The modern warehouse and storage market is evolving at a rapid rate. Experts are predicting double-digit growth in the coming years, thanks to e-commerce and automation. The United States alone has seen a 30% increase in warehouse space demand in the past few years, and other countries are seeing increased demand.
To accommodate this demand, companies must look into warehousing services and modernize their operations. The days of just storing goods are long gone. Today’s warehouses are expected to offer numerous services in one location, providing clients with speedy and accurate services. Furthermore, they want warehouses to adapt to their changing needs.
These services are needed as consumers want their items immediately. They are no longer willing to wait days or weeks to have their goods. When they order something online, they expect it to ship within 24 hours and be in their hands in a matter of days, if not hours. Modern warehouses can accommodate these demands.
The Move to Modern Warehousing
Warehouses were traditionally used to hold goods. When a customer ordered an item, employees would pick and ship it using paper order forms. These warehouses were effective at one time, but they weren’t efficient. Human error was always a concern, and warehouse owners and operators had little real-time visibility.
Warehouses today have automation and robotics to streamline operations. Inventory is managed digitally, and advanced analytics provide real-time visibility into operations. The environment is now dynamic and responsive, and warehouse spaces are optimized, saving the company money. These systems can also be integrated with expanded logistics ecosystems. What has driven this demand for modernization?
The Demand for Modernization
Consumers love to shop online today. The global pandemic demonstrated to people how easy it is to order goods and have them delivered right to their front door. However, consumers expect these items promptly and want to be able to track their goods from order to receipt. If there’s a problem with the item, they wish to return it effortlessly. The warehouse must accommodate these demands and needs efficient systems to do so.
Even as customer demands are increasing, warehouses are experiencing labor shortages. This problem is seen throughout the logistics and warehousing industries. Automation leads to fewer workers being needed without sacrificing any output or quality.
Supply chains are also increasing in complexity. Goods are being shipped worldwide, and many companies are moving to just-in-time inventory practices. They must fulfill orders coming from multiple channels; integrated systems offering end-to-end visibility and control are beneficial as they handle this complexity with ease.
Warehouse managers are also making their operations more sustainable. Government agencies are requiring them to do so; however, consumers also want to purchase from companies that are working to protect the planet. Energy-efficient technology helps warehouses meet these goals, and they also use waste reduction strategies and innovative transportation options to minimize their environmental impact.
Technology and the Modernization of Warehouses
The modernization of warehouses is being driven by technology. Warehouse management systems, automation and robotics, artificial intelligence, machine learning, and the Internet of Things are all driving this transformation. Warehouse managers are also benefiting from cloud computing and data analytics.
Modern warehousing leads to increased efficiency and improved accuracy. Visibility increases, and the services can be scaled to meet the changing needs of the customer. While business owners pay to modernize the warehouse, they see long-term cost reductions and excellent return on investment. This modernization also gives them a competitive edge in a crowded marketplace, and that is priceless.
