The last decade has seen supply chain labor challenges grow increasingly difficult. Many parts of the industry suffer from talent shortages caused by shifting post-pandemic priorities, a widening skills gap, an aging workforce, and a decreasing number of new entrants. Retention issues continue to be of concern to many companies due to the high demand for supply chain talent.
But the good news is: the logistics industry is innovating at a breakneck pace in an attempt to alleviate these challenges and ease the burden of a tightening labor market. 2024 will be a transformative year as more organizational leaders make significant investments in new technologies to improve labor resiliency.
New technologies relieve some of the pressure of today’s labor market challenges in warehouses in several key ways: by augmenting and assisting existing workforces, expanding the talent pool, and improving talent retention.
In this eBook, we dive into some pioneering technologies on the horizon that are making an impact.
KENCO INNOVATION GUIDE | 2
3
4
5
6
7
8
9
TABLE OF CONTENTS
Automation to Augment Workforce
AGVs and Drones
Employee Retention Through Safety Innovation
Safety Innovation to Retain Employees
Solving Labor Challenges Through
Continuous Improvement
Finding Inspiration
Kenco Innovation at Work
Transforming MHE
Kenco's Innovation Lab By the Numbers
Connecting the Dots
The fast-paced nature of warehouses can cause them to be dangerous places to work. Employees are constantly surrounded by safety hazards, like forklifts, pallet movers, and other heavy machinery. The truth is: no one wants to work in an environment where they feel unsafe. Fortunately, the industry has made enormous strides in incident prevention and safety management to improve working conditions and keep employees safe.
Retaining Employees with Safety Innovation
New technology on the horizon uses camera vision and AI to detect safety hazards in a live warehouse setting, flag any recurring trends, and use those moments to create better safety
training programs. Early results from pioneering companies show as much as an 80% reduction in incidents within the first few months of implementing this technology.
The physical and repetitive nature of warehouse work can lead to serious injuries. In fact, musculoskeletal disorders related to ergonomics remain the number one cause of injury in the warehousing industry. Fortunately, advancements in wearable technology and lift assist devices, like vacuum lifters and manipulator devices, are quickly coming to market and being adopted to prevent such injury. Exoskeletons are able to target certain muscle groups prone to injury, like the lower back and hamstrings, and guide associates to exhibit proper lifting techniques. These types of wearables have been found to work with a great degree of success. A 2016 study reported that usage of back-support exoskeletons resulted in a 10-40% reduction in back muscle activity during repetitive lifting and static holding tasks.
KENCO INNOVATION GUIDE | 5
Enjoy a deeper dive on safety by downloading our eBook: 3 KEY AREAS TO INVEST IN TO IMPROVE YOUR WAREHOUSE SAFETY PROGRAM
KENCO INNOVATION GUIDE | 6
Kenco continues to prioritize continuous improvement through pragmatic technology adoption. With the help of our 10,000 square foot Innovation Lab, we are committed to researching, testing, and vetting new supply chain technologies and ideas in a controlled setting. Many of the new solutions pioneered in the Innovation Lab are eventually implemented in our warehouses or transportation fleet, driving new efficiencies and value for both Kenco and our customers.
Solving Labor Challenges with Continuous Improvement and Innovation at Kenco
Where do New Ideas come from?
At Kenco's Innovation Lab,
we're testing ideas from every corner.
Here's where we often find inspiration:
X
Our customers: Our customers are often the source of some of our best and most innovative solutions. By working collaboratively and cross-functionally, Kenco partners with our customers to brainstorm, ideate, and execute plans that not only meet short-term needs, but also bring long-term value to the relationship.
Our employees: Each quarter, Kenco hosts an Idea Challenge amongst employees to allow them to submit their best ideas for solving a critical problem or improving a pre-existing process. Challenge winners have the opportunity to see their idea come to life.
X
Market influence: We continuously have an ear to the ground on market influences, trends, and new and up-and-coming technologies.
X
Our communities: Our relationships with the logistics startup community and our partnerships with local outreach groups like ChaTech, Smart Factory Institute, STEM schools, and engineering clubs have allowed us to build and test new projects in mutual partnership.
X
KENCO INNOVATION GUIDE | 7
X
X
X
X
Our communities: Our relationships with the logistics startup community and our partnerships with local outreach groups like ChaTech, Smart Factory Institute, STEM schools, and engineering clubs have allowed us to build and test new projects in mutual partnership.
Our customers: Our customers are often the source of some of our best and most innovative solutions. By working collaboratively and cross-functionally, Kenco partners with our customers to brainstorm, ideate, and execute plans that not only meet short-term needs, but also bring long-term value to the relationship.
The growth of e-commerce has impacted every part of the supply chain, material handling equipment (MHE), and fleet services. With more and more brands looking to develop their e-commerce capabilities, their needs for moving and handling inventory are shifting. Learn three ways MHE is transforming:
3 Ways MHE is Changing with the Rise of eCommerce
Many of Kenco’s innovations were born directly from the experiences of our customers, like our LoadProof mobile app. LoadProof was developed in partnership with Smart Gladiator, and designed to increase supply chain visibility and improve compliance by photo-documenting shipments. LoadProof has since helped customers realize a 95% decrease in customer complaints and an estimated $100K in cost savings.
Learn more about LoadProof in this interview with Talking Logistics.
Kenco Innovation at Work: LoadProof
KENCO INNOVATION GUIDE | 8
X
X
X
X
Our communities: Our relationships with the logistics startup community and our partnerships with local outreach groups like ChaTech, Smart Factory Institute, STEM schools, and engineering clubs have allowed us to build and test new projects in mutual partnership.
Our customers: Our customers are often the source of some of our best and most innovative solutions. By working collaboratively and cross-functionally, Kenco partners with our customers to brainstorm, ideate, and execute plans that not only meet short-term needs, but also bring long-term value to the relationship.
Connecting the Dots
Kenco Innovation Lab
By the Numbers
83
53
49
VETTED
PILOTED
IMPLEMENTED
Introducing new technologies into a warehouse setting can often come with its own set of integration challenges. These new tools need to connect multiple vendors to create a seamless, user-friendly workflow. The good news is: today’s emerging integration and optimization tools are providing a seamless platform to connect multiple vendor solutions, offering a holistic user experience for warehouse employees.
Each year, dozens of new technologies are vetted and piloted in our Innovation Lab, with a select few that are rolled out in our warehouses.
For a deeper dive into Kenco's successes with innovation and technology, view our case study:
AUTOSTORE ACHIEVES MAXIMUM EFFICIENCY IN SPACE AND LABOR
$75 MILLION
