Technology Trends for 3PL Companies for Better Productivity: Part 2
Data capture alone can’t resolve the throughput needs of the 3PL (third-party logistics) sector, which is gearing up for a massive transformation in its warehouse management solutions and logistics automation infrastructure to meet the breakneck growth of the e-commerce industry worldwide.
In Part 1 of this blog, we discussed the following pointers about 3PL technology trends:
- A list of key solutions featured among emerging Supply Chain Automation (therefore, 3PL) technology trends mentioned in the 2022 MHI-Deloitte report titled Evolution to Revolution: Building Supply Chains of Tomorrow
- The role of Sensors and Automatic Identification, Wearable and Mobile Technology, and Industrial Internet-of-Things (IoT) solutions, which are mentioned in the report, plays a role in ensuring end-to-end or optimised warehouse and logistics automation
Sensors and Automatic Identification, Wearable and Mobile Technology, and Industrial Internet-of-Things (IoT)- these solutions were broken down according to their technological composition. They were mapped against some of the product types Quinta deals with, namely, AIDC, IoT, Machine Vision and Sensors.
Picking up from where we left off in the last part, we will explore how these solutions come together to build a smooth warehouse management setup:
- Autonomous Vehicles and Drones
- Robotics and Automation
- Artificial Intelligence
- Predictive and Prescriptive Analytics
- Inventory and Network Optimisation Tools
- Cloud Computing and Storage
We will group these solutions according to their core functionality in the warehouse management infrastructure.
Further, we will also discuss the adoption rate of these solutions in the supply chain industry and how they correspond to the array of Quinta’s offerings.
Are your 3PL technology investments as per the latest best practices? If not, it is critical to implement a robust digital transformation plan soon!
Mapping 3PL Technology Trends on 3PL Operations for Supply Chain Optimisation
Warehouse Robotics & Its Use Cases: The Hardware Backbone of Warehouse Management Solutions Suite
While products with sensors and IoT, Machine Vision, and AIDC capabilities primarily relay information, — although IoT solutions can trigger or regulate some actions—warehouse robotics powers the labour-intensive tasks. Warehouse robotics is responsible for reducing the bulk of manual labour needed in a warehouse, including:
- Heavy Lifting: Shipments are loaded and unloaded at different stations, leveraging forklift robots.
- Inventory and Infrastructure Supervision: Warehouse drones are adopted to track the precise location of items beyond the reach of RFID or other label readers and to supervise the condition of the shipment and the warehouse facility at large.
- Inventory Management: When AIDC products such as label scanners and warehouse drones track down item location or shelves fit for the freight or items, then they are stored and retrieved automatically from large shelves in the storage area using ASRS-system-controlled robots.
- In-warehouse Mobility: Transporting parcels/shipments to different work areas,— whether it is transferring shipments to another automated workflow setup or employees at the designated workstation (G2P or GTP or Goods-to-Person), in case of partially automated 3PL infrastructure— is enabled by AGVs (Autonomous Guided Vehicles), AGCs (Autonomous Guided Carts), and AMRs (Autonomous Mobile Robots). An important distinction to note is that AGVs and AGCs are limited to pre-determined paths, but AMRs are more mobile, and thus, AMRs are considered one of the most advanced devices in the in-warehouse logistics automation ecosystem.
- Sortation: Parcels/items/shipments are sorted into various chutes/bins to gear them for the outbound process towards a specific destination with the help of robotic arms or automated sorters, made of tilt-tray, cross-belt, and pop-up wheel systems, etc.
- Palletisation and Depalletisation: Items are stacked—keeping in mind the strength of the stack and the safety of workers while minimising the possibility of damage to the infrastructure around—thanks to fixed robotic arms or AMRs with robotic arms. The sensor-powered EoAT (end-of-arm tooling)-integrations in these arms ensure that the pallets are stable.
There are many more use cases of warehouse robotics.
Still curious about the role of warehouse robotics in logistics automation? Our experts can help you make an informed choice!
On a different note, the MHI-Deloitte study has largely classified these robots used for supply chain optimisation under two categories: “Robotics and Automation” and “Autonomous Vehicles and Drones”. Usually, Quinta has considered most products or systems belonging to the two categories under the umbrella of Robotics (Warehouse Robotics).
To know more about the impact of warehouse robotics and its use cases, read our blogs: Robotics and Its Use Cases: A Deep Dive into Warehouse Robotics, Part 1 and Part 2
Warehouse Robotics Adoption Rates: Discover the Demand for This Key 3PL Technology Trend
“Robotics and Automation” and “Autonomous Vehicles and Drones”: these two categories of solutions, corresponding to Quinta’s Robotics (Warehouse Robotics) portfolio, are set to see a massive jump in 3PL technology investments.
As per the aforementioned report, “Robotics and Automation” and “Autonomous Vehicles and Drones” are projected to be more widely implemented by a factor of 51 and 50 percentage points, respectively. The adoption rate of the former set of solutions will go from 28% to 79% during the 2022-2027 forecast period, and from 16% to 66% for devices for the latter.
In other words, by 2027, warehouse robotics will soon witness en masse implementation, i.e., an average growth of over 50 percentage points during the 5-year forecast period.
Ensure that warehouse robotics is an integral part of your 3PL technology investment plan! Eliminate the errors and inefficiencies which manual-labour-driven operations are prone to.
The Intelligence in Smart 3PL Operations: AI, Analytics, & Management Platforms
Machine Vision-empowered devices, sensors, and AIDC products send information to the local server (edge computing) or the cloud via network connections. This is the first step in data processing and storage in smart warehouse automation. When the data reaches the server, the AI and Analytics models stored in the edge computing or cloud computing infrastructure carry out the decision-making, especially for those tasks that require analysis.
The AI and Analytics models perform vital tasks, spurring the adoption rate of Cloud Computing and Storage solutions; these solutions form the warehouse’s insights extraction framework.
Cloud Computing and Storage solutions are likely to be implemented more widely by a staggering 46 percentage points across the supply chain industry, reaching an 86% adoption rate in 2027 from a 40% adoption rate in 2022. These figures have been sourced from the MHI-Deloitte report mentioned above.
It is important to add that, much like Cloud Computing, Edge Computing is also essential for data storage and processing. Read our blog Cloud & Edge Computing in 3PL Companies: The Data Infrastructure for Warehouse Automation to learn more about the role of the two technologies.
Similarly, the report informs that the adoption of AI technologies as well as Predictive and Prescriptive Analytics will rise by 59 and 60 percentage points, respectively. By 2027, AI technologies are predicted to reach a 73% adoption rate as opposed to the 14% adoption rate in 2022, while from a 22% adoption rate in 2022, Predictive and Prescriptive Analytics will be implemented at an 82% adoption rate.
But how do users access the data-driven insights? That is where inventory and network optimisation tools come into play. Software such as WMS or TMS (Transportation Management System) helps decision-makers track the inventory count and the vehicle route while also making a plan for optimising the two key 3PL management workflows. The actions are driven by the insights offered by AI as well as Predictive and Prescriptive Analytics. In other words, the inventory and network management tools serve as an interface to access the smart inputs based on user needs and the models’ scope of prediction and analysis.
The software platforms also help monitor every action in the workflow, as suggested by the capabilities of AI technologies, as well as Predictive and Prescriptive Analytics. Due to advantages such as these, the report mentioned that the tools will be adopted even faster than the rate observed in 2022: 28%. At the end of the five-year forecast period, the adoption rate of the tools will reach 87% by 2027, marking a rise of 59 percentage points.
We have indirectly discussed the benefits of the Inventory and Network Optimisation Tools in the last few paragraphs. Now, let’s understand at length the role and benefits of AI technologies and Predictive and Prescriptive Analytics.
The Impact of AI technologies & Predictive and Prescriptive Analytics in 3PL Automation
A key advantage of AI technologies is the creation of Digital Twins based on the data the servers receive from the workflow. This enables users to run simulations for stress tests and workflow optimisation as per business goals. Also, AI proves to be transformative when it comes to data extraction.
Based on the data lakes as well as the real-time data sets and their trends, Predictive Analytics can warn users of opportunities and potential failures. Similarly, to dissect what went or is likely to go wrong in the event of downtime or when a warning is flagged, the use of Prescriptive Analytics becomes critical.
These examples are but a few illustrations of why AI technologies and Predictive and Prescriptive Analytics are required to enable 3PL automation.
Want to know what a smart warehouse looks like? Collaborate with us to make the best of your 3PL technology investments!
Additional Pointers to Note About 3PL Technology Trends
The MHI-Deloitte report also mentions 3D printing and Blockchain technology as emerging supply chain optimisation technologies with high adoption rates projected. While the former can be used to manufacture customised tools or spare parts for machines, the latter, being a digital non-centralised data ledger, can safeguard enterprise data from tampering, thereby assuring transparency for every party involved in the transactions. However, given the expanding use cases of the two technologies, we will not extensively explore their impact and role in 3PL automation at the moment.
On a different note, it is important to mention that all the warehouse management solutions and 3PL technologies mentioned in Part 1 and Part 2 overlap significantly across solutions, making a coherent and efficient warehouse management system. An example of this technology overlap is the use of sensors classified under Machine Vision and IoT are found in robots.
Collaborate with Quinta for a Top-Notch 3PL Operations Setup
When you opt for Quinta’s services, our work does not end at helping you procure the solutions; we offer a lot more before and after the solutions are purchased. Our experts offer in-depth consultation sessions to understand your challenges and needs before designing a workflow, to ensure that the setup is smooth-functioning and yields maximum ROI against your 3PL technology investments.
Our OEM partners, the leaders in their niche, offer quality sensor-driven IoT and Machine Vision solutions, AIDC products, warehouse robotics, edge computing, and cloud computing solutions. We also work hard to ensure smooth software integrations of platforms such as WMS, TMS, etc, in the warehouse automation hardware.
Curious to know more? Contact our experts now to gain a competitive edge in the logistics industry by embracing key 3PL technology trends!
