FEATURE Automated Warehousing 


Automation at the forefront of logistics


C


onsumer shopping habits have directly infl uenced the built environment, none more so than the increase in online purchases


caused by the coronavirus pandemic. In the past 12 months, online retail sales have doubled, putting even more pressure on the transport and logistics sector to fi nd the space it needs to store goods, and the staff and systems required to despatch and deliver these goods, often within tight timeframes.


While the pandemic has forced the logistics sector to adapt and innovate, it has also highlighted vulnerabilities. For example, the virus has led to greater absenteeism, reducing workforce availability. This has only exacerbated the labour shortages that warehouse operators were already facing. In e-fulfi lment, where operations are signifi cantly more labour-intensive, fi nding skilled labour has become number-one priority. In addition to labour shortages, the


growth of the logistics real-estate sector has highlighted a lack of well-located space. E-fulfi lment requires three times more storage than brick and mortar retail, with a focus on delivering goods to customers as effi ciently as possible. This means increased demand for space in locations close to the end consumer. In Europe, one major factor driving demand for warehousing is supply- chain modernisation. Occupied stock has outpaced economic growth by more than 600% in the last decade. Trends such as adoption of modern logistics real estate, urbanisation, changing demographics and


14 May 2021 | Automation


e-commerce have piqued demand but have also put pressure on securing last-mile distribution centres.


Automation has the power to


revolutionise operations, expand capabilities, improve sustainability and increase cost effi ciency in warehousing operations. When done well, automated sites are more productive, run more smoothly, have faster processing times and are safer for workers.


Changes The fastest-growing automation solutions are more fl exible and mobile and less tied to physical building characteristics than before; however, the building itself and its the role in supporting new technology is just as important. There’s an increased focus on fl at and single-level warehouse fl oors to ensure easy implementation of technology. Integration with automation systems is also becoming simpler, with fi xed machinery being designed for modularity, and mobile automation being introduced alongside humans. A common myth is that automation


will replace people and steal jobs, yet, it has been proven to help facilitate growth. In fact, automated systems are increasing the need for skilled workers to install, maintain and work alongside them. Recent research from Prologis shows that demand for skills in areas such as data management and analysis, as well as developing training algorithms for use in optimising shift patterns or inventory management, has increased signifi cantly. This growing demand is helping to drive up pay in the


Last-mile logistics With London’s population expected to grow to almost 10 million in 2030, demand for last-mile logistics facilities – where shipments are delivered to a transportation hub from where they make a short journey to their fi nal destination – will only increase. By placing goods as close as possible to the end consumer, urban fulfi lment centres can speed up delivery and reduce overall costs. However, the nature of last-mile logistics means that warehouse space is limited. With e-commerce operations employing more than three employees per 1,000sq-ft, adopting one or several forms of automation can help relieve some of this pressure. Reducing congestion in the facility can go some way towards improving the safety and wellbeing of workers.


The adoption of automation continues to


grow, with pockets of growth in rapidly- changing segments such as e-fulfi lment and in fast-moving areas. There’s no doubt about it, automation is helping supply chains move more quickly into the future, enabling dynamic, productive and well-located logistics facilities to continue serving the communities that need them.


CONTACT:


Prologis UK www.prologis.co.uk


By Eva van der Pluijm-Kok, automation specialist and research and strategy director at Prologis


sector and create more attractive career opportunities for workers with digital and managerial skills.


automationmagazine.co.uk


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