Archive for August, 2019

The world is changing faster than ever before, with advances in technology altering the way we do things in almost every aspect of life. Warehouses are no exception. Technology has also given rise to ecommerce and it is technology that has helped raise its popularity. This online retail revolution has had significant implications for the warehousing industry, from the way they operate, to their scale of business, with an average US warehouse increasing 143% in size, according to an article on Supply Chain Drive.

So, when we look at the impact on the warehousing industry, we once again look at technology for solutions to address the changes.

IMPROVED LOGISTICS TECHNOLOGY AND SOFTWARE

Warehouse technology has advanced tremendously, with the use of different types of inventory management and courier software to support the growing needs of the consumer. Mobile courier software can be used on smartphones and tablets, leading to more efficient management, improved protection of data, and real time information through a single dashboard.

CHANGING TOPOGRAPHY

Ecommerce has changed the definition of a good location for a warehouse. Earlier, warehouses needed to be located where the zoning regulations were lenient. But now, with the surge in same day and next day deliveries, the prime location for warehouses has shifted to places close to large cities.

INNOVATIVE STORAGE SYSTEMS

In today’s fast-paced world, where everyone expects their orders to be delivered as quickly as possible, there is a huge demand of innovative storage solutions. For instance, take Amazon’s “chaotic storage,” in which new items are placed on the nearest available shelf, instead of placing items in alphabetic or price-based order. The system may look chaotic and untidy to an outside observer, but with the help of automated technologies, the system is able to manage warehouse inventory in one of the best and most efficient ways, according to an article on System ID.

BETTER EMPLOYEE TRAINING

With the booming warehouse industry, driven to a large extent by ecommerce, the demand for warehousing has increased as well. With such high demand, every part of the warehouse machinery must work perfectly, including the workers. Warehouses have improved their training efforts, training new hires quickly, so that they can add to the productivity of the warehouse as soon as possible. Workers understanding the protocols and the technology is necessary for the efficient functioning of a warehouse.

Ecommerce has brought about a revolution in the warehouse industry, with the changes set to be even greater in the near future. While this gives the warehouse industry a reason to celebrate, it also means seeking better technology solution for logistics management.

The global logistics industry has had to evolve very quickly with the rise of e-commerce and digital literacy. Global supply chains aim at being faster, smarter and more customer-centric today. To achieve this, they are investing in logistics service providers that can best cater to the demands of customers. This will lead to the global logistics market registering a CAGR of about 7% by the end of 2022, according to an article by Technavio.

TRENDS TRANSFORMING THE GLOBAL LOGISTICS INDUSTRY IN 2019

1. Proliferation of 3PL and 5PL

More than 90% Fortune 100 companies and over 85% of the Fortune 500 companies used third-party logistics services in 2015, according to an article by Key Software Systems. The rapid increase of 3PL services contributed the most to the global logistics market share. This trend is expected to continue in 2019, helping carriers benefit from faster courier dispatch, reduced delivery time, tracking and planning. The fifth party logistics providers link e-business to achieve lesser cost targets.

2. Last Mile Delivery Management

This is one of the most crucial aspects of standing apart from the competitors. The same-day delivery market is growing exponentially, keeping pace with the rising customer expectations. This change is most prominent in the pharmaceuticals and food and beverage industries. Ultimate customer satisfaction is achieved only through on-time delivery.

3. The Upsurge of Green Logistics

Companies all across the world are looking forward to implementing sustainable development goals for their businesses. This means decreasing the environmental impact of transportation and supply chains. The result of this move would be strong company reputation, the loyalty of customers, reduction in costs and product innovations, all of which are great for both businesses and the consumer.

4. Increase in Direct-To-Consumer (DTC) Shipment

This has enabled manufacturers to sell their products directly to their customers through online stores. This helps them close the gaps between the supply chain and the consumer on various platforms. Retailers no longer need to ensure inventories and storage space. And, for the consumer, it means better prices and easier shopping experiences.

5. Drones and Smart Glasses

The way forward for logistics is through smart technology. These tools help increase the speed of delivery while affording better flexibility. This makes last-mile delivery more efficient in both urban and rural areas. Hands-free route searches and face recognition ensure error-free delivery. Artificial Intelligence-powered smart glasses also help increase operational efficiency.

Supply chains are welcoming these trends in open logistics network to not only meet the expectations of their customers but to also position themselves better in the market, according to an article by Mixmove.