Warehouse Alignment and Automation: Leveraging Data Analytics for Operational Efficiency

In today’s business world, warehouses are playing a major role in supply chain. The alignment and automation of all the warehouse operations are important to meet the demands of customers. Leveraging data analytics improves these processes by enabling businesses to streamline their operations, reduce costs and improve service levels. 

According to a survey in MHI’s annual industry report for 2022, only 28% of leading supply chain companies have adopted automation in their processes as of today, but that number is expected to reach 79% by 2027. (Source: https://www2.deloitte.com/us/en/blog/business-operations-room-blog/2022/closing-the-gap-on-automated-warehousing.html ) 

 The Role of Data Analytics 

Data analytics involves analysing vast amounts of data to derive meaningful insights that allow for informed decision-making. In warehouse operations, data analytics can be used to monitor inventory levels, track the movement of goods, predict demand and improve storage space. By integrating data analytics into warehouse management systems, businesses can gain a complete overview of their operations and identify areas for improvement. 

 Enhanced Inventory Management 

One of the primary benefits of using data analytics in warehouses is improved inventory management. When businesses use the traditional methods of inventory management, it often leads to understocking or overstocking – generating loss to businesses.   

According to a report by McKinsey, companies that implement data analytics in their inventory management systems can reduce inventory levels by up to 20%, all the while still meeting customer demand and improving productivity by 20 – 30%. (Source: https://www.mckinsey.com/capabilities/operations/our-insights/digital-transformation-raising-supply-chain-performance-to-new-levels )