WAREHOUSE TRANSFORMATION: Automation investments have helped some firms amid global disruptions

Investments in automation are helping some local firms stay resilient amid global disruptions and rising operating costs. They include automated storage systems and AI-powered tools. Some logistics firms are transforming warehouse operations to boost efficiency and space.

With such tech, this food distributor was able to optimize delivery routes. This has helped to some extent mitigate the effects of high fuel prices and ongoing global supply chain disruptions. 

The firm says its transformation began long before the recent geopolitical tensions. These investments have helped strengthen its resilience.

IMPROVING EFFICIENCY AMID RISING COSTS 

Over at Frosts Food and Beverage, the F&B supplier has also invested in automated storage retrieval systems (ASRS) and warehouse management software to improve operational efficiency. 

Previously, workers had to manually organise and retrieve stock. Now, automated systems track and handle goods more accurately and seamlessly. 

The company’s group managing director Julie Haw said the technology has helped reduce wastage, optimise delivery routes and cut unnecessary mileage. 

“When you are a lot more accurate with what you’re doing, your wastage is less,” she said. “With the ASRS and warehouse management system, which comes with auto-routing, it definitely shortens the number of miles a truck needs to take on the road.”

The improvements come as the company faces higher fuel prices, increased air freight costs and shipment delays linked to tensions in the Middle East and broader global supply chain disruptions. 

Ms Haw said companies like hers are often unable to immediately pass rising costs on to clients such as supermarkets and retailers. 

“There’s a big lag between when they will accept our price increases and when those costs hit us,” she said. “As a result, we are often the ones who have to stomach the fluctuations.” 

She said the company’s transformation efforts began long before recent geopolitical tensions emerged. 

She added that long-term investments in automation and efficiency improvements have helped cushion the impact of unexpected disruptions, including during the COVID-19 pandemic.