Warehouse Digitalization Is Not A Trend, But A Necessity

Jayarama Emani
DataDrivenInvestor
Published in
4 min readFeb 16, 2022

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Like any other industry, the Warehousing industry is not devoid of challenges. Be it customers demanding lower costs, faster response times, or businesses having trouble forecasting in hiring qualified workers, the pain points are many.

In this blog, we will try to explain why and how digitalization is one of the solutions to tackling many of these warehouse problems. We’ll also discuss what technology will be used how they’ll be using the warehouse.

As market demand for products keeps going higher because of the likes of e-commerce and globalization, the supply chain has to keep up the warehouse, which is an integral part of the supply chain which is no longer just a storage space. It is a micro digital ecosystem within the macro ecosystem of the digital supply chain, and it has to keep up by making sure each process is efficient.

Technologies like the Internet of Things, Artificial Intelligence will surely help the warehouse keep up with market demand and constant changes.

Aspects of digital warehouse

Let us now discuss seven aspects of the digital warehouse that can help anyone overcome challenges.

1. Real-time data gathering & increased connectivity:

Blockchain and IoT are the two technologies that help businesses collect data. These are sensory devices that will collect data such as location, humidity, and temperature, though all live on the network in real-time. This network will be utilizing a technology called blockchain, which is a digital ledger that records transactions in a series of blocks. The nature of the technology will bring transparency, security, and real-time exchange of data across the supply chain. And the most interesting part about this is the data lives in every computer inside the network, so it is decentralized and distributed. And because everyone has the data, everyone can access it whenever they want.

2. Warehouse mobility solutions:

The innovation in smartphones and mobile devices has been very beneficial to the warehouse, from big fixed workstations to the computer in your pocket. Access to data anywhere has been extremely liberating. Other advantages that mobile devices bring are imaging tracking, video conferencing, and even personal assistance. If invested and planned well, it can make your process such as order picking, deceiving cycle counting more efficient, and it’ll save you lots of walking time.

3. Autonomous guided vehicles (AGVs):

Although not widely adopted, AGVs promised to revolutionize the transportation of cargo inside and outside the warehouse. Soon, they’re going to replace the forklifts. They are faster and safer for the employees. Another examines are drones they’re safe, economical to use, and process such as cycle counting, locating ca,rgo and performing stock-taking operations. They are equipped with sensors, cameras, barcode scanners, RFID technology that can reach even the innermost pieces within a warehouse, and they can do complete checks and manage inventory in less than 1/3 of the time to do it manually. This addresses the shortage of talent in the warehousing industry and will truly help with warehouse safety.

4. Smart Analytics and Machine Learning:

For smart analytics and machine learning, data is the goal and for that, you will need a tool called predictive analytics. Predictive Analytics enables you to interpret that data to make futuristic predictions such as anticipating stocks, so you can allocate your resources accordingly. This is huge with AI. As AI in a system will give, recommend, and how to optimize your inventory levels and replenishment, so that you can lessen your costs, save time and overall make your whole warehouse more efficient.

5. The People-Technology Connection:

Technology has reached a point where it is very integrated into our life and our body. Wearables like smartwatches and smart glasses offer convenience while presenting information in a manner that is quick, real-time accessible anywhere, and does not get in your way. This will result in greater visibility, decrease in error rates, better flow of information, superior safety, and increase service levels at lower operating costs six robotics and automation.

6. Robotics & Automation:

Traditional metal tasks such as handling, picking, and sorting can now be made faster and more accurate because of robotics and automation. It brings a level of consistency and repeatability and is increasingly able to perform human traits such as sensing, dexterity, memory, and trainability. As technology improves, now this frees up workers to do more advanced roles like programming, maintenance, and analysis. Automation is an integral part of a digitalized warehouse, it’s unlikely it will exist without it.

7. Real-time inventory management

The increase in customer demand and always on warehouse and next day or even same-day delivery has made inventory management tougher than ever. But technology such as smart sensors, RFID barcode scanners, and GPS has given managers visibility and control over their inventory. And not only that, this can yield operational intelligence. Because of the data that you can harvest from the sensors, the above seven aspects of a digital warehouse will not only make the warehouse more efficient but also smarter in every way.

Warehouse digitalization is not just a trend, but an upcoming necessity that every warehouse eventually has to face to survive.

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Jay has been a Biz Journalist since 1993 and enjoys writing on Technology. He writes on other topics like Education, Farming, Healthcare, Mental Illness, Sports