The study includes feedback from over 1,400 decision-makers and associates who manage and maintain a warehouse or distribution centre
New Delhi: Seven-in-10 warehouse decision-makers or 70% in the APAC (Asia–Pacific) region already have or are planning to automate workflows by 2024 to support warehouse associates and shift them toward more customer-centric, high-value tasks, a report titled Global Warehousing Study 2023 by Zebra Technologies, a digital solution provider stated.
Furthermore, the report adds that returns management is a prominent operational challenge, with 75% of warehouse decision-makers in Indian and other Asia Pacific (APAC) markets facing pressure to improve performance due to evolving e-commerce demands.
The study was conducted in March and April 2023 by third-party research firm Azure Knowledge Corporation for Zebra. It includes feedback from over 1,400 decision-makers and associates who manage and maintain warehouse or distribution centre operations in manufacturing, retail, transportation, logistics and wholesale distribution.
Key Findings
69% of warehouse decision-makers in the APAC have or will be accelerating timelines of modernisation projects. This should help with returns management which climbed to the top operational challenge cited by nearly half of warehouse decision-makers surveyed (47% globally, 40% in APAC).
58% of warehouse decision-makers plan to deploy radio frequency identification (RFID) by 2028 which will help increase inventory visibility and reduce out-of-stocks.
“Precise inventory updates and efficient return management are imperative in the warehousing sector. This becomes even more critical in the retail sector during the high-demand seasons in a country like India,” said Rajnish Gupta, VP India and Subcontinent, Zebra Technologies.
Inaccurate inventory and out-of-stocks continue to significantly challenge productivity according to nearly 80% of warehouse associates and decision-makers.
Both associates and decision-makers acknowledge they need better inventory management tools to achieve better accuracy and determine availability.
To combat these issues, 88% of decision-makers in APAC are addressing this need, citing plans to invest in technology to increase visibility across the supply chain by 2028.
Optimizing Operations to Increase Visibility
According to a recent study by Interact Analysis, despite a recent slowdown in demand for automation projects (in part due to a reduction in warehousing construction), this demand is expected to return to growth in 2024.
Close to half of warehouse decision-makers believe automation increases worker efficiency and productivity by reducing manual picking, order errors and cycle time. Meanwhile, around eight-in-10 warehouse associates agree using more technology and automation helps them meet or exceed productivity goals.
Similarly, more than eight in ten global warehouse decision-makers say adding warehouse technologies, including devices and robotics, attracts and retains employees which is extremely important during labour shortages.
More than half of the surveyed decision-makers plan to implement machine learning and predictive analytics software solutions in their facilities by 2028.
Prioritizing Sustainability in Decision-Making
Ultimately, warehouse decision-makers are choosing solutions based on their ability to help them build sustainable operations, driven largely by regulations, energy costs or shortages along with customer, worker and investor expectations.
For example, 77% of global warehouse decision-makers are focused on reducing emissions and waste while 84% of warehouse decision-makers recognize the importance of their warehouse technology solutions maximizing battery life.
Other sustainable elements decision-makers prioritize today include ensuring accurate mobile device swap-out time, connecting to energy monitoring software to maximize efficiency, offering buy-back and certified refurbishment/circular economy programs, and the use of reusable and recyclable materials.
Beyond their operations, 79% of warehouse decision-makers in APAC also say it is important that technology vendors have sustainability measures in place for running their businesses. Ultimately, warehouses must continue to implement agile strategies to avoid inefficiencies, preserve resources, and provide employees with a performance edge.
