The Smart Supply Chain Revolution Begins in the Warehouse
Written by Raghav Sibal, Managing Director ANZ at Manhattan Associates
When people talk about ‘smart’ supply chains, it’s easy to imagine futuristic warehouse facilities straight out of an Isaac Asimov novel—fully automated with robot pickers and packers, efficiently receiving, moving, storing, and shipping packages to eager consumers. You might even daydream about fleets of self-driving trucks, planes, and drones, all powered by hydrogen and solar energy.
However, the reality of creating smarter supply chains in 2024 extends far beyond automation alone. While automation is a critical component for optimising operations, true intelligence in supply chains begins in the warehouse. Today’s warehouses are increasingly becoming the epicentre of the fulfillment universe. If we continue with the astrological analogy, much like a solar system with various celestial bodies in different orbits, warehouses consist of numerous elements, processes, and third-party interactions—all interconnected and working in harmony.
Connectivity is Crucial
In the modern warehouse, connectivity is one of the most vital elements for smooth and efficient operations. This includes everything from ERP systems, automation tools, robotics, scanners, wearable devices, label printers, IoT and RFID sensors, to third-party carrier compliance systems.
The smartest warehouse operations go beyond connectivity; they integrate and unify data sets and insights across a wide range of processes and technologies. With cloud-native solutions, everything is just an API call away, making the seamless convergence and utilisation of data a reality.
However, connectivity is just the foundation. The true power lies in orchestration. For systems focused on execution, such as material handling and robotics, connectivity is only the beginning. The real value is in how a warehouse management system (WMS) can effectively orchestrate tasks across all resources—human and machine alike.
Balancing work between people and machines, optimising picking density, and meeting or exceeding customer SLAs will be the hallmark of the most intelligent warehouse management solutions in the future.
Beyond integration
From the moment an order is placed to its shipment and delivery, a seamless supply chain relies on systems like warehouse, yard, and transportation management working effortlessly together in real-time as part of a unified whole. However, unification isn’t just about integration. It’s about dismantling silos and entrenched processes to address supply chain-wide challenges in innovative and creative ways.
With a versionless, microservice-first approach to technology, there’s no need for lengthy hardware or software upgrades. New capabilities are introduced every 90 days, similar to the iOS updates on your iPhone—except with one crucial difference: operations continue without interruption, as these updates require zero downtime.
In the warehouse, this means that when labour management and warehouse management converge into a single application, a gamified employee experience becomes possible. The integration of performance tracking with execution workflows provides workers with complete transparency on their progress, coupled with motivational techniques to boost productivity and satisfaction.
Moreover, a unified approach to warehouse and transportation management enables continuous refinement of transportation plans. Schedules can now be infused with actual weights and volumes from the WMS as an output of cubing and palletising. Previously, the best approach was to optimise shipments at the start, but once the warehouse began execution, adjustments and exceptions would disrupt the plan. Now, shipments can be built and refined based on real-time, accurate data right up to the point of shipping, resulting in more fully utilised trailers and fewer miles on the road. This not only reduces costs but also supports a more sustainable strategy—a clear win-win.
The Infusion of Applied Science
The idea of applying science in the warehouse environment is no longer just theoretical—it’s a reality happening today. Over the last five years, technological advancements in the supply chain space have accelerated at an unprecedented pace. To stay competitive in this rapidly evolving landscape, organisations must embrace the latest developments in AI and Generative AI.
In this continuous technological arms race, having a team of data scientists to ensure the right techniques are applied to the right problems is essential. For example, enhancing business rules with AI-driven intelligence can help warehouse professionals achieve their goals more efficiently.
Consider a scenario where an organisation has numerous rules governing the prioritisation of work associated with orders based on specific characteristics. AI can augment these prioritisation rules by factoring in proximity to shipment cutoff times while integrating lower-priority tasks to boost pick density and efficiency. As the shipment cutoff approaches, AI automatically adjusts, ensuring on-time shipping. In this scenario, AI expertly balances the competing priorities of timely shipping and picking efficiency—something traditional algorithms and heuristics often struggle to achieve.
While we’re only beginning to explore how this rapidly evolving technology will transform daily and professional life, there are already practical applications for Generative AI in supply chains and warehouses.
Need an answer to a complex question? Simply ask the system, and it will provide an ‘instant’ response. Need help writing an extension? Just input some guidance, and the system will generate a starting point for a function that can be refined and used for custom data validation or updates.
Whether you need assistance configuring certain aspects of the system or providing real-time coaching to onboard new hires more quickly and efficiently, Generative AI can support these warehousing scenarios and much more.
Flexibility: The Key to Continuous Innovation
Finally, and perhaps most importantly: if you want to excel, you can’t afford to upgrade your warehouse management system every four to six years and call it a day.
The past four years—marked by global pandemics, multiple supply chain disruptions, and geopolitical unrest—have taught us that change is not only inevitable but increasingly frequent. Supply chains, particularly warehouse management systems, must be equipped to keep pace with this rapid evolution.
To stay ahead, agility and continuous updates are essential. Cloud-native, evergreen, microservices-based solutions are now the standard. Imagine new capabilities automatically becoming available every 90 days, much like updates to a consumer app or a phone’s operating system.
Today’s warehouse management solutions must be nimble, automatically and continuously updated to remain relevant. But access to ongoing innovation alone isn’t enough.
Customers using intelligent warehouse management systems often have unique demands specific to their business. Therefore, a fully extensible system—where users can easily add data elements, validations, and business rules, and adjust execution workflows—is critical to success.
While the concept of a ‘smarter supply chain’ isn’t new, what is new in 2024 is the holistic approach that integrates high-quality processes, skilled and empowered employees, and cutting-edge technology.
When it comes to supply chain best practices, there’s no silver bullet. However, a strong foundation always begins in the warehouse. Organisations that focus on creating an environment conducive to integration, extensibility, and implementation will transform their warehouse operations from a potential pain point into a competitive advantage.
Ultimately, a more unified supply chain strategy starts in the warehouse, driving efficiency and, in turn, fostering sustainability—both economically and environmentally. This benefits not just the bottom line but the planet as well.
