Logistics and Warehousing Trends

The logistics industry is ever-changing in response to mercurial business, consumer, environmental, and other demands. There are several key areas that have the potential to experience accelerated change in the near future. Let’s take a look at some of these logistics and warehousing trends.

Faster Delivery Times: Last-Mile and Just-in-Time Delivery

Efficiency and productivity have always been important in logistics. But today, with many consumers prioritizing quick delivery of products, they are more important than ever. In fact, a 2019 survey report published by Capgemini Research Foundation found that 55% of consumers would choose a brand over a competitor brand based on faster delivery. We see this in action from huge companies like Amazon that can offer same day or next day delivery on purchases for little to no extra cost. With over half of consumers potentially choosing fast delivery as a determining factor for their purchases, last-mile delivery has become a key area of focus in the supply chain.

More efficient last-mile delivery means investing in efficient strategies that eliminate any unnecessary down time. Just-in-time delivery is one solution many companies are pursuing. With just-in-time delivery, goods arrive at warehouses just before they need to be shipped, reducing delivery times, carrying costs, and warehousing costs.

Robotics: Autonomous Mobile Robots and Drones

Robotics isn’t a brand new topic in logistics. However, relatively few companies have adopted widespread robotics across the supply chain. Autonomous Mobile Robots, or AMRs, are one such emerging technology that is an emerging warehousing trend. AMRs have smart navigation and mapping, and can move around warehouses and navigate barriers without the need for direct programming. They have the ability to carry boxes, pallets, and cartons. They can play a key role in reducing search time that human employees spend walking between products on shelves. For example, AMRs can carry boxes between shelves and deliver them to employees who then can assemble orders.

Robotics has an important role in transportation going forward as well. In dense urban areas where delivery is difficult, some companies have started utilizing drones for quick deliveries. Robotic solutions to transportation in the supply chain has plenty of opportunity for growth in the future, with potential savings of cost, time, and environmental impact.

Logistics and Warehousing Trends in Sustainability

The impact of supply chain processes on the health of the planet has received increased scrutiny as globalizing products continue to increase in quantity. Technologies that improve the sustainability of logistics are highly sought after. For instance, deliveries in dense urban areas are becoming more difficult as more and more delivery trucks are used. Additionally, freight cargo ships are facing tighter regulations on emissions. Legal, social, and political pressures will likely continue to push companies towards more green solutions to logistics. These solutions may include electric and hybrid delivery vehicles, cleaner fuel emissions in freight ships, and reducing the number of delivery vehicles in cities.

In a fast-changing world, adaptability has never been more important in warehousing. Moon Warehousing specializes in customized warehousing for our clients’ needs. We understand the ebb and flow of business and can work with you to come up with a tailor-made solution for your products. Whether you need seasonal storage space, long term warehousing, or anything in between, we are happy to accommodate your needs. Interested in learning more? Give us a call at 502-200-2315 or visit our website today to learn more and request a quote!

a rendering of the coronavirus

Coronavirus and the Warehousing Industry

The coronavirus pandemic has caused significant impacts on most industries. Warehousing is no exception- with an expected market decline and changing logistics, there may be a new normal for the industry going forward. Here’s a look at some of the ways the coronavirus is impacting warehousing.

Coronavirus drove unpredictable demand 

One of the primary impacts on the warehousing industry has been unpredictable consumer behavior. During the pandemic, some products have experienced severe drops in demand, while others have soared. This means disruption for supply chains and warehouses that must attempt to meet demands that shift daily. Some products have experienced significant backlogs, while others have piled up in warehouses across the world.

A driving factor of this behavior has been the differing timelines of disease spread and response around the globe. Early in the pandemic, the disease was primarily spreading and being responded to in China, and Western demand for Chinese-made products remained high. As China exited lockdown and began shipping products West in anticipation of demand, the coronavirus took hold in Europe and North America, where demand sharply decreased. The products that had been shipped then simply sat in warehouses, with little demand to move them into consumers’ hands.

Current market decline and expected recovery

The coronavirus pandemic has already taken a toll on the warehousing industry. A report from April 2020 titled “Warehousing And Storage Global Market Report 2020-30: Covid 19 Impact and Recovery” projects that the global warehousing and storage market will experience a -0.1% compound annual growth rate (CAGR) in 2020. This means an expected market value of $450.7 billion in 2020, after a value of $451.1 billion in 2019. It’s not all bad news, though. While this decline seems certain, there is hope for a recovery in the next few years. The report projects a recovery with a 10% CAGR from 2021-2023, with the market value soaring to $582.9 billion by 2023. So, while there has definitely been a significant impact, the report projects a significant recovery and growth long-term.

Acceleration of automation and smart warehousing

Automation and smart warehousing are not new practices. However, given the challenges a pandemic imposes upon people in workplaces, they will likely accelerate as solutions. Greater technology in warehousing will create more resilience and efficiency, and a greater ability to adapt in the face of disease outbreaks. Plus, with many interest rates dropping and government incentives for capital purchases, investing in technology is more appealing than ever. These factors will likely converge to drive automation and smart warehousing in the industry.

With a swiftly changing market, flexibility has never been more important in warehousing. Moon Warehousing specializes in customized warehousing for our clients’ needs. We understand the ebb and flow of business and can work with you to come up with a tailor-made solution for your products. Whether you need seasonal storage space, long term warehousing, or anything in between, we are happy to accommodate your needs. Interested in learning more? Give us a call at 502-200-2315 or visit our website today to learn more and request a quote!

What Is Supply Chain Management?

Supply Chain Management (SCM) is a term you may have heard of before. It’s a complex idea that is often thought to only involve physical logistics. However, that is only part of what SCM includes. So what else does it involve? Here’s an overview of Supply Chain Management.

Supply Chain

To define Supply Chain Management, it’s important to understand what a supply chain is first. A supply chain is a basically a network of organizations involved in processes that get products to consumers.

Some of the groups in a supply chain include manufacturers, transportation companies, distributors, retailers, and vendors. There are a multitude of processes in a supply chain between these different stakeholders. Some of the processes involved are development, distribution, marketing, customer service, and finance. Within a given chain, there can be a flow of physical items and/or a flow of information. For instance, a chain between a manufacturer and a transportation company would include flows of manufactured items and a flow of information to coordinate pickup, delivery, and communication across the chain. Overall, supply chains are help businesses lower costs and produce goods faster.

Supply Chain Management

Supply Chain Management is important to ensure the processes established in a supply chain are as effective as possible. SCM involves efforts to manage the flows in supply chains across all aspects of industries from marketing to transportation. When done effectively, SCM helps companies gain an advantage in the market by helping lower costs, timelines, and errors.

The way this manifests is typically through a form of centralized management. A supply chain manager may coordinate logistics for all aspects of a supply chain in this way. They can oversee strategies, sources of goods, manufacturing, logistics, delivery, and return. They try to minimize costs and eliminate shortages and errors in the supply chain. When done well, this can help prevent recalls and shortages, and lead to overall profits increases due to better efficiency.

Warehousing Management

Here at Moon Warehousing, we manage supply chain processes related to warehousing and logistics in particular. Warehouse management systems (WMS) are an important way to do this kind of SCM. These warehouse-specific systems help track products and inventories through tools like customized software, scanning technology, label printers, and packing slip printers. Warehouse professionals use these tools are for precise tracking and a clear perspective on what products are where at what time. This ultimately helps businesses manage the flow of products (and the accompanying flow of information).

The exact kind of warehouse management system used by a business varies depending on needs. There are many different system packages and styles that serve specific functions. For example, some warehouse management systems are specialized for companies with multi-continent supply chains. Other systems are catered to specific industries like industrial components. Overall, regardless of the specific type, a WMS helps companies like Moon conduct effective supply chain management.

If you are thinking of changing your warehouse storage provider or are in need of new warehouse storage for your business, contact Moon Warehousing today. We would love to show you around our Louisville warehousing facility. We’re happy to give you more detailed pricing information and answer any questions you might have. Give us a call at 502-200-2315 today!