Zebra Technologies Corporation, a leading digital solution provider that helps organisations monitor, anticipate, and accelerate workflows, just released the findings of its 2023 Global Warehousing Study, confirming that 58% of warehouse decision-makers plan to deploy radio frequency identification (RFID) technology by 2028 to help increase inventory visibility and reduce out-of-stocks.
The study, which includes feedback from decision-makers and associates that manage and maintain warehouse or distribution centre operations globally in manufacturing, retail, transportation, logistics and wholesale distribution, found that over the course of the next five years, the majority of warehouse decision-makers plan to deploy fixed, passive, or handheld RFID readers and other fixed industrial scanning solutions. These are being implemented with the aim to better track assets, workers, and goods in the warehouse. Coincidentally, this year marks the 50th anniversary of the invention of RFID.
But this is not the only insight offered by the report.
In Asia Pacific (APAC), 69% of warehouse decision-makers have or will be accelerating timelines of modernisation projects, which should help with returns management, a challenge that has climbed to the top operational challenge cited by nearly half of warehouse decision-makers surveyed.
“Highlighting the need for change across every aspect of the supply chain, the significant increase in returns is consistent with the expansion of e-fulfillment we’ve seen in recent years,” said Brett Newstead, director of Sales for ANZ, Zebra Technologies. “Warehouse leaders feel the push to modernise their operations, and leveraging the latest high-performance technologies can help them handle returns while increasing agility, inventory visibility, and demand forecasting. By doing so, they can improve efficiency and make better decisions in real time.”
This comes about as most warehouse decision-makers in APAC (75%) flag that they are under pressure to improve performance while adjusting to shifting consumer e-commerce demands. Inaccurate inventory and out-of-stocks continue to significantly challenge productivity according to nearly 80% of warehouse associates and decision-makers. In APAC, 88% of decision-makers are addressing this need by citing plans to invest in technology to increase visibility across the supply chain by 2028.
Optimising Operations to Increase Visibility
According to a recent study by Interact Analysis, despite a recent slowdown in demand for automation projects (in part due to a reduction in warehousing construction), this demand is expected to return to growth in 2024.
Meanwhile, the new Zebra study found that seven-in-10 of warehouse decision-makers already have or are planning to automate workflows by 2024 to support warehouse associates and shift them toward more customer-centric, high-value tasks. While close to half of the decision-makers believe automation increases worker efficiency and productivity by reducing manual picking, order errors and cycle time, 78% of warehouse associates in APAC agree that using more technology and automation helps them meet or exceed productivity goals.
Complementing the rise in productivity, this investment seems to empower the associates’ mentality towards their work – nothing less than 82% of warehouse associates surveyed feel more valued when their employers provide them with technology and automation tools to help them work. Similarly, 84% of APAC warehouse decision-makers say that adding warehouse technologies, including devices and robotics, attract and retain employees, which is extremely important during labour shortages.
Echoing the above, more than half of the surveyed decision-makers plan to implement machine learning and predictive analytics software solutions in their facilities by 2028.
Prioritising Sustainability in Decision-Making
Ultimately, warehouse decision-makers are also choosing solutions based on their ability to help them build sustainable operations, driven largely by regulations, energy costs or shortages along with customer, worker and investor expectations. For example, 74% of APAC warehouse decision-makers are focused on reducing emissions and waste while 78% also recognize the importance of their warehouse technology solutions maximising battery life.
Other sustainable elements decision-makers prioritise today include ensuring accurate mobile device swap-out time, connecting to energy monitoring software to maximise efficiency, offering buy-back and certified refurbishment/circular economy programs, and the use of reusable and recyclable materials. Beyond their own operations, 79% warehouse decision-makers in APAC also say it is important that technology vendors have sustainability measures in place for running their businesses. Ultimately, warehouses must continue to implement agile strategies to avoid inefficiencies, preserve resources, and provide employees with a performance edge.
