McKinsey believes there are 10 technologies that could change how a warehouse conducts operations. Warehouse-management systems will keep track of inventory in real-time and ensure it is linked up with the ordering system.
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By equipping managers with augmented reality (AR)-glasses, companies will enable full visibility over the entire operation and the coordination of people and robots together. McKinsey anticipates fully automated high-rack warehouses that see autonomous vehicles patrolling the aisles. It is estimated that by 2030, most operations could be automated as AI takes over the more simple and repetitive tasks that humans previously performed. Technology empowers warehouses to handle fast-changing multichannel and omnichannel requirements and accelerate service levels to support same-day and next-day delivery.
Fast-picking systems can now handle 1,000 to 2,400 picks every hour, due to advanced vision technology that enables them to handle objects presented in arbitrary positions. Logistics companies face one crucial question: which technology will produce the greatest return on investment? Automation and robotics is one area of McKinsey’s three “game-changing supply chain technologies.”Īccording to this research, today’s automation systems are more flexible than ever before. McKinsey found over 50 technologies that could further automate some part of the supply chain, such as advanced robotics in warehousing, analytics for transport and IoT/smart-sensor applications. McKinsey Global Institute believes that the transportation and warehouse industry possesses the third highest automation potential of any sector. Many key trends are pushing automation to the top of the logistics CEO’s agenda, according to McKinsey, based on three factors: a growing shortage of labour, increasing demand from online retailers and intriguing technical advances. Machine learning is becoming an essential new technology for many logistics organisations as they seek greater efficiency and evaluate the quickest and most effective routes to market. Supply Chain Digital explores McKinsey’s report, “Automation in logistics: Big opportunity, bigger uncertainty” and looks at some of the key reasons why automation is transforming the industry. What does the future hold for automation in logistics? Let’s find outĪn ever-growing number of logistics and parcel companies are turning to automation to meet the demand of e-commerce.
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