New tech supports on-demand economy-driven growth

Zebra Technologies Corp. (NASDAQ: ZBRA), an innovator at the edge of the enterprise with solutions and partners that enable businesses to gain a performance edge, on Monday announced the results of its latest Warehousing Asia Pacific Vision Study.

The study analyzes IT and operations decision makers from manufacturing, transportation and logistics, retail, post and parcel delivery, and wholesale distribution industries and their current and planned strategies to modernize warehouses, distribution centers and fulfillment centers.

“Warehousing, distribution and fulfilment operations are undergoing a modern-day makeover as they transform to meet the growing needs of the world’s on-demand economy. Warehouse leaders today are turning to technology to address critical business challenges caused by this global phenomenon by adopting advanced technology and empowering their workers with a performance edge,” said Zebra Technologies APAC Vertical Solutions Lead of Manufacturing and Transportation & Logistics Aik Jin Tan.

“Expanding space, implementing new processes and enhancing workflows are only part of the equation. By 2024, warehouse leaders will be shifting their focus to the integration of more holistic solutions to build data-powered environments that balance labor and automation in the warehouse, ultimately empowering frontline workers with a performance edge to lead the way,” Tan added.

The study reports on the forward-thinking fulfillment strategies that companies are focusing on to keep up with the growth of the on-demand economy. Both automation and worker augmentation solutions will be a key focus for decision makers’ plans over the next five years. More than three-quarters (81 percent) of respondents agree that augmenting workers with technology is the best way to introduce automation in the warehouse, but only 34 percent have a clear understanding of where to start automating. Currently, up to 88 percent of decision makers are either in the process of or are planning to expand the size of their warehouses by 2024. Meanwhile, up to 85 percent anticipate an increase in the number of warehouses during this time frame.

“Consumers today have seemingly insatiable demand for 24/7 product search and purchase. The ‘I want it now’ mentality of consumers stretches across all industries and has since upended the supply chain, impacting manufacturers, retailers and the warehousing operations that serve their needs,” said Zebra Country Head for the Philippines Tracy Yeo. “Our study further revealed that 49 percent of the surveyed decision makers reported an increase in consumer demand as a top driver of growth, with almost 40 percent of those surveyed stating that shorter order lead times are fueling their expansion plans and causing them to rethink their strategies,” Yeo added.

Fifty-seven percent of decision makers plan to enable partial automation or labor augmentation with technology in the warehouse.

Seventy percent of respondents believe human interaction is part of their optimal balance in warehousing, with 43 percent citing partial automation (some human involvement) and 27 percent citing augmentation (equipping workers with devices) as their preference.

Decision makers anticipate using robotics for inbound inventory management (27 percent), packing (24 percent) and goods in/receiving (21 percent) by 2024.