While local statistics are hard to come by, the average size of warehouses in the US have increased by almost 5 000 square metres in the span of 17 years from 2000 to 2017.
There is no reason to believe that South African warehouses have bucked the trend. Given this, and the evolution of technology, how can companies unlock more productivity from their sites?
This is not because warehouses are not used to capacity. Instead, it is about getting more out of existing resources to deliver added value in a highly competitive market. Globally, the average warehouse capacity utilisation among manufacturers is approximately 68%.
However, 15% of respondents said they were running at 100% capacity while 19% were sitting at between 81% and 99%. Clearly, more needs to be done to deliver better capacity in more innovative, technology-led ways.
“Attention has turned to investing in automation and robotics as a way of accomplishing this. Almost half the respondents in a worldwide survey stated they would proceed with plans to embrace automation and robotics despite challenging economic conditions,” says Marlene Naidoo, Zebra channel manager at Westcon-Comstor Sub-Saharan Africa.
Delivering return
In the long run, this certainly makes business sense.
With supply chains becoming more complex, advanced technologies are essential to improve management and optimise efficiencies. Deloitte has found that 79% of companies with high-performing supply chains achieve revenue growth superior to the average within their industries.
“Furthermore, Zebra research has shown that 89% of respondents will be using modernised warehouse management systems for labour planning and management by 2024. However, in the same breath, 77% admits to being slot to implement new devices and technologies,” adds Naidoo.
So, why the discrepancy?
Part of this could be attributed to the unique challenges of the South African market. On the one hand, companies are under pressure to embrace automation and other innovative technologies. But on the other, they are also sensitive to the potential impact this can have on the labour force. The last thing anybody wants is to retrench staff and use automation as an excuse.
Technology for change
“This does not have to be the case. Companies can empower their warehouse workers with modern technology while still improving efficiencies with automation. Something as simple as outdated operating systems can have a massive negative impact on utilisation. It could also result in a backlog of orders because the systems simply cannot process them fast enough,” adds Naidoo.
The Zebra study has shown that with consumers pushing for reduced delivery times, warehouse operations are under increased pressure. In fact, 46% of respondents cite this as the main driver behind their growth plans. This results in even greater demands on warehouses with 86% of respondents expecting to expand shipping volumes with 81% investing in returns handling.
“Modern technology is therefore vital in this regard. It can improve operations in any warehouse and help minimise mistakes by providing workers with real-time access to data on their mobile devices. It can enable them to work faster (think faster hardware processors and better designed apps) and reduce downtime (improved battery life and better business continuity solutions,” says Naidoo.
Everything from inventory management to stock handling and fulfilment can be improved by linking mobile systems to real-time data during supply chain management. By embracing technology, warehouses can deliver a more integrated experience that can not only optimise worker efficiency but provide more growth opportunities in a digitally-led future.