According to Hayes, warehouse managers, 3PL managers, and manufacturing operations managers are desperately working to leverage and utilize existing space while addressing labor shortages with cutting-edge automated robotics solutions.
"To hedge against further rising costs, companies have expanded domestic warehouse space to reduce the frequency of long-distance shipping. Since acquiring more space is not possible, the only solution is to go up. This is driving new elevated mezzanine and racking configurations. In addition to going up, distribution centers are being compressed by realigning materials using narrow aisles," noted Hayes.
Fulfillment centers have been trying to discover methodologies to meet the growing demands of e-commerce long before COVID. That said the pandemic drove consumer e-commerce sales and yet still operate rate with a manual workforce and no workforce to hire. Maximizing operational efficiency has become essential and further exacerbated with supply chain disruption. No longer is it optional whether to integrate robotic warehouse solutions to make up for the labor shortage and increase productivity.
When labor is in short supply, automation promised to combat the high turnover rates seen by DCs who still require manual labor of lower-level tasks. A financial ROI can be achieved more rapidly as hourly warehouse labor rates have doubled (or even tripled in the past two years).
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