Warehouses are undergoing rapid change with the introduction of new technologies pushed by customer demands.
Warehouses are a fundamental aspect of the supply chain that many may consider unchanged from year to year. However, that is not the case, as warehouses continue to evolve to meet the changing needs of businesses and consumers. From commercial real estate firms to transportation and logistics providers, most predict that by 2025, the use of technology in warehouse operations will grow exponentially. Sustainability and energy efficiency will be top priorities for warehouses in 2025 as they strive to meet the requirements of the EPA.
However, the biggest factor driving change in warehouses in 2025 continues to be e-commerce. While not a new factor in warehouse management, the popularity of e-commerce will significantly impact warehouses, from their locations to the tools and technology needed to operate warehouses serving this market segment.
Technology Advances in Warehouses
Technology to support warehouse operations has gone far beyond the traditional warehouse management system (WMS). According to Intek Freight & Logistics, a company specializing in transportation management services and technology, there will be a significant rise in automation and robotics.
Real-time data from IoT sensors will provide valuable insights into inventory levels, warehouse conditions, and shipment tracking to enable better decision-making. Shippers are asking for faster deliveries, partially due to new consumer demands. Being late with a shipment for big box stores can also result in fines, some as high as five or ten percent of the order’s value. If a truck has an appointment time at a warehouse, and the load is not ready, a shipment may not reach its destination on time. Other consequences can be congestion in the warehouse dock area or drivers running out of hours of service if delays are extremely long at a pickup location.
Safety Enhancements
Technology is also playing a big role in improving dock worker safety, especially regarding the operations of forklifts. TIO MOBIL is one of many companies developing applications to make operating or working around a forklift safer. This company’s forklift-pedestrian safety system is designed to detect pedestrians in the vicinity of forklifts. The system will provide audible and visual signals that serve as effective alerts for forklift operators. The application also limits the speed of a forklift to what is deemed a safe level. Pedestrians in the vicinity of forklifts are alerted by vibrations within the digital Personal Protective Equipment (PPE) provided with the system.
The forklift collision-avoidance system uses precision Ultra-Wideband (UWB) technology for detecting nearby forklift trucks and restricting the unit’s speed to prevent collisions. Audio-visual signals alert operators immediately, making them aware of trucks in their proximity.
Sustainability & Energy Efficiency
Like most industries, warehouses are experiencing pressure to implement sustainable energy solutions like solar panels and energy-efficient infrastructures to meet environmental goals.
The EPA regulation that most significantly impacts warehouses is the “Warehouse Indirect Source Rule” (also known as Rule 2305), which aims to reduce air pollution generated by mobile sources like trucks delivering goods to and from warehouses, yard trucks, and transport refrigeration units, primarily focused on reducing emissions from warehouse operations by managing vehicle traffic and idling times.
Under Rule 2305, warehouse operators are annually required to commit to implementing enough strategies from a “menu” or pay a mitigation fee to satisfy the number of “points” the operator is required to earn. The number of “points” is based on the number of annual truck trips to and from the warehouse.
Some of the ways that warehouses are becoming more energy efficient include the use of sensors and algorithms to adjust lighting levels, temperature, and airflow based on occupancy and the use of natural light for maximum efficiency. Algorithms can also predict equipment failures and maintenance needs, and AI can adjust consumption based on demand. A benefit of this strategy is the potential to reduce the high cost of energy, by optimizing consumption.
The most significant way for warehouses to become more sustainable is by optimizing yard operations. Gate and yard processes can be streamlined using AI-based monitoring to reduce truck idling time, minimizing fuel consumption.
Pallets are also an opportunity to improve warehouse sustainability. AI technology can be used to track, validate, and count pallets to ensure efficient space utilization. This knowledge can also reduce the need for forklifts to make numerous trips within a warehouse to locate a specific pallet.
E-commerce Changes Expectations
E-commerce is driving significant changes in warehouse design to accommodate new technologies, strategic locations, the need for smaller regional facilities, and the ability to support omnichannel fulfillment. Some businesses require warehouse operators to handle both online and in-store deliveries from the same facility. Micro-fulfillment centers are now becoming prevalent. These small, localized warehouses are often located near urban areas to support fast and efficient order fulfillment. By positioning inventory closer to customers, micro-fulfillment centers enhance last-mile delivery efficiency and improve customer satisfaction.
An associated impact of the increase in e-commerce is the growth of reverse logistics — the return of goods. The importance securing solid reverse logistics system is now becoming essential to the management of a company’s supply chain. This was made clear when in January DHL Supply Chain, one of the world’s largest contract logistics providers acquired Supply Chain Solutions, a division of Inmar Intelligence, a returns solutions provider in North America. The acquisition added 14 return centers to DHL’s North American tally of 520 warehouses. Patrick Kelleher, CEO of DHL Supply Chain, North America said of the Inmar addition, “This acquisition strengthens our existing capabilities, allowing us to offer our customers a single-source solution for their entire supply chain, including the critical and complex area of returns management. This enhances the value we deliver to our customers by streamlining their operations, reducing complexity, and improving their overall supply chain efficiency.”
