In the past years, we have witnessed how technology has slowly started to roll in and take over the different industries worldwide. And, the warehousing and distribution sector is definitely keeping up.
Digital transformation or DX refers to the process of organizations “digitizing” their business methods and leaning on towards technology even more. This is to ensure that all products and services rendered are beyond the expectation of users and customers alike. Also, digital transformation significantly helps accelerate both user and customer experiences, which, in turn, can generate higher profit.
Market Challenges In The E-Commerce Sector
The rise of e-commerce businesses globally are beginning to drive retailers, wholesalers, and third-party logistics providers to improve and further accelerate their evolution and adapt to more digital operations and fulfillment processes.
Over the last few years, technology has become more than just a vision, but rather a reality. With the increasing rate of demand, warehousing facilities and other distribution centers are forced to integrate technologies like robotics, machine learning, artificial intelligence, data and analytics into their day-to-day operations.
As we speak, the warehousing industry continues to experience and face a series of market storms and challenges, such as:
- Service Level Expectations: Customer demands constantly rise, wanting faster, cheaper, and more accurate deliveries of an ever-expanding variety of goods and items.
- Labor Challenges: In the same way customer demands are rising, so does labor costs and workforce shortages. In fact, this is one shared hurdle of most – if not all – warehouse facilities, which is why it’s only timely for digital transformation to finally take over the scene.
Uptime Imperative: Aside from labor challenges, most distribution centers today also face the increasing amount of downtime, and downtimes are critical to running operations. Each hour of downtime can cause workers to go on idle, which, in turn, also result to shipping and logistics delays, decreasing efficiency over time.
For that matter, digital transformation has become a business objective rather than an option for most retailers and warehouse facilities alike. As more and more businesses adapt to this change, shipping, logistics, and operations improve, creating a constant cycle of innovation while delivering exceptional user and customer experiences. Here are only some of the most used and patronized digital transformation technologies in the distribution sector:
- robotics and warehouse drones
- warehouse management system
- transportation management system
- voice-directing technologies
- machine learning and artificial intelligence
Today, digital transformation does not only help companies provide excellent customer service, but it also introduces new and effective solutions to most traditional hurdles warehousing facilities have been facing for years now. Adapting to digital transformation has finally paved the way for a new era of order fulfillment and process efficiencies.
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