•   Exclusive

2018 Warehouse/DC Operations Survey: Labor Crunch Driving Automation

The combined forces of a strong economy, e-commerce growth and a tight labor market are making it more important for distribution center (DC) operations to find ways to make their existing infrastructure and people more productive. Software and automation continue to prove to be a vital part of the solution.

Subscriber: Log Out

Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.

The findings from our “2018 Warehouse and Distribution Center (DC) Operations Survey” cascade from strong economic growth and a tight labor market on the one hand, and e-commerce growth and order fulfillment complexities on the other. Strike these mega-trends against each other like flint against steel, and sparks will fly.

In fact, the labor crunch grew further as the No. 1 issue in the survey, while respondents report increased use of warehouse management systems (WMS) and other software, additional automation, and greater use of metrics and more advanced picking methods to cope with these challenges. A few of the highlights include:

  • Inability to attract and retain a qualified hourly workforce was the leading industry issue, cited by 55% of respondents, up 6% from last year;
  • the third year of asking about omni-channel fulfillment, 21% now say they have an omni-channel operation, up from 19% last year, while 40% say they support e-commerce fulfillment; and
  • use of some type of warehouse management system(WMS) reached 93%—the first time that response topped 90%.

The survey, conducted annually by Peerless Research Group on behalf of Peerless Media’s Supply Chain Group drew 138 responses this year from professionals in logistics and warehouse operations across multiple verticals. According to Norm Saenz, Jr., a managing director with St. Onge Company, and Don Derewecki, a senior consultant with St. Onge Company, a supply chain engineering consulting company and our partner for this annual survey, respondents are clearly seeking to apply technology to address the mounting pressures.

This complete article is available to subscribers only. Log in now for full access or start your PLUS+ subscription for instant access.

SC
MR

Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.

The findings from our “2018 Warehouse and Distribution Center (DC) Operations Survey” cascade from strong economic growth and a tight labor market on the one hand, and e-commerce growth and order fulfillment complexities on the other. Strike these mega-trends against each other like flint against steel, and sparks will fly.

In fact, the labor crunch grew further as the No. 1 issue in the survey, while respondents report increased use of warehouse management systems (WMS) and other software, additional automation, and greater use of metrics and more advanced picking methods to cope with these challenges. A few of the highlights include:

  • Inability to attract and retain a qualified hourly workforce was the leading industry issue, cited by 55% of respondents, up 6% from last year;
  • the third year of asking about omni-channel fulfillment, 21% now say they have an omni-channel operation, up from 19% last year, while 40% say they support e-commerce fulfillment; and
  • use of some type of warehouse management system(WMS) reached 93%—the first time that response topped 90%.

The survey, conducted annually by Peerless Research Group on behalf of Peerless Media's Supply Chain Group drew 138 responses this year from professionals in logistics and warehouse operations across multiple verticals. According to Norm Saenz, Jr., a managing director with St. Onge Company, and Don Derewecki, a senior consultant with St. Onge Company, a supply chain engineering consulting company and our partner for this annual survey, respondents are clearly seeking to apply technology to address the mounting pressures.

SC
MR

Latest Podcast
Talking Supply Chain: Assessing the freight market
Is the freight market in a slump, or about to come out of one? AFS Logistics’ Andy Dyer breaks it down in this episode of the Talking Supply…
Listen in

About the Author

Roberto Michel, Editor at Large
Roberto Michel's Bio Photo

Roberto Michel, senior editor for Modern, has covered manufacturing and supply chain management trends since 1996, mainly as a former staff editor and former contributor at Manufacturing Business Technology. He has been a contributor to Modern since 2004. He has worked on numerous show dailies, including at ProMat, the North American Material Handling Logistics show, and National Manufacturing Week.  You can reach him at: [email protected].

View Roberto's author profile.

Subscribe

Supply Chain Management Review delivers the best industry content.
Subscribe today and get full access to all of Supply Chain Management Review’s exclusive content, email newsletters, premium resources and in-depth, comprehensive feature articles written by the industry's top experts on the subjects that matter most to supply chain professionals.
×

Search

Search

Sourcing & Procurement

Inventory Management Risk Management Global Trade Ports & Shipping

Business Management

Supply Chain TMS WMS 3PL Government & Regulation Sustainability Finance

Software & Technology

Artificial Intelligence Automation Cloud IoT Robotics Software

The Academy

Executive Education Associations Institutions Universities & Colleges

Resources

Podcasts Webcasts Companies Visionaries White Papers Special Reports Premiums Magazine Archive

Subscribe

SCMR Magazine Newsletters Magazine Archives Customer Service

Press Releases

Press Releases Submit Press Release