Warehouse Labor: A Delicate Balancing Act

Four years after COVID-19, labor disruption continues. To be fair, labor shortages and dislocation predate the pandemic and have more to do with the tectonic shift in supply chain operations from traditional business-to-business fulfilment to direct-to-consumer e-commerce.

The differences are most dramatic in the warehouse. B2B demand focuses on capacity for storage, distribution and, in some cases, value-added services for large inventories with relatively predictable demand. The D2C e-commerce environment focuses on throughput and flexibility to manage a continuous flow of small-batch orders, with time-definite delivery and a range of delivery options, to meet highly variable demand.

A more complex, costly and time-sensitive e-commerce last mile often results in razor-thin margins, deploying a range of small warehouses and drop-ship points close to customers that don’t lend themselves to large, expensive fixed automated systems. Automated mobile robots (AMRs) have opened up exciting new possibilities for D2C operations to increase warehouse performance and resilience at lower cost. But they also address labor challenges to attract and retain younger workers and rebuild the skills base as older workers retire.

For warehouse managers, robots are a force multiplier, increasing throughput as much as 2-3x by reducing travel time and errors in pick and putaway. AI-enabled, system-directed labor and user-friendly visualization, lighting and instructions bring product to people, who focus on building orders. Unlike fixed systems, AMRs don’t require costly installation of conveyors or magnetic floor track, but rather navigate the digitally mapped warehouse environment with remote sensing.

Software generates detailed data on goods movement within the warehouse, often a black box for tracking inventory. Robotics-as-a- service (RaaS) is offered on a subscription basis, with fleets scalable up or down to align with warehouse seasonal or cyclical demand. Best of all, they bring a cool factor to the warehouse that helps attract and retain a new, tech-savvy generation of associates.

Read Warehouse Labor: A Delicate Balancing Act to learn more.

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