Warehouse Technologies and the Information Evolution

The Information Evolution

In the early 1980s, Modern Materials Handling magazine introduced warehouse readers to computers, explaining their operation and potential uses.
The key question was whether computers had a future in warehousing.
The editors predicted a major role for computers in warehousing.
Today, information systems are fully integrated with material handling equipment, enabling the parallel flow of physical inventory and information.
Inventory movement is heavily reliant on access to information.
Warehouses need additional help to meet consumer demands for shorter delivery times and accurate orders.
Consumers expect what they want, when they want it, every time.

Chapter 5 Overview

The chapter aims to identify and explain the key 4.0 technologies that are changing warehouse operations.
These technologies will significantly impact warehouse efficiency and responsiveness.
Frontline warehouse workers need a basic understanding of these technologies.

Objectives:

List the nine key 4.0 technologies in warehousing.
Explain what each technology is and why it is important.
Explain why the 4.0 technologies are called 4.0.
Describe examples of how the technologies are connected to each other.
Identify how the technologies will change warehousing.

The 4.0 Technologies

There are many 4.0 technologies, with the number growing daily.
This chapter focuses on nine key technologies already impacting warehouse operations:
- Artificial Intelligence
- Augmented Reality
- Autonomous Robots
- Biometrics
- Cybersecurity
- Data Analytics
- 5G Technology
- Industrial Internet of Things
- Remote Learning
Prior to 2020, these technologies were developed and evaluated independently.
However, they are most valuable when connected to each other.
For example:
- 5G technology enables the transmission of information collected by the Industrial Internet of Things.
- Artificial intelligence allows autonomous robots to learn and improve their efficiency.
The connections made possible by these technologies are revolutionary, leading to unprecedented transformations in warehousing.
This warrants calling them the next industrial revolution.

4.0 Technologies

A group of 4.0 technologies is emerging in warehouses, including artificial intelligence, autonomous robots, and the Industrial Internet of Things.
These technologies are transformative.

Why are they called 4.0?

From the 1800s, there have been three industrial revolutions.
- The first centered around the steam engine.
- The second around the assembly line.
- The third around computers.
Each revolution fundamentally changed industry.
This latest group of technologies is considered the fourth industrial revolution.
It is revolutionizing how work is done in warehouses and elsewhere.
According to McKinsey & Company, these technologies make operations faster, more flexible, accurate, and efficient.
They will be used in every phase of warehousing, from planning and order management to the physical flow of inventory and process improvement.
The 4.0 technologies are expected to reduce operational costs of warehouses by 30%.

Artificial Intelligence (AI)

AI is the theory and development of computer systems that can perform tasks that normally require human intelligence.
It has various applications, including visual perception, speech recognition, decision-making, and language translation.
AI, also known as machine learning, aims to create intelligent machines that imitate human behavior.
Advances in machine learning techniques and sensors have led to the creation of autonomous robots.
AI enables companies to transform their processes by harnessing data, information, and operations technology.
AI facilitates autonomous learning and adaptation in manufacturing systems, leading to higher productivity.
AI reduces costs, facilitates rapid decision making, and improves scalability.
AI is increasingly used in autonomous robots, enabling them to perform recurring activities with greater precision.
AI allows robots to learn more efficient ways to perform tasks.
Robots can work 24/7, reducing the need for three shifts.
AI-enabled robots decrease the number of injuries and workplace accidents by replacing humans in dangerous activities.
AI-enabled robots use machine learning to improve their performance.
AI is often given more credit than it deserves, as it currently has limited capabilities.
Managing the development of AI technology requires attention from experts and social acceptance from the general population.

Augmented Reality (AR)

AR involves software applications and hardware devices that overlay digital information onto the user’s surroundings.
It uses video-see-through technology (tablets, smartphones) or optical-see-through technology (smart glasses, goggles).
AR devices use motion and position sensors to determine the user’s orientation in space.
They anchor information to specific points, features, or objects.
AR is well-suited for the factory floor, where goggles are the preferred devices.
AR bridges the gap between the digital and real worlds for assemblers, operators, and technicians.
AR solutions empower factory workers with information to optimize asset and personnel performance, reduce costs, enhance product quality, and increase on-time delivery.
AR adoption is increasing, especially for guided manual assembly and maintenance.
AR-based work instructions offer several advantages:
- They can be delivered step-by-step in real time and in context.
- They can be presented as simple 2D or complex 3D digital assets.
- They can be viewed without shifting attention away from the workpiece.
AR devices can monitor assembly progress, provide real-time feedback, and incorporate automated inspection for quality control.
Digital work instructions are perfectly preserved, unaffected by harsh environments, unaltered by unauthorized personnel, and remotely updated.

Autonomous Robots

Autonomous robots can operate without human intervention.
They can navigate environments and perform production processes independently after programming.
They improve the accuracy, speed, and quality of operations.
They reduce employee risk of injury by operating in hazardous environments.
Autonomous robots are often self-guided vehicles that move around the warehouse, picking up and delivering items under the direction of warehouse execution systems.
Autonomous order-picking robots perform the same activities as people who pick items from storage locations to fulfill orders.
An autonomous robot performs behaviors or tasks with a high degree of autonomy.
Autonomous robotics is a subfield of artificial intelligence, robotics, and information engineering.
Fully autonomous robots are needed for high-volume, repetitive processes.
They offer unparalleled advantages in speed, accuracy, and durability.
Autonomous robots are increasingly programmed with AI to learn from their surroundings and make decisions independently.
They can detect obstacles and people, ensuring safety.

Biometrics

Biometrics are human characteristics unique to an individual that identify that specific person.
Common biometrics include fingerprints, faces, voices, irises, and retinas.
Even blood, DNA, a person’s walk, or their typing style are unique.
Biometrics authenticate that an individual is who they claim to be.
They are a security tool that limits access to computers and secure areas in the warehouse.
Biometrics are generally more secure than tokens or passwords.
They are convenient for gaining access to devices.
Biometrics are not infallible; they can be hacked.
Facial recognition cameras can be fooled, and fingerprints can be cloned.
However, biometrics generally provide a higher level of security.
Using multiple biometrics enhances security.
Voice systems used to guide picking activities are not biometric authentication systems.
They are simply a form of communication and inventory identification.
Biometrics can raise concerns about personal privacy.
Their use is a technology and societal issue.

Cybersecurity

Cybersecurity protects computer systems, related networks, and the information they manage from unauthorized access.
This includes protection of hardware, software, systems, and data.
Cybersecurity defends against disruption and misdirection of computer systems and data.
It prevents unauthorized data downloads and alteration of data.
The versatility of computer systems presents both benefits and vulnerabilities.
Vulnerabilities range from software systems with open backdoors to electronic eavesdropping.
Fraudulent emails (phishing) can include dangerous code that allows unauthorized access.
Security breaches (hacks) compromise computers, networks, and databases.
Personal information and confidential data can be captured and stolen.
The purpose of cybersecurity is to build a defense that includes people, processes, and technology against security threats.
This is important in distribution centers, especially those managing e-commerce transactions.
Buyers need assurance that their credit card data is protected.
They want their order details accessible only to authorized personnel.
Cybersecurity ensures the tracking information of third-party shipping companies is also protected.
Cybersecurity is critical for those managing a distribution center’s operations.
Information needed to manage workflows, inventory, and order fulfillment must be secure.
Otherwise, managers cannot trust the data they are using.
Without secure systems and data, there can be no efficient or effective flow of goods and information through the supply chain.

Data Analytics

Data analytics is the process of inspecting, cleansing, transforming, and modeling collected data to optimize warehouse and distribution center operations.
Data is sourced from receiving, shipping, inventory, telematics, customer orders, shipments, returns, and equipment maintenance.
Data input tools range from bar code scanners to keyed data input.
Data is fed to software such as warehouse management systems and warehouse execution systems.
Data analytics involves finding patterns in the data that predict future conditions.
This allows DC managers to allocate resources in advance to optimize warehouse operations.
Data analytics also makes facilities more flexible and cost-efficient while improving productivity.
Data analytics is especially important in pull environments where customer orders drive warehouse resources.
Data analytics enables warehouse managers to decide how many people they need on a given day to process orders.
It allows allocation of inventory to the next day’s orders and initiates re-ordering of items.
The shipping department can inform its carriers early what they plan to ship.
Data analytics allows companies to reintegrate returned items into the inventory flow quickly.
Data analytics about equipment helps managers anticipate potential breakdowns.
By analyzing equipment condition, companies gain transparency into maintenance needs.

5G Technology

5G is the latest generation wireless technology.
It is expected to transmit data at least 20 times faster than 4G.
5G improves network speeds and reduces lag time in communications, even with more connected devices.
5G allows more data from more devices to be transmitted quickly with less interference.
This improves the transmission of large quantities of data.
It enables augmented reality, autonomous vehicles, robotics, mobile devices, and the Internet of Things.
5G can transform supply chain operations within and outside warehouses.
Warehouses traditionally use Wi-Fi, Bluetooth, and wired connections.
5G offers a new option to unify or replace those technologies while simplifying data communications.
5G makes real-time data and communications more practical and effective.
This ensures supply chain operations are guided by the most recently available data.
The result is improved workflows, reduced costs, and shorter response times.
Supply chain transparency will improve with 5G.
5G connects tablets, phones, and wearable devices, building a strong network of workers on the go.
Those devices provide a precise view of inventory and operational status in real time.
5G will be slowly rolled out over several years.

Industrial Internet of Things (IIoT)

The IIoT extends the Internet of Things (IoT) to industrial sectors and applications.
It uses interconnected sensors, instruments, and other devices networked with computers’ industrial applications.
This facilitates more efficient management of warehouses and distribution centers.
With a focus on machine-to-machine (M2M) communication, big data, and machine learning, the IIoT enables facilities to ensure precision, quality, speed, and reliability.
The IIoT improves productivity and reduces costs.
A key outcome of the IIoT is interconnectedness.
It collects data from disconnected sensors and input devices that monitor equipment and operations.
Data is managed more easily.
This speeds the conversion of data into useful information.
The IIoT can be used to track assets such as equipment, inventory, and people.
Facilities with a highly functional IIoT are often called smart warehouses.
Efficiencies in these operations are highly transparent.
The IIoT is used to track activities for later assessment and to set plans and schedules for the future.
IIoT wearables such as individual trackers are also part of the mix.
These devices track a person’s location, path of travel, and proximity to other workers.
The final ability is especially valuable for contact tracing.

Remote Learning

Remote learning allows students of all ages in distanced locations to learn about subjects using electronic audio and video connections.
The instructor can be in a different location.
Remote learning is also known as distance learning and digital learning.
People involved can communicate directly with each other in one-on-one and group settings.
Remote learning is usually computer-screen based but can use augmented and virtual reality.
Remote learning saves time and money by allowing people to learn from a convenient location.
Remote learning maximizes flexibility.
Instructors can use short videos, games, and interactive quizzes.
Remote learning became a fact of life during the Covid pandemic.
Schools continued teaching students with communication platforms such as Zoom, Microsoft Teams, and Google Classroom.
MSSC has used state-of-the-art eLearning for its advanced manufacturing and supply chain logistics certification courses for many years.
In response to COVID, MSSC used remote test monitoring services to allow students to take their certification assessment at home.
Covid accelerated the adoption of remote learning for people in warehousing and distribution.
Augmented reality and virtual reality have been used to train lift truck operators since 2015.
Digital training of maintenance technicians greatly accelerated during the Covid pandemic.
Benefits to supply chain workers include increased retention and motivation.
Remote learning increases training return on investment as it reduces the total cost of training.