Industry experts offer their views on how the discipline of warehouse management, including the deployment of new software applications, will evolve in the years ahead.
Analyst Insight: The impact of the omnichannel revolution is being felt across every element of business today, including transportation and distribution, which can impact network planning. Customers today are more connected, more informed, and more demanding than ever before, and as a consequence, firms are forced to reevaluate their fulfillment strategies to meet ever-increasing demand for fast, accurate, and low-cost delivery of product to the customer. - John Santagate, Research Manager, IDC
Analyst Insight: The distribution center is taking on greater importance as a driver of growth and profitability. Top companies are investing in distribution operations to drive competitive advantage and gain market share. Many are leveraging today's technology to prepare for the distribution center of the future. But there is a next wave of technologies on the horizon - from wearables to mobile manufacturing to the Internet of Things. And the tipping point for these technologies is near. - Nikko Pianetto, Group VP of Integrated Technology Solutions, Fortna Inc.
Analyst Insight: Labor costs are rising just as the availability of workers is shrinking and turnover is increasing. According to the Census Bureau, 60 million Baby Boomers will exit the workforce by 2025, but only 40 million new workers will enter. Companies must rethink how they bridge that gap and keep costs in-line. Many life sciences companies are reaching a scale where investments in automation help replace manual, labor-intensive operations. But companies must be careful in evaluating automation investments. - Roger Counihan, Life Sciences Industry Leader, Fortna Inc.
In the latest Worldwide Commercial Robotics Spending Guide, International Data Corp. forecasts global spending on robotics and related services to grow at a compound annual growth rate of 17 percent from more than $71bn in 2015 to $135.4bn in 2019. The guide measures purchases of robotic systems, system hardware, software, robotics-related services, and after-market robotics hardware on a regional level across 13 key industries and 52 use cases.
Analyst Insight: Third-party logistics providers (3PLs) will no longer be able to squeeze the wages and benefits of their warehouse workers for cost savings. In the past, 3PLs came in with a lower hourly rate and a lower benefit package, with a mix of contract and full-time employees. The savings from this strategy, along with design improvements, workflow and systems, enabled the 3PL to present a value proposition with a lower cost for operation. - Valerie Bonebrake, SVP, Business Solutions, Tompkins
The latest news, analysis, services and solutions regarding warehousing and distribution systems and their impact on global supply chains. Today’s companies are moving goods across more suppliers, vendors and customers than ever before, and warehouses are critical points in the overall supply chain. New technologies in warehouse management systems (WMS), automation, robotics, RFID and order fulfillment are transforming the way companies do business — and allowing them to stay ahead of the competition in their industries. As these solutions continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies around the world are improving supply-chain operations through their strategic use of warehousing and distribution services.
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