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Industry Dynamics


Nine trends in the future development of warehouses

Counts:242    Time: 22-04-30    From: Suzhou Teknect Engineering Co., Ltd.

1. Strengthen the customer-oriented business philosophy and develop new partnerships with customers. After establishing a new type of partnership with customers, the closeness between the warehouse and the customer is strengthened, so that the warehouse can better understand all aspects of the customer, provide personalized services, and thus add value to the value chain.

2. Increase the hardware investment in the warehouse, realize the mechanization and automation of warehouse operations. However, we must be clear that only when the warehouse business volume reaches a certain scale, the implementation of mechanization is economical, and if the automation is to be implemented, the requirements for business volume are higher. Therefore, we need to select the appropriate level of mechanization and automation based on the current and expected volume of business, and adjust it as the business grows.

3. Increase software investment in warehouses and strengthen logistics information management. Warehouses can greatly improve the efficiency and accuracy of warehouse operations by using information technology such as RF and barcodes. At the same time, if the warehouse is to achieve alliances with other enterprises, it is necessary to use electronic data interchange systems, management information systems and other information systems to establish dynamic interconnection information systems and standardized information systems. Strengthening the information management of logistics has become the choice of modern warehouses.

4. Strengthen the cultivation of professional talents. There is no doubt that the competition between today's enterprises is ultimately the competition for talents. Since warehouse management is a relatively operable industry, only by knowing the actual on-site operations well can we have the ability to design and manage the entire process and realize the integration and specialization of services. Therefore, the development and absorption of a combination of technical, mechanical and managerial management personnel is a top priority.

In recent years, due to the emergence of business philosophies such as JIT, rapid response and ECR, and the practice of business models such as direct dialing and uninterrupted supply, some people have made predictions in a hurry: the warehousing industry will die. Some articles have also led some unsuspecting people to fantasize about a world without institutions such as warehouses, wholesalers, and distribution centers.

In the real world, however, warehousing still connects suppliers and customers. And in the process of realizing the coordinated operation of the supply chain, the market forces have prompted the warehouse to continuously improve, so the warehouse still maintains an important role. But at the same time, we must pay attention to several development trends involving warehousing that affect the success of enterprises in the new situation:

Customer-centric Successful businesses are willing to maintain communication with their customers and listen to their opinions because they know that warehouse operations must add value on the basis of meeting customer needs by storing or sending the right products in the right way at the right time. Successful businesses, on the other hand, will develop genuine partnerships with suppliers and customers, benefiting from shared information, mutually agreed plans and win-win agreements. Efficient, responsive warehousing is key to achieving this.

In the future, the number of warehousing centers will decrease, but the number of goods in each center will increase. Therefore, the distribution center in the future is larger on the one hand, and on the other hand, it has to process more orders on a daily basis. This means an increase in the frequency of shipments and an increase in receiving, placing, picking, and shipping operations. This trend will place higher demands on material handling systems, with a significant impact on equipment such as forklifts and conveyor belts.

In order to adapt to the rapid expansion of warehousing operations, the warehousing industry needs to greatly improve the degree of automation. For example, we need to use more conveyors to transport small items over long distances, while setting up the right number of repackaging stations and loading and unloading platforms. In addition, if we use more automatic sorting equipment, we can improve the overall working capacity without building additional sites. As a result, automation will continue to replace labour in operations with little or no added value, such as cargo handling.

In contemporary times, orders show a trend of smaller batches and higher frequencies. Reasons for this trend include increased accessibility to information, technological advancements, the implementation of VMI programs and the elimination of wholesale warehouses in certain locations, particularly the implementation of "direct-to-store" and "direct-to-customer" programs, making the days of bulk shipments gone. In the future, serving orders of any size will mean more than just challenges, but also opportunities for businesses.

Uninterrupted supply This also requires products to operate synchronously and smoothly in the supply chain system, avoiding huge inventories. In the past, warehousing centers could only ship once a month or even every quarter, but now they are once a week or even twice a week. The flow of information also needs to be accelerated to align with logistics.

Online or just-in-time information systems will replace the original lagging systems. In the information age, the warehousing industry will have tremendous changes and improvements in data processing.

Direct dialing is the logistics connection mode of goods in the logistics link, without going through the intermediate warehouse or station, directly from one means of transport to another means of transport. Distributors often send goods received in direct dial to meet orders that have been delayed before placing goods in warehouses. In the future, more orders will need to be processed per warehouse, a trend that will make most distribution centers want to be able to improve efficiency by using direct dialing. This places high demands on close cooperation and immediate exchange of information between the participants.

Operational electronic warehouse managers will see the movement of goods in and out of the warehouse (including receiving, releasing, sorting and shipping) as a key part of their work. But they encountered a major difficulty in carrying out these tasks - difficulty in obtaining accurate information in a timely manner. Implementing paperless warehouse work can change this. In principle, a paperless warehouse means the electronic operation of all logistics movements, thereby reducing or even eliminating the traditional errors that can arise in product identification, location confirmation, data entry and accurate sorting. At the same time, the electronic control system can avoid delays in data entry, update inventory instantly, and find the required goods at any time.

In recent years, some companies have realized the importance of cultivating and consolidating their core competitiveness, so they are no longer willing to set up storage places for high inventory, but outsource this part of the business, which promotes the development of third-party warehousing to a certain extent. In the future, more and more small and medium-sized enterprises will use third-party warehousing to reduce capital investment and improve service levels. In the long run, third-party warehousing will become the main market player because of its many advantages. However, there are still some products and enterprises that are not suitable for third-party warehousing.

The automation and electronicization of warehouse operations will require workers to continuously improve their skills, especially computer skills. In order to improve the quality and education of employees, companies must hire and retain employees and train them to master basic mechanical operations and become familiar with all warehousing operations. However, the success of warehouse management depends on the quality of its leader, and what we need is an inspiring leader who can find the direction of the business and know how to do it.

In summary, in the face of the challenges of the new situation, the warehouse needs to improve its capabilities from many aspects.