The warehousing industry should speed up investments in modernization and automation to meet the increasing demand and changing needs of businesses and workers, according to the findings of the latest Warehousing Vision Study commissioned by Zebra Technologies Corporation (Zebra).
The results of the study titled "Elevating Every Move: The Formula for High-Performance Warehousing" by Zebra found warehouse associates and leaders citing the benefits of automating operations to meet business goals and the risks of not moving quickly enough.
The continuing surge in e-commerce volumes also makes it imperative to accelerate warehouse modernisation.
According to the study, 63% of global warehouse leaders plan to implement both artificial intelligence (AI) software (63% in APAC) and augmented reality (AR) (65% in APAC) within five years.
In addition, 64% surveyed globally plan to increase spending on warehouse modernization in the next five years, with APAC leaders at 63%. Meanwhile, 63% plan to accelerate their modernization timelines by 2029, similar to 64% in APAC.
[Source: Zebra)
Interact Analysis projects that global warehouse space will increase by 27% to 42 billion square feet in 2030, up from 33 billion square feet in 2023.
Warehouse labour spending is also expected to expand long-term, with a compound annual growth rate of 7% through 2030.
"As this expansion continues and daily order volumes increase, feedback shared by global frontline workers as part of Zebra's Warehousing Vision Study suggests that warehouse leaders will need to move a bit faster to expand workforce capacity," Zebra said.
It noted that 85% of associates (88% in APAC) report that if employers do not invest in technology to improve warehouse operations, they will not meet business objectives; 74% (77% in APAC) are concerned they are spending too much time on tasks that could be automated; and 72% of those surveyed (79% in APAC) are concerned about safety on the (increasingly busy) warehouse floor, with 70% (72% in APAC) specifically worried about injuries.
The study also found that associates complain that the warehouse floor lacks qualified staff and express concerns about fatigue and physical exhaustion.
[Source: Zebra]
"Even warehouse leaders admit they find it challenging to maintain the fill rates and prepare orders outlined in their service level agreements (SLAs), with order accuracy and outbound processes cited as the top two operational challenges in the Zebra study," the report said.
The growing e-commerce landscape is turning "quicker delivery to consumers" into a major challenge for warehouse teams. This is evident, as 37% of respondents worldwide and 36% in the Asia Pacific region acknowledge this issue despite the rising use of technology.
Given the disparity between customers' growing expectations and warehouse operators' limited hiring capacity, warehouse associates say it's important to use collaborative robots, ergonomic mobile devices, communications applications, and task management tools to help solve workplace issues.
The study commissioned by Zebra — which provides digitization and automation solutions — also found more than nine in 10 associates (93% globally, 92% in APAC) believe the increased availability of automation and mobile technologies would help attract and retain more warehouse associates.
"Warehouse leaders in APAC are increasingly recognizing the need to integrate automation solutions in their facilities, as employees highlight how Zebra's latest EM45 handheld computers with integrated RFID reader and other Zebra's Enterprise Mobile Computer portfolio can improve their daily workflows," said Christanto Suryadarma, sales vice president for Southeast Asia (SEA), South Korea and Channel APJeC Zebra Technologies.
"By automating material movement, data collection, and information management, businesses can create safer warehouses while ensuring a steady, reliable flow of goods to the market — leading to higher customer satisfaction and greater employee engagement," he added.
Warehouse leaders believe the biggest impact of mobile device-based AI applications will center on worker safety, quality control, and inventory management. While 79% say AI will positively impact their ability to detect potential hazards and issue alerts for prevention, 78% think AI would make an impact on their ability to detect issues or anomalies using AI – this sentiment is echoed by 82% and 81% of APAC warehouse leaders, respectively.
Additionally, 77% of respondents believe that AI applications will influence their ability to forecast needs, optimize stock levels, and maximize space, with 78% of those in the APAC region agreeing.
Many global warehouse leaders who plan to augment/automate or have already done so say their goal is to mitigate errors (71%) and meet SLAs (70%).
[Source: Zebra]
"They hope automation will increase worker efficiency and productivity as well as reduce order errors and manual picking," the report said.
Eighty-two percent of warehouse leaders (84% in APAC) also agree that providing warehouse workers with more technological tools will help them surpass productivity goals, reduce physical strain, and prevent injuries.
Ultimately, warehouse leaders say their biggest supply chain network challenges are "innovating with technology and intelligent automation" and "meeting changing customer service expectations."
"Frontline workers often juggle tasks that can be automated," said Vivien Tay, APAC Vertical Marketing Solutions Lead for Warehousing, Transport & Logistics at Zebra Technologies.
"With rapid growth in the Asia Pacific warehousing market, embracing digitalization and automation is crucial. Zebra is committed to driving this transformation and equipping workers with solutions to boost efficiency and productivity."
Zebra Technologies commissioned the global research to Azure Knowledge Corporation; the study gathered insights from over 1,700 associates and decision-makers in manufacturing, retail, transportation, logistics, and wholesale distribution.
