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A research report on the internet collected feedback from over 200 professionals in warehouses and distribution centers from various industries. It provides detailed insights into the future prospects for 2024. The report believes that employment issues for offline enterprises, ongoing supply chain disruptions, rising shipping costs, and concerns about insufficient physical space will remain the top priority in the areas of order fulfillment and delivery operations in 2024.
As labor, material, and transportation costs continue to put pressure on the company's profitability in 2024, more and more warehouses are turning to technology, automation, and robotics to simplify their order fulfillment processes, reduce costs, and compete more effectively. They also made better use of vertical space and used space saving devices such as automatic storage and retrieval (AS/RS) systems to improve efficiency and further reduce costs.
The report believes that the main goal of the enterprise is consistent with improving overall operational efficiency. A considerable number of companies prioritize reducing errors and improving order accuracy, while the same group seeks to increase productivity. The enterprise aims to address the challenge of space utilization and is committed to improving the picking and processing processes.
The core goals for the future include improving profitability, reducing the cost of each order, achieving real-time inventory visibility throughout the supply chain, simplifying order fulfillment cycles, and upgrading order picking technology. This common goal reflects the industry's commitment to achieving financial returns and operational excellence.
Expected challenges
It is not surprising that labor ranks high on the list of order fulfillment and distribution center managers being hit. It is also not surprising that while the world is recovering from the aftermath of the pandemic, supply chain and shipping costs still keep them up at night. As more and more consumers' expectations for e-commerce delivery time continue to expand, the "big fish" has shortened delivery time, and customers' demand for faster delivery continues to rise.
The challenge goes beyond that. The company also hopes to address replenishment issues, higher order volumes, better order accuracy requirements, and ongoing return management challenges. For a small group of respondents, convincing the company that "we need to enter the 21st century in warehousing" will be the biggest obstacle in the next year.
Comparing these results with the current challenges faced by warehouses and DC operators, such as recruiting and retaining employees, supply chain disruptions and shortages, higher freight and transportation costs, and increased customer demand for faster delivery, it is clear that many of the challenges faced by companies will continue into the next year.
So, what is the plan?
Entering 2024, the company will address order fulfillment and distribution challenges by enhancing process capabilities, implementing or upgrading order fulfillment technology, making personnel changes, or implementing upgraded order fulfillment software.
In order to cope with new order fulfillment and distribution realities, the company also plans to hire more employees, improve return management processes, collaborate with more third-party suppliers, redeploy employees to different job positions, or improve the ability to ship and pick up goods from stores.
Technology and automation will continue to play an increasingly important role in modern order fulfillment or delivery environments.
Specifically, the organization plans to implement WMS/WES/WCS software (18%), RF picking technology (17%), conveyor and sorting systems (15%), robotic cube storage (12%), AMR (12%), AGV (11%), and ASRS (9%) including vertical lift modules, vertical carousel, and vertical buffer modules. The company also plans to evaluate and implement more small-scale loading/unit loading systems and light picking technologies.
A survey shows that 40% of companies plan to further invest in additional automation systems and technologies or expand existing systems in the next year.
As companies find ways to meet current needs and prepare for future fulfillment operations, they are increasingly seeking ways to integrate automation into warehouses and distribution centers. Focus on simplifying processes, improving labor utilization, increasing output, and enhancing customer satisfaction.
Strive to promote new automated warehousing models
Mastercard strives to promote a new warehousing model that is automated and intelligent.
In the future, we will never forget our original intention and always adhere to the concept of "unity of knowledge and action, and far-reaching wisdom and action". Focusing on technological innovation in logistics equipment, comprehensively improving the company's technical quality, and giving back advanced technology and professional services to customers.
A research report on the internet collected feedback from over 200 professionals in warehouses and distribution centers from various industries. It provides detailed insights into the future prospects for 2024. The report believes that employment issues for offline enterprises, ongoing supply chain disruptions, rising shipping costs, and concerns about insufficient physical space will remain the top priority in the areas of order fulfillment and delivery operations in 2024.
As labor, material, and transportation costs continue to put pressure on the company's profitability in 2024, more and more warehouses are turning to technology, automation, and robotics to simplify their order fulfillment processes, reduce costs, and compete more effectively. They also made better use of vertical space and used space saving devices such as automatic storage and retrieval (AS/RS) systems to improve efficiency and further reduce costs.
The report believes that the main goal of the enterprise is consistent with improving overall operational efficiency. A considerable number of companies prioritize reducing errors and improving order accuracy, while the same group seeks to increase productivity. The enterprise aims to address the challenge of space utilization and is committed to improving the picking and processing processes.
The core goals for the future include improving profitability, reducing the cost of each order, achieving real-time inventory visibility throughout the supply chain, simplifying order fulfillment cycles, and upgrading order picking technology. This common goal reflects the industry's commitment to achieving financial returns and operational excellence.
Expected challenges
It is not surprising that labor ranks high on the list of order fulfillment and distribution center managers being hit. It is also not surprising that while the world is recovering from the aftermath of the pandemic, supply chain and shipping costs still keep them up at night. As more and more consumers' expectations for e-commerce delivery time continue to expand, the "big fish" has shortened delivery time, and customers' demand for faster delivery continues to rise.
The challenge goes beyond that. The company also hopes to address replenishment issues, higher order volumes, better order accuracy requirements, and ongoing return management challenges. For a small group of respondents, convincing the company that "we need to enter the 21st century in warehousing" will be the biggest obstacle in the next year.
Comparing these results with the current challenges faced by warehouses and DC operators, such as recruiting and retaining employees, supply chain disruptions and shortages, higher freight and transportation costs, and increased customer demand for faster delivery, it is clear that many of the challenges faced by companies will continue into the next year.
So, what is the plan?
Entering 2024, the company will address order fulfillment and distribution challenges by enhancing process capabilities, implementing or upgrading order fulfillment technology, making personnel changes, or implementing upgraded order fulfillment software.
In order to cope with new order fulfillment and distribution realities, the company also plans to hire more employees, improve return management processes, collaborate with more third-party suppliers, redeploy employees to different job positions, or improve the ability to ship and pick up goods from stores.
Technology and automation will continue to play an increasingly important role in modern order fulfillment or delivery environments.
Specifically, the organization plans to implement WMS/WES/WCS software (18%), RF picking technology (17%), conveyor and sorting systems (15%), robotic cube storage (12%), AMR (12%), AGV (11%), and ASRS (9%) including vertical lift modules, vertical carousel, and vertical buffer modules. The company also plans to evaluate and implement more small-scale loading/unit loading systems and light picking technologies.
A survey shows that 40% of companies plan to further invest in additional automation systems and technologies or expand existing systems in the next year.
As companies find ways to meet current needs and prepare for future fulfillment operations, they are increasingly seeking ways to integrate automation into warehouses and distribution centers. Focus on simplifying processes, improving labor utilization, increasing output, and enhancing customer satisfaction.
Strive to promote new automated warehousing models
Mastercard strives to promote a new warehousing model that is automated and intelligent.
In the future, we will never forget our original intention and always adhere to the concept of "unity of knowledge and action, and far-reaching wisdom and action". Focusing on technological innovation in logistics equipment, comprehensively improving the company's technical quality, and giving back advanced technology and professional services to customers.