Rigid Warehouse Automation Not Addressing Disruptions

Warehouses lack the agility needed to respond to unplanned disruptions and are incurring high costs as a result, according to a study by Lucas Systems, a distribution center technology company. 

In the study, which polled 114 U.S.-based supply chain executives, more than half (51%) of U.S. supply chain executives said their automation systems are unprepared to deal with unforeseen changes, new requirements and disruptions that are happening. 

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.

About 51% of the study’s respondents report more unplanned operational disruptions than three years ago in the aftermath of COVID. 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.

And warehouses haven’t done what it takes to be adaptable, as 77% of respondents admit that at least half of their hardware or software systems are too rigid to meet the need for responding to unplanned disruptions.

Supply chain executives are paying the price for a 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.

 “Unplanned warehouse disruptions are on the rise since the Covid pandemic,” explains Lucas Systems CMO Ken Ramoutar, in a statement. “If your automation can’t quickly adapt to in-the-moment shifts, then your warehouses are at a real disadvantage.”

Automation still has a way to go in the warehouse. While  86% of supply chain executives said adaptable warehouse tech is critical, 72% said it would take considerable effort to reconfigure their automation in response to disruption.