Warehousing is a key enabler of global trade, which means embracing digitisation is essential for effective communication across the supply chain.
Going Digital was the subject of one of our seminar streams at Multimodal last month and is a theme UKWA has been pushing since our (pre-pandemic) national conference, where the message from attending retailers was clear. The skills and knowledge within the logistics industry are critical to successful partnership, particularly with regards to technology. Step up or be left behind!
More recently, the massive acceleration of online shopping through lockdown has further underlined the importance of being part of the digital world for warehouse operators, who must meet the rising demands and expectations of customers and ultimately, consumers.
However, the problem remains that while the largest operators of warehouses have the resources to implement the latest in automation and digitisation, many SMEs in the sector fear the potential impact of disruption and believe that the cost of investing in technology and new systems is simply too high. A poll of members at the 2020 national conference suggested that while 79% recognised the importance of automation, 67% cited cost as a barrier.
Accordingly, UKWA has been working alongside the University of Cambridge Institute for Manufacturing on a project known as ‘Digital Logistics on a Shoestring’, designed to enable members to introduce technology into their warehouse operations without the associated investment or complexity of installation. Already a number of UKWA members have taken up this exciting opportunity.
Jaime Macias, part of the University of Cambridge project team, explained at Multimodal that the aim is to develop and test digital solutions where the total cost of deployment is kept low. This might include using accessible ‘off- the-shelf’ technology such as mobile phones, virtual assistant AI technology such as Alexa and the Cloud to provide new tools that drive efficiency and support members in competing more effectively.
Clearly, the departure of the UK from the European Union has increased the digital burden on the warehousing and logistics sector considerably, with the introduction of additional customs requirements and a new system replacing the long-established CHIEF. While the UK Government is looking more towards digital services, many European counterparts are not ‘on the same page’ nor will they be able to interface with the new UK systems when they come on stream.
Nevertheless, it is important that the warehousing sector prepares for the inevitable changes ahead. New legislation around digitisation is coming in 2022 and it is the role of trade associations to ensure members are given as much information as possible and the necessary support to equip them for success, in a global context, in the digital world.
Clare Bottle
UKWA, CEO
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