The food and beverage industry is constantly evolving. Moving forward, technological innovation is set to take over warehousing in this sector. While there is an upfront investment in warehouse automation and technological solutions, supply chains that participate now will gain greater agility to adjust both to current challenges and to the future demands they will face.
Direct-to-consumer fulfillment centers will see significant growth over the next five years — analysts predict that 20% of all warehouses will become fulfillment centers by 2027 due to the increasing popularity of e-commerce. This change will continue shifting the paradigm, which is requiring DCs to handle inventory at a case and unit level rather than a traditional pallet level. Fulfillment centers located near consumers can fulfill orders and meet customer needs quicker than traditional food and beverage warehouses.
A strong correlation also exists between automation expenses and labor costs. In general, more spent on labor means less spent on automation. As a result, AGVs and conveyor systems are likely to become a driving force in inter-facility transportation of goods, especially as it becomes more difficult to attract and retain skilled forklift operators. AGVs require less infrastructure than fully automated systems such as ASRS, making them an accessible choice for companies that are only beginning to invest in automation.
Other trends in automation that are likely to experience continued growth include:
Mixed-case palletizing
Loading and unloading trailers
Robotic case picking