Dec 08, 2023

As the year comes to a close, decision-makers look ahead to the prospects and potential hurdles awaiting in the year ahead. After overcoming a global pandemic and foreign tensions, the modern supply chain has evolved to prioritize agile flexibility. Warehouse distribution has grown to integrate sustainable connectivity and automated processes to best meet customer expectations. The coming year is likely to showcase the importance of adaptable warehouse equipment as it helps businesses turn the following challenges into opportunities:

• Regulated Demand for Traceability - Supply chain visibility is a critical factor in ensuring smooth operations, but it's still a challenge for many companies. The lack of real-time visibility into supplier performance, inventory levels, and transportation status can lead to inefficiencies in warehouse distribution. Last year, the Food and Drug Administration (FDA) reported that 9 million units were recalled from stores. As a result, new regulations such as the RFID label requirement and the FSMA compliance demand traceable visibility from farm to table.

How to Prepare:

As regulations tighten, warehouses must actively continue to phase out manual reporting. Automated solutions leveraging barcode scanning and warehouse inventory management software can record product status to ensure quality parameters are met. Warehouse labels essentially replace pen-and-paper reporting since teams need only to scan barcodes to verify a product’s origin instead of referring back to written notes.  

• Transportation and Capacity Constraints – Dwindling talent in the logistics industry is an ongoing challenge expected to continue in 2024. Studies estimate a 160,000-truck driver shortage by 2030 as companies struggle to attract and retain qualified drivers. The shortage of truck drivers along with foreign tensions can lead to shipping delays, higher costs, and potential product shortages.

How to Prepare:

Many businesses have turned to near-shoring and moving closer to urban areas to decrease shipping and handling expenses. However, automated material movement has also become popular in manufacturing and distribution centers. Automated systems such as conveyor belts and robotic forklifts can help warehouses optimize their operations and reduce their reliance on manual labor. By automating repetitive and physically demanding tasks, warehouses can free up their workforce to focus on more complex tasks, such as managing inventory levels.

• Push for Sustainability Continues – Extreme weather events, rising sea levels, and other environmental factors can disrupt supply chain operations and cause significant financial losses. Companies will need to invest in  sustainable practices to minimize their carbon footprint and build more resilient supply chains that protect both the bottom line and the environment.

How to Prepare:

One of the first steps toward sustainability is to assess the warehouse’s environmental impact. This can be done by measuring the energy consumption, water usage, and waste generated by the warehouse. Furthermore, warehouses are also encouraged to reduce their reliance on multiple electronic devices. Next-generation handheld computers and voice-automated solutions consolidate main tasks such as staff communication, ERP inventory management, and data sharing into one recyclable terminal, reducing future e-waste.

Related: See how you can protect sustainability in five crucial warehouse workflows.

• Cybersecurity Risks in the Globalized World – With the increasing digitization of supply chain processes, cybersecurity risks will remain a significant concern. Current researchers suggest over 800,000 people experience a cyberattack each year. Cyber-attacks disrupt supply chains as they lead to data breaches, compromised data, and reputational damage. As supply chains become more interconnected around the globe, it's essential to establish robust cybersecurity protocols to protect against potential threats.

How to Prepare:

Open communication is key to establishing a reliable yet adaptable cybersecurity plan. Policy guidelines should include instructions for password management, access control, and network security. Additionally, all employees should be trained on proper cybersecurity practices, such as recognizing phishing emails and avoiding suspicious downloads. Likewise, businesses should prioritize the integration of supported operating systems such as Android for Enterprise to leverage ongoing security patches and updates.

Related: Check out our blog to see how you can evaluate your cybersecurity plan.

Where Should You Start?

The first step in planning a modernization strategy may look different depending on your business. However, meeting with an    experienced solution provider is one sure way to establish a strong foundation for your solution. Partnering with an efficiency strategist empowers businesses to:

• Accurately evaluate challenging spaces – An experienced provider has the expertise to identify and address operational inefficiencies, dead zones, and other challenges interfering with connectivity signals and device performance. Evaluations will also empower your provider to recommend changes that optimize warehouse operations, reduce bottlenecks, and enhance overall efficiency.
• Identify key performance indicators (KPIs) based on everyday workflows – Depending on your solution’s goal, KPIs may vary to measure order throughput, return rates, and accuracy rates. For example, businesses seeking to optimize putaway and storage may want to measure the time it takes for workers to pick an order since this could reflect if items were stored properly.
• Select warehouse equipment from leading manufacturers – A solution provider’s relationship with technology manufacturers gives you insights into the latest warehouse equipment and trends. By working with a solution provider, warehouses can confirm they are making the right investment decisions in hardware that will ultimately improve their operations. Moreover, your team may also connect you with supporting technologies such as warehouse labels to create an end-to-end solution.
• Prep hardware with inventory management software – Versatile systems such as barcode technologies can be paired with tracking software to augment visibility. Solution providers will test solutions to ensure they are functioning correctly with the necessary management tools. Once the devices have been staged, the solution provider will deploy them in the warehouse, creating a smooth transition and minimal disruption to operations.
• Test and pilot visibility systems – During the piloting stage, IT teams work with a select group of employees to test the effectiveness of the solution in your real-life space. The pilot group provides feedback on the solution's usability, effectiveness, and any potential issues that may arise. Based on the feedback, your team can then make any necessary adjustments to the system before final deployment.
• Monitor solution performance for eventual changes and adjustments – After deployment, it is crucial to monitor device performance and track user feedback to accelerate training and safeguard ROI. This may include regular software updates, troubleshooting, and technical support. Developing an asset management plan helps prevent breakdowns and missed maintenance schedules, so your automation tools stay ready no matter the challenge they face.

Upgrading the warehouse doesn’t have to be a complex process. Start the new year with a tailored yet adjustable modernization plan that sets you up for success in the Digital Age. Reach out to Heartland’s specialized technician team for more information on today’s leading technologies.