________________________________________________________________________________________________________________________
As artificial intelligence ( AI ) and related technological advancements continue to infiltrate every industry and aspect of our lives , global supply chains are no exception . In addition to the advancements made in technology , the demand and expectations to compete on speed and service levels is continuing to pour pressure on already weakened fulfillment center processes and technology stacks .
In many modern fulfillment centers , roadblocks often have less to do with a lack of resources , but rather a driving force that helps them to work seamlessly together . There is no single piece of technology that will transform fulfillment center operations , so putting the right orchestrator in place to make each of them work together is imperative to reaching new peaks and exceeding consumer expectations . A group of instruments only becomes an orchestra when led by a skilled conductor and in the same way , seamless orchestrating software is what makes beautiful fulfillment music .
Challenges become growth drivers
As is often the case , industry challenges have become the drivers for growth in fulfillment center automation . Some of these contributing factors include :
■ Consumer expectations . With the impact of the Amazon effect on the omnichannel business model and the subsequent boom of e-commerce during the Covid-19 pandemic , retailers were forced to adapt while meeting the needs of e-commerce shoppers . As the obvious effects of the pandemic dissipated , e-commerce trends remained high , and demand continued to put pressure on previously struggling supply chains not capable of servicing today ’ s demands for speed .
■ Labor shortages and low unemployment . Due to an increase in demand for warehouse labor and low supply , global supply chains are facing significant labor shortages . According to a 2022 report by MHI and Deloitte , about 57 percent of respondents said that hiring and retaining qualified workers was the biggest challenge they faced , followed closely by talent shortages .
■ Technology investment and integration . Advancements in technology have become integrated enough in our everyday lives
that professionals are looking for ways to apply them in warehouse and distribution center operations . The 2024 MHI Annual Industry Report found that 84 percent of respondents plan to boost investment in AI technologies in the next five years . Over 55 percent of respondents said that they have increased supply chain investment , indicating that those investments are focused on long-term success by leveraging technology .
■ Investor interest . Early adopters are excited and motivated about being on the cutting edge of bringing automation into fulfillment center operations . This surge in automation is boosting annual growth of more than 15 percent in robotics , which is expected to cause the ecosystem to more than double in size by 2027 .
Leveraging automation in software
To successfully leverage automation in software and integrate workflows run
14