7 Warehouse Technologies in 2020

3:46am 24th June 2020






Warehouse technology is an effective, sustainable, and cost-efficient solution to addressing the challenges of the warehouse. Especially now, when the market is transitioning to e-commerce platforms that are accessible and open 24/7/365, it is becoming increasingly crucial to move warehouses from relying too heavily on costly human labor and into a more automated and technology-focused operation – a transition called “Warehouse Digitalization.”

1. Internet of Things

The Internet of Things (IoT) is a network of interconnected physical objects that can vary from computers to non-computer objects embedded with sensors. Together, they form an ecosystem of smart items that can capture and exchange data in real time.


This new wave of connected devices grants organizations a heightened level of visibility in every facet of the warehouse from receiving to shipping. Additionally, the use of IoT may vary from keeping track of machinery/infrastructure health to monitoring the movement and use of assets across the facility using sensors.

2. Business Intelligence and Predictive Analytics

Business Intelligence is a technology that collects, analyses, and presents historical and current data in a compact and easy-to-read format. This makes it simple for decision makers to understand business data and make timely and informed decisions. On the other hand, Predictive Analytics is a technology that uses many techniques, such as statistics, data mining, predictive modeling, machine learning, and artificial intelligence, to determine patterns and trends within current data and predict possible outcomes.

As warehouses generate large amounts of data, these technologies can help analyze and convert the collected data into insights. Business Intelligence produces consolidated reports and real-time dashboards based on collected data from warehouse operations. Predictive Analytics, on the other hand, is capable of forecasting warehouse performance using historical and current data within a certain level of tolerance. 

3. Robotics and Automation

Robotics is an interdisciplinary branch of engineering and science that deals with the design, construction, operation, and use of robots that can be programmed to perform manual processes in the warehouse, whereas Automation is a set of operations that can be performed autonomously with minimal or no human assistance.  [

Since the warehouse is filled with repeatable, process-oriented, and error-prone processes, robotics and automation is a crucial technology to help simplify operations. They have the ability to take over repetitive tasks from humans and achieve a more consistent, efficient, and accurate warehouse operation. Further, it can also improve employee engagement and retention rates as the repetitive and dull tasks are transferred to the robots, thus making warehouse personnel feel more fulfilled and efficient while tackling different operational roles.


4. Automated Guided Vehicles (AGVs)

Automated Guided Vehicles (AGVs) are portable machines that navigate themselves through floor stickers, radio waves, vision cameras, wires, magnets, or lasers. This technology is most often used to transport raw materials, work-in-progress, and finished goods around the warehouse. Additionally, AGVs are equipped with GPS that allows operators to direct with utmost precision the vehicle to the exact location where it needs to pick or drop its cargo.


Warehouses equipped with AGVs are much more efficient compared to traditional warehouses as they can semi-automate monotonous and time-consuming tasks and processes. Along with semi-automating warehouse processes, AGVs can work 24/7 and on-demand at a consistent speed and precision, since they don’t entirely depend on humans to be operated.


5. Mobile and Wearable Technologies

Mobile and Wearable Technologies refer to small computing devices that are worn or carried by a user to send and receive information anywhere in the warehouse conveniently. Some of the warehouse processes that benefit from the use of these technologies are picking, packing, loading, etc.


The use of mobile and wearable technologies in the warehouse increases operational efficiency since it eliminates the need to walk to a workstation, resulting in lower travel time. Additionally, being able to access real-time data regardless of the location allows the warehouse staff to be more agile and faster in making informed business decisions.


6. Blockchain

Blockchain is a distributed digital ledger technology that records and links (or chains) blocks of transaction data from relevant parties in a verifiable and permanent manner. This database of transactions is shared among respective parties, which makes the technology distributed rather than centralized. This distributed approach to data management makes this technology a preferred platform to protect data and increase accountability while making information easily accessible in a warehouse.


In the supply chain, which includes the warehouse, collaboration and transparency are limited because of the many entities involved in a transaction that can alter the integrity of the data intentionally. The value of blockchain is that it can link these separate entities under the same data platform to ease communications, increase transparency, and strengthen data security. Additionally, since blockchain is secured and almost impossible to hack, the data infrastructure can be used as a reliable source of historical data and instill accountability for the parties involved.


7. Artificial Intelligence (AI)

Artificial Intelligence (AI) is a technology that enables machines to perform human-like tasks such as decision-making, speech recognition, spatial awareness, and visual perception. To do this, AI processes massive amounts of data using machine learning algorithms and statistical models.


AI is used in various industries, especially in the warehousing industry, on a large scale using common practices like web-based AI chatbots. This warehouse technology enables companies to resolve customer queries with little or no human interaction, therefore driving down costs associated with the workforce that is required for customer support. Moreover, AI can be used for semi-automating warehouse processes. For example, the replenishment process can be streamlined through AI by automatically assigning replenishment tasks to warehouse personnel based on inventory levels and predicted demand.

The warehouse technologies described above are helping warehouses to become more efficient, cost-effective, and productive. By adopting and integrating them in your warehouse operations, you can be more equipped to address the increased demands produced by e-commerce and, as a result, serve your customers better.

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