These robots specialise in reducing manual labour around a warehouse by assisting with tasks like heavy lifting and repetitive actions to boost overall operational efficiency.
At the very least of their capabilities, cobots work great in high-volume environments, reduce order fulfilment durations and even help add an extra layer of protection and safety in warehouses with environments posing risks to human workers.
3. Rise in Sustainability-Focused Solutions
With the rise in awareness of carbon footprint and environmental issues in logistics, companies are leaning towards implementing sustainable practices. A key area of application in warehousing is sustainable packaging, which can help reduce plastic and encourage a sustainable circular economy in your warehouse.
Sustainable packaging can specifically help in industries that produce a lot of waste, such as food and fashion, simply by replacing the traditional packaging materials with compostable materials.
You can also take it a step further by implementing waste reduction strategies and sustainability-focused technologies across various areas of your warehouse operation to minimise wastage. For example, many warehouses are now managing and improving lighting in the facility using solar power and leveraging eco-friendly warehousing practices with automated vehicles to balance sustainability and efficiency.
Concluding Remarks
At the core of the technological innovation and trends emerging out of logistics and warehousing is the increased need for enhancing operational efficiency.
With eCommerce and manufacturing volumes increasing than ever, warehouse technologies can help streamline operations of your warehousing facility, shorten turnaround times, and boost your handling capacity. Leverage some of the aforementioned technologies in your warehouse, depending on your requirements, to enable your warehousing operations to be your market differentiator.
Consider owning a PACK & SEND franchise to get access to a logistics service centre equipped with technology and support systems to help your business grow and improve operational efficiency.