The year has gone by fast. However, the busiest portion of the year has only just begun. As warehouses and distribution centers prepare for the 2023 Peak Season, it is worthwhile to explore the leading optimization tools enhancing warehouse management. Based on previous holiday seasons and current supply chain challenges, decision-makers expect several persistent and new challenges within the last half of the year such as:
- Consistent growth in e-commerce transactions – It is safe to say that omnichannel fulfillment won’t be going anywhere anytime soon. Accounting for a large percentage of yearly revenue, omnichannel fulfillment empowers the consumer to receive and track orders in a way that best suits them, fueling trust and brand loyalty.
- Later consumer purchases – As consumers recover from previously high inflation rates, retail analysts estimate many will wait to complete purchases later in the year, potentially creating a sudden spike in logistics and shipping activities. Outside factors such as foreign tensions and the return of student loan payments are just a few of the factors influencing consumer spending this Peak Season.
- Bullwhip effect of imported inventory – Companies both big and small reported overstocking issues this year, which can generally be countered by keeping less stock in warehouses. Unfortunately, this tactic can create an eventual dip in stock levels for imported inventory later down the road, commonly referred to as the “bullwhip effect”. As a result, leading supply chain researchers expect major US importers to enter the 2023 Peak Season with caution to avoid overstocking, which means less stock may be ordered to prevent future stagnant inventory. The move could result in shortages depending on consumer demand.
6 Tools Decision-makers Are Using to Prepare
While the holiday season will see most of the consumer spending spikes, companies are encouraged to start preparing for Peak Season as early as July during the Back-to-School Season. After evaluating workflows alongside a solution developer, many warehouses are leveraging:
- A Cloud-Based WMS – These systems allow businesses to manage their inventory, orders, and shipping from anywhere, as long as they have an internet connection. As a result, advanced hardware systems are now including multiple connectivity options to ensure data is uploaded and shared immediately from your mobile terminal. Moreover, this technology is particularly useful for companies with multiple warehouses or a distributed workforce. By providing real-time visibility into inventory levels and enabling collaboration across different locations, businesses can optimize their supply chain and streamline their operations. This, in turn, can lead to increased efficiency, reduced costs, and improved customer satisfaction.
- Warehouse Robotics – A cutting-edge automation tool that is rapidly gaining traction in the industry is the autonomous mobile robot (AMR). This remarkable robot operates by utilizing advanced sensors and mapping technology to efficiently navigate the warehouse and pick items from shelves with no human intervention required. AMRs are particularly advantageous in high-density warehouse environments where traditional equipment such as forklifts and other machinery may not have adequate maneuvering space to carry out their tasks. The use of AMRs can streamline warehouse operations and significantly enhance productivity.
- Predictive Analytics – The utilization of predictive analytics has proven to be an invaluable asset for businesses looking to gain a competitive edge. By utilizing machine learning algorithms to analyze vast amounts of data, companies are able to accurately forecast future trends and adjust their inventory and staffing levels accordingly. This not only reduces waste but also maximizes efficiency, ultimately leading to increased profitability and success. With the ability to accurately predict market fluctuations and consumer behavior, predictive analytics has become an indispensable tool for any business looking to stay ahead of the curve.
- Real-Time Locationing Systems (RTLS) – One of the primary applications of this technology is in the tracking and management of inventory in real-time. Since companies are expecting to deal with rapid shifts in demands and possible shortages, real-time insights into stock counts can be a game changer. As stock dips below a set threshold, warehouses can immediately replenish. Furthermore, RTLS is particularly advantageous for companies that handle perishable or high-value items, where precise inventory management is of utmost importance in ensuring the quality and timely delivery of products to customers. Warehouses can track the in-motion movement of their perishable goods, ensuring there are safe for transport while simultaneously controlling stock levels.
- Enterprise Rugged Tablets – These devices are designed to withstand harsh environments and provide reliable, secure, and efficient communication and data processing capabilities. With their advanced features, rugged tablets offer a host of benefits for warehouses, including improved inventory management, streamlined operations, enhanced safety, and reduced costs. One of the key advantages of rugged tablets is their ability to track and manage inventory in real-time when paired with RFID systems. Unlike traditional enterprise smartphones, rugged tablets bring your inventory to a bigger screen for at-a-glance management and faster decision-making. Rugged tablets can also leverage push-to-talk connectivity and detachable keyboards to further expand your device’s functionality and accelerate data entry for faster inventory updates.
- Wearable Devices – Peak Season is often characterized by a large influx of new, inexperienced hires, putting workflows at risk of downtime during training periods. Wearable technologies such as wrist-mounted computers, voice-enabled headsets, and ring scanners can help alleviate training times since they capitalize on natural muscle movement and auditory instructions to train workers. Future-forward voice systems have been shown to increase productivity by 30% while also reducing 85% of training time. As a result, new hires can become productive faster without enabling more errors.
How can you start optimizing your warehouse management plan?
As we move into the year 2024, we can see that the world of warehouse management has become more advanced and sophisticated than ever before. Thanks to the latest tools and technologies, such as cloud-based WMS systems and autonomous mobile robots, businesses can now streamline their operations, cut down on costs, and boost efficiency to new heights. While it is difficult to pinpoint the exact struggles we’ll face in the upcoming Peak Season, proactive preparation is your best avenue to mitigating downtime and preserving seamless productivity. A comprehensive workflow evaluation can help you spot:
- Potential fulfillment bottlenecks
- Bulky, outdated devices in need of an upgrade
- Inconsistent data reporting across your facility
- Common worker stressors related to technology
- Connectivity dead zones preventing real-time data sharing
For more information on how you can optimize warehouse management with adaptable technology, schedule a quick touch-base with our automation team.