Digital warehouses provide better tools to control stock as well as other assets by using technologies such as the cloud, big data and AI.
Digital warehouses use technologies such as the cloud, big data and AI to offer efficiency, lower costs and better stock management for all industries, from automotive to ecommerce. In a nutshell, digital warehousing provides complete visibility of the supply chain.
The boom of ecommerce and last mile delivery services has increased the demand for industrial space for logistics and warehousing activities, and it has also triggered innovation in terms of how to build and how to use these assets. In fact, recently built facilities focus more on optimization, collection speed and space for potential growth, mentions JLL, a global real estate company.
Mr. Alejandro Luna, Sales director and country manager at Infor Mexico, explains how efficient warehouse management is key for manufacturing and retail businesses.
“The pandemic brought with it a boom in industrial parks and discrete manufacturing, and retail businesses digitized their purchase model. Today, there are several tools available that help businesses to get to know their clients, and their shopping habits. The daily interaction with digital devices is forcing businesses to digitize their product matrix and have more predictability when looking at their clients’ needs. The ecosystem within industrial parks, and warehouses has to be digital and flexible.”
Mr. Luna mentions that the volatility that supply chains have experienced in recent years, together with rising prices for energy, transport and raw materials, have encouraged the creation of more resilient and flexible supply chains and warehouses. Businesses need to cope with fluctuating demand while adhering to best practices in efficiency, safety and sustainability.
“Infor offers an array of warehousing solutions. By designing the warehouse of the future, we want to help businesses understand their clients and how to best meet their needs, while finding other market opportunities for them,” says Mr. Luna.
Infor’s Wellness Management System (WMS) allows customers to clearly map out their product distribution within their warehouses and to understand product fluctuations. The system immediately detects shortages, avoiding breakages in the supply chain and guaranteeing product delivery.
“By designing the warehouse of the future, we want to help businesses understand their clients and how to best meet their needs, while finding other market opportunities for them.”
Alejandro Luna, Sales director and country manager at Infor México.
The power of new technologies
The director and country manager at Infor Mexico believes that the digital warehouse of the future should focus on the supply chain and must have accurate data, a suitable platform and the right people. The strategy is also key.
1. Data. The Economist claims that data has surpassed oil as the most valuable commodity, so it is essential for organizations to have total control over their data. Before even thinking about a digital transformation, companies should consider implementing a data management strategy led by a specialist. Once there is a data lake in place, technologies such as AI and automation can be applied for repetitive tasks, liberating valuable resources. For example, reports can predict if a machine is about to malfunction considering its history and current use.
2. Cloud computing. The cloud is an essential tool to achieve total visibility of the supply chain. The use of cloud computing makes interconnectivity a lot easier and that is the key to overcome the complexities of the supply chain, become more agile and defeat volatility. For example, there are a number of platforms that connect partners, businesses, manufacturing companies, 3PL and banks through a network supply chain in the cloud. Nike, for instance, does not own warehouses, instead they have a global partner network that represents them.
3. The platform. Once businesses are ready for digitalization, there is a wide variety of available technologies, systems, apps and functionalities that can add value. The platform and the data lake are the foundations for transformation. The platform is the element that increases the reaction time by using all the information available to overcome any issue that might arise. The tools already included are easily configured as they have the latest functionalities and are crucial for long-term transformation.
4. Human factor. The warehouse of the future is digital and it implicates a lot more than automation and improved workflow. The warehouse of the future empowers people and creates more value by optimizing multidimensional data in an agile and resilient supply chain in the cloud.
