2022: Top trends in warehousing

 

As COVID-19 continues impacting supply chains, we’re looking ahead to the new trends in warehousing that you need to know about, to ensure your organization’s success in 2022.

Adaptability, flexibility, digitalization, scalability, forward-deployed inventory, and supply chain resiliency are among the leading trends that will help companies meet new consumers’ expectations. 

 

Moving into 2022, companies may transition from “survive” to “succeed,” as they shift from managing risk and disruption to exploiting future growth. This will require technology to build new supply chain strategies.

In the near future, it is not expected that list to include technologies like artificial intelligence, machine learning, blockchain, and the internet of things. While these advances are growing more, they’re still a long way off from becoming the standard. 

Here, then, are some top trends in Warehousing for this year: 

 

1. Elastic Supply Chains

Companies will need to respond to growing volatility in consumer behavior with “elastic” strategies, this is the flexibility to expand and contract capabilities to meet demand within a period of time.

The concept of elasticity is especially useful when companies recognize the supply chain as an end-to-end process, including order entry, procurement, manufacturing, inventory and warehouse management, and transportation and distribution.

When it is implemented correctly, an elastic supply chain can scale up or down, even with the most unforeseen demand behaviors.

 

2. Supply Chain Closer To Customer

In 2022, e-commerce is expected to continue growing, with B2B e-commerce sales expected to increase by 17.5% per year through 2027. 

Recently, the boom in e-commerce and residential deliveries has accelerated the need to expand warehouse and fulfillment space closer to cities to meet faster delivery times. 

Companies have to focus on optimizing their geographic location with end-users in mind. This strategy enables shippers to meet customer expectations for fast delivery without the cost of priority shipping on millions of individual packages. Perhaps many companies invest in a warehouse space closer to their customers.

 

2022: Top trends in warehousing People photo created by aleksandarlittlewolf – www.freepik.com

 

3. Revise HR strategies

As warehouses are becoming more technological, Human Resources Departments should adapt their warehouse hiring processes.

Companies will require employees with a higher education level in warehouse operations, including IT specialists and engineers with robotics experience. This is motivated by the increasing amount of data collection and automation implemented within warehouses and fulfillment centers to increase employee workload.

 

4. Digital Transformation 

Digital transformation across the supply chain will intensify in response to the disruption we have witnessed recently. More rapid adoption is expected of new technologies, such as digital warehouse management systems, which allow customers to see their entire supply chain.

With digital transformation, organizations will take better decisions about their inventory levels and location. Moreover,  digitization will help foster collaboration and improve visibility, which will help your supply chain become more flexible. 

 

5. Prolonged talent shortage

The current driver shortage will continue delaying companies’ shipments. Unfortunately, relief is not expected any time soon, with nearly a quarter of the trucking workforce expected to hit retirement in the next decade—retirement accounts for 54% of the driver shortage, according to the National Transportation Institute (NTI). 

It’s not just drivers, either. With so many container ships waiting off the coast of Long Beach, there is a need for stevedores too. Supply chain professionals, in general, remain in high demand.

 

6. The crunch for capacity will continue

Currently,  there’s too much demand and not nearly enough capacity, it has been exacerbated by the growth in shipping volumes due to COVID-19. Rental prices per ship can be blown out to $200,000 a day, and some brands are paying a premium to move merchandise by air. It will take time to meet demand, and companies will need to make the most of their capacity.

 

Understanding the top emerging trends in warehousing can position shippers for success in 2022. As you develop your logistics strategy, look for collaborative, strategic partners like CARGO CARE SERVICES who have the experience in warehousing services to prepare for any disruption your organization may face. CONTACT US!