Operation excellence with supply chains often located in China-APAC
Gaps in supply chains
The reliance on physical labour for manufacturing, transport and warehousing is a serious headache for global retailers. Automation, especially in factories and warehouses, can reduce the capital spent on labour and limit disruption caused by sickness or local restrictions. No wonder organisational investment in warehouse automation has surged.
The COVID-19 pandemic has been a harsh lesson to retailers who relied on just-in-time supply chain models. By keeping stock levels that worked for more normal times, many found themselves running out of basic goods as panic buying and supply issues began to bite. Retailers with poor oversight of their supply chain operations were particularly likely to suffer. They’re now exploring new technologies, such as machine learning, that will provide themwith better intelligence for smarter stock control, including risk evaluation tools that can predict potential geopolitical and health crises. Such technologies can also reduce ‘dead stock’, where valuable warehouse space is wasted on unwanted or outdated products piling up and expiring on the shelves. IBM’s ‘Watson’ supercomputer, which uses machine learning algorithms, is already helping retailers make real-time decisions regarding inventory management. The pandemic continues to affect different sectors and countries with varying degrees of severity and predictability, so challenges remain for retailers. Global shipping container shortages are leading to delays in delivery times and a huge rise in costs. Local lockdowns are causing delays and port closures in global supply hubs.
Oversight of your supply chain is key
By 2026, the global warehouse automation market is estimated to surpass 30bn USD. 7
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