Covid-19 and the impact on the consumer goods industry
06 July 2020
For order fulfillment facilities to be successful in the future, it’s essential to understand what changes and challenges the industry will face.
With economic forecasts swaying unpredictably, warehouses need to implement new solutions based not only on what works now but also ten years from now.
At Kardex Remstar, we find many companies start with small, but modular and scalable solutions. This leads them down an open path – one that provides the ability to grow and extend solutions when and if needed. Ideally, sales and automation grow together.
With the entire world experiencing a global pandemic, retailers and warehouse managers cannot escape its repercussions. The consumer goods industry has undoubtedly seen drastic shifts in operations and supply chains. Due to the spike in online shopping, warehouse operations need to remain in full flow and perhaps even more so than before.
One thing that strict social distancing guidelines brings is a pinch for space in warehouses, as a need to retrofit operations continues. Physically separating workstations, installing hand sanitising stations, and reworking traffic flow leaves facilities in need of more space.
Automation is the key to success and essential if you want to ensure sustainable growth. By combining automated storage solutions with software management systems and features like remote services and the right picking strategies, the result is an efficient, resilient, and cost-effective warehouse that proves it’s Return on Investment (ROI) in approximately 18 months.
The best type of solutions are modular and scalable and can be modified as a business develops. Therefore, it’s essential to put existing solutions to the test. Do they still meet the business needs? Do they execute the most efficient order picking possible? More and more automation will take over or at a minimum support picking, sorting, inspecting, storing, handling, and classifying products. New technology will provide up-to-the-minute inventory accuracy, reduce overstock, and allow for mass customisation.
According to Statista, Industry 4.0 will be a Macrotrend for 2020. This will certainly impact the overall consumer goods and supply-chain industries. We’ll see advances in automation, robotics, artificial intelligence (AI), and the reality of a Smart Factory (highly digitised and automated production facility).
Automation is the recipe for success when it comes to significantly increasing productivity in the consumer goods industry. To learn more, download our free Consumer Goods Industry Tips and Trends or contact us at firstname.lastname@example.org