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Digital Transformation of Warehousing

Digital Transformation of Warehousing by Industry: What You Need to Know

The digital transformation of warehousing affects every supply chain. The days of handling processes manually and tracking operations with limited technologies are ending. In addition, the demands of consumers for increased transparency, better accountability, and faster throughput will cause the digital transformation of warehousing to accelerate. Supply chain leaders need to know more about the digital transformation of warehousing within these leading industries for supply chains.

Retail Warehouses Are Moving to Increase Throughput

Retail warehousing is one of the most exciting areas of digital transformation. Retailers are applying consumer-generated data through online platforms, in-store experiences, and other analytics capabilities to optimize warehouse efficiency. Such efficiencies include better labor management, waveless picking strategies, and more. Although robotics is on the horizon, they are not yet widely available to meet the full set of demands the typical warehouse possesses. As a result, smaller advancements, such as technologies connected to the Internet of Things (IoT), are expected to be among the top ways retail warehousing will evolve. In fact, according to Digitalist Magazine, the overwhelming majority of retailers, 71 percent, will invest in IoT technologies by 2021.

Food Warehouses Are Entering an Age of Digital Transformation of Warehousing

The digitalization of warehousing is also big news for the food supply chain. Since food supply chains have a dual layer of complexity, including both tracing food back to its origin and maintaining the environmental conditions of warehouses, the application of digital technologies can reduce delays, improve efficiencies, eliminate risks, and restore trust in the food industry. More importantly, the digital transformation of food supply chains is becoming much more than a benefit; customers expect more visibility and end to end transparency. Thus, produce and fresh food supply chains are working to evolve operations through new technologies, especially blockchain, notes Food Logistics. For example, warehouses are developing and deploying the following technologies for enhanced visibility and better accountability:

  • Mobile technology and wearables to reduce risk of cross-contamination.
  • Robotic systems.
  • Systems to track and trace goods from farm to table.
  • Artificial intelligence.
  • Smart barcodes and AIDC technologies.

Automakers Need Better Ways to Track Supply Chain Vendors, Suppliers, and Activities

The automotive industry is one of the most complex industries on the planet. In today’s world, the average car can involve more than 20,000 components from an assortment of auto suppliers and manufacturing centers. At the same time, the increasing demands for more safety, more technology, and faster production are forcing automakers to vigorously pursue technologies to track original equipment manufacturers (OEM) and auto suppliers, says Supply Chain Dive. Increased traceability of supply chain vendors, suppliers, and activities will lower barriers to improvements and efficiency. Therefore, more consumers will see lower price points without sacrificing quality. Automakers realize these benefits in the form of increased sales, fewer lawsuits, and better brand value.

Pharmaceutical Supply Chains Have Stringent Chain of Custody and Compliance Requirements to Meet

Pharmaceutical supply chains are also amid digital transformation in manufacturing and warehousing. Digital transformation of warehousing among pharmaceutical and medical suppliers represents both an opportunity and a threat. Digital transformation will require capital for implementation, but such improvements will offer significant benefits to an organization. Ultimately, the biggest problem in pharmaceutical supply chains is not upfront costs; it is a poor use of systems of record. According to Pharma Manufacturing, today’s pharmaceutical companies, including those with multibillion-dollar budgets, continue to operate with basics spreadsheets, data silos within outdated systems, and other error-prone processes leading to increased use of assumption in making decisions, which could cost patients’ lives.

Digital transformation of pharmaceutical and medical supply chains could eliminate issues with maintaining chain of custody and ensure pharmaceuticals, as well as medical equipment, are kept at the appropriate temperature and away from environmental factors that influence their effectiveness. Such gains translate into better patient outcomes, increase profitability, and reduced risk.

Know How Digital Transformation Will Affect Your Operation Before It’s Too

Digital transformation of warehousing is a significant influence among today’s supply chain leaders. Every process and activity with repetitive motions can be fully automated, and even those that continue to avoid the full automation discussion can leverage the digital transformation of warehousing to improve end-to-end transparency and reap its benefits. Get started with your digital transformation by scheduling your consultation with Veridian online now.