Around a decade ago, the first picking robots hit the scene in warehouses. In the last few years, robotisation has reached full speed and more and more fine-mesh picking setups are appearing. In addition, more and more integration is taking place between the various it-solutions in a warehouse. Companies no longer want stand-alone systems but an end-to-end supply chain. Old warehouse management systems (wms) are therefore being replaced by flexible cloud technology to make this possible.
The increasing automation is partly due to uncertain times. Warehousing expert Jeroen van den Berg, for instance, argues that logistics companies felt they were losing their grip on the chain. This was reinforced in the corona pandemic and after the outbreak of war in Ukraine. 'Chains were volatile with faltering supply, fluctuating prices and changing demand. Companies had lost control of the chain. As a natural reaction, they sought hold on to new systems that could provide more grip,' he writes in the article 'Trends in Warehousing 2024 ' on the website of his logistics consultancy Jeroen van den Berg Consulting.
Island automation
In addition to volatile chains, other factors playing a role in turning to new systems, in his view, include staff shortages, growth ambitions, new services, regulatory pressures and cost savings. Companies saw that they had reached the limits of their enterprise software. In his article, Van den Berg outlines an IT landscape in urgent need of replacement. 'Systems offered insufficient support. Several companies were still working with paper pick lists and company office staff kept excel sheets with data that were missing from the systems.' He speaks of insular automation and little information exchange between departments. Moreover, much of the software used is difficult to adapt due to the many customisations or is 'end of life'. Some package suppliers, who have been operating wms for some 30 years, are struggling to switch to a scalable and flexible cloud package. New providers, who can offer a cloud native solution from scratch that does meet needs, have the wind in their sails.
Modern cloud-based WMS packages are easy to link with other systems via application programming interfaces (APIs), notes Van den Berg. 'There is also a lot of freedom in configuring processes and controls via business rules. In fact, all the information available in a system can be used in control logic. Finally, packages are regularly updated to new versions, preventing the software from becoming obsolete.'
Jeroen van den Berg
Cloud computing
Another trend analysis by Mecalux, a provider of warehouse storage systems, notes that cloud computing is changing the way companies are managed and, in particular, determining how the supply chain is organised. 'Digitising logistics with wms as saas, software-as-service, provides access from any device with an internet connection and saves on infrastructure and maintenance costs,' Mecalux expects.
It service provider Axians also sees in its trend overview that more and more logistics companies are opting for the cloud, also from a network perspective. They then opt for a new, standardised network that can be managed via the cloud in a largely automated way. 'That removes many of the risks currently present in the network landscape and paves the way for outsourcing network management,' Axians says.
Robotics
Another trend in warehousing is further and finer-grained robotisation. 'Material handling suppliers designed new systems that bring goods to order-pickers efficiently and in high volume. Popular systems like Autostore, shuttles and picking robots enable automated picking of pallets, boxes or single items,' observes Jeroen van den Berg.
Under pressure to deliver faster at lower prices and make fewer mistakes, companies are looking for ways to work more efficiently, notes Axians. In this context, the IT service provider points to the growing demand for voice picking. 'A voice picking system frees warehouse workers from their equipment and screens. This ensures that they always have their eyes on their work and their hands free. In their headset, employees hear what they need to pick and where. Once they have it, they confirm it with their voice and receive their next instruction. Instruction and execution thus come together for an efficient and less error-prone process.'
Less error-prone
The headsets are connected to a wms or directly to the enterprise resource planning (erp) system. Data on the status of orders are processed in real time. Besides being faster and less error-prone, this also makes order picking more ergonomic and flexible. Picking multiple orders simultaneously, for example, becomes easier, says Axians.
Van den Berg notes that in general, extra attention does need to be paid to the control of automated storage and handling systems. These often have their own control software (the so-called wcs, which stands for warehouse control system) that receives commands from the wms and ensures that robots, cranes and sorters execute them. This wcs is usually less easily customisable than a wms, but the logistics consultant notices the rise of warehouse execution systems. 'These are easier to customise and enable complex control across multiple systems.'
End-to-end supply chain
Ultimately, companies want to get rid of individual links in chains and create an end-to-end supply chain, an integrated supply chain. These are chains in which information is shared and processes are seamless for perfect customer service, Van den Berg said.
The further digitisation of warehouse processes is a prerequisite for this. But then the starting point should be a single source of truth, he warns. 'So one stock level, one delivery date, one priority and this information should not differ between systems.' In addition, such an integrated supply chain requires a different, tight way of working together between departments with formal agreements on services and delivery times. Often things go wrong because of miscommunication or self-inflicted actions by employees.
Downside
Digitalisation is today an unmissable element in a logistics strategy, argue Van den Berg, Mecalux and Axians in their trend analyses. In distribution centres and warehouses, more and more robots and other forms of automation, such as a new generation of saas WMSs and cloud-driven networks, are emerging. Further tech innovations such as data mining, digital twins, artificial intelligence, autonomous vehicles and drones are on the horizon to maintain or strengthen competitiveness, further streamline processes, innovate and reduce errors.
The encroaching automation in warehouses does have a downside. It increases the likelihood of cyber attacks. A higher level of security is needed for security threats, especially given how much legacy still exists. But this awareness is still often lacking among companies. That is also where the logistics sector has work to do.
This article was produced in cooperation with Computable
