Amid economic and geopolitical disruptions, local procurement and supply chain leaders are under increased pressure to manage staff retention challenges, modernise outdated technology, and streamline complex multi-channel operations, according to the Manhattan Associates 2024 State of Warehouse Operations warehouse, in partnership with Vanson Bourne.
The study found that 93% of Australian warehouse professionals are facing ongoing difficulties with staff retention. Compounding this issue, around four in five (79%) respondents reported a significant surge in goods passing through their warehouses over the last year. As warehouses become busier, nearly all respondents (98%) believe their current IT infrastructure is insufficient and urgently needs modernisation.
According to the research, senior management from industries including manufacturing, logistics, pharmaceuticals, retail, automotive, and consumer packaged goods (CPG) pinpointed outdated technology, workforce shortages, and multi-channel order complexity as their biggest operational hurdles.
Despite these challenges, Australian businesses remain optimistic about the potential for emerging technologies to improve warehouse operations. More than two-thirds (68%) of respondents believe Generative AI will significantly improve job satisfaction and productivity by automating manual tasks, while 72% expect robotics to enhance operational efficiency by reducing bottlenecks in workflow processes.
Manhattan Associates managing director for Australia and New Zealand, Raghav Sibal emphasised the importance of embracing new technologies. “High turnover and low morale disrupt operations, drive up costs, and damage service quality. Addressing these issues with advanced technologies like AI and robotics will not only help businesses meet rising demand but also support staff engagement and satisfaction.”
The study also highlighted that 28% of businesses see outdated IT systems as their most pressing challenge, with financial and operational inefficiencies resulting from reliance on legacy technology. Close to one quarter (22%) of respondents struggle to manage orders across multiple channels, and 20% find it difficult to meet growing consumer expectations for faster delivery times.
“Warehouses are the backbone of a unified supply chain. Optimising operations with modern technology is vital for businesses to stay competitive. By adopting innovations like microservices and Generative AI, businesses can future-proof their supply chains, turning them into key drivers of revenue growth and customer satisfaction,” Sibal added.