The warehouse model is under intense pressure, and operations need to fundamentally change, says Sarah Hollinger, vice president software implementation with Hy-Tek Intralogistics.

Warehouse operations today are under “transformational pressure,” caused by rising costs and labor shortages, Hollinger says. It’s no longer a matter of solving the problem by implementing, say, new warehouse management software. Business transformation is the order of the day.

“There are only so many things you can control,” Hollinger says. That means taking a close look at what’s going on within the four walls of the warehouse, understanding the new labor dynamic, the special requirements of niche products, and general order characteristics — all with the objective of achieving an “industry edge.”

Fourteen “core capabilities” making up warehouse operations, and each must be addressed individually, Hollinger says. But the analysis doesn’t stop there. It’s vital to ensure the smooth flow from one stage to the next. “When you stack them together, you’re going to get compounding opportunities.”

None of this means the end of humans in a distribution facility. Hollinger calls the concept of a “dark” warehouse — supposedly, one in which there are no people at all — “a bit of a farce.” Even the most highly automated warehouses today aren’t fully so, and humans remain on the scene to perform a variety of higher-level tasks.

Even so, automation is inevitable. According to one survey, 94% of operational leaders will be deploying robots within the next two years, Hollinger says.