alternative-solution-to-modernization

How modernization strategies adapt to rising operational costs

Sep 01, 2022

As shipping costs continue to rise and the price of rising warehousing rental prices increase, businesses struggle to find a perfect balance between operational costs and modernization expenses. While considering the price of optimized technology, warehouses also deal with the very stark reality of rising space expenses and costly last-mile delivery, which take up almost 50% of transportation costs. As more customers expect faster delivery, many companies consider moving closer to urban areas yet are met with even more expensive space costs. On the other hand, staying farther from urban areas slows down delivery, creating a negative customer experience.

Therefore, instead of compromising between current operational costs and modernization expenses, experts recommend optimizing workflows with technologies that adapt to your current space.

 

Automation reaches a new level

Addressing both space and labor shortages, warehouse robotics presented a viable solution to maintaining throughout levels with less resources. Despite an initially large upfront cost, automated mobile robots increase productivity with less labor, freeing up your teams to focus on other tasks. That paired with current scanning technologies can generate:

  1. Improved worker productivity with warehouse robotics - Implementing warehouse robotics can reduce the time pickers spend walking around the warehouse by as much as 60%. This helps reduce downtime so your business can control costs and efficiency even when demands are high. Enhancing fulfillment and distribution center workflows with robotics comes from faster picking and boosted inventory accuracy.
  2. Higher accuracy and consistency with intelligent scanners - Products need to be accurately tracked and traced as they move through production, storage, and fulfillment. Choosing Heartland for warehousing and logistics scanning solutions equips your business with advanced data capture to improve inventory accuracy. An accurate inventory completes more orders to create smoother operations.
  3. Real-time visibility with real-time locationing systems - Real-time visibility gives your workers actionable insights that help them make more informed decisions to help them adapt to demands and solve issues faster. Additionally, when your workers know the location of assets and inventory, it improves workforce safety and streamlines production. This works to boost productivity and help you grow your business.
  4. Flexible connectivity that streamlines communication - Choosing to enhance your network connectivity can help your workers effectively talk to each other when workflows get busy and timelines are short. Heartland’s mobile devices and AlwaysConnected services help enable multiple communication channels between delivery and fulfillment teams to deliver important data and effectively communicate. This helps control costs to reduce the impact of warehousing rental prices.

 

Rising rental prices force warehouses to find simple modernization solutions that control expenses and enhance accuracy. Learn more about warehouse modernization here.