The material handling industry is experiencing a swift transformation due to a surge of advanced innovations. Technologies such as automated guided vehicles (AGVs), autonomous mobile robots (AMRs), drones, digital twins, artificial intelligence, 5G, and electric trucks are revolutionizing the automation of goods transportation within warehouses and distribution Centers.
These technologies help to move materials from one place to another efficiently and effectively, reducing labour costs and human errors. With the changes in buying behaviour from offline to online buying, there has been a tremendous increase in demand in logistics and warehousing so that orders can be fulfilled more efficiently and faster.
Looking ahead, artificial intelligence (AI), drones, 5G, intelligent machines, and others will be game changers. AI-powered robotics with 3D vision and manipulation capabilities are disrupting traditional materials handling in warehouse ecosystems. Intelligent machines will automatically reconfigure, integrate with robotics, and provide built-in intelligence to improve efficiency, quality, and responsiveness. Sustainable innovations like electric forklifts/trucks with lithium-ion batteries will also be essential as the industry shifts towards renewable energy sources. By embracing automation, data, AI, and sustainability, the material handling sectors are poised for even greater innovation in the years to come. Companies that invest in these cutting-edge technologies will be well-positioned to meet future demands.
Below are some technologies that will change the future of the material handling business, especially in the warehousing ecosystem. Some technology is already in the industry, either fully or partially. In contrast, some are expected to be in the material handling business in the future.
1. Autonomous vehicle: The warehouse industry is transforming profoundly by integrating autonomous vehicles and advanced robotics. These cutting-edge technologies are revolutionizing warehouses' operations, increasing efficiency, productivity, and safety. Autonomous vehicles, such as self-driving forklifts and tuggers, are becoming increasingly prevalent in modern warehouses. These vehicles can navigate the warehouse environment, transport goods, and perform tasks with minimal human intervention. By automating material handling, autonomous vehicles reduce the risk of accidents, improve inventory tracking, and enable faster order fulfillment. Complementing autonomous vehicles, warehouse robotics are also making significant strides. Autonomous mobile robots (AMRs) can autonomously navigate through the warehouse, performing tasks like inventory scanning, item picking, and replenishment. These robots work seamlessly alongside human workers, enhancing productivity and reducing the physical strain on employees.
Integrating these technologies within the warehouse ecosystem is driving a new era of smart logistics. Sensor-equipped autonomous vehicles and robots collect real-time data, which is then analyzed using advanced analytics and artificial intelligence. By embracing these transformative technologies, businesses can stay ahead of the competition and meet the evolving demands of the modern supply chain.
• Dematic, Daikufu, ABB, and Swisslog are some of the major companies that provide solutions for autonomous vehicles, such as AGV, AMR, cobot Paletizer, and others.
2. Warehouse drone: Warehouse drones are revolutionizing inventory management by automating and streamlining the auditing and cycle counting processes. These drones utilize advanced technology, including sensors, AI, and machine learning, to navigate warehouse aisles, scan barcodes, and update inventory data in real-time with over 99% accuracy. This innovation eliminates the need for traditional, labour-intensive methods, reducing errors, lowering equipment costs, and enhancing worker safety by removing the need for high-altitude tasks. As a result, inventory tasks that once took weeks can now be completed in days, significantly boosting efficiency and precision in warehouse operations.
• On and Verity have partnered to deploy autonomous drones in warehouses, providing real-time inventory tracking to enhance supply chain efficiency and ensure precise, flawless order fulfilment.
• At Langham's warehouses, drones transform inventory management by efficiently counting stock, significantly improving visibility and accuracy for real-time inventory tracking, which is crucial for customer business management.
3. Put to light and pick to light: Put-to-light and Pick-to-Light systems are semi-automated order-picking solutions that guide operators to the correct locations for placing or retrieving items. In a Put-to-Light system, a light will display where to deposit goods and the quantity for each order. Operators scan items, and lights illuminate the relevant containers, minimizing errors and optimizing travel. Pick-to-light systems work similarly, with lights guiding pickers to the correct locations for picking items. Both systems integrate with warehouse management systems, automating decision-making and increasing efficiency.
• Companies such as Matthews Automation, Falcon Autotech, and ekko are some companies offering products related to picking the product using lighting technology.
4. Digital Twin: A warehouse digital twin is a digital replica of a physical warehouse system that uses real-time data to simulate its characteristics and behaviours. Digital twins allow users to simulate scenarios such as implementing new technologies or adjusting floor plans by capturing data on dimensions, traffic patterns, and staff movements. This technology provides multiple benefits, including making data-driven decisions, optimizing inventory management, streamlining workflows, boosting productivity, and enabling strategy testing without operational disruption. Digital twins promote warehouse agility, mitigate risks and costs, and support ongoing improvement by providing a secure platform for innovation and experimentation. They revolutionize warehouse operations by improving efficiency, resilience, and preparedness to meet future challenges through detailed modelling, scenario testing, and real-time data integration from IoT devices and warehouse management systems.
• In collaboration with NVIDIA partner Kinetic Vision, PepsiCo is developing AI-powered digital twins for their distribution Centers in NVIDIA Omniverse Enterprise. This initiative aims to enhance throughput, minimize downtime, and reduce energy consumption across their extensive network of facilities.
• Amazon manages a vast global network of over 200 fulfilment Centers, processing millions of packages daily with over half a million mobile drive robots. Utilizing NVIDIA Omniverse Enterprise, they create AI-powered digital twins to enhance warehouse efficiency through optimized design, improved robot training, and increased productivity.
• German startup Cognition Factory provides Cognitive Flow, an AI-driven digital twin solution for simulating warehouses. This simulation software is utilized for planning, configuring, and continuously optimizing the warehouse's mobile robots and material handling systems.
5. AI in Warehouse: Artificial intelligence (AI) is revolutionizing the logistics and warehouse ecosystem, driving unprecedented efficiency and optimization. This transformation's heart is integrating AI into warehouse management systems (WMS), which leverage advanced algorithms and machine learning to address various challenges. AI enhances inventory management by analysing sales data and predicting future needs, reducing stockouts and overstocking. It also streamlines order fulfilment with AI-driven picking robots and optimized routing, improving productivity and delivery times. Furthermore, AI aids in predictive maintenance by detecting potential equipment failures through sensor data analysis. AI integration transforms warehouses into dynamic, data-driven hubs that adapt to evolving market demands, representing a strategic investment in efficient, sustainable logistics.
• DHL integrates AI and robotics into its warehousing operations to boost logistics efficiency, improve package sorting, and ensure timely deliveries, highlighting AI's crucial role in modernizing logistics and supply chain management.
6. 5G in warehouse: 5G technology (6G in the Future) is expected to revolutionize warehouses and supply chains by providing unparalleled speed, low latency, and massive connectivity, enabling smart warehousing and logistics. It supports a vast network of connected devices, ideal for autonomous mobile robots, automated storage and retrieval systems, and sensor-based controls. The low latency and high bandwidth of 5G enable real-time data collection and communication, allowing for AI and machine learning optimization, real-time decision-making, and 3D visual inspections. Worker experience and safety are enhanced through 5G-powered wearables like AR smart glasses, improving efficiency and safety with dynamic safety architectures.
• The UAE's first 5G Smart Warehouse, launched by Huawei and a local carrier in Dubai South Freezone, leverages 5G technology to enhance logistics efficiency, reduce costs, and optimize supply chain operations.
• CJ Logistics collaborates with Ericsson to deploy a 5G private network in their logistic ecosystem, aiming to eliminate dead zones and recurring Wi-Fi outages.
• Huawei, in partnership with Indonesia's state-owned telecom provider Telkomsel, has launched Indonesia's first 5G smart warehouse.
7. Immersive Technology: Immersive technology, encompassing Virtual Reality (VR) and Augmented Reality (AR), is revolutionizing warehouse operations by boosting the efficiency and skills of personnel. VR is mainly utilized for training, providing safe, simulated environments where employees can practice operating equipment and navigating the warehouse, resulting in quicker proficiency. AR enhances the physical environment by overlaying digital information, directing workers to optimal paths for item picking, and offering real-time data on stock levels and product details.
• Companies like DB Schenker and DHl are implementing immersive technology to train their employees on how to operate forklifts and load packages efficiently, respectively.
8. Advanced geolocation technology: Geolocation technology has transformed warehouse management by optimizing space utilization, enhancing operational efficiency, and improving logistics. Companies like Floor Plan leverage geolocation to map warehouses and assign coordinates to products, allowing for better space management and up to 14% increased storage capacity. This technology aids in precise, real-time product tracking, reducing time wasted searching for items and facilitating efficient inventory auditing. Additionally, geolocation supports route optimization and transparent tracking in logistics, ensuring timely deliveries and boosting customer satisfaction, making it indispensable in modern warehouse and logistics management.
• Navigine is one such company that provides warehouse tracking devices that can be used depending on the choice of technology (UWB, Bluetooth® Low Energy, etc.). Navigine utilizes AI-driven technologies and tools to provide top-tier solutions for logistics, supply chain management, and various other industries.
9. Blockchain in Logistics: Blockchain technology is revolutionizing the logistics and supply chain industry by enhancing security, transparency, and efficiency. Blockchain enables real-time tracking, reduces counterfeiting, and improves food safety, allowing for faster and more cost-effective deliveries. It ensures traceability, promotes sustainable and ethical sourcing, and streamlines payment processes with smart contracts. Though still emerging, blockchain holds significant potential to replace traditional supply chain processes, providing an immutable and decentralized record that fosters trust among all stakeholders.
• Syncfab, a California-based company, connects Space, Aerospace, and Défense buyers through a blockchain-powered supply chain network, ensuring security, traceability, and an immutable audit trail to simplify digital transformation and enhance business resilience.
• Based in Antwerp, T-Mining enhances maritime logistics using blockchain to improve transparency, security, and efficiency. It also uses technologies like Self-Sovereign Identity (SSI) and Commercial Privacy to give businesses and consumers better control over their data and privacy.
10. EV Trucks: The logistics and warehousing industries are undergoing a significant transformation with the increasing adoption of electric trucks. Now, these zero-emission vehicles are poised to revolutionize how goods are transported and handled, driving greater sustainability and efficiency. Electric trucks offer numerous advantages over their traditional diesel counterparts. By eliminating greenhouse gas emissions, they significantly reduce the environmental impact of logistics operations. This aligns with the growing demand for more sustainable supply chain practices. From an operational standpoint, electric trucks boast impressive performance capabilities. Many models can carry heavy loads, with some offering a range of up to 500 miles on a single charge. The rapid advancements in battery technology and charging infrastructure make electric trucks increasingly viable for long-haul and last-mile deliveries.
As the logistics industry continues to prioritize sustainability and operational efficiency, the adoption of electric trucks is poised to accelerate. This transition will reduce the sector's carbon footprint and pave the way for a more technologically advanced and environmentally responsible future in warehousing and transportation.
• DHL Supply Chain has introduced fully electric Volvo FM trucks to its UK fleet, replacing diesel vehicles for high-capacity deliveries with zero-emissions trucks with a 540kWh battery and a range of up to 180 miles.
• Denmark-based DFDS, Northern Europe's largest shipping and logistics company, is leading in electric truck deployment, ordering 125 Volvo FM electric trucks since late 2021 and integrating 20 into its commercial fleet in early 2023.
11. Sustainability: In the evolving logistics and supply chain management landscape, sustainability has become a critical focus, driving innovation and efficiency. Warehouses increasingly adopt sustainable practices, covering areas like energy management, waste reduction, green building design, and efficient transportation strategies. Automation and advanced technologies, such as IoT and renewable energy integration, are key enablers in reducing environmental impacts and improving operational efficiency. By assessing and optimizing their sustainability practices, warehouses can significantly contribute to greener logistics, benefiting both the environment and their bottom line.
Some practices that help achieve a sustainable warehouse include implementing strategies such as using sustainable packaging material, optimal energy consumption or use of electric vehicles, and utilizing space efficiently using AI technology.
• Companies like Great Wrap have developed sustainable packaging material, i.e., compostable stretch wrap. Similarly, many companies are developing paper-based or plastic-free packaging material for sustainable warehousing systems.
• Another company, Autostore, has created a storage system that helps reduce energy and lower the carbon footprint.