Logistics Automation: How to Adapt and Revive the Shipping Sector Post-pandemic

The global lockdowns imposed to curb the spread of COVID-19 have massively increased the demand for supply chain and logistics technology. ResearchAndMarkets.com predicts that the global logistics market, post-pandemic, could skyrocket from $2,734 billion in 2020 to $3,215 billion by 2021. But, during these times of never-before-seen restrictions, companies have had to operate under extraordinary circumstances:

• Supply chains have struggled with logistical bottlenecks, caused by the restricted flow of goods, placing new importance on transportation while simultaneously having a negative effect on freight capacity.
• Lockdowns of city and country borders have caused huge disruptions for shippers, as well as confusion around the live status at the various locations. This has meant that many of them have been working “blind”, to an extent.
• Limited labour supply at warehouses and distribution centres, as well as at brokers and logistics service providers, have caused delays at pickup and delivery points. This could have the knock-on implication of rerouting products to stores.

So, in a bid to simplify processes, an ever-growing number of logistics and parcel companies are turning to automation. Automation in logistics refers to the use of control systems or software to run part of the supply chain, with minimum human intervention. There are many advantages to logistics automation, including:

• Minimising manual errors and reducing costs. Manually inputting inventory data, recording item numbers, quantities or locations etc. is prone to human error. And for each incorrect data entry, there’s a mistake in order fulfilment that can result in a significant loss. Introducing logistics automation reduces the number of manually handled operations and improves accuracy, thereby avoiding extra expenses.
• Improving customer service. Automated systems provide a final shipping cost, as well as real-time information on shipment status, location and delivery time. Customers who receive a transparent and seamless delivery experience feel much more positive about an interaction with a brand and, thus, are more likely to stay loyal and recommend a company to others.

There are, however, some who still see automation as a threat to human livelihoods. Yet, despite widespread concern, automation does not completely remove human involvement in logistics processes. On the contrary, many technologies require human assistance in order to operate successfully, i.e. creating new disciplines and skillsets etc.

Here's our pick of the top innovations in logistics processing and automation, designed to anticipate and overcome post-pandemic challenges.

Robotic warehouse systems

In 2016, around 80% of warehouses didn’t have any automated processes. Nowadays, in a world where social distancing has become the “new normal”, automation has become a concrete standard. Automated equipment can vastly improve the sanitation of warehouses and even eliminate the need for surface disinfection.

Warehouse management systems can be broadly divided into the following types:

• Automated Guided Vehicles (AGVs). AGVs are driverless vehicles that transport containers, pallets and boxes around a warehouse. They're integrated with a facility’s infrastructure and follow a digital route through a warehouse without needing a human operator. Moreover, AGVs have additional safety scanners that allow them to be used alongside manual vehicles.
• Autonomous Mobile Robots (AMRs). AMRs use many of the same technologies as AGVs. The main difference is that AMRs don’t require a pre-set digital route to navigate a warehouse. They understand their environment through installed sensors and can reroute when needed. AMRs can identify the information on each package and sort them accordingly.
• Automated Storage and Retrieval Systems (AS/RS). AS/RS are a technology designed to bring product and inventory in and out of storage, on-demand. Typically, AS/RS is integrated with warehouse execution software that directs operations, but it can vary widely, depending on the task or goods in question.
• Warehouse drones. These operate inside the warehouse space and can’t physically move products around — their function is purely one of data collection. Drones can get to hard-to-reach places quickly and scan inventory faster than a person can. Furthermore, the data scanned can be instantly uploaded to warehouse management software. Nowadays, most drones require human assistance but the goal is to reach a more autonomous state, where little to no assistance is needed.
• Picking robots. Also referred to as “robotic arms”, these robots help warehouses receive and store products. Picking robots perform a pick-and-pack function, replicating the motions of a human picker.