While there is evidence of the business sector’s growing confidence in the economy, many companies are still hesitant to throw a lot of cash behind a complete overhaul of their warehouse and distribution centers. Instead, warehouse and supply chain managers are looking for innovative ways to get their DCs up to speed without having to invest too heavily. Currently, warehouse management system software, asset management software and transportation management systems are garnering interest as alternatives to floor-to-ceiling overhauls or new construction.
Almost like a bear coming out of hibernation, companies are emerging from the recession with an eye toward revamping their supply chains, distribution centers, warehouses and transportation methods. Financial concerns have kept heavy investment to a minimum, which is why the need for immediate process improvements is leading company management toward inexpensive software solutions to get them back up to speed and, ideally, ahead of their competitors. Warehouse automation, in particular, has been expanding rapidly as companies work to meet increased business activity with a recession- shrunken workforce.
Just last week, Food Logistics published an excellent article about the growing need to retrofit distribution centers to make up for a smaller labor pool as a generation of warehouse/DC workers hit retirement age. Businesses are still concerned with being fiscally conservative, which means automation is proving to be a good solution for those needing to increase productivity without posting too many hiring signs.
With SaaS in the mix of this growing automation boom, companies are in an excellent position to make the needed improvements to logistics without the sort of financial investment that keeps executives up at night. Maximizing what’s already in place is the key to less risky process improvements, and warehouse management systems offer the functionality needed to do just that.