Traditional warehouses (or distribution centers) have faced the need for transformation and warehouse optimization due to two driving trends.
Firstly, there’s a shift in the nature of fulfillment and distribution: customers expect agile and highly responsive service. To meet the needs of sophisticated customers companies should optimize the collaboration of men and machines to create highly productive collaboration.
Secondly, warehouse management is experiencing the boom of technological innovation. So, to lead the market, companies should get acquainted with the warehouse optimization tips applying solutions empowered by IoT, AI, autonomous vehicles, collaborative robotics, and other trendy techs.
BusinessWire, a global leader in press releases distribution, estimated in 2021 that more than 80% of the warehouses have no automation at all. And 52% of respondent companies declared an expected increase in the investments for warehouse optimization. Reading this blog, you have a chance to be among the first companies, which are striving to reduce labour costs and start getting higher revenues.
For example, InboundLogistics platform calculated that labour expenses covered about 65% of most warehouse facilities’ operating budgets. The potential of warehouse optimization is about this issue as well: to reduce expenditures and increase efficiency.
Standing among the rows of the goods in the warehouse, it’s extremely important to answer the question, which will influence further strengthening of the company’s reputation, its capacity to fulfill customers’ orders or manage delays and returns. The question is whether business owners have optimized the warehouse to the extent the company was ready to cope with the current industry challenges.