2021 Trends in Logistics: What You Need to Know to Improve Your Warehouse Management

24 October 2021

One of the famous quotes by the Greek philosopher Heraclitus says: “The only constant is change.” John Kennedy, in turn, considered change the law of life and declared: “those who look only to the past or present are certain to miss the future.” These two quotes together aptly represent the current retail context, where the expectations were to follow the ever-evolving shopping habits, continuously adjust strategies, and invest in innovations. Companies closed to change will certainly not survive. And this is particularly true for logistics.

The last decade has seen significant evolution in the supply chain. Many companies have already invested in the automation of their warehouses using specific management systems (like WMS), investments in robotics, and artificial intelligence (AI), among other technologies that have provided more speed and accuracy to processes, which directly reflect on the quality of service provided to the customer. And all this evolution shows no signs of slowing down in this new decade we are beginning.

Therefore, it is necessary to be prepared. First, it is crucial to reflect on what we learned in 2020 and how these discoveries will change operations from 2021 onwards. Discover some trends and upcoming changes in intralogistics and how to adapt your company and its management to them:

Robots are friends, not foes

While robots are becoming increasingly important in the warehouse, investing in a robotic solution like companies such as Amazon and AliExpress is out of reach for many small and medium-sized enterprises. This solution requires companies to virtually completely rebuild their warehouses and raises questions about the role humans will have in tomorrow’s service operations. Instead, in 2021, more brands will focus on implementing robots suitable for today’s operations, rather than demolishing everything to implement the solution.

There is also a solution for companies that want to invest less: semi-automation of the warehouse through management systems (WMS) that direct processes, command activities, and control all the stock. A WMS optimizes intralogistics operations via mobile devices and can also integrate with other automated systems, such as goods-to-person, pick-to-light, sorter, etc., in all areas of the warehouse or mixed with manual operations.

Improved warehouse user experience

The demand for “experience” is on the rise: according to Salesforce, 80% of customers say that the experience provided by a company is as important as its products and services. But customers are not the only ones demanding better experiences. Warehouse managers desire a better user experience with their warehouse management software (WMS).

As 2021 will bring new challenges for delivering the perfect order (complete and on-time), managers desire WMS solutions equipped with simplified user interfaces, allowing them to hire and train temporary employees more quickly (especially during peak sales periods). They also seek easier access to operational data, helping them monitor warehouse efficiency and make more decisive decisions to optimize processes. This information needs to be available on mobile devices for easy management from anywhere.

It is important to remember that not only technology makes a difference in the company’s results, but also how its employees interact with it. If the system is easily used by employees, they will be more satisfied and have a friendly experience with the implemented technology.

Today’s companies prioritize Visual Management, through which both managers and employees can monitor performance indicators and receive real-time alerts, allowing for the identification of failures before they impact and their quick resolution. With Visual Management, companies can make decisions at the right moment, avoiding any issues that may affect good customer service.

Data security

According to the LGPD, the use of customers’ personal data can only be carried out with their consent. The consumer must be informed about which personal data will be collected and what the purpose of the activity involving their data is, among other obligations. Paragraph 5 of Article 7 also provides that the holder who obtained consent and needs to communicate or share such personal data with other holders must acquire specific consent from the holder for this purpose.

These requirements and other requirements of the Law will certainly have a significant impact on sales and logistics operations, particularly in e-commerce. That’s why managers must already adopt appropriate measures to comply with the prescribed standards. One issue that deserves attention, for example, is the customer’s accessibility to their data. The LGDP states that the consumer must have access to the information offered to the company and can also request the disposal of some data. Therefore, it is important to have a solid IT structure and, in the case of warehouses, software capable of integrating with the sales system.

The manager must also evaluate his operations to ensure consistent data monitoring at all stages of the supply chain. This will ensure the accuracy of information, as well as optimize the customer’s access process if requested.

While data must be easily accessible at the customer’s request, security must be a priority. With LGPD, companies are solely responsible for data security. Therefore, as warehouses continue to adopt new technologies, it is important to evaluate any vulnerabilities within them to ensure that operations do not jeopardize customer information. System providers must be aligned with the company to ensure adequate security precautions in case of an attempted attack.

Another recommendation is that the company has a well-defined action plan in case of data breach. Warehouse staff must be informed of this plan and also know where the data is stored so that if a problem occurs, it is quickly isolated and contained.

Customer service can set you apart

It is worth remembering that customer service extends to relationships between retailers and suppliers, including their logistics technology providers.

Your WMS software must live up to the team that installs and supports it, after all, it is crucial to provide a quick and accurate response to customers in logistics operations. By 2021, having a technology provider by your side that offers agility and flexibility will be almost as important as the solution itself.