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A New Generation of Technologies for

Contract Logistics

By Brendan Ryan, Global Sales Leader in Logistics.

The decision by the UK to leave the European Union, Smart Warehouses are Becoming a Reality
represents a shift to ‘Identity Politics’, a time where people in Today’s warehouse is far more than just a facility in which to
Britain and elsewhere are trying to decide who they want to store inventory. Leveraging the latest supply chain
LOGISTICS
be as the forces of change reshape the world. The politics of technology and IoT technology, a ‘Smart Warehouse’ can now
the Trump administration to bring industry back to North serve as a hub to boost efficiency and speed throughout the
America also impacts global trade and is yet another form of entire supply chain. In manual warehouses, we grew
identity politics. The changes rifling through the contract accustomed to workers moving around the warehouse with
logistics industry from IoT (Internet of Things) and enabling RF Scanners. However, in the smart warehouse industrial
technologies is creating new waves of thinking with service wireless solutions, devices, sensors and radiofrequency
providers trying to determine best solutions that fit their identification (RFID) tags drive production and enable
business strategy. We might in turn refer to this as ‘Identity warehouse managers to know the exact location and
Logistics’. progress of any product at any time.

Identity logistics brings into sharp focus the dichotomy in Cisco uses smart technology in test programmes to reduce
service providers where larger companies have invested in the amount of labelling on packages. Hands-free wearables
automation and IoT solutions and smaller companies that do allow workers to move about and access information and
not have the wallet of business or volume profiles are not instructions from anywhere in the warehouse.
able to invest in disruptive technologies. Cloud computing
has gone mainstream for many enterprises and the IoT is IKEA is another leading company using IoT robotics to make
changing how companies do business. The impact of drones its warehouse operations more efficient. The data which is
and autonomous vehicles, blockchain, augmented and captured by the sensors is sent to the warehouse
virtual reality, machine learning and artificial intelligence management monitoring team that keeps an eye on all the
keeps growing. warehouse operations. Not only does this real-time flow of
accurate information increase the overall efficiency, but it
also reduces equipment damage, worker injuries, downtime
and stock shrinkage.

Customer Technology is Shaping Country
Networks
With a massive shipping spend in the region of $12 billion
annually, Amazon is an example of a company that
proactively integrated its smart warehouse network. These
include leased airplanes to freight forwarder licenses, drones
to private truck fleets. Machine learning within Amazon has
become a ‘new normal’, where artificial intelligence is now
considered a component of every form of technology.

Similarly, Alibaba have smart warehouses where robots do
70% of the work. They can carry up to 500 kilograms above
them around the warehouse floor. They have special sensors
to avoid colliding into each other and they can be
summoned using Wi-Fi. When they run out of battery, they
can take themselves to a charging station.

20 The Chartered Institute of Logistics & Transport