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Warehouse Trends Retailers Can ’ t Ignore
By Gigi Lariosa , Philippines Country Lead , Zebra Technologies
Omnichannel and e-commerce demands are posing new challenges and costs . Collaborative efforts are essential because working in isolation is no longer as effective , and connections between individuals mirror those between sectors . In today ’ s on-demand world , a key link emerges between warehousing and retail sectors .
Notably , there are two key warehousing trends that the retail industry simply cannot afford to ignore :
Trend 1 : Modernisation
Customers ’ preferences are changing while timelines are accelerating , creating complexity that is difficult to adapt to if caught lagging with legacy equipment and systems . Modernisation can increase productivity with the resources currently available , while creating the flexibility to adapt to new end-customer expectations . Zebra ’ s 2023 Global Warehousing Vision Study survey results show that 73 % of warehouse decision-makers surveyed feel pressured to implement new technology and transform into a modern warehouse . Naturally , modernising comes with a cost , and 69 % of warehouse operators surveyed say they have or intend to increase funding for their warehouse modernisation plans .
Rapidly growing returns has emerged as a key challenge with 40 % of decision-makers in the Asia-Pacific ( APAC ) region citing this as a top operational challenge . New technologies like radio frequency identification ( RFID ) are being deployed to automate visibility of inbound and outbound freight to keep up with consumers ’ demands for accuracy . Over the past year since the previous survey was conducted in 2023 , there is a 37 % increase from 44 % to 81 % of warehouse decision-makers planning to implement passive RFID and sensors to increase inventory visibility .
It should come as no surprise that as omnichannel shopping continues to grow , the volume of returns grows , thereby increasing the challenge across every part of the supply chain . The majority of warehouse operators ( 79 %) agree they are under pressure to improve performance while adjusting to consumers ’ shifting preference for omnichannel shopping .
To meet customer expectations , warehouse operators must modernise their operations using technology solutions . This will help them to handle returns , and increase agility , inventory visibility and demand forecasting to improve efficiency and make better decisions in real time .
What this means for retailers : According to Zebra ’ s 2023 Global Shopper Study , around eight in 10 consumers prefer to blend shopping between online and in-stores , while another 82 % prefer retailers offering easy returns . The returns trend and need for more visibility is not likely to go away any time soon . This means retailers must be in-step with their warehouse operators . Retailers need to better manage the expenses associated with inventory visibility , reverse logistics , and the growing level of returns to increase success and profitability . The good news is most retailers in APAC realise this and are tapping into the power of technology to help manage returns , with nearly seven in 10 ( 68 %) saying they plan to deploy reverse logistics technology by 2026 to better manage fulfilment pressures .
Retailers should also optimise reverse logistics to drive efficiency and better business outcomes for inevitable returns and broaden their distribution network for a more versatile view of stores , warehouses , and distribution centres where e-commerce distribution and store fulfilment capabilities overlap .
Trend 2 : Increase inventory visibility
Warehouse operators are increasingly turning to augmenting their existing workforces with new and more efficient technology , while considering automation for high volume operations or improve inventory visibility . Interestingly , according to a 2023 analysis conducted by Interact Analysis , there has been a recent slowdown in demand automation projects ( in part due to a reduction in warehousing construction ), but it is expected to return to growth in 2024 .
Zebra ’ s 2023 Global Warehousing Vision Study supports this expected growth , with about seven in 10 warehouse decision-makers globally saying they already have or are planning to automate workflows by 2024 . The majority of warehouse associates and decision-makers in APAC are on the same page regarding the importance of achieving better accuracy and determining availability . Seventy-nine percent of both groups surveyed acknowledge they need better inventory management tools to drive these outcomes , and nearly nine in 10 ( 88 %) warehouse decision-makers say they plan to invest in technology to increase visibility across the supply chain by 2028 .
What this means for retailers : The shift in how consumers browse , learn , and acquire products requires retailers to rethink all their operations just as warehouse operators . The expectation is that these experiences will be further developed , and , at the same time , retailers will have to work on executing them more profitably . There are several key elements to increase the profitability for omnichannel retailers . They can first modernise in-store fulfilment with real-time inventory views to streamline order fulfilment tasks . Next , they can broaden visibility in the distribution network with a more versatile view of stores , warehouses , and distribution centres where e-commerce distribution and store fulfilment capabilities overlap .
Moving ahead with momentum – and cautious optimism
Consumers demand the way they browse , acquire , consume , and return merchandise to be seamless wherever they shop , and however their purchases are fulfilled . This shift requires retailers to work with warehouse partners and technology in new ways to deliver the shopping experiences consumers expect and drive more profitably . To successfully operate in an omnichannel world , retailers should consider modernising , increasing visibility , and improving sustainability in their operations .
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