Source: Godfrey Insights

Global Technology Trends in Modern Smart Warehouses

Warehousing is the intermediate process in the logistics value chain which involves storage of goods during a product’s journey from the factory to the end-consumer. Like smartphones, smart warehouses or intelligent warehouses leverage computing power to effectively perform multiple functions simultaneously with the help of technology. In a smart warehouse, all gadgets and devices are fitted with sensors and are connected to each other via the Internet. This connectivity gives the gadgets the ability to coordinate their processes thereby enabling seamless operations. Internet of Things, Cloud Computing, Big Data Analytics, Robotics and Automation together enable the concept of a Smart Warehouse and are integrated with legacy systems like WMS. The article below covers some of the popular technologies adopted by smart warehouses globally. Most of these practices have just started to gain ground in the context of Indian logistics.

• Digital Supply Chain: Digitisation of production and distribution processes, from procurement, manufacturing and logistics allows for higher productivity and reduced losses. A digital platform interface connected to the internet helps integrate all the functions in the value chain, analyse extensive information real time and improve coordination of supply chain. For eg: Samsung and Amazon have built a centralised and integrated supply chain infrastructure to be able to operate uniformly across the globe.
• Internet of Things: IOT connects and integrates electronic devices via internet allowing them to send and receive data about the value chain processes. Traditionally, numerous processes and systems in supply chain management carry out their operations in siloes and data captured is generally through manually generated reports or manually updated systems. But documenting every record for every good is extremely tedious, time and space consuming, and highly prone to errors. IOT allows for sensors to accurately capture the data, communicate and coordinate these supply chain activities so all processes can be executed seamlessly leading to lower cycle times and higher productivity. The massive data generated can then be analysed real time to lower losses and minimize inefficiencies through smart algorithms. For eg: Nokia has deployed an IOT solution to track their forklifts real time in the warehouse to optimize their utilization and productivity while facilitating operators with real time navigation guidance to lower cycle times
• Big Data: Every second, a huge trove of diverse and unstructured data is generated in every logistics process across the value chain. This massive amount of data can be leveraged with smart algorithms to minimise wastage and improve efficiencies. The unstructured nature of data generated with a very high frequency makes real time analysis and decision making a challenge for corporations. Big data analytics, intelligent algorithms and powerful computing power helps consume this data and facilitates real time analysis so managers, supervisors and operators could make informed decisions faster with data driven patterns and insights. Companies like Accenture, IBM and Wipro have developed intelligence tools to automate logistics processes.
• Augmented Reality: Augmented Reality (AR) is real time integration of digital information with the existing physical environment. It leverages the worker’s existing environment and overlays it with virtual information to enhance what is seen or felt. The most popular application of this technology is AR enabled vision picking and put-away where smart glasses or devices facilitate faster, hands-free operation of warehousing tasks like picking, sorting, put-away and assembly with real time indoor navigation guidance. Warehouses in USA and Europe are increasingly seeing adoption of this technology to boost productivity and reduce inaccuracies. For eg: DHL witnessed a 25% increase in operational efficiency by using AR technology for smart assisted picking tasks in Netherlands.
• AGVs and Self Driving Vehicles: Driver-less vehicles make use of integrated sensors to navigate unlike unmanned trucks or forklifts that require magnetic or inductive strips that are prone to high maintenance costs. They can be used in indoor as well as outdoor logistics operations — from pallet movers in warehouses to last-mile delivery solutions. These vehicles ensure higher safety in operations and boost productivity since they can continuously run round-the-clock without taking any breaks. Advanced technologies like LIDAR and SLAM algorithms are expediting development of such vehicles. Self-driving vehicles are more flexible and more autonomous than automated forklifts and driverless trucks. A major challenge in adoption is high costs of ownership of such vehicles. However, with economies of scale, such technologies are bound to become more cost effective for corporations. For eg: Audi has deployed AGVs in its assembly line and Domino’s Pizza has piloted an autonomous parcel delivery robot in European cities.
• UAVs or Drones: Unmanned aerial vehicles (UAVs) can facilitate express deliveries and deliveries in remote areas very efficiently to reduce the delivery time and access difficult terrains. Unlike popular sound-bites, UAVs are not a replacement to ground-based transportation and delivery systems but an alternative to access remote and inaccessible terrains quickly in rural areas and enable faster deliveries in dense urban centers where traffic congestion is high. For eg: Zomato and Amazon have announced plans to start deliveries of parcels using UAVs soon subject to government approvals.

Do share your feedback, perspectives and ideas about any other trends worth discussing. Drop in a word or just say hi at siddharth@cleanslatetechnologies.com

References: Knight and Frank, DHL Logistics Trends Radar, Tata Strategic Management, Forrester Research