Introduction
As 2024 approaches, the warehousing sector stands at the brink of significant change, propelled by four crucial trends. These trends are not only anticipated to mold the course of the coming year but also carry the potential to exert lasting impact well into the future.
E-commerce Accelerates Growth
By Hozefa Saylawala, Regional Sales Director-MESTA, Zebra Technologies
E-commerce is set to sustain the expansion of fulfillment operations, driving investments in novel technologies and operational strategies tailored for direct-to-consumer fulfillment.
From third-party logistics providers to retailers, grocers, and manufacturers, the imperative to reimagine efficient direct-to-consumer fulfillment methods will persist as a prevailing trend in 2024, with each sector charting its unique course.
The surge in e-commerce witnessed during the pandemic is anticipated to continue its upward trajectory, albeit at a moderated pace, implying a corresponding increase in warehouse space. A rough estimate suggests that for every $1.2 billion (GBP1 billion) in online sales, an additional million square feet of warehousing is requisite. As e-commerce continues its ascent, warehouse capacity is projected to surpass six billion square feet by 2025.
This period of tempered growth offers an opportunity to outfit existing warehouse infrastructures with scalable technologies in 2024.
Warehouse Evolution
In anticipation of future demands, warehouse operators must embrace adaptability and agility.
In 2024, a metamorphosis of warehouse landscapes is foreseen to accommodate the evolving demands spurred by e-commerce growth and the persistent challenge of accessing skilled labor.
As retailers reduce on-shelf inventory in favor of direct-from-warehouse order fulfillment, operators must gear up to meet heightened demand. This entails optimizing shelf space, reconfiguring inventory flows, and integrating flexible automation solutions to supplant rigid conveyors that consume valuable floor space.
Globally, the warehouse count stood at 150,000 by the close of 2020, encompassing roughly 25 billion square feet. By 2025’s end, the global warehouse tally is anticipated to reach nearly 180,000, with China, the US, Japan, India, and Germany collectively constituting over half of the global warehouse stock.
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Widening Disparities
Existing disparities among large, medium, and small warehouses are poised to widen further against the backdrop of the prevailing macroeconomic climate.
Typically, multinational tier-one warehouse entities are slated to outpace their smaller, often regional or local tier-two and tier-three counterparts in technology investments, exacerbating the divide between them. However, it’s imperative not to overlook the technological aspirations of smaller warehouse entities. Hindered by limited cash reserves and costlier capital, smaller entities find securing funding for technology investments a daunting task compared to their larger counterparts.
In a constrained economic landscape, smaller warehouse entities are compelled to exercise greater financial prudence, particularly concerning technology expenditures. Instead, they are inclined toward refurbishing their warehouse spaces over investing in new technologies, resulting in divergent developmental trajectories.
Warehouses equipped for technological investment are poised for resilience and growth. Conversely, entities lacking financial resources may encounter challenges in fully leveraging technological advancements until economic conditions ameliorate.
Embracing Automation in Warehousing
Today, the landscape of warehouse operations presents a prime arena for automation. However, whispers suggest that only a select few industry players are nearing full “dark warehouse” automation, with even fewer utilizing automation tools at a level necessary to alleviate labor shortages and expedite fulfillment lead times.
Despite the looming impact of high capital costs on return on investment (ROI) calculations, current turnover rates offer little leeway to slow down investments. Even in the absence of available labor, critical business functions must persist, potentially rendering traditional payback calculations obsolete and driving a surge in the adoption of automation tools.
As retailers navigate the ebbs and flows of consumer demand, this adjustment reverberates through to manufacturers, compelling them to synchronize their technological capabilities to ensure seamless integration between storage, loading areas, production lines, and retail outlets.
Meanwhile, warehouse personnel will transition to higher-value tasks demanding human judgment and dexterity—areas where human intervention remains irreplaceable.
Warehouse leaders will channel frontline workers towards customer-centric endeavors, emphasizing quality assurance, precision, cost management, and space optimization.
The prioritization of customer order accuracy, expedited put away, trailer loading efficiency, and space optimization will reign supreme when choices are made.
As automation streamlines low-value tasks, the importance of outfitting labor with tailored technology for specific tasks amplifies.
Workforce Optimization
Unfortunately, the world waits for no warehouse operator to realign internal processes. Customers, encountering subpar experiences in receiving promised goods, may swiftly seek alternatives, possibly never to return.
Warehouse operations serve as vital arteries of business, seamlessly interlinking businesses with the global supply chain, managing inventory, and directly shaping customer satisfaction. Absent intelligent warehouse operations, manufacturing halts, and orders stagnate.
Recognizing this, warehouse operators are propelled towards heightened intelligence and visibility to enhance asset utilization and operational flexibility. Even marginal reductions in process times significantly bolster order processing capacity, fortifying the case for warehouse automation and mobility.
This drive, in turn, propels investments in potent, user-friendly mobility solutions, perhaps even hands-free options.
Moreover, the industry witnesses a surge in the adoption of augmented or assisted reality applications, artificial intelligence tools, dynamic communication platforms, track-and-trace technologies, location and environmental sensors, and automated scanning solutions.
Embracing Automation for Warehouse Efficiency
In today’s landscape, warehouse operations stand ripe for automation. However, reports suggest that only a select few industry players are edging towards full “dark warehouse” automation, with even fewer leveraging automation tools at the level required to alleviate labor shortages and expedite fulfillment times.
Despite the looming impact of high capital costs on return on investment (ROI) calculations, current turnover rates leave little room to delay investments. Even in the absence of available labor, critical business functions must persist, potentially rendering traditional payback calculations obsolete and driving a surge in the adoption of automation tools.
As retailers navigate the dynamic terrain of consumer demand, this adjustment cascades to manufacturers, compelling them to synchronize their technological capabilities to ensure seamless integration between storage, loading areas, production lines, and retail outlets.
Meanwhile, warehouse personnel will transition to higher-value tasks demanding human judgment and dexterity—areas where human intervention remains indispensable.
Warehouse leaders will redirect frontline workers towards customer-centric endeavors, emphasizing quality assurance, precision, cost management, and space optimization.
The prioritization of customer order accuracy, expedited put away, trailer loading efficiency, and space optimization will reign supreme when decisions are made.
As automation streamlines low-value tasks, the importance of equipping labor with tailored technology for specific tasks becomes paramount.
Workforce Optimization
Unfortunately, the world does not wait for warehouse operators to realign internal processes. Customers, encountering subpar experiences in receiving promised goods, may swiftly seek alternatives, possibly never to return.
Warehouse operations serve as vital arteries of business, seamlessly interlinking businesses with the global supply chain, managing inventory, and directly shaping customer satisfaction. Absent intelligent warehouse operations, manufacturing halts, and orders stagnate.
Recognizing this, warehouse operators are propelled towards heightened intelligence and visibility to enhance asset utilization and operational flexibility. Even marginal reductions in process times significantly bolster order processing capacity, fortifying the case for warehouse automation and mobility.
This drive, in turn, propels investments in potent, user-friendly mobility solutions, perhaps even hands-free options.
Moreover, the industry witnesses a surge in the adoption of augmented or assisted reality applications, artificial intelligence tools, dynamic communication platforms, track-and-trace technologies, location and environmental sensors, and automated scanning solutions.
Further Advancing Automation in Warehousing
In today’s rapidly evolving landscape, warehouse operations are ripe for automation. However, reports indicate that only a select few industry players are making strides towards achieving full “dark warehouse” automation, with an even smaller fraction effectively utilizing automation tools to address labor shortages and expedite fulfillment processes.
Despite the looming challenge of high capital costs impacting return on investment (ROI) calculations, current turnover rates offer little respite for delaying investments. Even in the face of labor scarcity, essential business functions must persist, potentially prompting a shift away from traditional payback calculations and driving increased adoption of automation tools.
As retailers navigate the intricacies of fluctuating consumer demand, this adjustment cascades downstream to manufacturers, necessitating a harmonization of technological capabilities to ensure seamless integration across storage facilities, loading areas, production lines, and retail outlets.
Meanwhile, warehouse personnel are poised to transition towards higher-value tasks requiring human judgment and dexterity—areas where the human touch remains irreplaceable.
Warehouse leaders are repositioning frontline workers towards customer-centric initiatives, emphasizing quality assurance, precision, cost management, and space optimization.
Priority is given to tasks such as ensuring customer order accuracy, expediting put-away processes, optimizing trailer loading efficiency, and maximizing space utilization.
As automation streamlines low-value tasks, the importance of providing labor with tailored technology for specific roles becomes increasingly evident.
Workforce Optimization
Unfortunately, the world does not pause for warehouse operators to realign internal processes. Customers encountering subpar experiences in receiving goods may swiftly seek alternatives, potentially resulting in lost business opportunities.
Warehouse operations serve as critical conduits in the business ecosystem, seamlessly connecting enterprises to the global supply chain, managing inventory, and directly influencing customer satisfaction. Without intelligent warehouse operations, manufacturing may grind to a halt and orders may languish.
In response, warehouse operators are driven towards enhancing intelligence and visibility to optimize asset utilization and operational agility. Even marginal improvements in process efficiency can yield significant gains in order processing capacity, underscoring the imperative for warehouse automation and mobility.
This impetus spurs investments in robust, user-friendly mobility solutions, including hands-free options where feasible.
Moreover, the industry is witnessing a surge in the adoption of advanced technologies such as augmented or assisted reality applications, artificial intelligence tools, dynamic communication platforms, track-and-trace systems, location and environmental sensors, and automated scanning solutions.