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Transportation Review | Saturday, February 10, 2024
Companies also seek smarter systems, such as barcoding technologies, that integrate with their existing ERP and inventory systems to streamline processes and increase efficiencies.
Fremont, CA: Manufacturers and distributors seek innovative methods to enhance efficiency and productivity in their material handling operations, driven by economic conditions and changing demands in modern supply chains. The growth of e-commerce and economic uncertainty are expected to significantly impact their approach to addressing productivity challenges in their facilities in 2024. Warehouses and distributors will make material handling decisions in 2024 based on the following five trends:
The Rising Cost of Square Footage
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The rising costs of goods and services make commercial construction more expensive for small and medium-sized businesses. They utilize conveyors and material handling systems to maximize and use vertical space to meet growing demand. Lifters and overhead conveyors move totes, cartons, and pallets with carriers that can handle multiple loads.
Worker Shortages
Manufacturers and distributors increasingly utilize automated systems and robotics to meet production schedules amid worker shortages. Some invest in new technologies, while others adopt flexible solutions that can be deployed quickly without reconfiguring production lines or factory footprints. Warehouse robots, for example, use integrated sensors to navigate their environment. Companies also seek smarter systems, such as barcoding technologies, that integrate with their existing ERP and inventory systems to streamline processes and increase efficiencies.
Growth of E-Commerce
Companies now use e-commerce to purchase online conveyors and other material-handling equipment, allowing them to outfit their facilities quickly and inexpensively. Supply chain procurement managers can now compare costs and shop for a growing variety of warehouse and distribution center products and parts with the click of a button.
Faster Delivery Times
Supply chains rapidly expand, and there's no time to wait for expensive, custom-designed systems. Lead times for material handling solutions have improved since 2020, but not back to pre-pandemic levels. Off-the-shelf conveyor solutions, which can be configured quickly, are helping supply chains keep pace.
Energy-Efficiency
As operating costs increase, reducing energy consumption is crucial. Replacing legacy conveyor systems with motorized driven roller (MDR) systems that only use electricity when moving cargo can be an effective energy-efficiency strategy. The MDR system could save up to 81% in energy by replacing a chain-driven live roller conveyor system that uses 0.75kWh for operation.
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