Advanced Tech Coming to a Warehouse Near You
Prologis looks at several technologies reshaping supply chains.
If autonomous mobile robots (AMRs) are not already zipping around your warehouse or logistics facility, they soon could be. Not only can they improve efficiency, they can also boost employee safety and job satisfaction, reports a Prologis study of technologies reshaping supply chains.
It predicts that mobile robots will make their way into half of logistics facilities over the next decade. Payback takes two to five years, and returns on investment of 30% or more are possible. Generally, AMRs do not require more space to operate – just a flat floor and power supply – though in some cases additional space is needed for charging and integration points.
A much more expensive technology that can enhance storage efficiencies is automated sortation/retrieval (AS/RS). It has a more limited potential market and enables savings through greater storage density of sortable inventory. “AS/RS adoption leads to 10-20% logistics real estate space savings across a retailer’s distribution network,” Prologis stated.
However, it has drawbacks. “AS/RS tends to be installed in new facilities with ample access to power,” Prologis noted. The installation cost is in the $25 to $50 million range, with payback over a five to 10 year period and ROI in the mid-teens. And only 35% to 50% of customers have inventories suited to its use: AS/RS works best with higher velocity SKUs.
“Adoption rates are depressed by the long financial planning horizon and limited short-term operational flexibility. We expect 10-20% AS/RS adoption and a 3-5% industry-wide demand reduction over a 10-15 year horizon,” Prologis stated.
The modern supply chain already relies heavily on AI and big data to manage and design its operations. The integration of various software management systems has improved visibility and operational efficiency through dynamic inventory control, streamlined fulfillment processes and agile space management, the report noted, adding that small and medium-sized enterprises are also getting on board.
“Advances in AI continue the evolutionary path of data analytics within supply chains and will support increased levels of service and resilience within supply chains,” it predicted.