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Warehouse Distribution Changes

Innovation in business has always been a key to success and warehousing has certainly seen its share. Here's a look at what kind of improvements you'll see in warehouse and distributions services in 2018 and the years to come.

A 2017 research project of CSCMP's Supply Chain Quarterly and AGiLE Business Media reveals leading companies investing in productivity-enhancing technologies in the warehouse and distribution center. Software supplier Lucas Systems, polled 100 warehouse and distribution center professionals to identify emerging warehouse and distribution services employment trends and challenges. This post summarizes some results of the survey.

At the top of most logistics companies' to-do lists they include process improvements, new hiring plans, and a closer look at software and technology upgrades. Taking a look at the research results may know what kind of improvements you'll see in warehouse and distributions services.

Basically, here are the highlights of the survey results from distribution center decision-makers:

  • The top solution for improving warehouse and distribution services is investing in new software programs

  • Some companies are building completely new distribution centers

  • And still others are investing in material handling automation

  • Due to increased sales, increased online orders, and an increasingly tight labor market,all distribution centers large and small seek to find more cost and time-effective warehouse labor solutions

  • The survey was directed to companies running one or more nationwide distribution centers. These statistics reveal their thoughts that their top priority is labor-related challenges.

  • Business leaders are investing in the right people, processes and technology as a solution to challenges hiring new workers with the best skills, competencies and abilities

  • Compared to last year, about 60% of distribution centers retain hourly employees. This figure equates to a 12% staffing increase compared with last year.

  • The reasons for hiring more people this year can be answered, in order of answers due to general business growth/increased shipping volumes (86%), increased online ordering (37%), Increased order velocity (i.e., more next-day, same-day shipping) (39%) and miscellaneous reasons (i.e., new ERP software, processes, and facilities; inefficiencies, etc.) (14%)

Taking this information into consideration, plan to see changes in this next year for the better in warehouse and distribution activity. For many, this is good business news!

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