Smart Warehouse - Putting Intelligence Into The Supply Chain

The Smart Warehouse Revolution: Engineering the Future of Supply Chains

In today’s world, where everything is next-day delivery, we forget that this was never the normal way we received goods. There has been an amazing transformation in national and global logistics. Modern warehouses are the heartbeat of commerce, they are no longer just a storage facility with a capacity to hold large amounts of stock based on educated guesses of forecast and demand. As we move towards a data led society the warehouse is now a key part of the intelligent infrastructure that is used to manage global supply chains, monitoring, and reacting to demand cycles and new data. Logistic and demand planners can now react to instantaneous changes on stock vs orders vs fulfilment vs lead times. This is the age of the smart warehouse into which we have now all being indoctrinated.

From Stadium-Sized Boxes to Intelligent Hubs

To those of us who entered the workforce during the second half of the 20^th Century, a warehouse was a simple concept, basically it came in one door and went out the other and we’d keep a computerised ledger of Goods In vs Goods Out. It was basic and any real intelligence was always with the Buyer/Planner to analyse and react to. Fast forward to today, and the warehouse seems to be alive, it provides insights and triggers actions ahead of time, adapts to data in real time, it’s also capable of ordering stock and planning for demand cycles, it’s an intrinsic part of the business.

The warehouse is the front line of where AI meets Automation; Robots travelling autonomously through warehousing and racking with precision, communicating with sensors, picking, and packing products for shipment. Then there is the utilisation of IoT through sensors, keeping the process running smoothly, but also capable of monitoring and reacting to the environment, for example controlling temperature levels for the storage of sensitive items like those associated with the Food and Beverage and Pharmaceutical industries.

The Key Tech Behind the Scenes

There are a number of key technologies in modern logistics:

• Sensors: Sensor technology coupled with IoT is the outreach system within the warehouse, monitoring environmental conditions, machine health, infrastructure, and inventory, its essentially the eyes and ears of the warehouse, and through Edge and Cloud Computing provides the data essential for detailed analytics and management.
• Robots and AGVs: Robots and Automated Guided Vehicles are seeing an increase in use within warehousing. AGVs offer many advantages such as speed and efficiency and reduced human error. Operating with precision minimises the risk of accidents and unwanted damage. Utilising sensor technology and navigation systems provides autonomous operation, whilst the ability to work continuously increases throughput and over time, will increase profit. AGVs are scalable and provide the flexibility needed to manage the dynamic nature of modern warehousing, where routes and workflows are ever changing.
• Warehouse Management Systems (WMS): This is where the co-ordination and overall control takes place, combined with data taken from IoT devices the WMS becomes the brain and nervous system of the warehouse.  Through seamless communication real-time data is processed resulting in inventory visibility, equipment health and environmental monitoring. The warehouse is no-longer a passive storage system, it’s providing the data needed for stock management, condition monitoring and process improvements.
• AI & Machine Learning: AI and ML delivers a whole new level to the term “continuous improvement”. A system that can not only react but can also anticipate, yields benefits. As a strategic layer it will be able to optimise picking routes, marry inventory with real-time demand and analyse statistical and historical data for ongoing inventory management.

Smart Warehousing Where Speed Meets Scale

When it comes to e-commerce, every second, minute and hour matters.

• AI Driven Robots: Fully automated storage and picking slashes time on the physical aspect of inventory management and order delivery. Leading to a leaner and cost-effective solution for customer fulfilment.
• Predictive Forecast Analysis: Through machine learning, historical data provides a view of the future, add to this external influences and trends, and stock profiling becomes more adaptive, matching demand to supply and lead time considerations.
• Dynamic Slotting: Inventory is constantly reorganised based on real-time demand. The result? Faster deliveries, fewer errors, and happier customers.

Retail: Precision at the Shelf Edge

Retailers are bridging the gap between online and in-store with the following:

• IoT-Driven Inventory: Real-time stock monitoring triggers restocks before shelves go empty.
• Autonomous Restocking: With robots handling replenishment, staff can be allocated to other duties such as customer service.
• Click-and-Collect Optimisation: Smart systems streamline in-store pickup. By triggering real-time messaging to customers, waiting times and unexpected queuing are reduced.

Pharmaceutical and Medical Supply:

In this industry, precision and timing are paramount, and smart warehousing is essential.

• Storage and Transportation: Environmental monitoring through IoT sensors ensures compliance with strict storage and transportation standards.
• Traceability: Every step of a drug’s journey is logged and auditable. Blockchain technology is being widely adopted to address the critical challenges of transparency and compliance, including end-to-end traceability for batch control. As blockchain is a tamper-proof ledger, every transaction can be tracked, from manufacture to end use.
• Blockchain and Real-Time Data: Real-time data feeds provide automated compliance, where audit-ready reports can be generated to remove human error. Also, identification and recall of batches with flagged issues can be managed. The use of blockchain allows for secure data sharing between manufacturers, distributors and pharmacies and medical institutions.

Implementing Smart Warehouse - Challenges and Opportunities:

Smart warehouse technology isn’t as simple as plug-and-play. Unless designing from scratch, it requires retrofit and overhaul of existing systems, not everything needs to happen at once, but a strategic plan is critical.

It will require:

• Upfront investment factored against increased benefit.
• A workforce comfortable with technology and new processes.
• Ensuring there is a robust cybersecurity strategy to meet the needs of IoT connected systems.
• A coming together of IT and OT systems for effective asset management.

For engineers, this offers an opportunity from designing sensor applications, to coding and AI development, essentially integrating systems to deliver a complete connected intelligent ecosystem.

What Lies Ahead:

Where Industry 4.0 focused on automation, data exchange and smart technologies, Industry 5.0 moves the dial towards collaboration between humans and machines. Focusing on human centricity and augmenting human capabilities, whilst placing emphasis on sustainability and resilience to adapt to disruptions such as supply chain issues.

Expect to see a ramp-up in:

• 5G-enabled robotics
• AI that learns from human feedback
• Sustainable technology which reduces emissions

Closing thoughts

Over time, smart warehouses will become a fundamental aspect in competitive business. Adding agility and providing intelligence, they will become more than just a box, but the intuitive interface of the whole operation.

The smart warehouse will be the interactive coordination hub, needed for robust supply chains and asset management. They will also be a self-monitoring entity which is capable of calling on engineers to address issues with maintenance and machine health, whilst also delivering the data needed to implement ongoing process improvements.