Warehouses Lack Agility and Pay The Price
Lucas Systems New Market Study Explores Cost of Inaction
In the study, more than half (51%) of
Supply chain executives are paying the price for lack of agility. About 60% of those who reported rigidity say they've incurred between 11%-25% additional operating costs or losses from lack of automation adaptability when dealing with disruptions or new requirements.
The statistically-significant study, conducted by Lucas Systems in partnership with Wakefield Research, polled 114 U.S.-based supply chain executives to examine the nature of their automation adaptability.
Disruptions such as system downtime, equipment failure, labor shortages and unexpected demand spikes can paralyze a warehouse. The rate of these disruptions does not appear to be slowing down. The study showed that 85% of respondents experienced up to 10 significant, unplanned disruptions in just the past year. And another 7% experienced more than 10 of these disruptions. About 51% of the study's respondents report more unplanned operational disruptions than three years ago in the aftermath of COVID.
"Unplanned warehouse disruptions are on the rise since the Covid pandemic," explains Lucas Systems CMO
Ramoutar says unprecedented events such as the pandemic heightened awareness about the need for adaptability, but many distribution centers still haven't deployed self-optimizing automation.
Other insights from the market study:
- 86% of supply chain executives said adaptable warehouse tech is critical
- 72% of those surveyed said it would take considerable effort to reconfigure their automation in response to disruption
- More than 1 in 4 (26%) of survey respondents said adaptable automation helped reduce their operational costs by more than 25%.
Lucas Systems outlined its vision for creating an agile warehouse in its report, The Transformational Promise of the Dynamic Warehouse. The company has recently been investing in software solutions which enable agility such as its self-optimizing Dynamic Work Optimization, Dynamic Slotting, and
About Lucas Systems
Create a dynamic distribution center operation with Lucas Systems. We harness the power of data with AI, Machine Learning, speech recognition, and optimization models to drive operational agility and improved distribution center performance.
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SOURCE Lucas Systems, Inc.
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