The global supply chain is a leading news story these days – and not for good reasons. Reeling under the impact of the pandemic and labor shortages in general, the supply and demand curves of our economy have become unbalanced. Demand has increased, especially for key household products which were (and are) being hoarded. Supply, hit by the effects of Covid-19 restrictions, could not keep up. No surprise we’re experiencing inflated prices across the boards right now.
Much of what we hear about supply chain problems focuses on transportation, with shipping ports dramatically backlogged and a dearth of truck drivers for long-haul ground transport. But a big part of the story is one that doesn't make the nightly news. When supplies are tight and transportation is bottlenecked, smart management of inventory and efficient warehousing of goods become that much more important.
“Even before the pandemic it was clear that the winners in retail were those embracing e-commerce and high-volume direct-to-consumer order fulfillment,” says Erhan Musaoglu, CEO and founder of Chicago-based Logiwa Technology, Inc. “In today’s challenging environment, optimizing your warehousing operations is not just about winning, it’s about survival.”
The complexities of moving large, diverse amounts of inventory from manufacturers to consumers begs the need for intelligent algorithms to help the humans who have to manage it all. This is where the WMS – or warehouse management system – can step in. More advanced WMS software relies on AI-based learning algorithms that help manage inventory, improve order processing and fulfillment efficiencies, automate repetitive processes, and even help warehouse managers choose the best and most cost effective shipping methods.
“Yesterday’s WMS software worked fine within the four walls of a warehouse,” says Musaoglu. “Today we see more brands embracing e-commerce and thus an explosion in warehousing. This growth, combined with supply chain challenges, has put a premium on running more agile fulfillment networks, often with multiple, connected warehouses. This in turn has led us to a new age of intelligent WMS software.”
Leading the way in the adoption of new WMS technologies are third-party logistics firms, or 3PLs, who, as the name implies, specialize in managing the logistics for the growing legion of online brands. These firms – who typically take on all aspects of order fulfillment for their clients from transportation to online order processing to warehousing and shipping – live or die by the efficiency of their operations. This has resulted in 3PL technology providers, such as Logiwa, expanding their offerings outside those four walls of the warehouse, offering integrations to hundreds of online stores such as Amazon, Shopify, and eBay and to all the major shippers, ensuring order fulfillment excellence from the manufacturing floor to the last mile.
Technology alone will not solve the current supply chain challenges. These challenges, however, have driven firms like Logiwa to develop innovative technologies that will improve the movement of goods into the hands of consumers long after the current crisis abates. As a result, our supply chain will be smarter and be more resilient when the next challenges arise.
Learn more about logistics management and warehousing technologies at logiwa.com.
Logiwa is the leading cloud fulfillment software for high-volume DTC brands and 3PLs. Logiwa works where traditional WMS systems fail. It connects quickly with online stores, makes it easy to run a digital warehouse, and supports dynamic warehouse environments. To learn more about Logiwa please visit www.logiwa.com.