LogixGRID | Logistics and Warehouse Automation Platform

Top 5 Warehouse Management Trends For 2022

Warehouse management

As we approach the year 2022, it is time to gear up with new business ideas and strategies that can enhance your warehousing business productivity and efficiency. While we all know how important role warehouse management plays in the supply chain of any eCommerce business, sellers often overlook staying up-to-date with the latest warehousing trends that can help them stay ahead of the game.

Implementing technology into warehouse management is going to be the most cost-effective and quickest way to increase the efficiency of your warehouse management operations. As we progress into 2022, warehouse management technologies are likely to grow by leaps and bounds.

Here presenting some of the top warehouse management trends for 2022 that are going to rule in the next year:

1. Cloud Computing :

Cloud computing has brought transformative changes to the manufacturing industry, especially when it comes to warehouse management. Adopting cloud services enabled small-scale manufacturers, retailers, and eCommerce companies to streamline their warehouse operations and drive significant cost savings. Besides, cloud-based warehouse management software development eliminates the need for maintaining complex hardware/software infrastructure, thereby keeping overhead costs to a bare minimum. In 2022, we are going to witness a widespread adoption of cloud ERP across industries for warehouse and inventory management processes. According to Statistica, the global spend on cloud computing is expected to grow from $332 billion in 2021 to $397 billion in 2022.

2. Internet of Things (IoT) :

The internet of things has gained significant traction worldwide and is quickly moving towards mainstream acceptance. Over recent years, there has been a substantial increase in the number of connected devices in all aspects of our day-to-day lives. The manufacturing industry represents a large proportion of the global IoT spend. Radio frequency identification (RFID) is an apt example of IoT in warehouse management. According to International Data Corporation (IDC), the global investment in IoT for warehouse management is expected to grow by up to 11.3 percent (CAGR).

3. Proficient Last-mile Deliveries :

Thanks to eCommerce, there is a growing need for last-mile deliveries occupying a critical position. eCommerce sales and demand for quick delivery continue to increase every year. In 2019 alone, global e-commerce sales grew nearly 21.5 percent, according to statista. In 2022, more and more business owners will be looking to provide an Amazon-Esque shopping experience to customers by working out logistics in a way that would offer same-day delivery. This kind of demand from customers will automatically increase the need for modern last-mile facilities in order to deliver easily and frequently.

4. Supply Chain 4.0 :

The advent of the fourth industrial revolution significantly improved the way we manage supply chain operations by implementing next-gen technologies like AI, IoT, blockchain, and cloud computing. As a result, it rendered complete transparency and connectivity across different SCM activities, enabling enterprises to track shipments and automate workflows. In the coming year, supply chain 4.0 is going to make steady inroads into mainstream businesses.

5. 3PL and 4PL Logistics :

We have already witnessed tremendous growth in third-party logistics across the manufacturing and supply chain industries. As of today, 3PL is one of the most extensively used logistics models across the globe. However, many small-scale enterprises continue to rely on 2PL logistics to this day. In 2022, we are going to see widespread adoption of 3PL logistics as new enterprises build trust in third-party logistics service providers. At the same time, 4PL logistics is likely to gain traction worldwide as more businesses invest in automating their entire supply chain.

Conclusion :

Warehouse management software development has come a long way with numerous technological advancements, making operations more streamlined than ever before. It is only an indication of the groundbreaking inventions that are yet to come. As time goes by, we shall see drones and robots continuing to replace humans, in return, offering more agile and streamlined workflows. Soon, we shall see machines and software algorithms collectively handling more complex warehouse operations such as storage, procurement, shipping, and more.

Logix Platform offers a complete warehouse management system as Logix WMS. It comes up with Multi-warehouse inventory management which ensures that data from all your warehouse & ordering systems are synchronized and updated in real-time.

Benefits with Logix WMS :

  • Get access to cloud-based WMS
  • Manage your multiple warehouses centrally
  • Complete tracking of inventories
  • Portal access for your customers
  • Generate barcode and scanning
  • Multiple carrier label printing
  • Pre-integrated accounting system
  • Multiple inventory reports

To book an online demo with logix Platform, click here :

Top 5 Major Challenges in 3PL and Distribution Industry

Major Challenges in 3PL

Logistics has always been a very important part of every economy and every business entity. The worldwide trend of globalization has led to many companies outsourcing their logistics functions to third-party logistics (3PL) companies. This helps them to concentrate more on their core competencies and hence generate higher revenues.

With more sellers, the demand for third – party logistics ( 3PL ) warehouses has never been higher. Businesses need third parties that can handle the intricacies of their logistics so they can double down on their core competencies.

To help you navigate the new realities of a booming supply chain, and more specifically 3PL warehouses, we’re highlighting some of the most crucial challenges you’ll need to tackle head-on in 2021 and beyond.

1. Scalability :

Exponential growth without the logistical backbone to support it is a recipe for disaster. This is one of the prime reasons why businesses rely on 3PLs. They want to delegate the logistical headaches to a third party so they can focus exclusively on compounding growth.

All of a sudden, the systems and processes of the 3PL warehouse are going through a rigorous stress test, and many are already snapping. Hence why we believe scalability is going to be one of the biggest challenges for 3PLs moving forward.

2. Seasonality :

Between rent, salaries, and other commitments, the traditional brick-and-mortar stores have to pay a premium regardless of business activity. But eCommerce brands can run without any major financial commitments, allowing them to scale costs back when things are slow. It’s not surprising then to see internet brands thriving in highly seasonal categories.

Unfortunately, this also means that 3PLs are under intense pressure to accommodate these massive shifts from season to season. Running out of space, dealing with untrained seasonal workers, and filling the cracks in processes to accommodate the new peaks—and then scaling everything back to lows once the season runs out—is painfully challenging.

This is especially true for 3PLs that specialize in helping clientele in seasonal categories. Examples include merchants selling winter sports gear, air coolers, and even metal detectors. This ties in with our previous point, as scaling down is just as important as scaling operations up.

3. Shipping :

There’s no denying that the modern consumer wants cheaper and faster shipping. With Amazon constantly pushing the boundaries of the shipping experience, we’re seeing no signs of this trend slowing down anytime soon.

In other words, faster and cheaper shipping is turning from a nice-to-have into a must-have for digital merchants. It can literally make or break their business.

Merchants are naturally turning to 3PL warehouses to fulfill this demand. But with the costs of shipping rising worldwide, not to mention the challenges that come with handling a wide variety of products at scale, many 3PLs are struggling to keep up.

As a result, they’re losing clients to warehousing providers who have developed creative solutions to reduce shipping costs for their customers and have the resources to tackle these challenges.

4. Storage Space :

Traditional warehouses were designed according to the needs and requirements of the time. There’s only so much growth a store in some small town can hope to have in a year. But in the world of online commerce, a single viral campaign can expand the sales of a business by hundreds if not thousands of percentage points. So flexibility is incredibly important for 3PLs as they are exposed to exponential growth on two sides: their own business and that of their customers.

Unfortunately, one of the first side effects of exponential growth is that warehouses run out of space. Failing to offer adequate capacity can put a deep dent into the reputation of any 3PL. Add to that the massive price hikes in real estate across the nation, and you can see why space requirements are going to be a massive challenge this year.

5. Storage Space :

Finding the right talent is never easy. With the sudden growth in logistics, we have more companies fighting for expansion than ever, and as a result, workers have many options to pick from. Amazon, for instance, is expanding its workforce aggressively, both in terms of acquiring talent and offering competitive compensation. Then there’s the fact that acquiring talent is only half the battle. Retaining the ones who are genuinely driven and hardworking is easier said than done.

The result is that hiring, training, and retaining the right people, all while keeping costs at the minimum to keep your pricing competitive, is yet another major challenge 3PL warehouses are facing today.

How does the Logix Platform help you to overcome these challenges ?

At Logix Platform, our mission is to arm 3PL warehouses with sophisticated warehouse management system (WMS) solutions that can level the playing field for them. We have connected solutions to automate nearly every aspect of your warehouse, for, receiving, picking, packing, shipping, and overall warehouse management.

At LogixPlatform, every action we take while fulfilling your order has an automatic, corresponding digital counterpart in our dashboard, which keeps 3PL order fulfillment processes efficient and consistent. Each step is directed by information that is automatically populated in the dashboard when an order is placed. It also comes up with e-commerce and carrier integrations to enhance your business experience.

With Logix Platform, get access to eComGlobus, an advanced eCommerce Fulfillment platform that offers all eCommerce logistics solutions in a single platform to manage your eCommerce/Shopify store very easily.

E-COMMERCE LOGISTICS 2020

Top eCommerce Logistics

Regardless of whether an e-Commerce business is simply just beginning or growing, there can be a number of variables to consider. When Amazon started offering faster deliveries the new eCommerce logistics concerns raised. Customers now generally expect the deliveries to be free that too in a day or two without any disruption to quality and precision to their deliveries.

There are main eCommerce logistics concerns that e-commerce businesses should take note of to ensure they are heading in the right direction.

Important eCommerce Logistics Competencies :

For e-Commerce businesses, logistics is a vital aspect to achieve growth and give your customers the best experience. For successful eCommerce logistics operations the businesses should look for these important aspects:

Coordination with multiple warehouses : While dealing with multiple warehouses and deliveries in various geographies, coordination and integration is important. To meet customer expectations and needs, every component of the supply chain needs to be in sync with one another. As a business expands, businesses often include logistics capacity in an ad hoc manner. To enhance and promote the growth of eCommerce logistics it is important for organizations to put resources into synchronizing and establishing a connection between their different platforms.

Technology: Big data, Analytics & Automation : Big data & Analytics, can have a distinct advantage in eCommerce logistics concerns. For instance, big data can help identify demand patterns & trends that were undetectable earlier. The software can now make a prediction based on big data which helps in inventory planning with active trends and online product interests’ Big data also plays a crucial function in augmenting product travel by using data analytics and real-time information. The system gathers and evaluates information from a wide range of sources like the internet, GPS trackers, climate forecasting, etc. to foresee the ideal course from pickup to the delivery point.

Localization of Inventory: In the early days, retailers used to fulfill orders from small local warehouses but in present times the shorter delivery cycle has driven dealers to distribute their inventories and keep their inventories in small warehouses which close to populated areas to reduce the delivery duration. It similarly allows them to utilize local transporters which is less expensive and help minimize expenses.

Last-mile : Allegedly the last-mile can be labelled as one of the most complex segments of eCommerce logistics. This is the phase where a package reaches the last journey of the delivery process to the customer. The last mile is commonly executed by a postal or transporter. The complexity of last-mile is because of the challenge of getting the package to a customer in the estimated time. As the last-mile is the last contact between the brand and customer in the eCommerce logistics chain, and it is a crucial opportunity to make a lasting impression and its significance to do it right.

Return Processes : So, there are instances where customers are not happy with a purchase and willing to return or replace them this a process which comes under reverse logistics. Returns and replace accounts for over 25% of sales in e-commerce, where customers make purchasing decisions only by seeing but can feel or try once it is delivered. The expenses and components for taking care of reverse management also need to be considered in eCommerce logistics plans and their budget.

3PL Provider : A good 3PL partner can help e-Commerce business achieve success and growth with their services. It is a must for businesses to realize the importance of a 3PL partner as they have plenty of abilities, for example, manpower, technology, labor, geographic expertise and skills. Significantly allowing retailers and sellers to emphasize their main business areas by offering scalability as the business grows.

Logix ECOM helps companies manage their eCommerce logistics with multiple support modules which can be used not only by 3PLs but for e-commerce companies who have in-house logistics capacity as well. With Logix ECOM companies can manage business operations on a single dashboard from receiving the order to delivering it to the doorstep of customers.

Logix Platform offers a global customer portal and API integrations platform where this customer could easily route the shipments to the particular carrier, update tracking information and complete the process.

It also comes up with e-commerce and carrier integrations to enhance your business experience.