For a long, companies have been searching for the “Warehouse of Tomorrow” in order to solve today’s problems. This could be anything from labor shortages or capacity crunches to new uses and reliable fulfillment. Although the idea of creating a single location that could serve as both a factory and distribution center is still a dream, the reality is beginning to emerge.
The warehouse of tomorrow could be just around the corner and investment will soon flow. Companies should use the guidelines provided by IoT and other emerging technologies to ensure they get it right.
Define your ‘Tomorrow.
The warehouse of tomorrow offers a clear look at the future of distribution and warehousing. Companies design every location with an emphasis on connectivity and automation, which promises improved efficiency during fulfillment and storage.
This is fundamentally a modernization project. The main difference between future-proofing warehouses and other infrastructure projects, especially for small and medium-sized brands, is the scale of operations. Warehouses are more likely to receive large amounts of freight. Staff then takes apart these containers and stores them as individual units or pallets. The warehouse can store any parts that are not required and have space to assemble them.
Workers will pack and pick up the products that customers order to fulfill these orders. Robotic arms and conveyors are great tools to reduce the human element. Workers or robots will pack the goods and apply shipping labels. Then, they will move them to the areas where their trailers are waiting. These trailers should be planned based on the order volume and relationship with the shipper. This will ensure that the carrier has the ability to move orders and avoid double booking.
Each step in the process generates significant data and poses significant risks. It also requires that all steps be completed on time and accurately. It’s a complicated dance. The focus on “tomorrow”, is to leverage sensors and AI to keep the processes moving. It creates a competitive advantage by increasing forecast reliability, and order accuracy, and adapting quickly to economic changes.
Also read: Warehouse Automation: What It Is, Types and Benefits
7 Rules for a Warehouse of Tomorrow
The warehouse of the future requires that you pay attention to both the physical infrastructure as well as the platforms and devices that enable people to work in the warehouse. Properly installed conveyors will improve order management and fulfillment speed. Warehouse systems can also move the right order down at the correct time. Your warehouse of tomorrow will be a cyborg. This means that it will incorporate the most recent tech and protect organic squishy bits.
1. Flexibility is the first
Flexible warehouse design is key to the future’s warehouse. It should allow for quick reconfiguration and adaptability to meet changing business requirements. This means that you need to plan for the future and make sure new technology is easily implemented.
This should be a guideline for IoT platforms and devices. This means that you should look for services and tools that are compatible with common standards. To be able to use and customize new options, it is essential that you support APIs and EDIs. To allow upgrades and repairs, you might place sensors in places that are easily accessible. You can improve the chances of long-term viability by moving to more cloud platforms.
Modular layouts and racks should be considered. This is partly because it is easy to repair and maintain, but also because you can make quick changes if necessary.
2. Automation is a Heart
Machine learning and automation should be integrated into the warehouse. This is especially important for order fulfillment and inventory management. This tracking covers every part and SKU in your inventory. Monitoring teams can also be used to identify ways to increase efficiency and decrease physical demands.
The warehouse of tomorrow people will run slow. We want to see people treated with respect and their pressures decreased. You don’t have to run for hours through a warehouse. They can be used for areas that require discretion, complex decision-making, or human touch.
This “rule” will guide you: Automation is a friend at heart. Automated decisions are needed to improve the business outcome and worker productivity. Advanced scanners at packing stations and conveyors can double-check the accuracy of orders by integrating them. These gains are important; it is best to not try to increase efficiency right away. This heart is against the spirit of solving a problem and requiring that a person rush to do so.
3. Analytics Are the Brains
Data and analytics should be integrated into all aspects of warehouse management, including inventory management, forecasting demand, and planning for the future. Automation is possible for many decisions, especially when there is a large amount of data. Your smart warehouse management system (WMS), can do all the lifting.
WMS analytics will be used to monitor inbound goods, stock levels, orders, and historical trends. It will then decide how many workers are needed to complete a shift, what storage locations should be used, how orders should be picked up, and schedule carriers to pick them up. The WMS acts as the central brain and enables inventory balance across all warehouses.
These brains will be required to be trained by companies to ensure that decisions are made correctly every time. Future warehouses will be distinguished by the inclusion of human-focused metrics that involve people. The labor-management modules will take into account the current workforce and their immediate needs to make decisions.
Imagine that you experience an increase in orders in July due to the increased sales of warm-weather products. Smart systems will be able to scale up shift staff in advance, even if there are no schedules available until June. The ability to see beyond the immediate trends to decide to increase stock levels or team members in response to a warm May, so that goods and people are available when orders go up in June.
Also read: Digital Supply Chain: Definition, Important, and Risks
4. Efficiency Includes Energy
The warehouse of the future should be focused on sustainability and energy efficiency. It should track renewable energy sources and use them throughout its supply chain. Today’s consumers expect businesses to make environmentally-friendly decisions. Recent studies show that many people have misunderstood sustainability promises. It’s also been increased coverage for areas, where some promises are not fulfilled.
Future warehouses will require advanced sensors and data capabilities to monitor their electricity consumption and report it. This should be combined with an understanding of how the company generates and buys electricity. Each warehouse should also be reporting this data to a central hub.
The biggest electricity consumption point for a company could be its warehouses. They are a great place to implement smart tracking and explore eco-friendly options. Warehouse systems are also able to be used for interaction with manufacturers, carriers, and other partners. Because of their centrality, the WMS is the best place to collect environmental data from both upstream and downstream partners. This results in a reliable report that can be trusted by consumers.
5. Ergonomics Must Evolve
Safety and well-being should be a priority. There should be ample movement space and ergonomic design to avoid injuries. This is evident in a well-run warehouse. Extra-wide aisles may be used to give forklifts plenty of space, and one-way signs reduce the risk of mishaps. Modern carts are much more maneuverable and robots can be used to help pickers move items around warehouses.
Future warehouses will be more ergonomic. They won’t rely on factory settings to control the robots they use, but they will adapt to their needs. Assistants will be able to tell if they are close to a picker for SKUs that are small but can move back if a larger item is on the ground and requires more space for scanning and placing it on the cart.
More units will be available to lift heavy items, while automated racking raises bins to the right height so that someone can grab them easily. Future warehouses will have bins that adjust to the height of pickers, which is a great option.
6. Insist on the Importance of Customer Communication
Collaboration and communication should be stressed. Systems should be in place that facilitates communication and coordination among different departments and teams. The warehouse of tomorrow must be designed to ensure customer satisfaction at its highest level with efficient and accurate order fulfillment, and a focus to provide seamless customer experiences.
This is where the real work will begin. Although buyers won’t be able to see the warehouse, they will receive more information. This means automatic updates for shipping information if the notice is reliable. No more getting an email saying “Your item has shipped”. Then you will click through to see that the shipping label was created by the company but not yet received by the carrier.
Companies should expect to send more useful delay-related emails due to the disruption caused by the covid pandemic. Because it contains the relevant data, the warehouse is a central place to generate customer delays in communications. Customer care and marketing services should be integrated so that a warehouse notice contains the reason for the delay and is shared with buyers in a suitable manner.
7. Make Room for Tomorrow Tomorrow
The warehouse of tomorrow must be flexible and expandable to meet the needs of growing businesses. Automation and flexibility allow an operation to adapt in the present. Future planning, and especially future-proofing, requires that one eye is always open to the future.
Modular construction can make it possible for warehouses to grow with ease. Warehouse service companies and 3PLs should invest in space well before the current warehouses are full. Always have a plan for developing more space to grow.
Future growth will require flexibility in business models. One warehouse might be too big for sales. A smart, AI-driven WMS can make it easy for this company to convert a portion of its warehouse into a facility that processes orders from another company. Future warehouses will have to be flexible enough to support multiple business models, as sales are subject to change and markets evolve.
The warehouse becomes a potential revenue center if it can be used for multiple business operations. Businesses looking to see the future are often well advised to create additional revenue streams and options that can withstand downturns in one industry.
