Digital warehousing has grown in response to the rapid evolution of digital channels. It has never been easier to launch and scale an online sales channel—from e-commerce shopping carts to third-party marketplaces, there are platforms to buy and sell online. Some professionals have given their views in this regard.
-Abigail Mathias
The e-commerce platforms are not only flexible but can also be turned on or off based on product availability, seasonal demand, or profitability. They can be integrated through a multichannel listing platform, so that merchants can monitor and manage all their digital sales channels through a single dashboard.
In fact, digital warehousing is the next step in the logistics industry that is enabling merchants to fully integrate their sales channels with their fulfillment operations. A flexible and scalable warehousing solution is the only way for merchants to compete.
The first thought most people have when they think of digital warehousing is robotics and warehouse automation. Warehouse technology is an important part of the digital evolution of warehousing and fulfillment. It enables the staff to move quickly to keep up with the exponential growth of small parcels and e-commerce order volume.
The other key component to digital warehousing is in the software utilised to connect the warehouse to the merchants’ sales platform.
New technology-enabled third party logistics, 4PL, and on-demand warehousing providers accord priority on building robust and flexible warehouse management systems to integrate seamlessly into a merchant’s current technology stack. A powerful warehouse management systems will provide insights into real-time inventory levels, order statuses, and demand forecasting.
Guillaume Crozier, Senior VP, UAE Cargo & Global Cargo Strategy, dnata
With a strong commitment to innovation and excellence, dnata was the first to introduce cargo drones in the UAE in 2021. The drones have integrated into the day-to-day workflow and warehouse inventory processes.
Our partner, Gather AI, enables the drones to map the environment, collect inventory data, count cases, measure temperature, and read barcodes. The collected data can be viewed directly on the tablet or the web dashboard, via a user-friendly application.
The use of drones has also contributed to a reduction in carbon footprint and improved safety by reducing the need for cherry pickers and man lifts in the warehouse. The drones can operate at temperatures between 0°C and +50°C within a closed environment, enabling us to take advantage of the technology in our state-of-the-art cool chain facilities, too. We plan to introduce them at further stations across our global cargo network in the forthcoming years.
Hakim Ramadan, Partner and Director, Miebach, Consulting
Combining different data sources help in visualising the status and historic situations within the warehouse or the supply chain. Digitalisation provides transparency and insights into operation management. It offers improvements across asset usage, productivity, safety and quick response to exceptions.
Digitalisation has an impact on the economic environment of any business. It leads to savings in administrative operations, paperless work and process monitoring. The goal should be to equip employees in the best possible manner to live the change.
In addition to training, clear and sincere messaging shows what the change means for them and create a transparent environment. This ensures concerns are raised and resolved proactively.
We consider digitization as the basis to unlock opportunities to integrate data-driven tools combined with gained subject matter expertise in supply chains. We expect AI to lead disruption in the supply chain, enhance the operations through utilising work performance and hence improve customer satisfaction.
Sijo Joseph Philip, Senior Manager, Orient Cargo
Digitalisation has improved warehouse management systems in several ways, leading to enhanced efficiency, accuracy, and overall cost-effectiveness. Digitalisation has transformed warehouse management in modern era, especially after the introduction of AI. Digitalisation allows for automation of various warehouse processes, including receiving, picking, packing, and shipping.
Automated workflows reduce manual labour, minimise processing times, and improve overall productivity. We are experiencing the benefits of digitalisation in warehouse management by using barcode system, storage optimisation, achieving real-time inventory tracking, helping to understand demand, prepare forecast, visibility, and data mining and integration.
While the initial investment in digital WMS may be significant, the long-term benefits outweigh the costs. Improved efficiency, accuracy, and productivity help reduce operational expenses, labour costs, and inventory holding costs.
Optimised inventory management and streamlined operations lead to faster order fulfillment, reduced stockouts, and increased customer satisfaction, driving revenue growth and profitability. Overall, digitalisation in warehouse management is seen as a worthwhile investment for businesses aiming to modernise and remain competitive in today’s dynamic supply chain environment.
TRAINING
Digitalisation often requires additional training for staff to utilise new systems and technologies. This training can be perceived as an obstacle in quickly transitioning shipments as it takes time for employees to adapt to new processes and software.
However, investing in comprehensive training programmes can help mitigate this obstacle and ensure a smoother transition in the long run. Staff training requirements for digitalisation impact the swift transition of shipments depend on various factors, including the complexity of the digital systems being implemented, the existing skill level of the workforce, and the availability of training resources.
However, during the initial period of training, some hiccups do come up during transitions, but it ultimately equips employees with the necessary skillset.
Michael Reichle, former CEO, Siemens Logistics, and CEO, Innomotics
Having sold its parcel and mail business to the Körber Group, Siemens Logistics continues to focus on flexible products and solutions for airport baggage and freight handling, with emphasis on automation and digitalisation.
We are delighted that our parcel business—above all our former Siemens Parcel Logistics employees—have found a new home at Körber.
The technology of Körber and Siemens Parcel Logistics are a perfect fit for a solid entrepreneurial foundation of the future. The airport logistics solutions remains at Siemens AG and will continue to operate as an independent subsidiary within the corporate group. We are seeing a distinct uptick in demand for air travel.
Airport operators have been on the lookout for solutions to boost their overall efficiency, while being fast and flexible to implement. We are in an ideal position here with our portfolio of high-performance hardware and intelligent, cloud-based software combined with our international presence.
Mohammed Bilal Saleem, Manager, Operations & Documentation, Blue Bell Shipping International
Digitalisation is reshaping warehouse operations, empowering businesses with enhanced inventory tracking, optimised storage layouts and automated workflows. Real-time data enables predictive maintenance, cutting downtime and costs, while improved accuracy boosts customer satisfaction.
Additionally, optimised storage layouts will maximise space utilisation thereby enabling smoother workflows and reducing operational bottlenecks.
Despite initial costs, long-term gains in efficiency and reduced overhead make digitalisation cost-effective for modern warehouses. While digitalisation in warehouses requires additional skilled training for the staff, it is an essential investment.
Although it may initially impact shipment transitions, trained workforce can optimise processes in order to ensure smoother operations and expedite shipments in the longer term.
At our company, we have embraced this evolution by implementing advanced inventory tracking systems and optimised storage layouts, streamlining workflows, enhancing operational efficiency, and ensuring accuracy among others.
Supriya Salve Deshpande, Partner, Vega Logistics
Digitalisation has improved warehouse management systems in several ways. Digitalisation allows for automation of various processes within warehouse management, such as inventory tracking, order fulfillment, and scheduling. This automation reduces the need for manual intervention, minimises errors and increases efficiency.
WMS can provide real-time visibility into inventory levels, shipment statuses, and warehouse operations. This visibility enables better decision-making, as managers can quickly respond to changes in demand or unforeseen issues.
Digitalized WMS can analyze data to optimise warehouse layout, storage configurations, and picking routes. By optimising these factors, warehouses can reduce travel time, improve throughput, and increase productivity.
A digitized WMS can integrate with other systems, such as enterprise resource planning software, transportation management systems, and customer relationship management software. This integration streamlines processes across the supply chain, improving coordination and efficiency.
Digitalized WMS are frequently scalable, allowing warehouses to adapt to changing business needs and scale operations as required. This scalability ensures that WMS can grow alongside the business without requiring significant overhauls.
In terms of cost-effectiveness, digitalisation of WMS can indeed be highly cost-effective in the long run. While there may be initial costs associated with implementing digitalised WMS, such as purchasing software, hardware, and training employees, the benefits frequently outweigh costs over time.
These benefits include increased efficiency, reduced labor costs, improved accuracy, better inventory management leading to reduced stockouts or overstocking, and enhanced customer satisfaction due to accurate order fulfillment.
The return on investment for digitalised warehouse management systems can be substantial, making it a cost-effective solution for many businesses.Implementing digitalisation in warehouse management systems often needs staff training.
Training is to ensure staff gain proficiency in using the new digital tools and processes. Training staff on digitalized WMS can involve many aspects. They need to learn how to use the new software, including navigation, data entry, and accessing info. This training may be provided by the software vendor or through internal training programmes.