The report, based on a survey of more than 1,700 leaders and managers from manufacturing, retail, transportation, logistics, and wholesale distribution, aimed to show the trends and technologies that are shaping the operations of warehouses and distribution centres. In the study, titled “Improving Every Process: The Recipe for High-Performance Warehousing,” front-line workers also clearly pointed out the benefits of automating warehouse operations and the risks that can arise if the process is not implemented quickly enough.
In addition to the use of artificial intelligence, 64% of decision-makers in Europe also want to implement solutions in the field of augmented reality (AR). In addition, 61% of companies in Europe (64% globally) plan to increase expenditure on warehouse modernisation in the next five years. What’s more, 62% of European companies plan to accelerate modernisation activities by 2029, according to the authors of the report.
Interact Analysis’s forecasts for the development of the warehouse industry show that global warehouse space will increase by 27% by the end of the current decade (from 3.06 billion sq m in 2023 to 3.9 billion in 2030). Expenditures on warehouse labour are also expected to show long-term growth, with a projected compound annual growth rate (CAGR) of 7% by 2030.
Warehouse workers need support
Given the expected increase in demand for warehouse services, experts from Zebra Technologies indicate that warehouse managers will have to act somewhat faster to increase the efficiency of available staff, especially since ordinary employees are already seeing potential threats.
For example, 84% of employees in Europe believe that if their employer does not invest in technologies that streamline warehouse operations, business goals will not be achieved. A slightly smaller percentage—73% of employees—fear that they spend too much time on tasks that could be automated.
European warehouse workers also express concerns about safety in the workplace. Seventy-three percent of European workers are concerned about safety in increasingly crowded warehouses, and 67% say there is a shortage of skilled workers in warehouses. There is also concern about fatigue and physical exhaustion (66% of respondents in Europe).
Managers burdened with customer demands
Meanwhile, management is struggling to meet the stringent targets set out in Service Level Agreements (SLAs). Warehouse managers admit that maintaining order completion rates (55% in Europe and 51% globally) and order preparation rates (51% in Europe and 47% globally) specified in SLAs is a challenge for them.
Respondents to the Zebra Technologies study indicated the precision of order fulfilment (48% in Europe, 41% globally) and goods output processes (44% in Europe, 41% globally) as the two main operational challenges. Meanwhile, the increased activity of the e-commerce market means that, despite the growing use of technology, faster delivery to the end customer is becoming a key challenge for warehouse workers (40% in Europe, 37% globally).
The solution to warehouse problems could be the use of new technologies. Given the growing expectations of customers and the limited employment capacity of warehouse operators, the use of collaborative robots, ergonomic mobile devices, communication applications, and task management tools would help. Ninety-three percent of employees in Europe and around the world believe that greater availability of automation solutions and mobile technologies would help attract and retain more warehouse workers. At the same time, 96% of employees in Europe admit that they feel more appreciated by their employer when they receive support in the form of automation tools and solutions.
“Warehouse workers say they could do their jobs better if they implemented more automation in their workplaces,” says Andres Boullosa, global warehouse vertical strategy leader at Zebra Technologies. “Automating material flow, data collection and information management makes crowded warehouses safer. It also helps teams meet SLAs and maintain a steady, reliable flow of high-quality goods to market, which increases both customer satisfaction and employee engagement,” adds Andres Boullosa.
Automation and AI will make warehouse work easier
The Zebra Technologies report also found that warehouse managers believe that the greatest impact of mobile AI applications will be on employee safety, quality control, and inventory management. Seventy-three per cent of surveyed executives in Europe say AI will positively impact the ability to detect potential threats and issue warning alerts. Seventy-one per cent believe AI will also help detect problems or anomalies. In addition, the use of AI solutions will impact the ability to forecast needs, improve inventory levels, and maximise space utilisation.
European warehouse managers who plan to implement solutions that support or automate processes—or have already implemented them—declare that their main goal is to reduce errors (71% of respondents) and meet SLAs (71%). They also expect that automation will increase employee efficiency and productivity (55%), as well as reduce the number of errors and the need for manual order picking (53%).
“In warehouses, many tasks are still outsourced to frontline workers, including tasks they don’t enjoy doing, which could and should be automated today,” Boullosa comments.
In addition, 82% of warehouse managers in Europe and around the world believe that providing employees with more technology tools will help them achieve their productivity goals while reducing physical strain and the risk of injury. Executives also say that automation has a positive impact on team morale.