Investments in micro-fulfilment centres, digitisation & automation will increase in 2023.

Global supply chain has been facing headwinds for the past couple of years. The Covid-19 pandemic, slowdown in various economies, increasing fuel prices, rising inflation, etc., had already impacted the supply chain. The Russian invasion of Ukraine last year further crippled the global supply chain.

As we enter 2023, these challenges are expected to continue. Logistics and warehousing being the critical elements of the supply chain, businesses will have to realign their strategies to overcome the supply chain challenges.

Here are some of the key aspects that businesses need to watch out for in 2023.

Digitisation?

Digitisation is an integral part of the supply chain ecosystem. Warehousing being an essential component of the supply chain, setting up intelligent automated facilities becomes imperative to enhance worker experience, improve customer service and reduce operational costs associated with human error.

Technologies like Artificial Intelligence and Machine Learning will have to be deployed to generate and analyse data for demand-supply planning, which is crucial for effective warehouse management. Besides, technologies such as automatic identification and data capture (AIDC), including mobile barcoding and radio frequency identification (RFID), and enterprise resource planning (ERP) systems will have to be implemented to improve data management efficiency and reduce manual processes.?

Similarly, businesses will have to invest in the integration of various technologies for seamless warehouse management.??

Implementation of robotics

E-commerce sector has witnessed a significant growth in the last couple of years. According to IMARC Group, the global e-commerce market size reached USD 16.6 trillion in 2022 and is expected to reach USD 70.9 trillion by 2028, exhibiting a CAGR of 27.43% during 2023-2028.

In this backdrop, it is important to have intelligent automation systems in place for faster processes. With same-day and express deliveries gaining popularity, the implementation of automated storage and retrieval system (ASRS) in warehouses has become even more important. Automated guided vehicles, robots, cobots and drones will have to be deployed to undertake tasks of moving boxes and products in a seamless manner.?

Micro-fulfilment centres & last-mile delivery solutions

During the pandemic, due to the restrictions imposed on movement of goods and people, businesses shifted their focus to the hyper-local model. To ensure prompt last-mile delivery, having a widespread presence across different pin codes has become crucial. 2023 will witness a lot of investments in dark stores and micro fulfilment centres to cut inventory and transportation costs by reducing the overall turnaround time. Statistics suggest that micro-fulfilment centres will grow 60% by 2026.

Shift to hybrid warehouse

Labour shortage is one of the major challenges in effective management of warehouses. During the pandemic, a large number of labourers migrated back to their villages in fear of the spread of the coronavirus. This led to a huge gap in throughput, inventory controls and hence increased cost overall.?

While these workers have returned, the uncertainty of them leaving their jobs continues to impact the industry. Thus, businesses will have to shift to hybrid warehouse models to absorb the shocks of labour exodus.

The increasing demand from the e-commerce space will continue to drive the warehousing market for the next 5-7 years and hence it is important to invest in smart automation. ProConnect is driving the new automation framework by consolidating and optimising warehouse space and adopting newer technologies.?

At ProConnect Supply Chain Solutions Ltd , we are consistently innovating and implementing technology solutions to provide end-end supply chain logistics solutions.?