Customers today are more demanding than ever before. Their expectations have dramatically increased, where they now want products not only delivered to their doorstep, but delivered in record time. No wonder then that logistics providers are scrambling to ensure same-day or next-day deliveries.
However, in the attempt to ensure such rapid fulfillment, there is a risk of increased management costs, especially in warehousing. The global warehouse management system was a $1.2 billion market in 2015, according to data published by Statista, a figure that is predicted to cross the $4 billion mark by 2024.
Logistics providers are today looking for effective ways to reduce turnaround time from the time a customer places an order to last-mile delivery in a cost efficient manner. These businesses are, therefore, increasingly resorting to comprehensive courier dispatch software that is able to take care of all phases of the business, including on-demand, routed and scheduled work, distribution and cross docking operations, warehousing and LTL, to be able to achieve same-day and next-day distribution, says an expert at Key Software Systems.
Warehousing plays a vital role in the supply chain process, and to be able to gain a competitive advantage, one should stay updated with warehousing trends.
4 Warehousing Trends to Look for in 2018
Regional Warehouse Construction: Instead of having fewer major warehousing hubs, companies will focus on building regional warehouses throughout the country in 2018. Although this will require initial investment, gaining customer's confidence by bringing the product closer to the buyer will reduce turnaround time and time to last mile delivery, which in turn will ensure increased profits in future.
Need for More Space: Due to greater diversity of products being handled and the need to have them immediately accessible, 2018 will see high demand, of up to three times, for more space than traditional warehouse users, says an article by Material Handling & Logistics (MH&L).
Warehouse Safety will be the Priority: Warehousing is one industry that is highly prone to accidents due to the mishandling of packages and other technical issues, which can lead to serious production and monetary losses. It is for this reason that companies will invest in the health and safety of their workers by carrying out risk assessments and accomplishing safe working systems in 2018.
Implementation of Robotics: Just like every other industry in the world, automation is the buzz word in the warehouse storage industry as well. In 2018, companies will take advantage of robotics solutions that will incorporate automation into warehousing operations, without the need for major structural changes.
Companies that will be unable to afford highly-sophisticated, automated systems this year will take a step ahead with semi-automated operations. Optimizing existing operations to achieve fastest delivery will remain the warehousing industry's ultimate goal in 2018.