FEATURE Automated warehousing
Warehouse
trends to watch out
watch out for in 2024
for in 2024
T
he warehouse automation market is expected to continue to grow by around 15% annually between now and 2027. In 2024
we expect a number of trends that will not only drive this growth, but also determine the direction in which the sector is evolving.
Automation and 3PLs Third-party logistic companies (3PLs) play a major role in the UK logistics sector and retail replenishment. In the past, if they have used warehouse automation for a contract, it has usually been owned by their customer, and often the building, too.
More recently, some 3PLs have been using person-to-goods automation and “Kiva style” shelf-to-person systems for some contracts, to provide their customer with productivity improvements. This year we will see 3PLs starting to
considerable cost reduction by utilising more sophisticated, higher performance robot-based ASRS tote solutions. Although requiring a higher initial outlay, the throughput, productivity and storage density improvements delivered by such systems mean that the value and cost reduction for 3PL customers will be
based ASRS solutions can be leveraged even further by 3PLs when used in their multi-customer sites. Some 3PLs are taking this step to ensure their success
38 May 2024 | Automation
Warehouse automation
automation trends to
By Simon Jones, UK Sales Executive at Exotec
in the future. This will allow them to provide customers with ultra-fast order costs and rapid processing of returns into sellable stock.
On the other side, retail customers will put increasing pressure on their 3PL partners to drive down storage and unit means to achieve this.
Retail and ecommerce demands Ecommerce continues to be an increasingly popular way for people to shop, putting enormous pressure on the supply chain as shoppers expect to receive their orders as quickly as possible. For the UK, in particular, the ecommerce market is expected to grow by almost 22% each year to 2028. Retail stores won’t be going away any demand for physical premises in many retail segments, so there is a need to maintain consistent stock levels. Managing both ecommerce and retail operations in the same warehouse can be tricky, especially when using automation. However, we expect to see an increasing number of organisations robotics systems makes it much easier to and store replenishment from the same site and even in the same automation. The potential cost savings from the use of a single automation system to handle both ecommerce and physical retail are huge,
duplication of stock and a much smaller warehouse footprint, leading to big savings on costs.
Labour shortages will persist the warehouse and logistics industry, and this challenge isn’t going away any time soon. If anything, the labour shortage will get worse, even if the economy slows a little.
Businesses are experiencing high turnover levels and are struggling to plug the skills gap as a result of the nature of warehouse work. Warehouse operators that are still using outdated mostly manual systems will feel a squeeze on their labour force in 2024 – and that’s where modern automation comes in. Employing robotic solutions solves these challenges by completing mundane, repetitive and labour-intensive tasks. This can help warehouse operators keep up with shifting consumer demand, while reducing the strain on their employees.
and encourage new people to join at a time when everyone is looking for implement systems that foster a secure environment. The warehouse and logistics industries will continue to experience these challenges, but there will be plenty of rewards for those that get ahead, assess their current operations and implement innovative strategies to meet customer and consumer demands.
automationmagazine.co.uk
[Image: Chuttersnap for Unsplash]
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