Aug 24, 2023

Modernization has been a supply chain buzzword before the turn of the decade. Between the push for OS migration, the rise of e-commerce, and the 2020 health crisis, businesses have found themselves riding wave after wave of supply chain challenges, all driving a need for modernized systems to maintain business continuity. In its basic terms, modernization is the simplification of traditional workflows. Although this definition may initially seem overarching, it highlights modernization’s natural tendency toward growth. For example, a barcode scanner is the modernized version of pen-and-paper picking; however, RFID scanning is a modernized version of barcode scanning. Essentially, there is always a “next level” to achieve within a modernization plan. Nevertheless, businesses may struggle to recognize the need to progress upward after initial implementation has taken place.

Upgrading the warehouse isn’t a one-and-done process. Failure to continue developing modernization plans can cause businesses to miss out on optimization opportunities, setting them behind the competitive curve. On the other hand, hastily-assembled modernization strategies can drain budgets and enable downtime if teams aren’t ready for new systems. To operate in a healthy balance, automation specialists recommend first evaluating your workflows to spot tell-tale signs.

4 Signs It’s Time to Upgrade the Warehouse Again

Warehouses are crucial to any business that deals with physical products. These structures are key in storing, organizing, and distributing goods. However, as time goes by, warehouses can become outdated and inefficient, leading to decreased productivity and lost revenue. Here are four signs that it's time to revise your modernization plan.

1. You’re Running Out of Storage Space

One of the most apparent signs that it's time to upgrade your warehouse is when you start running out of space. Over time, businesses tend to accumulate more products, equipment, and other materials. If your warehouse can no longer accommodate all of these items, you may need to consider expanding or relocating, two options that are proving costlier yet may not solve the problems tied to inefficient storage. Increasing inventory volumes and SKU proliferation can be challenging in big and small warehouses as companies must use more space to store similar-looking products. If located too close together, they may confuse workers, but if located far apart, they may be overlooked and forgotten.

Running out of space can also lead to disorganization and inefficiency. If you have to stack products too high or too close together, it can be challenging to locate specific items when you need them. This can result in wasted time and effort, leading to decreased productivity and increased costs.

2. Increase IT Helpdesk Tickets

IT ticket volume has increased by 16% since 2020 across multiple industries. When devices are unavailable, businesses risk enabling downtime, which costs thousands of dollars per hour after accounting for lost sales and labor. While digital devices speed up manual processes, they also require timely updates to retain functionalities. Moreover, if devices are older, they may not support newer software updates, further lagging behind newer systems. Therefore, consider tracking the frequency at which new devices request updates and if the updates are successfully deployed.

Likewise, it is important to note that in the IoT world, devices don’t need a screen to require an OS update. Printers, management systems, temperature monitoring, and even conveyors are a few of the technologies other than handheld devices that may need updates to prevent future IT disruptions.

3. Increase in Worker Safety Concerns

Safety should always be a top priority in any warehouse. However, if your warehouse is outdated, it may not meet current safety standards. This can put your employees at risk and expose your business to liability.

For example, warehouses racing to meet tighter deadlines can see an 80% increase in worker safety when using hands-free picking systems such as voice solutions and wearable technologies. This is because hands-free systems allow workers to keep their eyes up and focused on what’s ahead instead of being drawn to a paper list while walking.

Similarly, if your material handling equipment is outdated or poorly maintained, it can pose a safety hazard to your employees. An automated asset management team should be able to pinpoint maintenance schedules and newly-released updates to help prevent workers from using subpar tools.

4. A Steady Decline in KPIs

Finally, if you've noticed a significant decrease in productivity, it may be a sign that it's time to upgrade your warehouse. Outdated warehouses can lead to inefficiencies and lost productivity, impacting your bottom line. While every warehouse may record unique key performance indicators (KPIs), consider tracking the following to identify bottlenecks:

• Inventory Accuracy Rate – How many items are correctly marked in stock?
• Receiving Time – How much time does it take to count, sort, and store incoming stock?
• Order Pick Rate – How many orders get picked in a stipulated timeframe?
• Putaway Cycle Time – How long does it take for workers to put away one item?
• Total Order Cycle Time – How much time does it take to ship an order from the moment a customer places it?
• On-Time Shipping – How often are your teams meeting estimated shipping deadlines?
  
  

New Promising Systems to Keep an Eye On

Automation can take many forms. If you already implemented automated data capture and Android within your facility, you can work with a specialized solution provider to grow your system and embrace next-level technologies such as:

• Artificial Intelligence – Improve demand forecasting with data collected from your current data capture systems.
• Voice-Picking – Combine voice instructions with hands-free scanning to quickly pick orders and decrease training time.
• Temperature Tracking – Monitor your temperature-sensitive inventory remotely via a handheld device with electric sensors and rugged connectivity systems made for cold chain management.
• Real-Time Locationing Systems – Expand RFID and IoT systems to track in-motion inventory, providing insight into stock location and accelerating fulfillment rates.
  
  

You Already Took the First Step. It’s Time to Take Another One.

As new demands and challenges arise, it is only natural that your modernization strategy should adapt to overcome them. If you’ve seen any of the signs above in your workflows, it may be time to reach out to a solution provider and re-evaluate your plan. At Heartland, our AlwaysOn and AlwaysConnected teams work with you to:

• Leverage your current technologies to lower acquisition costs.
• Connect your goals with multi-purpose technology that evolves alongside your business.
• Survey your connectivity infrastructure to prevent overwhelming signals and IT teams.
• Expand asset visibility to highlight maintenance and service schedules.

Reach out to our team today to start expanding your plan and integrating a new level of efficient warehousing.