April 11, 2022

The Connected Warehouse

Driven by strong consumer demand and the explosion of e-commerce retailing, warehouses are deploying sophisticated technologies to optimize performance and respond to changing demands. In addition, they are round-the-clock workplaces for a growing number of employees and require increasing levels of energy, security and safety management.

There are a lot of studies and reports from which the following conclusions can be drawn: ⠀

  • Investments are driven by the need for flexibility to accommodate higher volumes and changing business models. Fluctuating demand, rapidly changing product lines and evolving business models such as On-Demand Warehousing are driving the need to invest in retrofits and new projects.
  • Facilities are increasingly close to urban centers. All regions of the country report increases in the percentage of projects located in or near urban centers to support rapid delivery expectations from consumers.
  • Connected automation systems are proliferating at loading docks. 77% of respondents report automation of operational and handling processes at loading docks on their recent projects, with as many as 88% citing use of one of the four specific systems studied.
  • Connected technology systems are being deployed facility wide. In addition to the widespread automation of operational and handling processes throughout these facilities, between 60% and 82% of respondents report installation of data-capturing smart controls, A/V and light communications, and security and access control/tracking systems on their recent projects.
  • Worker amenities and safety are increasingly important, especially in a tight labor market. All regions report increases in a wide variety of employee amenities, and 88% of respondents say owners place a high priority on employee safety when planning their facilities.
  • Over two-thirds of owners (68%) are interested in creating zero-carbon facilities. Sustainability is important, with high percentages of owners interested in minimizing both energy use and operational waste in their facilities as well as creating zero-carbon buildings. Many are also seeking LEED certification and incorporating a wide variety of green products and materials.
  • Technology is being applied to the design and construction process. Respondents report using technologies such as BIM (building information modeling), software to model energy use and software to simulate operations in the facility to be built during the design and construction process.

Many studies show that these tools can help to accelerate project delivery, control costs and achieve quality goals, so similar results can be expected in this sector as well.