The growth in e-commerce sales in the last few years is driving much of the change across the warehousing and logistics industry. Automating processes using new technologies underlies most of the trends in supply chain including warehouse management, materials handling, supply chain visibility, and delivery solutions. More companies are finding it necessary to invest heavily in the latest logistics technologies to keep up with changing buying behaviours and customer demands. These are some of the areas to watch as we venture into 2019:
In the warehouse
The increasing adoption of advanced warehouse and inventory management systems continues. Warehouses and DCs need to work faster, smarter, and with fewer people.
Today’s WMS solutions are well equipped to take on some of the key challenges associated with ecommerce fulfilment such as smaller order sizes.
Although there is much talk about the use of augmented and virtual reality in the warehouse, it is early days. Some retailers are already using these technologies to introduce their customers to their new products or services:
Augmented reality (AR) is technology that superimposes an image on a user’s view of the world to create a single image. For example, the Converse Sampler iPhone App uses AR to allow shoppers to virtually try on any trainer from their range, simply by pointing their phone at their leg.
Visual reality (VR) is a computergenerated simulation of a 3D image or an environment to immerse the users into a completely new and different world. In aviation, medicine, and the military, VR training is an alternative to live training with expensive equipment, dangerous situations, or sensitive technology. VR is changing the way that consumers shop for products, with more and more consumer journeys starting with an image or a photograph.
There is still scope for “tried and tested” fulfilment systems that have not yet been fully explored or implemented. Manual tracking of inventory is time-consuming, inefficient and therefore expensive. Inventory management systems that collect and analyse data provide insights into consumer buying patterns. Nordstrom and Walmart are using this technology extensively.
The use of mobile robots is high on the list of innovations. The technology seems not to have advanced to the point where robots are able to pick orders from conventional racking but it will happen. Integration of legacy systems with small-screen mobile devices is a noticeable trend where companies are aiming to automate the process at every possible point.
Supply chain visibility Tracking and monitoring systems increase transparency and visibility and promote integrity in the supply chain. Procurement is becoming more dynamic and intelligent due to software solutions helping with spend analysis and contract management. Suppliers, manufacturers, and retailers need to work together on a shared platform with their logistics companies, using complementary policies and procedures, to establish live visibility.
Blockchain
Blockchain is being mooted as the next big thing for supply chains. But how can this fledgeling technology be used to benefit logistics and the supply wider chain? The answer lies in its potential to speed up administrative order and payment processes and to take costs out of the system while still guaranteeing the security of transactions.
The underlying principle of blockchain is to provide a secure environment where encrypted business transactions between buyer and seller can happen without the need for third parties to intervene.
E-commerce and omnichannel
Omni-channel fulfilment, i.e. integrating the different methods of shopping available to retail consumers is turning third-party logistics (3PL) and 4PL logistics companies into supply chain technology providers. Omnichannel is requiring businesses to rethink how goods and services will reach consumers and is impacting the way organizations design their warehouses and DCs.
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