Intralogistics


5


fulfilment is performed in the future. A transformation of the fulfilment centre may have already been underway before COVID-19, but the virus has added urgency and accelerated the pace of change. Under lockdowns there has been an


T


unprecedented boom in online sales. According to figures from the Office for National Statistics (ONS) some 33 per cent of all UK retail transactions took place online during May 2020 – significantly up on March’s record figure of 22.4 per cent. Indeed, around a 50 per cent increase over the two-month period. What is more, the trend is expected to


continue as consumers move to buying items online that they had previously only purchased in shops and more people take to working from home. Clearly, retail businesses are facing a seismic


shift to online sales and will need to boost the capacity of their fulfilment operations quickly if they are to retain, or gain, market share. Automation is likely to play a major part in fulfilment, and this is highlighted in the latest projected figures for the warehouse automation market. According to a report published in June


2020 by analysts, Frost & Sullivan, the global warehouse automation market is expected to nearly double in size, expanding from $14 billion in 2019 to $27.2 billion by 2025. However, with a ‘new normal’ introducing


greater uncertainty over product profiles and patterns of demand, much higher levels of flexibility and agility will be required


24


key drivers for agile fulfilment


As the Coronavirus creates turmoil in our daily lives, businesses are moving quickly to respond to a radical shift in consumer behaviour. A boom in online orders, likely to become a feature of the ‘new reality’, is triggering a major re-think of the fulfilment operation. Here are five key factors influencing a drive for agile fulfilment. Frazer Watson, head of sales for Hikrobot at Invar Systems, investigates


here are a number of significant impacts of the Coronavirus crisis that are likely to change the way warehousing and


within the fulfilment process – and this will need to be reflected in the technology deployed. Interestingly, 25 per cent of the estimated figure in Frost & Sullivan’s report relates to the Autonomous Mobile Robot (AMR) market, which is expected to reach $6.8 billion by 2025. So how can online business adapt quickly


and efficiently to the ‘new normal’? Here are five factors that should be considered when looking to create greater agility in the fulfilment process:


1


OperAtIOnAl reSIlIenCe And reSpOnSIveneSS


Nothing could have prepared the corporate world for the shock of a global lockdown, but moving forward there will be a desire to create supply chains with greater resilience and agility, and this will extend into the fulfilment process. Research carried out by International Data


Corporation (IDC) on behalf of Kinaxis in finds that supply chain resilience and agility are the biggest priorities for nearly half of organisations, with the next top priority being operational efficiency (46 per cent). Critically, organisations are uncertain about


the future demands on the business and what changes may be required within the fulfilment operation. Will there be more promotional activity, resulting in sharper peaks? Or could there be longer, extended peak periods, with a greater number of returns? Will new forms of packaging be required? Could product profiles shift, SKUs radically expand – and how might new, spontaneous marketing initiatives impact operational processes?


There are many unknowns. So if


ecommerce businesses are to minimise risk and respond quickly to change, greater operational agility will be required to provide the responsiveness that customers expect – and the resilience logistics practitioners are looking for. Meeting such a significant rise in demand for


online orders will, for many businesses, take automation. But, importantly, the automation applied will have to be highly flexible, readily scaleable and capable of delivering the speed, accuracy and performance demanded of a highly responsive fulfilment operation.


2


lAbOur AvAIlAbIlIty And SOCIAl dIStAnCIng


The traditional, manual, approach to order picking has in recent times been significantly challenged by three key factors. Firstly, following Brexit, available labour


resources are no longer as easy to access in many areas of the country. Secondly, the National Living Wage, applicable to all employees over 25 years old, has risen to £8.72. And thirdly, with the outbreak of COVID-19, social distancing requirements within the warehouse present a major challenge for organisations – particularly, where large teams of pickers are needed to roam the aisles, with strict adherence to distancing rules. Flexible automation using goods-to-person


technology offers an attractive alternative to manual picking. Autonomous Mobile Robots (AMRs) allow valuable human resources to be reallocated to alternative, more skilled tasks, such as picking and put-away at socially


January 2021 UKManufacturing


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