Six trends will determine the direction of warehouse automation in 2023

Robots, self-moving shelves or order pickers' sight glasses... When it comes to artificial intelligence and digital transformation, few fields are as advanced as warehousing and logistics. The market is booming.

The market is booming: collaborative robots, automated moving shelves or visual picking glasses for order pickers-only a few areas are as advanced as warehousing logistics in terms of artificial intelligence and digital transformation.

The gold rush around warehouse automation is not entirely new. The intelligent warehouse system, as a gear for the increasingly rapid global networked cargo transportation, has always ensured timely provision, thereby increasing the company's profits. Over the past decade, the victories of large online retailers such as Amazon, eBay, Otto, and Zalando have given an additional boost to automation in the industry. From COVID-19 at the latest, manufacturers in the mechanical engineering, automotive and electronics industries are now increasingly considering establishing or expanding the capacity of local warehouses.

Whether further digitization and automation of warehouse systems will be successful depends on various factors. Therefore, enterprises should consider the following trends when implementing intelligent warehousing logistics.

Warehouse Automation Trend 1: supply chain crisis-the situation is still tense

According to the Business Environment Index, in Germany almost 3/4 companies report problems in the supply chain. In the core sector, in addition to the electrical industry, the mechanical engineering and automotive industries (90%) are also affected. There is no sign of recovery yet.

Given these bottlenecks, 1 is a skill that comes to the fore in warehousing logistics: scalability. Logistics companies must be prepared for longer delivery times, high delays and short-term changes, and be able to adjust their capabilities in a flexible manner. At the same time, it is also important to look for partners who have a high level of global supply chain expertise and can leverage established supply chains. This will not solve the current problem. But it at least gives the company a little leeway to make its plans more flexible and responsive.

Warehouse Automation Trend 2: shortage of skilled workers and unmanned warehouses

Troubled supply chains meet booming e-commerce. New models such as urban logistics (urban cluster logistics in urban freight) and rapid commerce (online grocery orders) both rely on extremely fast and efficient delivery processes. This problem is not just a delivery bottleneck. The industry is also facing a massive shortage of skilled workers in the wake of the pandemic. As in almost all industries, there is a shortage of qualified personnel-from IT specialists to order pickers and logistics dispatchers to (truck) drivers.

According to a survey, more than half (51%) of freight forwarders and logistics companies complain about a lack of resources. For 27%, the lack of operational warehouse staff led to outages, and for 13%, even major outages and failures. With so many job openings, automation and rapid scaling up is rising to the priority list of many logistics operators. In the "unmanned warehouse"(ZPW), the process runs completely autonomously, without personnel, which is still a vision of warehouse management. However, with the increasing use of artificial intelligence and robots, the first steps have been taken.

Warehouse Automation Trend 3: Robotics-Digital IMPS at Work

Speaking of robots: In recent years, the scope of robotics has expanded tremendously. An autonomous mobile robot (AMR) navigates freely within a defined area. Autonomous automated guided vehicles (AGVs), drones and automated delivery systems can cover long distances and deliver goods safely and quickly to the right place. Collaborative robots (cobots), on the other hand, work "hand-in-hand" with human colleagues and streamline the workflow.

The company is gradually approaching new automation technologies and testing their respective robotics technologies in different application areas. Basically, they have two paths to go: either develop robotic systems in-house or rely on commercial solutions from third-party vendors. Both can have advantages and disadvantages. Robotics developed in-house may be better adapted to individual requirements and seamlessly integrate with existing systems. However, the development and cost of work can be very high. In many cases, the necessary engineering expertise is also lacking. Since technology is also developing rapidly, it is helpful to rely on a partner who not only has relevant experience, but can also provide further services (such as maintenance).

Warehouse Automation Trend 4: long life and high reliability of robots

No matter what kind of robot is used, high reliability and long life are important. In a warehouse designed for high speed, work stoppages are not allowed. Therefore, the solution used must meet some basic technical requirements. These include durable energy storage and robust product design for repeatable processes. Field testing plays a key role in this, testing the quality of processes and autonomous systems under real-world conditions.

But beware: if there is an error in the test itself, the error in the smart warehouse may not be discovered at all, or it may just be too late. Especially because even the best test procedures cannot completely prevent the robot system from malfunctioning or getting sick. When using warehouse technology, those who rely on partners with knowledge of individual products and experience in a specific industry, can save themselves a lot of trouble. This applies to the design and implementation, as well as the testing and maintenance of the solution (keyword: after-sales service). The earlier the partners are involved in the development process, the better.

Warehouse Automation Trend 5: Industrial Internet of Things (IIoT) -Clear Processes

Another important component of warehouse automation: the intelligent Industrial Internet of Things (IoT). Transparency is the whole and ultimate purpose of warehouse management. In the past, it was enough to know the inventory of the warehouse, but today it means gathering a large amount of data from various sources and systems and processing it in real time. As a result, IIoT platforms continuously record, collect, and evaluate plant, sensor, and process data in warehouses, control systems, report failures, schedule repair work (predictive maintenance), and reduce downtime. Predictive analytics provide an indication of future demand fluctuations and determine the best route for material flow and delivery. The higher the degree of networking within each warehouse process, the more obvious the opportunities for optimization. Where is the lack of data for better decision-making? What is the problem with order picking? And how to make traffic and work routes shorter?

Warehouse Automation Trend 6: the smallest space storage and transportation technology

Although the warehouses seem to be popping up like mushrooms at the moment. Storage capacity is often planned before the building stands. Customers of logistics service providers pay a premium to store their parts and goods. Therefore, every 1 square meters is used to the maximum extent and is completely designed according to the storage and transportation technology used. The higher the economy and efficiency of warehousing, the more complex the planning and implementation of warehousing automation.

Here, we also recommend working with partners to find their own designs for their own warehouses at an early stage-regardless of the final physical size. Scalability and flexibility is one of the decisive factors for the long-term benefits of warehouse logistics automation and "miniaturization. However, in view of rising energy costs, stricter legal regulations and increased consumer awareness, the importance of sustainability is also increasing.