5 Next Gen Technologies Making Warehouses Smarter & Safer
Warehouses play a vital role in the storage and exchange of different types of goods in an economy. It is a requirement for organizations that manufacture, import, export, or specialize in moving goods from one place to another.
Benefits of Warehouses
Warehouses give you control over inventory, and this ensures that customers can get their desired goods whenever they need them. Small businesses offer poor customer experience, experience delayed order processing, and late shipments.
According to business experts, this can be attributed to the lack of an effective inventory management system.
The second benefit of warehouses is that they facilitate efficient packing, and movement of goods. Modern warehouses are equipped with the equipment needed to store, pack, and move stored goods when required.
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For example, you will find pallet racks, loading docks, and materials as are necessary for packing goods. Having all the equipment required for the different tasks in one place helps to save time and money.
Manufacturing companies have warehouses where they pack and grade finished products in accordance with the law and to meet customer expectations. Having a warehouse lowers logistical costs significantly. An enterprise that has warehouses does not incur expenses such as arranging pickups or paying employees to supervise the process.
The third reason why warehouses are crucial for a business is that it can help to ensure price stabilization. Markets are dynamic.
Therefore, the demand for goods varies from time to time, depending on factors such as climatic conditions, political stability, and employment rates. If you have a warehouse, you can store your goods and sell them when the prices go up to reduce losses.
Lastly, a warehouse is a risk management tool. Other than protecting business owners against price changes, it can also help to provide a safe storage space for perishable goods. For example, a warehouse structure can be equipped with refrigerators, which help to maintain temperatures at an optimal level.
Some products that may require warehouse owners to install freezers include medication and food. In most cases, goods stored in a warehouse are insured. Therefore, insurance companies pay for any damages or losses that may occur, depending on the terms of a policy.
Improving Warehouse Systems by Using IoT
IoT stands for Internet of Things. It is a system of devices that are connected using the internet. According to industry statistics, the number of connected devices is expected to rise to 31 billion by the end of next year and 75 billion by 2025.
A study among warehouse owners has also revealed that a significant number of them intend to install smart warehouse systems in the next four years.
Shifting to smart warehouses is expected to cost business owners more than $2.5 billion during that period. Manufacturers and retailers store even thousands of individual products in warehouses. As customers place their orders, keeping track of all the items that are moving in and out can be a difficult task.
However, that can be easy if smart devices are used to manage the inventory on your behalf. The use of IoT technology can also benefit consumers as they have an opportunity to track their orders in real-time.
Here are 3 Ways to Improve Warehouse System with IoT Technologies.
1. Reduced Labor Costs
The use of IoT smart devices helps to lower the costs of labor significantly. Only a few employees will be required to track and find products on shelves using smart devices. The tools keep a backup of a product’s location in a warehouse, and this makes it easy for employees to retrieve when needed.
A smart warehouse system also contains sensors which notify business owners when some products require special attention.
Your employees will not need to inspect one item at a time for any damages unless it is absolutely necessary for them to do so. Using IoT technologies will also help to reduce labor costs as only a few employees will be required to perform tasks such as sorting and stacking. The amount of time used to do the work will also reduce significantly.
2. Improving Logistics
IoT technologies can be used to find the best routes that trucks can use when moving goods from one warehouse to another. The smart devices can also help to determine the right parameters such as temperature and humidity needed when moving the goods.
3. Repair and Maintenance of Equipment
The technology keeps track of information such as when equipment in a warehouse was repaired. Another benefit of using IoT devices is that it helps to determine the ideal time when machines can be restored to ensure increased productivity and lower costs.