Why should a warehouse automate if internal operations are going well? Is there consumer demand for it? Where does the pressure for automation come from?
End-consumers are not the ones primarily and directly demanding smooth and efficient warehouse operations; after all, they typically do not witness the inner workings of warehouses. Instead, the pressure for warehouse automation often originates internally. The nature of the supply chain industry is very competitive. Warehouse management contracts are often up for renewal, prompting managers to seek technologies that can reduce labor costs. Companies that can trim their workforce, even modestly, from say 100 to 80 employees or fewer, gain the ability to offer lower prices while maintaining profitability.
While a warehouse might seem to be performing well at present, competitiveness is not guaranteed upon contract renewal. Waiting to see where the industry is headed isn’t a viable strategy. “You cannot be a follower in this industry, you must be a leader,” says Michael Currie, CEO of Fling.AI. If competitors deploy advanced systems before you, your warehouse risks becoming uncompetitive. All these factors come into play, and consequently, the pressure to automate stems from the imperative to keep up with competitors’ innovations.
Smart warehouse managers recognize this and proactively strive to stay ahead. Those who fail to do so may find their business shrinking, losing market share to competitors who prioritize innovation. While these changes may not be immediately perceptible on a day-to-day basis, they accumulate rapidly over the years. Only by embracing innovation and automation can warehouses hope to survive and thrive in this dynamic industry.
Fling.AI helps warehouses stay ahead in the game, visit https://www.flingai.com/ to learn how.
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