TMX Global White Paper
Melbourne, Australia, December 2, 2021 / PRNewswire / – The COVID-19 pandemic is accelerating the adoption of warehouse automation technologies in the supply chain industry, although price hikes and long lead times pose challenges for companies, according to a new report from Asia Pacific TMX, the leader in business transformation consulting, has found. White paper found here: https://tmx.global/insights-news/white-paper-pallet-to-parcel-covid19-need-to-automate/
Building on first-hand experience in the industry, the new report, Parcel pallet: COVID-19 and the need for automation co-authored by TMX Principal Consultants Paul Stringleman and Nick de Klerk, finds that as customer demand continues to increase, companies must find ways to track record order volumes, leading to rapid and urgent adoption of automated solutions.
Nick De Klerk, Senior Advisor at TMX says: “If you don’t figure out how to automate your warehouse operations now, you will be left behind. Now is the time to automate. Industry leaders are already looking to the next wave of technology to improve current processes in the short term and in the future proof of their activity in the medium term. “
However, COVID-19 has created a series of hurdles, ranging from shipping delays to longer delivery times, travel restrictions and price increases in the cost of materials associated with the deployment of automated solutions and infrastructure. .
The report reveals first-hand observations of the TMX industry, including comparative cost increases of various warehouse operating technologies. For example, the cost of implementing manual operations has increased by up to 36%. Systems based on Automated Mobile Robots (AMRs) saw their prices increase by 20%, while PPE systems saw increases of 15%.
The report highlights that three interconnected factors are putting pressure on companies that are now automating their material handling operations. These are:
1. Labor pressures. Exacerbated by COVID-19 control protocols and labor shortages.
2. Request for expertise in commissioning the system. This highly skilled and globally mobile workforce has been excluded from Australia when the borders closed.
3. Raw materials are lacking. Rising steel prices have increased the cost of shelving and construction, while chip shortages have extended delivery times for intelligent handling devices.
These supply pressures have come at a time of rapidly increasing delivery volumes, with consumers staying at home and shopping online. Now consumers not only expect fast delivery, but also constantly available information on the status of their package and precise delivery times.
To respond and stay competitive, companies are turning to automation to improve the accuracy and reliability of deliveries while reducing operating and construction costs.
Paul Stringleman, Senior Advisor at TMX says: “The scale of this challenge and the need to respond to it are driving the widespread acceleration in the adoption of logistics automation. What we are seeing right now is a sea change.
To help businesses navigate this dynamic landscape and avoid unnecessary costs and fluctuations, such as those due to high shipping and exchange fees, the Parcel Pallet report offers a customer-centric approach to automation. Selecting the right technologies for the task, combined with careful planning and experienced execution, has enabled businesses to reap the benefits of automated operations and customer satisfaction without being affected by price increases and changes. commodity-related shipping delays.
As early adopters move towards fully automated operations and consumer demand shows no signs of slowing down, the transition to automation becomes more urgent, even if it depends on the right guidance to ensure that the technology is responding. business needs. With more technology vendors entering the warehouse automation market than ever before, having a trusted partner with a proven track record is essential.
Travis Erridge, TMX CEO says, “What we have observed over the past two years is that the supply chain industry in Australia had no choice but to grow rapidly to meet demand through a combination of improving local skills and innovation. As the industry enters the “new normal” of sustained growth in e-commerce volumes, businesses will need to implement more permanent solutions that remain flexible to meet future fluctuations in customer needs. We believe automation will be an essential part of this solution, ”he said.
Download the white paper here: https://tmx.global/insights-news/white-paper-pallet-to-parcel-covid19-need-to-automate/
TMX is Asia Pacific leading consultancy in business transformation. While others plan for the future, we invent it – creating the digital and supply chain solutions of tomorrow to take you further, faster.
TMX’s team of specialists bring deep industry experience to optimize the entire value chain, from demand generation at the top of the funnel to final execution.
TMX has over 200 supply chain, real estate, project management and e-commerce experts in more than seven countries across the Asia Pacific Region. The team has led major business transformations for Coles, Kmart, Coca-Cola Japan Bottlers Inc, Asahi, Singapore Post, Bunnings and Universal Robina.
SOURCE TMX Global