- On June 8, 2021
- 0 Comments
- buesiness leaders, CEO, ERP, Inventory, warehouse automation, warehouse distribution, wms
Digitization is Imperative for Modern Business Leaders
There is no doubt that modern manufacturers have adopted digital transformation in some way or another over the past several years. Adopting technology in production processes, warehouse operations, and business planning is no longer an optional advancement, it is imperative. Small and midsize businesses often fall behind in digitization due to smaller budgets or limited resources. However, the evidence for high return-on-investment on inventory management technology and warehouse automation is abundantly clear. Modern business leaders adopt warehouse automation to adapt to digital selling models, shorter production timeframes, and increasing consumer expectations.
Warehouse Automation is Growing…with No Signs of Stopping!
Companies of all sizes have been adopting warehouse automation over the past several years. During the first half of 2019, North American companies spent $869 million on robots (1). This includes technology such as drones, automated guided vehicles (AGV), automated mobile robots (AMR), and cobots (which are robots that work with humans). This trend shows no signs of slowing, with the global warehouse automation market expected to reach $30 billion in the next 5 years (2). While some midsize manufacturers may have cost concerns, robots often cover their cost in the first 3-9 months of use (2).
Warehouse Teams are Adopting Mobile Functions
The use of handheld devices and automation within the warehouse can help teams enhance productivity and collaboration. 67% of warehouses plan to use mobile devices to manage inventory (3). This allows for real-time updates to product batch locations, visibility into stock levels and production schedules, insights into sales orders and delivery schedules, and more! Updates like these allow warehouse workers to locate products and fulfill orders faster and more accurately, as well as helping to avoid overstocks or stock-outs.
Warehouses Implement Predictive and Integrated Technology
To reduce costs and enhance customer satisfaction, matching supply and demand is essential. With inventory management technology and powerful data analytics tools, business leaders can ensure that there is always the optimal amount of inventory. This enables reduced storage costs and spoilage while still meeting customer orders and expectations in a timely fashion. 56% of retailers and consumer goods companies plan to increase investments in predictive planning and demand forecasting (4). 72% of logistics providers will also increase their warehousing IoT investment (3). The Industrial Internet of Things (IIoT) allows for a smarter, more integrated warehouse, increasing automation, efficiency, and collaboration.
Clearly, business leaders from companies of all sizes can benefit from increasing automation within the warehouse. Smaller companies need not shy away from technological investments, since the evidence for high ROI and increased productivity is abundantly clear. To maximize this return, integrated business planning technology is needed to track costs and monetary gains from new technologies. Furthermore, technology that provides a complete view of your warehouse operations, from robots to workers, allows business leaders to make data-driven decisions that empower growth and success.