**London**: The logistics industry is experiencing a shift towards automation in response to consumer demands and labour shortages. Experts highlight that adopting modular automation solutions is essential for companies to improve efficiency and maintain competitiveness while addressing workforce concerns over job security.
The logistics industry is undergoing a significant transformation driven by increased reliance on automation, propelled by the need for efficiency amidst emerging consumer demands and pervasive labour shortages. As companies evolve their operations to optimise processes, experts highlight that the implementation of automation in logistics has transitioned from being an advanced option to an essential need in 2024.
Industry professionals, including Andy Johnston, senior director of innovation at Geodis, emphasise the growing necessity for logistics companies to embrace automation. Johnston stated, “We’re using our technology to automate the movement of inventory inside of the facility, so that our teammates have to travel less. So by traveling less, they’re increasing their productivity.” This approach aims to streamline operations, leading to enhanced client service and warehouse efficiency.
Ahmad Baitalmal, chief technology officer and co-founder of the warehouse automation startup Mytra, echoed similar sentiments, asserting that the consumer expectation for faster deliveries has made base-level automation a requirement rather than an optional development. “Five years ago, it was, ‘Wow, this is amazing that things are coming to me super fast.’ Today, it’s, ‘Why isn’t it here already?’” he remarked, signalling a noticeable shift in consumer urgency. Baitalmal adds that companies must operate at a heightened pace to maintain competitiveness, with automation playing a critical role in this.
In 2024, experts predict a shift towards more modular and specific automation solutions, moving away from comprehensive systems. Jeremy Tancredi, a partner at consulting firm West Monroe, noted an increase in niche companies offering targeted automation solutions, allowing businesses to implement technology in bite-sized segments rather than committing to extensive and costly overhauls.
As the industry looks to the future, Johnston revealed that Geodis has plans to delve further into automation technologies, particularly for B2B order shipments and the inbound side of business operations in 2025. “We’re looking to now is B2B order shipments—so think picking cases instead of each item,” he explained. The potential for drone-based solutions and humanoid robots to improve inventory efficiency is also on the horizon, though Johnston cautioned organisations to critically assess the capabilities of third-party technology providers before integration.
The discussion around automation often raises concerns over job security. The ongoing contract dispute between the International Longshoremen’s Association and East Coast U.S. ports emphasises these fears, particularly in the face of increased automation. Furthermore, findings from Forrester predict that the U.S. could face a net loss of approximately 1.4 million jobs across various sectors by 2032 due to advancements in automation.
To alleviate employees’ concerns regarding job displacement, companies have begun to invest in upskilling initiatives. Tancredi noted that many organisations have introduced automation without adequately explaining the technology’s implications and applications to their workforce. “Traditionally, it’s been kind of an arrogant approach by management…but that’s no longer the case,” he mentioned. Clear communication regarding the benefits of automation is seen as crucial, particularly in terms of health and safety improvements for workers.
As a response to the evolving landscape, small-to-medium enterprises (SMEs) are increasingly adopting incremental automation strategies, which allows for testing and gradual implementation while minimising risk and investment. Tancredi explained that simple automation projects can serve as a low-pressure introduction to more expansive technologies.
While automation primarily focuses on physical processes, companies like Geodis have incorporated automated solutions for training purposes, facilitating faster onboarding for staff, especially where language barriers exist. Johnston reported that automation has enabled training periods to be significantly shortened.
Looking forward, Tancredi and Johnston expect an increase in adoption of modular automation solutions powered by third-party providers. This shift allows companies to invest cautiously, assessing specific technological needs before committing significant resources. However, Johnston cautioned that a thorough evaluation of existing processes is necessary to ensure successful automation deployment. “If you bring in automation and [the process] was broken before…guess what’s going to get the blame? Automation, because it’s the new thing,” he said.
In conclusion, the logistics sector is undeniably moving towards a future dominated by automation, driven by consumer demands and operational necessities. While the technology promises significant efficiency improvements, organisations must also navigate the complex dynamics of workforce sentiment and process optimisation to ensure successful integration.
Source: Noah Wire Services
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