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.
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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
Hiring challenges due to labor shortages have forced many supply chain leaders to look inwards and discover ways to augment their existing workforce. Instead of bringing on more headcount to meet demand, many companies are looking to improve productivity and efficiency with the team they already have. Because many activities performed in a warehouse are done on a regular and repeating basis, they’re the perfect candidates for automation.
Augmenting the existing workforce with robotics and automation
The use of warehouse robotics has grown exponentially in the past few years, and is expected to reach $19.3B by 2032 with a CAGR of 12.6%. Use cases range from loading and unloading inventory, moving large loads across warehouse floors, and picking, packing, and palletizing inventory.
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While warehouse automation has been around for a while, newer solutions on the market today are now designed with total or near-total autonomy in mind. For example, autonomous guided vehicles (AGVs), equipped with smart features like spatial navigation sensors and automatic stop controls, are already being used to replace manually-operated forklifts. These next-gen robots are known to significantly reduce travel times and physical labor for warehouse associates, allowing them to increase throughput in the same amount of time and even minimize the need for additional headcount.
Drones are another autonomous technology on the horizon with a strong logistics use case. While still early in its adoption, drones are being explored in warehouses to automate inventory checks. Equipped with features like sensors, cameras, and scanners, drones have the potential to dramatically reduce time and effort spent on manual counts and improve accuracy by avoiding human error.
Warehouse Drones
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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.
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Enjoy a deeper dive on safety by downloading our eBook: 3 KEY AREAS TO INVEST IN TO IMPROVE YOUR WAREHOUSE SAFETY PROGRAM
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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:
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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.
Market influence: We continuously have an ear to the ground on market influences, trends, and new and up-and-coming technologies.
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.
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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
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Connecting the Dots
Kenco Innovation Lab By the Numbers
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VETTED
PILOTED
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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
About Kenco Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, and information technology—all engineered for Operational Excellence. Building lasting customer relationships for almost 75 years, our focus is on common sense solutions that drive uncommon value. Visit Kenco at KencoGroup.com.
About Kenco: Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, and information technology—all engineered for Operational Excellence. Building lasting customer relationships for almost 75 years, our focus is on common sense solutions that drive uncommon value. Visit Kenco at KencoGroup.com.
