Modern warehouses are under growing pressure to maximise efficiency in a time when online ordering continues to grow, and customers demand quicker delivery times. The goal is straightforward: optimise workflows to speed loading and delivery procedures while maintaining safety and managing rising costs.
Here are some strategies and technologies that could help warehouse operations become more efficient, along with some of the wider and growing effects of e-commerce on distribution and logistics.
LAYOUT & WORKFLOW
According to Kuwait-based warehousing and logistics company, Agility Logistics: “Warehouses typically become obsolete within 34 years – a problem, considering that nearly one billion square feet of warehouse space is more than half a century old. These challenges mean many warehouses are not properly equipped to handle the increased demands of e-commerce. Common problems include low ceilings, not enough loading docks, or uneven floors that slow down warehouse staff.
“Fortunately, it’s possible to modernise and expand warehouses to accommodate changing needs. And just as importantly, you can and should regularly update your warehouse layout to increase efficiency.
“Even if it’s not possible to invest in raising your warehouse roof or adding more square footage, making the best use of the space you do have can address workflow problems.”
Warehouses benefit from separate spaces for storage, loading, and unloading that are strategically positioned to save unnecessary movement. Employees can select and pack orders more quickly thanks to optimised picking routes and storage locations that cut down on travel time.
One technique that has been shown to be successful in cutting down on handling time and warehouse space needs is ‘cross-docking,’ which involves moving arriving items straight to outgoing shipments without the need for long-term storage.
This method allows for quicker turnaround times and frees up storage for other products, making it effective for high-demand items. Picking times and worker travel distance are also greatly decreased via slotting optimisation, which entails keeping high-frequency products near dispatch locations.
“Cross-docking helps companies meet customer expectations by accelerating the movement of goods through the supply chain and into customers’ hands,” explains Abby Jenkins, product marketing manager at enterprise resource planning (ERP) software provider, NetSuite. “Because cross-docking reduces the need for warehouse storage and the associated labour and management costs, it can also help companies cut expenses.”
AUTOMATION ADOPTION
For managing large volumes and intricate distribution requirements, automation is crucial. Conveyor belts, robotic picking systems, and automated storage and retrieval systems (AS/RS) all contribute to process simplification and reduce the need for manual work.
By 2026, the worldwide market for warehouse automation is expected to grow to a value of over £25 billion, and businesses view this investment as essential to satisfying the demand created by e-commerce.
Connor Matthews, LogisticsUK, says: “Efficient logistics are crucial for tech companies. Just-in-time manufacturing demands precise timing. Sensitive components need careful handling. With a global market, reaching customers worldwide quickly and efficiently is essential.
“Automation plays a key role in tech logistics. Robots can handle repetitive tasks. Drones can speed up delivery. These technologies streamline warehousing and distribution, making them faster and more reliable.”
With the use of real-time data from warehouse management systems (WMS), managers can make informed decisions about workforce allocation, order prioritisation, and inventory levels. Managers may regularly pinpoint areas for improvement by monitoring productivity measures like cycle time and pick rate, or the number of orders selected each hour.
Additionally, to improve throughput and decrease human error in inventory monitoring, WMS platforms may be integrated with technologies such as barcode scanning and RFID.
LEAN PRINCIPLES
Originally developed in manufacturing, the lean approach is being used increasingly in warehousing to maximise value and reduce waste. Lean concepts, such as the 5S method – Sort, Set in order, Shine, Standardise, and Sustain – improve workflow and organisation, making workplaces safer and more productive for employees.
Orders are bundled using techniques like batch picking and wave picking to cut down on handling and transit time, further promoting a lean environment.
High-efficiency warehouses continue to prioritise safety, particularly considering the growing number of autonomous equipment. Clear paths, frequent safety training, and ergonomically constructed workplaces all contribute to fewer accidents.
Protocols are also required for handling hazardous chemicals, product breakdown, and making sure automated systems and employees can work together.
Warehouses are under pressure to handle orders more quickly because of the transition to e-commerce. Online shopping has significantly increased in the UK, and suppliers increasingly perceive warehouses as extensions of their physical stores that need to be filled quickly and accurately.
According to reports, outmoded procedures cause UK warehouses to waste a considerable number of hours each year, and growing expenses are further driving companies to implement technology that increases productivity.
Due to these demands, “dark stores,” or fulfilment hubs created especially for internet orders, have become more common. In metropolitan areas where delivery time is crucial, dark stores are becoming increasingly prevalent.
These facilities can swiftly complete orders with layouts and automation, and they could be used as a model for older warehouses looking to modernise.
Warehouses need to make investments in data analytics and ongoing improvement to remain competitive. Managers can identify inefficiencies and make real-time process adjustments by monitoring key performance indicators (KPIs) including inventory turnover and order accuracy.
Additionally, demand forecasting may be enhanced by data analytics, which helps optimise stock levels and reduce instances of stockouts and overstock. This is done by looking at historical data, market trends, and seasonality to anticipate future demand.
Software as a Service (SaaS) and e-commerce company, Hopstack says: “A WMS can analyse historical sales data to identify patterns and trends, such as peak seasons, product preferences, and demand variability, and adjust inventory levels accordingly.
“External factors such as economic indicators, industry developments, and competitor activities provide warehouses with valuable context to anticipate shifts in demand and adjust their inventory strategies proactively.”
LAST-MILE AND LOOKING AHEAD
Last-mile delivery services have become a vital part of the distribution process, allowing production facilities to meet rising demand for faster deliveries by enabling direct delivery routes to consumers.
By partnering with last-mile providers, facilities can reduce reliance on intermediary warehouses, keeping operations leaner and enhancing flexibility. Additionally, data from last-mile providers supports improved demand forecasting, helping facilities adjust production in response to regional trends and streamline inventory management.
However, last-mile delivery brings challenges like handling smaller, high-frequency shipments, requiring facilities to adapt loading, scheduling, and dispatching operations. Many facilities manage these demands through automation and lean practices, as well as collaborating with third-party logistics providers to alleviate pressure on in-house operations.
Sustainability is also a growing focus, with facilities increasingly choosing eco-friendly last-mile providers and using urban micro-fulfilment centres to shorten delivery distances and reduce emissions.
Efficiency, flexibility, and safety must be prioritised in warehouses and distribution centres as internet ordering continues to influence customer expectations. In addition to meeting current demands, facilities can prepare for future expansion by using techniques like automation, lean management, layout optimisation, and data-driven management.
By adopting these strategies, facilities will become more operationally efficient, reduce costs, and increase customer satisfaction, establishing them as important players the changing logistics market. By adopting current processes and technology warehouses, may be better placed to meet the needs of distribution firms.