Cutting-edge technologies, changing customer expectations and expanding e-commerce opportunities are driving digital transformation in logistics and warehousing.

Revolutionizing Intralogistics: Unveiling the Power of Digital Transformation - https://www.youtube.com/watch?v=oRNxxCHzKxA

The adoption of technology has dramatically altered the scenario in logistics and material handling. Concepts like material flow systems (MFS), warehouse management systems (WMS), and other information have helped streamline processes. It digitally transformed the operations by capturing data associated with the movement of materials, supply chain partners with the data and information captured from each stage. Robotics, AI/ML and intelligent motion control are the technologies widely adopted in this sector.
 
Overall, the logistics and warehousing sector are greatly influenced by digital transformation. What are the factors driving this change?

“The rapid advancement of digital technologies has fundamentally changed the competitive dynamics of the logistics service industry and forced incumbent logistics service providers (LSPs) to digitalise.

Inventory management systems, warehouse automation, real-time monitoring, and data analysis to optimise the supply chain are just some of the fields in which the digital transformation in logistics is intensely reflected, offering benefits such as cost reduction, greater visibility, and operational agility. This is also coupled with the rise of retail e-commerce, rising customer expectations and the pressure to remain competitive in terms of cost, service and delivery standpoint,” says Arun Salvi, Head – SCM, Reliance Petrochemicals.

“There are a couple of key factors driving the change, such as an increase in ecommerce activity and the customer’s need for faster responses. Customers are expecting same-day shipping and sometimes even same-day delivery. These expectations are becoming the norm. Warehouses must also carry more SKUs to support these expectations, so there’s a need to be more efficient in larger warehouse environments. Keeping up with these trends — and ensuring customer expectations can be fulfilled — requires more connectivity and creativity,” states Dave Evans, CEO, Fictiv. Since its founding in 2013, Fictiv has manufactured more than 20 million parts for early-stage companies and large enterprises alike, driving innovation with agility from prototype to production and ensuring supply chain predictability and success for customers in industries from automotive and robotics to healthcare and aerospace.

Kusum Sharma, Head of Supply Chain, Logistics Planning & Digital Transformation, Mercedes Benz R&D India, believes digital transformation has been changing the logistics business comprehensively over the last decade or so. More and more digital technologies are introduced by a broad variety of stakeholders – ranging from global logistics service providers, software, and tech-enterprises to small innovative start-ups. “Relevant technologies range from tangible solutions for improved supply chain execution like autonomous picking robots or last-mile aerial drones to non-tangible data driven solutions like cloud-based visibility or partner collaboration platforms that increase operational excellence, and thus add significant value to the entire logistics chain. Artificial Intelligence (AI) has been identified as a key driver of digital transformation in logistics. This is mainly due to the immense amount of structured and unstructured data that exists in this area. However, when properly used with digital technologies, this can elevate logistics operations to the next level,” she asserts.

Distribution and fulfillment centres are the critical operations that are carried out through warehouses and comprise the final stage of the supply chain. What are the technology trends that are revolutionising modern distribution and fulfillment centres?

Dhritiman Chakraborty, Director Operations, Ingram Micro India Private Limited, a company that offers a comprehensive portfolio of technology and mobility distribution and 3PL Services, lists out the technological trends that are revolutionising modern distribution and fulfillment centres. These include:
The Internet of Things: IoT sensors used to monitor temperature and inventory levels, track the movement of goods, track assets, and identify security and safety-related issues.
Artificial Intelligence: AI is used to optimise inventory levels, automate warehouse tasks, estimate resource requirements, and make demand forecasts.
Robotics: A variety of warehouse tasks, including the movement of materials and machines, picking, packing, and shipping, can be automated using robots.
Augmented Reality: Workers can receive real-time information about inventory levels, packing processes, product locations, and safety procedures thanks to augmented reality (AR).
5G Network: 5G will enable faster data speeds and lower latency, which will make it possible to deploy more advanced IoT and AI applications in warehouses.

“Advances in automation and robotics technologies are enabling logistics companies to automate many warehouse processes, such as picking, packing, and sorting. This enhances efficiency while reducing labour costs,” says Sameer Gandhi, Managing Director, OMRON Automation, India. Next, it is the use of IoT devices, such as sensors, RFID tags and barcode readers, which are utilised to transform warehouse management by providing real-time tracking and monitoring of inventory levels, shipment status, and inside warehouse activities. “I would also like to mention the AI technologies here such as machine learning, and predictive analytics that hold a huge potential to add value in terms of providing real-time data insights, improving operational efficiencies, and enabling data-led decision-making,” he says. Finally, advances in autonomous vehicle technology are a great enabler in improving the last-mile delivery and transportation within fulfillment centres and warehouses. This technology delivers faster, safer, and more efficient transportation of goods.

“The key industry trends which are revolutionising modern distribution and fulfilment centres include the adoption and deployment of robotics and automation, which streamline the tasks such as order picking and sorting, reducing the need for manual labour and speeding up the operations,” says Sandeep Chakraborty, Vice President – Sales & Marketing, Engineering Sales, Daifuku Intralogistics India Pvt Ltd. He too lists out AI, together with machine learning algorithms as technologies optimising inventory management, demand forecasting, and route optimisation, leading to improved efficiency and cost savings. IoT assists in providing real-time data on inventory levels, equipment performance, and environmental conditions. “Advanced Warehouse Management Systems (WMS) integrate various functions, such as inventory management and order processing which assists in achieving On Time order fulfilment, real-time visibility and seamless coordination across the supply chain. Data analytics and other modern tools offer valuable insights into demand forecasting, inventory optimisation, and customer preferences,” says Chakraborty.
 
How is robotics in general, AMRs/AGVs in particular, supporting these endeavors?

“Robotic technologies, such as autonomous mobile robots (AMRs) and automated guided vehicles (AGVs), are transforming warehouse operations by automating material handling tasks, improving picking efficiency, eliminating errors and maximising storage space,” says Pankaj Srivastava, Contract Logistics & Cold Chain Expert. “In areas with persistent labour shortages, robotics can fill in the gaps and supplement the staff, ensuring smooth operations without sacrificing efficiency. Robots can perform repetitive and physically demanding operations expertly and precisely, reducing the danger of accidents and mistakes in the entire process,” he adds.

According to Subhasis Ghosh, Managing Partner, Apex Group, the logistics and warehousing industry has experienced a significant transformation due to the integration of robotics, particularly AMRs and AGVs. “These intelligent machines are revolutionising warehouse operations by enabling seamless navigation within the facility, transporting goods from one location to another with minimal human intervention. This results in a significant reduction in operational costs and an increase in productivity. The beauty of these machines lies in their ability to handle repetitive and laborious tasks, thereby freeing up human workers to focus on other value-adding activities,” he says. Furthermore, the flexibility of these machines enables warehouses to quickly adapt to changing demands and layouts. The integration of IoT sensors and computer vision further enhances the efficiency, safety, and accuracy of warehouse operations. The result is a streamlined, cost-effective, and highly productive warehouse operation that delivers on customer satisfaction.

Sunil David, Digital Technology Consultant, lists out the benefits robotics and AMRs/AGVs bring to the modern warehouse:
Safety and Reliability: AMRs and AGVs are designed with safety features and obstacle detection capabilities. They can navigate through crowded spaces, avoiding collisions with workers and other objects. Their reliability and precision in performing tasks contribute to smoother warehouse operations.
 
Collaborative Work with Humans: Collaborative robots (cobots) can work alongside human workers, assisting them with tasks like order picking or packing. This human-robot collaboration improves overall productivity while ensuring that robots handle heavy lifting and repetitive tasks, reducing the risk of worker injuries.
 
Scalability and Cost-effectiveness: AMRs and AGVs come in various sizes and configurations, allowing distribution centres to choose the right type of robot for their specific needs. They offer cost-effective solutions, particularly when compared to the ongoing costs of human labour.
 
Flexible and Scalable Operations: AMRs and AGVs are highly flexible and scalable solutions. They can be easily deployed or redeployed to adapt to changing warehouse layouts or varying demand levels.
 
Digital transformation of Intralogistics is incomplete without corresponding change in Warehousing as well as Shipping & Distribution. How are these segments performing together?
 
“Digital transformation in logistics, when integrated with shipping and distribution, involves integrating information exchange on not just the material/package, but a lot of legal, safety, contracts, shipping clearances and payment documents which increases the complexity and involvement of a variety of stakeholders. Hence there are multiple entities/systems that must come together for the successful integration and execution of the same. In order to enable complete digital transformation, information exchange and an interface supporting all the necessary portals with quick exchange of data becomes pivotal for this revolution,” says Arun Salvi.
 
According to Dave Evans, there needs to be connectivity to support intralogistics: the ability to read equipment sensors within the whole operation. This allows predictive data for when equipment needs to be repaired or replaced, which drives efficiency since equipment is running longer and has more uptime. There needs to be connectivity across systems as well so: (1) data can be collected to provide more predictive analytics, and (2) operations – not just equipment – can perform better. “We need to see where inefficiencies occur to understand what process changes may be needed to streamline operations,” he explains.
 
“The integration of digital technologies across intralogistics, warehousing, and shipping and distribution is essential to create the desired level of synergies for driving holistic results and improvements. For example, a single focus on only warehouse automation and digital inventory management might lead to faster order processing, and quicker and more accurate shipments; however without the implementation of digital platforms for end-to-end supply chain visibility; we will not be able to achieve smoother coordination and collaboration between warehouses, transporters, and customers. Hence comprehensive and overarching integration is the key to evolving a business in a holistic and real manner,” says Sameer Gandhi. “It should be a comprehensive effort aimed at optimising operations, enhancing efficiency, and meeting customer expectations based on a truly interconnected and efficient supply chain ecosystem which is the need of today's fast-paced and digital-driven business landscape,” he adds.
 
“There has been a considerable improvement in technological evolution in warehousing operations as well as shipping and distribution areas. The business expansion, complex supply chains, and rising competitive gaps have compelled logistics leaders to elevate operational standards to stand apart from their peers and succeed in the market. Digital solutions for logistics enhance collaboration and sharing, increase the flexibility of internal operations, and reduce efforts spent on otherwise complex tasks,” says Kusum Sharma. Integrated digital logistics platforms implement powerful data-driven insights to optimise operations, solve internal inefficiencies and better customer interactions. Logistics digitalisation enables data analytics that further improves operational visibility and connectivity between systems, allowing products to move seamlessly through the value chain. Shipping and distribution digital solutions automate more of the mundane tasks, freeing up your workforce's time to work on more valuable and revenue-generating processes. “Such a connected, resilient and agile digital logistics platform provides a more customer-oriented, efficient and proactive approach to managing internal operations and costs,” explains Kusum Sharma.
 
Today software plays an important role in every human activity and the logistics and warehousing sector is no different. What are the software platforms available that facilitate this ongoing transformation?
 
“There are several software platforms available that can help facilitate the digital transformation of intralogistics. These platforms offer a variety of features, such as warehouse management, inventory control, and transportation management,” says Dhritiman Chakraborty.
 
Warehouse Management Systems (WMS): This is the most common and important platform, which is a must for managing the warehouse operation in the most efficient manner. These platforms streamline and optimise warehouse operations, including inventory management, order processing, and labour management. WMS provides real-time visibility, automates workflows, and enables efficient resource allocation.
 
Transportation Management Systems (TMS): TMS platforms focus on optimising transportation operations, such as route planning, carrier selection, freight management, and shipment tracking. They help reduce transportation costs, improve delivery efficiency, and enhance customer service.
 
Enterprise Resource Planning (ERP): ERP platforms integrate various functions within the supply chain, including finance, inventory, procurement, and production. These platforms provide a unified view of business processes, enable data sharing, and support decision-making across different departments.
 
Robotic Process Automation (RPA): RPA software automates repetitive and rule-based tasks, improving efficiency and accuracy while reducing manual effort. Providers like UiPath and Automation Anywhere offer RPA solutions. This can help improve productivity by automating non-value-added activities from the overall process.
 
Artificial Intelligence (AI) and Machine Learning (ML) platforms: AI and ML platforms, such as IBM Watson and Google Cloud AI, leverage advanced analytics to provide predictive insights, demand forecasting, and optimisation recommendations for various supply chain processes.
 
Supply Chain Visibility (SCV) Platforms: These platforms offer end-to-end visibility across the supply chain, providing real-time tracking, event monitoring, and exception management. They enable proactive issue resolution, improve order visibility, and enhance collaboration with suppliers and customers.
 
Advanced Analytics and Business Intelligence Tools: Leveraging data from various sources, these tools provide insights into supply chain performance, demand forecasting, and inventory optimisation. They empower organisations to make data-driven decisions, identify trends, and optimise operations.
 
“Organisations should evaluate their specific requirements and select software platforms that align with their goals, existing infrastructure, and scalability requirements,” says Dhritiman Chakraborty.
 
In Sandeep Chakraborty’s opinion, there are several software platforms available that facilitate the digital transformation in the logistics and warehousing sectors. “These platforms provide comprehensive solutions to optimise operations, enhance visibility, and streamline processes,” he says. To the list above, Sandeep adds one more, i.e., the Industrial Internet of Things (IIoT) Platform. IIoT platforms enable connectivity and data exchange between devices and systems. They play a crucial role in capturing real-time data from sensors and devices deployed in warehouses and distribution centres. “These software platforms provide the necessary tools and functionalities to drive the digital transformation in logistics and warehousing sectors, enabling organisations to optimise their operations, improve efficiency, and achieve better customer satisfaction,” he elaborates.
 
“Warehouse Management Systems (WMS), Transportation Management Systems (TMS), Freight Management Systems (FMS) and Enterprise Resource Planning (ERP) Systems are key enablers of digital transformation," says Pankaj Srivastava. However, there are many processes, which used to happen manually due to many reasons, are now available through plugin or enhanced versions of above software to bring digital transformation into existing systems. Altogether, this is enabling and playing a pivotal role in optimising warehouse operations by efficiently managing inventory, order processing, workforce allocation, encompassing route planning, carrier selection, and freight tracking, leading to cost savings and improved delivery times including finance and providing a unified view of operations for informed decision-making. “The software is further integrated with Supply Chain Visibility Platforms, which are offering real-time visibility into supply chain activities, enabling stakeholders to monitor shipments, identify bottlenecks, and proactively respond to disruptions. And last, but not the least, the Blockchain software is further bringing transparency, trust, reliability, and credibility in the entire supply chain,” he adds.
 
How 5G is impacting the logistics and warehousing scenario given the importance of connectivity in IIoT based automation?
 
“The rapid spread of digital technologies is causing a momentous transformation in the logistics and warehouse industry. Businesses are adopting a variety of cutting-edge technologies to cater to changing client expectations, expanding e-commerce, data-driven decision-making, and the unrelenting search for efficiency and optimisation. Distribution and fulfillment facilities are undergoing a change thanks to automation, AI, augmented reality, and robotics, including AMRs and AGVs,” says Pankaj Srivastava. According to him, a successful digital transformation is dependent on smooth data communication between the intralogistics, warehouse, and shipping and distribution sectors. The logistics and warehousing sector is moving toward a more connected and effective future by embracing high efficient transformational software platforms with help of 5G technologies without any interruption of data communication.
 
“The logistics and warehousing industry is on the verge of another transformation due to the emergence of 5G technology,” agrees Subhasis Ghosh, who believes this technology is set to play a crucial role in enabling Industrial Internet of Things (IIoT) based automation. With the high-speed and low-latency capabilities of 5G, real-time communication between devices and systems will be facilitated, leading to improved efficiency and responsiveness of automated processes. Through the effective utilisation of IoT sensors, autonomous vehicles, and smart devices, warehouse operations can optimise asset tracking, predictive maintenance, and overall productivity. “The seamless connectivity of 5G will enable new possibilities in supply chain management, leading to enhanced customer satisfaction and productivity. With the integration of 5G technology, the logistics and warehousing industry can expect a significant improvement in the overall efficiency of their operations and a more seamless and streamlined customer experience,” he explains.
 
Sunil David opines that given its inherent characteristics of extremely low latency, very fast speeds, massive capacity, and extremely high reliability, 5G technology has tremendous potential to significantly improve supply chain management and logistics in Indian warehouses. According to him, here are some of the ways in which 5G can play a role:
 
Faster speeds and highly reliable connectivity: With speeds of 400 Mbps and higher and with a potential reliability of 99.99999% uptime being possible with 5G technology, warehouses can enjoy faster and more reliable connectivity, enabling real-time data exchange and communication.
 
Better visibility of Inventory: 5G technologies can ensure advanced tracking and monitoring of systems, enabling near and accurate real-time tracking of inventory levels, location, and status. This can help warehouses to manage their inventory more efficiently, reducing the risk of stockouts, overstocks, and other inventory-related issues which are very common.
 
Predictive maintenance: 5G technologies can enable the use of IoT based sensors and data analytics to predict equipment failures and maintenance needs, enabling proactive maintenance and reducing downtime.
 
“Potential cost savings and efficiency gains that Indian warehouses can achieve by adopting 5G technology: Since warehouses are expanding in size and scale, 5G offers lower total cost of ownership (TCO) than Wi-Fi and other alternate wireless technologies that have been tried in warehouses,” Sunil David concludes.
 
Note: The responses of various experts featured in this story are their personal views and not necessarily of the companies or organisations they represent. The full interviews are hosted online at https://www.iedcommunications.com/interviews)