Digital Technology in Ghana's Warehousing
Digital Technology in Ghana's Warehousing
ACCRA, GHANA
DIGITAL TECHNOLOGY IN
LOGISTICS WAREHOUSING
BY AKORLI BRIGHT KWESI
JUNE, 2020
DECLARATION
I, the undersigned hereby declare that this project work (with the exception of quotations and
references which are duly acknowledged) is the result of my own original research that no part
Acknowledgment goes to our Heavenly Father, the Almighty God for his abundant grace
and mercies during the course of this research, also to our parents for their
commitment.
We would like to commend our supervisor, Mr. Alfred Abebrese for his honest
comments, correction, and tireless effort in directing, advising and supervising the
Our heartfelt thanks goes to all the personnel and staffs of the warehouses sampled in
the Tema Industrial zone for welcoming and giving us all the information relevant to the
project.
We commend the Head of Port and Shipping Department, Mr. S.O.K Yeboah for his
Digital technology in logistics warehousing has taken a tremendous turn in recent years and its
impact in warehouse operations and management worldwide cannot be overemphasized. Gartner
(2020) referred to digitalization as an increase in the usage or application of digital technology
by a company, business, or institution. Most warehouses have seen their productivity and
efficiency of their operations increase while health hazards have been significantly reduced.
Warehouse management applications like Economic Resource Planning (ERP), Warehouse
Control Systems(WCS), Warehouse Management Systems (WPS) coupled with advanced
hardware( warehouse equipments and systems) like Automated Storage and Retrieval
systems( AR/RS), Automated Guided Vehicles, Collaborative robots, Sensors and Unmanned
Aerial Vehicles amongst others have optimized warehouse operations and management with
significant improvement in material handling, storage, stock visibility and order fulfilment.
However, warehouse digitization has more or less been a dream in African countries as most
warehouses still operate the traditional way.
This research examined current trend in warehouse digitization worldwide, the importance of
digital technology in logistics warehousing and the constraints in adopting digital technologies in
Ghana with samples drawn from warehouses in the TEMA industrial zone. The research
primarily used Questionnaires with close ended and open-ended queries coupled with
observations as instruments of data collection. The sampling technique used was purposive
sampling.
The study revealed that traditional warehouses encounter a lot of challenges in productivity,
efficiency, health and safety and inventory visibility. While modern warehouse technology
impacts warehouse technology impacts productivity and efficiency and health and safety in a
positive way, most of the warehouses were unable to adopt digitization due to factors such as
financial constraints, lack of executive support, the skill gap and psychological barriers
manifested as resistance to change stemming from the fear of job insecurity which comes along
with digitization.
It was recommended that more financial investment into warehouse digital technologies was to
be made. Also training of staff to sustain the capacity to go digital is vital. Back-up systems and
contingency plans must be put in place to deal with contingencies which may arise by
implementing warehouse digitization. There is also the need to ensure a good maintenance
culture to keep the system running effectively for the good purpose of automation to be achieved.
DEFINITION OF TERMS (MEANING OF ABBREVIATIONS
AI ARTIFICIAL INTELLIGENCE
DC DISTRIBUTION CENTRE
IT INFORMATION TECHNOLOGY
GENERAL INTRODUCTION
In a competitive world, logistics operations are crucial for enterprises. They might be a
company's best or worst asset. The items offered by firms must be in the required quantity for the
consumer at the intended location and at the time specified to provide that company an edge;
alternatively, it will be at a deficit. Logistics operations may either defend or destroy all previous
The fundamental goal of logistics is to offer the best possible supply of commodities to the
and material handling, customer service, and inventory management are all operations that fall
under the logistics umbrella. A sound warehouse management system is an essential aspect of
logistics and may provide a firm with a significant competitive edge. Given this, a sound
Minette (2015) explained that, to a lane man, a warehouse is a storage facility for things that will
be used in the future. Minette further indicated that warehouses could be categorized as open or
closed. As the name implies, an open warehouse is a location where commodities such as raw
materials, components, or produced products are stored. A closed warehouse is a structure that
houses mostly commercial or sold goods. Manufacturers, wholesalers, and retailers are the most
Frazelle (2002), are corporate structures used to store produced items, imports, and commodities
destined for export. Changes in consumer behavior and supply chain structure have forced the
Warehousing is a function of a company's logistics system that keeps products at and between
original locations and intake and provides management with information on the status, state, and
dispatch of those items. The purpose of warehousing is to reduce the cost of personnel, space,
and machinery in the storage facility while satisfying the policy's cycle time and shipment
accuracy criteria and the total capacity needs. Established systems include inventory
location selection (Minette, 2015). Changes in consumer behaviour and supply chain structure
have forced the warehousing business to evolve from storing items in fairly relative motion
distribution center. Digital technology in logistic warehousing seems to be the inevitable future
with many benefits. One of the common digital technology innovations in the warehouse
business is e-commerce.
Frey & Osborne (2017) explained that humans have always been fascinated by technological
advancement, which has both excited and alarmed us with its phenomenon of social revolution.
The use of new technology to rearrange human jobs has been a prominent feature of the
discourse about the future of work. Media coverage has brought the issue to readers and viewers
throughout the globe, with Ghana being no exception. What started as near-apocalyptic forecasts
of coming mass job losses has evolved into more nuanced assessments about job characteristics
and which jobs and individuals may be most impacted by technological change, which is a great
Warehousing is often mentioned as one area that technology will change, maybe because it has
been a slacker in tech innovation for far too long, particularly when contrasted to its sister
development of e-commerce has boosted demand for quick, efficient warehousing operations
while also introducing new degrees of complexity in order assembly and shipment (Theodore et
al., 2019). All of these demands require modern digital technology in logistic warehousing.
There has been a rise of interest in how new technology might assist make the e-commerce
product delivery operations more effective and less labor-intensive. Historically, the sector has
been sluggish to accept new technology, but it looks to be nearing a tipping point. In the absence
of substantial economic developments, the future undoubtedly portends far more broad
The importance of digital technology in logistic warehousing can be seen in implementing the
product or program that aids the logistics industry in successfully and properly managing
inventories. Furthermore, it greatly aids in giving inventory control to all corporate stakeholders.
The WMS platform has seen tremendous technological digital advancement due to shifting
clients' needs since these digital technologies are viewed as key innovations add-ons to a
business. These add-ons include optimizing inventory accuracy, providing flawless online
information, enabling insights and legitimate inventory or database servers, and providing
dashboards and real-time inventory or business data. Therefore, it is paramount to assess the
importance of digital technology in logistics warehousing and the constraints in adopting
digitization.
Logistics performance is a strategic component that shows the productivity of industries and
enterprises and a driver of job creation and economic progress. The rising use of digital
through improving knowledge transfer, forecasting, inventory tracking, branding, and delivery.
Studies by Kuteyi & Winkler (2022) on the Logistics Challenges in Sub-Saharan Africa and
Opportunities for Digitalization indicates that Sub-Saharan African (SSA) markets, which are
heavily reliant on export commodities, lagged alone, wrestling with insufficient regulatory
malfunctioning supply chain that adversely affects growth due to inadequate applications of
Moreover, inadequate usage of modern technology in logistic warehousing can result in poor
inventory visibility where the operations of the logistic warehousing system seem vague to all
key players. Most importantly, without the usage of digital technology, there can be shipment
processing errors, warehouse space utilization problems, lots of manual and paperwork, and
safety problems.
This study therefore seeks to identify the challenges in traditional warehousing, and the
The primary goal of this study is to examine the significance of digital technology in logistics
warehousing. The exact aims that led the investigation methodically are as follows:
To assess the challenges in the usage of the traditional warehouse management system in
logistic warehousing
business
warehousing and their possible implications on the structure of employment and work activities
better to appreciate the role of digital technology in logistic warehousing. The data was gathered
What are the challenges in using traditional warehouse management systems in logistic
warehousing?
What are the digital technology innovations used in the logistics warehousing business?
The present research is interesting because it investigates the importance of digital technology in
logistics warehousing. This study is important because it will give policymakers in the logistic
industry key information on the relevance of implementation and usage of modern technological
innovation in the logistic warehousing business. This research will provide significant players in
supply chain management with relevant and up-to-date information to assist supply chain
efficiency.
Also at the end of this study, the research will be an addition to the current literature in digital
technology in logistic warehousing for future reference. It will provide a layperson with first-
hand knowledge of the importance of digital technology in the supply chain management system.
In order to achieve the objectives of identifying the technological trend in warehouse logistics as
well as the constraints in adopting same, the researchers collected primary data through
questionnaires and made use of computer-based software; Microsoft Excel for analysis and
This study and its conclusions are restricted to digital technology in logistics warehousing. It will
include assessments of recent technical developments utilized to assure the efficacy of logistic
This study was limited by factors that are likely to be encountered while carrying out the
Time Constraints: The short duration of the project research and the interference of
Financial Constraint: Being students, we, the researchers, have little means of
earning, so the finance or cost needed for transportation to acquire data for the
research work will be difficult to get. As a whole, the finance required to execute the
The study has been structured into five chapters. Chapter one is introduction to the study, which
covers the background of the study, the problem statement, research objectives, research
questions, significance of the study, limitation, and organization of the chapter. Chapter two, the
literature review, reviews the relevant theoretical and empirical literature on the subject. Chapter
three covered the methodology to use in undertaking the study, including the sampling method,
research design, the various sources and methods of collecting data, and the process used in
analysing the data. Chapter Four provides a detailed presentation, analysis, interpretation, and
discussion of the study results. Chapter Five is devoted to summarizing the findings, conclusion,
and recommendation.
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
solutions used in warehousing. The most crucial thing is to identify warehouse operations and
future trends. The impact of digital solutions on warehouse management will be explored, . After
conducting the literature review, the research gap will eventually be identified.
INVENTORY MANAGEMENT
partners through information sharing has become a source of the competitive weapon over rivals
in the same industry. IT has been recognized as one of the most significant influencers in the
market world at the moment (Bhattacharya et al., 2010). According to Cachon & Fisher (2000),
information sharing across the supply chain partners decrease cost, quickly facilitate inventory
flows, and improve order processing. Enhancing efficiency in warehouse activities is a major
success of an entire supply network as it aids waste reduction and ensures value creation among
business partners. Warehouse management and inventory management can be made very useful
when integrated with IT to help ensure cost-efficient activity (Lefebvre et al., 2007). There are
several IT tools in the market environment. Some of the most common ones which enhance
efficient and effective management of stock in inventory or warehouse are bar code scanners or
readers, biometric verification system, warehouse management system (WMS) and electronic
data interchange (EDI). But currently, studies have progressively established that RFID has a
significant effect on both warehouse management and inventory management than any other
technology (Wamba & Chatfield, 2011). For instance, Cao et al. (2018) stated that RFID
technology could reduce the labor cost of put-away of inventory in the warehouse by 20-30%
and the order-picking labor cost by approximately 30-50%. Lefebvre et al., (2005) also
confirmed in a pilot study that integration of RFID technology in warehouse activities could
transform critical processes that will, in turn, facilitate supply network coordination like
cooperative planning, forecasting, replenishment, and vendor managed inventory. This is easy to
say that RFID can help automate the verification process included in the shipment, thereby
decreasing error prospects (Wamba & Chatfield, 2011). Therefore, Shapiro (2004) argues that
the integration of IT contributes to the growth of productive market activities and ensure
In terms of the integration of information technology on the businesses in Asian countries, there
are some studies discuss the effect of information technology on the performance of
organizations. As the greatest number of SME (small and medium enterprises) are in the
developing countries, the discussion about the effect of information technology on inventory
management are discussing on the context of the driving and barrier factors. For instance,
Masudin et al. (2020) studies the contributing factors to the diffusion of information technology
within small and medium-sized firm in Indonesia. The study indicated that in facilitating the
diffusion of IT for SME developing countries requires three proxy factors such as IT knowledge,
IT investment, and coherent IT strategy. Moreover, a study by Masudin et al. (2020) on the 35
SMEs in Indonesia indicated that the main factors influencing SMEs to adopt information
technology are such as government role, competitors, and the failure faced by some participants.
expansion and usage of digital technology. Scholars have investigated how digitization has
become an important component of global financial flows. The reciprocal impact of digitization
and globalization may be seen. Researchers have also investigated the influence of digitalization
on country sovereignty, culture, people, money, and commodities. Several scholars (Verhulst,
2002; Van Dijk, 2005) have investigated digitalization in the context of communications.
Digitalization enables the discovery of new technologies that have the potential to dramatically
alter social and economic sectors. According to Castells (2011), digitization has become one of
will play a significant role in future economic and social growth. Hirsch-Kreinsen (2016)
distinguishes two stages of digitization. The first phase may be traced back to the late 1990s,
when digitalization was already well entrenched in a variety of industrial sectors, with
manufacturing and communication based on information and data utilization and immaterial
operations. The phase from the end of the last century to the current time is referred to as the
second phase of digitalization. This phase is focused on the digitization of physical things of all
second phase may be referred to as the "Internet of Things" from a technology standpoint.
According to McKinsey Digital (2014), digitization enables businesses to develop swiftly and
reach new markets at a minimal cost. Furthermore, digitization promotes company development
by generating network effects and, to a large degree, lowering marginal expenses such as
Mass digitisation is making its way through many industries at a remarkable pace. While several
processes can improve from implementing new digital technologies, the logistics sector has more to
gain than most. Digital warehousing can remedy issues that have plagued the industry for years and
Warehousing. Digital warehousing optimises warehouse operations through technologies like the
Internet of Things (IoT), artificial intelligence (AI) and digital twins. Companies spend roughly £264
WAREHOUSE VISIBILITY
Improved visibility is one of the biggest benefits of digital warehousing. According to studies,
62% of organizations have insufficient supply chain transparency. Manual processes that are
slow and prone to errors make it difficult to keep track of inventory levels and shipment status in
real time, resulting in delays and errors. By delivering automatic, real-time data, IoT technology
can help to mitigate this. IoT tracking sensors can show the exact location of any product or
cargo at any given time, as well as track its condition. Similarly, warehouse management
systems (WMS) may organize this data to give workers real-time information on where
everything is located. This amount of sight aids warehouses in avoiding a variety of mistakes.
Workers can find the relevant goods faster if they have easy access to real-time location data.
Having a single location where you can see all of your current inventory is beneficial. The
IMPROVED EFFICIENCY
Warehouses that improve visibility become more efficient as a result. Picking is where you'll
notice the most improvement. Workers who know where to find each item spend less time
wandering and searching the aisles. Data collected via WMS solutions about these picking
processes over time can indicate workflow improvements. Data analytics in some WMS
platforms help reorganize storage for more efficient picking. Because AI is often faster at data-
intensive activities than humans, automating this analytics process saves even more time. The
IoT can help warehouses predict upcoming needs by tracking shipments and inventory levels.
They can then refill inventory, prepare for packing or unloading, or make other adjustments to
make the business run more efficiently throughout the day, month, or year.
Digital warehousing can also help logistics companies save money in the long run. Warehouse
operators, for example, can use digital twins to simulate various workflow modifications and
observe how they affect energy, equipment, and personnel expenses. They can then determine
the best cost-effective alternative without having to conduct costly, real-world tests. Similarly,
data analytics engines can examine a company's shipping procedures to identify cost-cutting
opportunities. Some businesses may benefit from warehousing outsourcing, which frees up
money by reducing ownership costs, but they may not realize it. Analytics would display the
statistics behind how it would save money, assisting the company in discovering new methods to
cut costs. Automation is also easier and more adaptable in large digital contexts. Staffing and
IMPROVED FORECASTING
Forecasting is another major problem with warehouse operations that digital warehousing solves.
Consumer trends shift frequently, and they don't necessarily follow previous seasons' patterns,
leaving facilities with dead inventory or supply shortages. Data collection and analytics tools can
aid in the more precise prediction of these developments, enabling forward-thinking judgments.
Many stores now employ artificial intelligence (AI) to personalize client recommendations based
on their previous shopping habits. This provides a wealth of useful information regarding future
customer preferences and trends. The data can then be interpreted by predictive analytics
algorithms to identify what changes warehouses might expect. Warehouse managers that are
aware of future trends will be able to adjust their inventory accordingly. To anticipate for
incoming demand, they can order fewer of some things and more of others, saving waste and
avoiding delays.
Warehouses act as an important link in the supply chain between vendors, intermediaries, and
consumers (Chen and Wu, 2005). According to a Motorola Solutions research (2013), a
warehouse is no longer seen as a cost center, but as a commercial hub that can be a great
resource to a strong organization for generating profitable expansion and enhancing logistics
processes. According to Bartholdi and Hackman (2006), a warehouse is a location in the supply
chain that consolidates firm items, reduces transportation prices, and achieves efficiencies of
scale.
Because it bridges the time difference between the creation and consumption of products, it
produces temporal utility. A warehouse is a big storage facility for products or items.
Warehousing is the act of keeping these items on a big scale in a systematic and ordered way
inside a storage facility, making them easily accessible when required (Hilmola et al., 2011).
Warehousing is an active participant in the supply chain. In demand-driven supply chains, this
operations, both of which are necessary to a great extent to feed external clients. Warehouses are
called shops in supply-driven supply chains, and they keep inventories needed to support internal
country's economy. Figure 1 depicts storage as part of a simplified contemporary supply chain.
raw
materials warehous retail/
assembly returns
/procure ing consumer
ment
There are very important new changes in the operational trends of logistic warehousing.
storage role to one in which items are theoretically in relatively close circulation. Traditionally,
warehouse were distribution hubs that that primarily deal with pallets and cases (full boxes of
goods). The activities of warehousing can be categorized into receiving, put-away, storage,
picking and shipping. While these tasks are still essential to warehouse operations, the industry's
prominence has altered in the past decade as internet shopping has acquired retail market share.
The sector is likewise experiencing a major transformation. The development of e-commerce has
boosted demand for quick, efficient warehousing operations while also introducing new degrees
of complexity in order assembly and shipment (Theodore et al., 2019). All of these demands
require modern digital technology in logistic warehousing. There has been a rise of interest in
how new technology might assist make the e-commerce product delivery operations more
According to Fitzgerald et al. (2013) in an MIT Sloan paper, using digital technology may help
businesses simplify their processes and enhance customer experience. Streamlining processes
may help raise storage efficiency, while providing excellent customer service can boost customer
satisfaction. The two significant components where digitization had the biggest influence in the
customer experience category were increasing client satisfaction and upgrading current goods
and services.
It is worth knowing that digitalization will have great implication on the warehousing business.
Digitalization has the ability to reduce or even eradicate virtual goods transit and marginal
manufacturing costs. Such digital commodities may be developed in warehouse management like
bills of lading, regular reports, receipts, and so forth. It is worth noting that digitization has the
potential to turn certain physical flows of people into virtual flows by enabling workers to work
value chains, allowing physical components to flow directly to consumers. According to Pfohl et
al. (2015), disruptive technologies may have an impact on firms' supply chain procedures,
particularly warehouse operations. For example, delivery information for transported products
may be modified in real time as required (Whang, 2010). As a result, digital technologies (such
as RFID technologies in this instance) enable issue management to be carried out online and
centrally.
Furthermore, more logistics companies plan to adopt mobile applications on a regularly basis to
improve warehouse procedures and boost warehouse staff productivity. According to David
Krebs, the main technologies in warehouse management include obtaining and put-away/picking
activities, with a rising interest in other applications such as load planning, cross-docking, and
package and item proportioning. In 2015, mobile costing for warehouse solutions increased by
Through data contact and cooperation among warehouse staff and other departments' people,
digital technologies aid warehouse management efficiency. Data can be captured, data can be
accessed, and data may be analyzed or contributed to a data analysis using digital technologies.
When it comes to adopting new technology, the warehousing business has been a bit behind the
curve. Over the last two decades, technology advancements have centered on eliminating data
input and minimizing the amount of walking a warehouse worker must do. Warehouse
management software, radio frequency scanners, and industrial conveyor systems were among
the primary kinds of technology, however adoption of these forms of automation has been
unequal between firms. Warehousing technologies come in two folds; the hardware and the
When it comes to digitization in warehousing, various softwares are used to operate the
warehouse hardware. The most common softwares used include Warehouse management
SHIPPING
Once the order ships, the WMS should be able to automatically send ecommerce order tracking
information back to the warehouse so customers can track their shipments.
REPORTING
A WMS should provide operational and inventory reports across the warehouse. This may
include total orders fulfilled, orders shipped on time, mis- picks, mis- packs etc.
There are also reports relating to people’s operations includind inventory forecasting to
understand labor management and staffing needs. With a WMS, you can quickly find which
employees have completed safety training and those who have licenses to operate certain
equipment.
A warehouse control system is a software application used for the management and direction of
material handling automation systems within a warehouse or distribution center. Warehouse
control systems (WCS) are responsible for ensuring an efficient product flow across different
material handling equipment and sub-systems such as conveyors, pick-to-light modules,
carousels, sorters, AS/RS systems and AGVs, among others. (Anish, 2022)
A warehouse control system (WCS) is a type of software that integrates with the WMS
(warehouse management system) in order to provide additional controls and functionality to the
system. The WCS is designed to interact with and control the automated equipment that is being
leveraged within the facility. This may include everything from basic conveyors to more
complex systems such as sorters, automated storage and retrieval systems (AS/RS), goods-to-
person, palletizing/depalletizing, print and apply (PANDA), and other technologies (Romaine,
2021
In most facilities, the WCS will control the automated material handling equipment and integrate
with a warehouse management system (WMS) that will manage and plan warehouse activities
from receiving through shipping. The WMS will typically direct the work of material handling
staff alongside the automation systems controlled by the WCS. More and more facilities are
adding AI-based warehouse optimization solutions to optimize and orchestrate the work of
people, WCS systems, and robotics ( Anish, 2022).
[Link] FUNCTIONS OF WAREHOUSE CONTROL SYSTEMS
Anish, 2022 identified the following functions of WCS
Exchanging necessary information with the host or WMS to manage automated material
handling functions in a warehouse or DC.
Coordinating activities across various material handling sub-systems.
Determining the most efficient routing of products and transmitting directives to the
equipment controllers.
Assigning cartons to divert locations.
Real-time monitoring, controlling and diagnostics of automated systems based on data
collected from system-level controllers and sensors.
Enterprise Resource Planning (ERP) inventory management is a system that allows businesses to
manage all aspects of their business on a single platform, including: inventory, finance, planning,
logistics and operations. An ERP inventory management system provides real-time inventory
information to the entire organization. This is an important capability for businesses that plan to
expand, have complex workflows or supply chains, need advanced automation, operate in “just
in time” mode, sell many products or simply wish to maximize their investments in
The enterprise resource planning (ERP) software is essentially an integrated business suite for
your operation. It is designed to collect , store, and manage data from across multiple
departments within your business. This will often include information about manufacturing,
ecommerce, customer relations, sales, marketing, inventory management, shipping, product
planning, and more (Romain, 2021). The ERP is especially valuable due to the fact that it
includes comprehensive financial reporting capabilities that allows you to invoice, bill, track, etc.
In addition to the WMS, other systems will feed into it, making it a central repository of data for
your entire operation.
Warehouses cannot operate without warehouse equipments. Some of the most important innovations
in warehouse hardware is explored below.
Figure 2.7.1
Source: [Link]
FLEXIBILITY
The flexible technology used in AGVs have rendered them useful for many different tasks. It’s
difficult to relocate or shift a conveyor system, but with the wireless technology AGVs use, it’s
relatively simple and quick to remap a route and continue production. Today complex AGVs are
equipped with sensors, clamping mechanisms, positioning fixtures, and tool attachments and, as
such, are useful across a variety of sectors in many industries, including healthcare, military, and
transportation. They can work alone or in tandem with other AGVs.
ACCURACY
AGV computer systems can be coordinated with warehouse management systems. This allows
for companies to track every detail of material handling and make adjustments to increase
accuracy and efficiency. An AGV will do as it is programmed to do each and every time. It will
never get bored by repetitive tasks or distracted by workplace or social activity.
SAFETY
AGVs can operate in a number of environments that otherwise might be hazardous for people,
including those with exposure to extreme temperatures, gases, chemicals, sharp objects, or
biological contaminants. A damaged AGV can be repaired or replaced without the same
problems or liabilities worker injuries or health hazards create for companies and people.
INCREASED PRODUCTIVITY
AGVs can work continuously around the clock without breaks. They do not get sick. They will
do a task continuously for as long as necessary without flagging or complaining. They maintain a
constant speed, never hurrying or rushing to complete a task before the end of the work period.
Figure 2.7.3
Source: [Link]
.
2.7.4 RADIO FREQUENCY SCANNERS
The most frequently used tool in any warehouse are scanners. They are used for almost all
operations right from receiving to picking/packing and finally shipping (Vaibhav, 2022).
Radio frequency scanners typically store all the order information as well information of all the
SKUs in the inventory. The RF scanners are used to read the barcodes and transfer product
information, quantities and location information directly into the WMS via wireless networking.
Handheld radio frequency (RF) barcode scanners are used to manage inventory and track the
order-picking process, replacing the need for paper “pick lists.” RF scanners also allow
employers to monitor worker productivity. Hands-free RF scanners that attach to a worker’s arm
and are equipped with a barcode scanner on a finger are replacing handheld scan guns that can
pick or put away and where they are l ocated, and workers confirm the location and items by
speaking standardized commands. Voice-directed systems can replace the need for a worker to
read instructions from a list or scan items with a barcode scanner. According to a recent survey,
quarter of facilities reported using voice-directed picking in 2018, up from just less than 6% a
decade prior.39
Figure 2.7.5
Source: [Link]
Warehouse drones, also known as UAV (unmanned aerial vehicles), are aerial robotics platforms
They fly autonomously, identify and count the material stocked in the warehouse and compare it
with the data stored “virtually”, enabling safe and cost saving inventory operations. inventory
audit, inventory management, cycle counting (Cycle counting is a popular
inventory counting solution that allows businesses to count a number of items in a number of
areas within the warehouse without having to count the entire inventory. item search, buffer
stock maintenance. stock taking (Stock taking is the counting of on-hand inventory. This means
identifying every item on hand, counting it and summarizing these quantities by item). The main
objective of using drones for inventory management are to increase the inventory accuracy,
decrease labor costs and minimize dangerous tasks for the workforce.
Figure 2.7.6
Source: [Link]
2.7.7 SENSORS
Sensors have many applications in the warehouse, from being able to dynamically track
inventory to monitoring the movements of workers to controlling energy usage. Combined with
other technologies, sensors can, for example, allow for autonomous palletizers to stack boxes on
a pallet by determining the dimensions and proper stacking order. The Internet of Things (IoT),
where vehicles, devices, or goods are embedded with sensors that can communicate
automatically with each other, is seen to have significant potential to capture real-time data
The wide range of innovations speaks to the potential opportunity for technology to be applied
across warehouse activities. Depending on the source—trade literature, interviews with industry
vary. For example, two different surveys, conducted by Honeywell and the Warehousing
Education and Research Council (WERC) three years apart, estimate that voice-directed picking
is in use in 12% and 25% of facilities, respectively.40 There is no shortage of new technologies
Figure 2.7.7
Source: [Link]
An automated storage and retrieval system (AS/RS) also called AS-RS or ASRS is a type or
genre of warehouse automation technology specifically designed to buffer, store, and retrieve
product and inventory on demand ( Romaine, 2022). It is a combination of equipment and
controls that handle, store and retrieve materials as needed with precision, accuracy and speed
under a defined degree of automation. Systems vary from relatively simple, manually controlled
order-picking machines operating in small storage structures to extremely large, computer-
controlled storage/retrieval systems totally integrated into a manufacturing and distribution
process.( ARSR Group, 2022)
AS/RS technology varies substantially, and can consist of shuttles, cranes, carousels, vertical lift
modules (VLMs), micro-loads, mini-loads, unit-loads, or other systems. It is often integrated
with a warehouse execution software (WES), warehouse management software (WMS), or other
controls. It is is one of the major material handling systems, which is widely used in distribution
centers and automated production environments. AS/RSs have been utilized not only as
alternatives to traditional warehouses but also as a part of advanced manufacturing systems.
AS/RSs can play an essential role in modern factories for work-in-process storage and offer the
advantages of improved inventory control and cost-effective utilization of time, space and
equipment ( Vasili et al., 2014).
[Link] COMPONENTS OF AS/RS SYSTEMS.
Automated Storage and Retrieval Systems have four components which work together to optimize storage
and retrieval of materials in warehouse operations. The following section details the various components.
S/R MACHINE:
The S/R machine is used to accomplish storage transactions, delivering loads from the input
station into storage and retrieving loads from storage and delivering them to the output station.
To perform these transactions the S/R machine must be capable of horizontal and vertical travel
to align its carriage (which carries the load) with the storage compartment in the rack structure.
In many cases the S/R machine consists of a rigid mast on which is mounted a rail system for
vertical motion of the carriage. Wheels are attached at the base of the mast to permit horizontal
travel along a rail system that runs the length of the aisle. A parallel rail at the top of the storage
structure is used to maintain alignment of the mast and carriage with respect to the rack structure.
STORAGE MODULES:
The storage modules are the unit load containers of the stored material. These include pallets,
steel wire baskets and containers, plastic tote bins and special drawers (used in mini-load
systems). These modules are generally made to a standard base size that can be handled
automatically by the carriage shuttle of the S/R machine. The standard size is also designed to fit
in the storage compartments of the rack structure.
PICK AND DEPOSIT STATIONS:
The pick and deposit station is where loads are transferred into and out of the ASRS. They are
generally located at the end of the aisles for access by the external handling system that brings
loads to the ASRS and takes loads away. Pickup stations and deposit stations may be located at
opposite ends of the storage aisle or combined at the same location. This depends on the
origination point of incoming loads and the destination of output loads. A P&D station must be
designed to be compatible with both the S/R machine shuttle and the external handling system.
Common methods to handle loads at the P&D station include manual load / unload, forklift
truck, conveyor (e.g. roller) and AGVs
2.7.9 TYPES OF AR/RS
According to Romaine (2022), Automated storage and retrieval systems (AS/RS) come in two
main varieties: Unit-Load AS/RS and Mini-Load AS/RS. The two types are discussed below.
Unit-load AS/RS systems are typically used to handle exceptionally large and heavy loads
ranging from 1,000 to 5,500 pounds. This capability allows for unit-load AS/RS to handle full or
partial pallets and cases.
Usually, unit-load AS/RS consists of narrow aisle racks, which can extend to heights greater than
100 feet and which house pallets of product and inventory. These racks are paired with a crane,
which is used to physically place and retrieve pallets as needed.
Figure [Link]
Source: [Link]
A horizontal carousel is an automated storage and retrieval (AS/RS) system and a form of goods-
to-person technology consisting of a series of bins that are supported by an oval track. The bins
are fitted with shelves which can be adjusted as necessary to account for inventory, or can be
removed altogether to handle items such as hanging garments, drums, totes, boxes, and
more( Romaine, 2021)
Typically, multiple horizontal carousels will be grouped together to form a single pod or
workstation. This pod is integrated with a batch pick station and pick-to-light technologies in
order to facilitate an extremely efficient batch picking system. HORIZONTALCAROUSELS
Ideal for storing small parts and pieces, horizontal carousels are comprised of a series of bins that
rotate horizontally around a track
Figure [Link]
Source: [Link]
Shuttle-based AS/RS delivers inventory via a shuttle or “bot” that runs on a track between a
racking structure.
They can operate on a single level or multiple levels, depending on the needs of the operation,
and can be battery- or capacitor-powered. The shuttles deliver the tote or carton to a workstation
integrated with the system.
When an item is requested, the shuttle drives to the location of the product and retrieves the tote
or carton that contains the requested item. The shuttle will then take the tote/carton directly to a
workstation or transfer it to a conveyor to convey the tote/carton to a workstation. 000
Figure [Link]
source: [Link]
[Link] VERTICAL LIFT MODULES ( VLMs)
consist of a column of trays in the front and back of the module with an automatic
inserter/extractor in the center that stores and retrieves the required trays
Figure [Link]
Source: [Link]
CHAPTER THREE
METHODOLOGY AND ORGANISATIONAL PROFILE
3.0 INTRODUCTION
This chapter covers the research methodology of the study. The chapter include research design,
sampling technique, sample size, data collection instruments and source of data.
Qualitative and quantitative methods are the most commonly used methods in social research.
They can be used independently, or they can be combined to give what is known in social
research as mixed methods. Quantitative research aims to measure using numbers while
qualitative research usually describes scenarios and gathers data through interviews or analyse
the meaning of information from documents. Taking into consideration the main objectives of
the research which to assess the digital technology used in logistics warehousing and the
constraints in adopting same, both qualitative and quant Kathori (2004) explained that qualitative
research is concerned with qualitative phenomenon relating to or involving quality especially for
describing and testing relationships and examining cause and effect interactions among variables.
The qualitative research method became more appropriate for this study because it is sensitive
and powerful in capturing people’s experiences and meanings of events. It also allows the
respondents to share their experiences with others from their own perspectives. The adoption of
the qualitative approach also enabled the presentation of data in a descriptive design format.
According to (Hale, 2011), there are three main types of descriptive methods: observational
methods, case-study methods and survey methods. The researchers realized that amongst the
three methods, the survey method was the most appropriate for this study. In survey method
research, Hale (2011) discussed that participants respond to questions administered through
interviews or questionnaires. After the sampled respondents have answered the questions, the
researcher describes the responses given as findings. In order for the survey to be both reliable
and valid it is important that the questions are constructed in a way that will not direct the
unambiguous.
This study's design was established based on the research questions and objectives. Because the
conduct the research in order to appropriately answer the questions and meet the goal of the
study.
The researcher collected data from both primary and secondary sources. The primary data
comprised data that were gathered from qualitative and sources through open and close
ended questionnaires, observations and zoom interviews. The secondary sources of data
The primary data for this research was obtained mainly through the administration of
structured questionnaires and on zoom interviews scheduled with respondents within the
interviews with respondents. Observations were also made during a visit to the warehouses.
3.2.2Secondary Data
Secondary data was also gathered mainly through the review of literature materials made up
of publications, articles, journals, newsletters, and reports relevant to the study. Asco, and…
A study population is the total member of a defined class of people, objects, places or events
selected because they are relevant to a research according to Burgess (2001). Population
simply refers to all the members of a group that the researcher is interested in. In research,
target population is the entire set of units for which the survey data is to be used to make
inferences. It can also be defined as the eligible population that is included in research work.
It includes all the elements that meet all the sample criteria for inclusion in this study
In order to meet the research goals, information was gathered from a study population that
included members of the warehousing industry in the Tema Industrial Zone. These groups of
people are perceived to have enough experience of coastal pollution and could give satisfactory
information. From the searches made there are about 27 warehouses in the research area and that
Purposive sampling method was used for the study. Purposive sampling is a non-probability
sample that is selected based on the characteristics of the population and the objective of the
study. It helps researchers to focus on personnel with expert knowledge pertaining to the
research work.
of operation. According to Bless and Higson-Smith, (2000), a representative sample must have
the same properties as the population from which it is drawn. These 10 warehouses were chosen
because they had had been operating for over ten years was believed to be capable of providing
information from respondents (Reynolds et al., 1997). The research questions outlined in the
created the questionnaire for this study based on the research goals and a thorough assessment of
comparative literature. The questionnaires had both close and open ended questions . Open
ended questions were employed to give room to the respondents to express their views. On the
respondents
The data collecting instruments used was based on the qualitative nature of the research, it was
Microsoft Office Excel to output statistical analyses and show frequencies (Saunders et al.,
2007). CAQDAS improves the study findings' transparency and methodological rigor. On the
other hand, relevant remarks were grouped per the research issues they addressed. Based on the
findings and opinions of the interviews, conclusions and suggestions will be developed.
3.8 RELIABILITY AND VALIDITY
The researcher prepared the questions to suit the topic matter to ensure the work's dependability
and validity. Again, plain English language was used to create questions that ranged from closed
CHAPTER FOUR
4.0 INTRODUCTION
This chapter is made up of results and discussions of the analysis of the quantitative and
qualitative data gathered from the field. The results and the discussions include some
demographic characteristics of the respondents and various themes based on the objectives of the
study. The themes comprise the most frequently used traditional warehouse material handling
equipment, the warehousing software employed, the kind of automated equipment used, the
challenges of traditional warehousing, the constraints in adopting warehouse automation
systems, the perceived impact of warehouse automation on productivity, efficiency and safety of
operation, the perceived impact of automation on job security and recommended equipment and
software for better storage and material handling.
Male 2 20%
Female 8 80%
Total 10 100%
Source: Field Data 2022
20% Male
Female
80%
From the graph above, 80 percent of the respondents were male while 20 percent were females.
This shows an unbalanced ratio between male and female involvement in warehouse operations
hence the need for more female involvement in warehouse operations.
The age distribution of the respondents represented in the table and figure below showed that the
age groups 20-30 years recorded 4(40.0%) of the respondents, 31-40 years of age recorded
5(50.0 %) of the respondents, 41-50 years recorded 1(10.0%) of the respondents and 51- 60 years
and above 60 altogether recorded 0(0%) of the respondents. This means that the age group 31-40
are more involved in warehouse operation and 51-60 and above 60 years are least involved in
Above
60
51-60
41-50
31-40
20-30
The graph above shows that those engaged in warehouse operations are youthful, particularly in
The educational level of respondents was ascertained to see if they had any formal education
based on their academic qualification. It was found out that 6 of the respondents, representing
60% of the total have graduated from some senior High School whiles 4, representing 40% of the
respondents are university graduates. None of the respondents had no formal education and none
MASTERS DEGREE
FIRSTDEGREE
SHS
JHS
No formal education
0 2 4 6 8 10
From the figure above it can be deduced that all respondents had some level of formal education.
60% of the respondents are SHS graduate and 40% are First Degree holders. None had a Masters
The level of experience of the respondents in warehouse operations was ascertained. From the
warehouse operations. 4(40%) of the respondents had between 5-10 years of experience, 30%
had from 6-10 years of experience, 30% had 11-15 years of experience whiles 10% of the
respondents had between 16-20 years of experience. None of the respondents had over 20 years
of experience. A Visual impression of the data in the table below is given in the Figure 4.1.2
4
3.5
3
2.5
2
1.5
1
0.5
0
1-5 6-10 11-15 16-20 20+
To ascertain the extent to which warehouse digitization has been achieved by the respondents,
they were asked the most frequently used warehouse equipment. It turned out that 40% of the
respondents used forklift trucks in material handling more frequently. 3(30%) of the respondents
used hand trolleys more frequently whiles 2 respondents(20%) voted pallet jacks as the most
frequently used equipment and 1 (10%) of the respondent affirmed side loaders as the most
frequently employed. No respondent employed automated order pickers and conveyor belts.
Figure 4.2
FREQUENC PERCENTAG
Equipment Y E
Forklift trucks 4 40
Power trolleys 0 0
Hand trolleys 3 30
Pallet jacks 2 20
Side loaders 1 10
Conveyor belts 0 0
Automated Order pickers 0 0
Total 10 100
Source: Field Data 2022
MOST Frequently used WAREHOUSE equipment
40
30
40
35 20
30
25 10
20
15 0 0 0
4 3 2
10 1
0 0 0 Percnetage
5
0 Frequency
s ys ys ks s ts s
ck lle lle ac er el er
tru ro rt o j ad rb i ck
lift
t l et l o o rp
rk e r nd Pa
l de ey de
o w Ha Si nv r
F Po Co O
ed
at
m
to
Au
Frequency Percnetage
From the graph above it can be seen that forklift trucks are most frequently used in warehouse
material handling and automated order pickers and conveyor belts are the least frequently used.
From further probing it was found out that none of the warehouses had automated order
pickers( a breakthrough technology in order picking) at all, which proves that they are more
warehouse operations. These software include WMS, ERP, WCS. The respondents were asked
which of these software they employed in their operations. The results as tabulated below
showed that 2 warehouses corresponding to 20% of he total used WMS, 3(30%) employed ERP
and 1(10%) used WCS in their operations. 4 warehouses however did not use any of the software
above.
Table 4.3
Figure 4.3
From the graph above inference can be made that ERP is the most widely used software in
warehouse management and WCS is least employed. Additionally it can also be inferred that
40% of the respondents did not use any warehouse management software at all. This is a red flag
To ascertain the kind of equipment that in the view of the respondents will optimize warehouse
operations, the respondents were asked which type of automated equipment they will
recommended. From the responses collated as tabulated in the table 4.4 below, 5 respondents
representing 50% of the total recommended Automated Storage and Retrieval Systems (AR/RS).
3(30%) recommended Automated Guided Vehicles (AGVs). For Unmanned Aerial Vehicles
recommended Voice Directed Systems(VDS) and Collaborative Robots( Cobots). The visual
Frequenc Percentage(
Equipment y %)
Unmanned Aerial Vehicles 2 10
Automated Guided Vehicles 3 30
Automated Storage and Retrieval Systems 5 50
Voice Directed Systems 0 0
Collaborative Robots 0 0
Source : Field Data 2022
Most of the respondents recommended AR/RS and none recommended Voice Directed systems
and Collaborative robots. When explanation was sought for this, some respondents hold that the
AR/RS when optimally used can achieve the same results that Cobots and VDS can achieve.
This is a rather controversial issue because Cobots apart from the fact that they are expensive,
can improve efficiency and productivity significantly while keeping error and safety hazards
“under the wrap.” It was quite baffling that one of the respondents who said no to Cobots
DIGITIZATION.
The shift towards digitization is mostly influenced by the perception about the impact of
digitization on a number of factors such as job security, productivity and efficiency amongst
Digitization cannot be achieved if one is not willing and open to incorporate it into operations.
light of efficiency of operations, productivity and safety. To that end, the respondents were asked
how they think digitization impacts or will impact efficiency, productivity and health and safety.
The results are tabulated in the table below. The graphical deductions are also presented below
safety
safety
7
7
6
2
2
1
1
0
Positive Negative Zero
From the figure above, 7 respondents amounting to 70% of the total sampled view digitization as
a positive influence on productivity, efficiency and health and safety. On the contrary,2
respondents(20%) believe digitization will influence those indicators negatively and a respondent
said she doesn’t see digitization changing the status quo. The respondents who responded in the
negative claimed that digitization comes with increased cost both fixed and variable. And it also
takes skill investment to operate. It is a good sign however that that a 70% majority see
job security. Many employees are digitization averse in the sense that they feel their jobs will be
scrapped off with advancement in technology. In line with the objectives of this study, the
respondents were asked whether they perceive warehouse digitization and automation as a threat
to job security. 6 respondents representing 60% of the total saw warehouse digitization as a
Threat 6 60
No threat 4 40
Source: Field data 2022
No threat
Threat
0 1 2 3 4 5 6
From the graph above it can be seen that a 60% majority of the respondents perceive a threat to
their job security posed by digitization. 40% however see digitization as no threat at all. They
said (the 40%) all they need to do is to build up their skill set to follow suit. This data in the face
of their response in 4.4.1 above as to how they see digitization impacting productivity, efficiency
and safety shows that though they know digitization is positively impactful, they are not ready to
Warehouse digitization cannot be achieved when the requisite skill is lacking. In line with this,
the respondents were asked their skill readiness to operate digital warehousing systems. This was
to know whether they are already skilled to go digital or they need training. From the data
collected, it was revealed as shown in the table 4.6 that 50% (half) of the respondents had the
requisite skills to operate the software used in digital warehousing whiles 50% said they needed
Already Skilled 5 50
Training Needed 5 50
Already Skilled
Training Needed
50% 50%
In operating traditional warehouses, there are some challenges expected. To identify what the
challenges are, the respondents were asked to state the areas where their challenges bordered. The
results are tabulated in the table below. From the table, it can be realized that 20% of the respondents
stated had challenges along the lines of health and safety. Work related injuries are amongst the safety
concerns raised. 30% of the respondents identified their challenge was along the line of productivity(low
productivity). The majority(40%) identified that their challenges were along the line of efficiency. The
submitted that operations could be made more efficient with digitization. 10% of the respondents
submitted that their challenges fell along the line of inventory visibility. That is to say that their
inventory is not visible.
Table 4.7 The Challenges (Concerns) In The Usage Of The Traditional Warehouse
Management System In Logistic Warehousing
4
3
4
2 3
2
1 1
0
li ty ds ity nc
y
bi ar tiv
is i az uc cie
In
v
tyh od effi
t e pr In
uc s af w ve
rod d Lo ra
ti
P an pa
a lth m
He Co
As seen in the figure 4.7, most of the traditional warehouses had challenges with safety and
health, productivity efficiency and inventory visibility. The problems associated with the usage
of traditional warehouse management systems may impact the speed, efficiency, and
productivity of a single warehouse activity as well as the entire chain of activities that are
connected to it. The majority of the time, these problems are discovered after the procedure has
Part of the objectives of this research was to identify what factors constrain the adoption of
digital technology in warehousing. Per the respondents’ responses it was found out that resource
limitation or financial constraints was the most are significant challenge, chalking about 40% of
the total. The lack of skill to operate automated warehousing was yet another challenge
constituting 30% of the total. Employee and management was yet another factor identified. Some
workers and management actually felt digital technology was an extra cost and a threat to job
security, hence they were not much supportive of full automation. This constraint accounted for
20% of the whole. 10% of the respondents pointed at the lack of executive support as the
constraint. The were of the view that the executive management did not put in place strategies
and policies for the smooth incorporation of digital technology into warehousing.
From the graph above, inference can be made that financial constraint constituted the most
challenge faced by warehouses in digitalization corresponding to 40% of the total. Lack of skill
or expertise to operate the warehouse software that comes with digitization amounted to 30% of
the whole, Employee and management resistance constituted 20% whiles lack of executive
WAREHOUSE OPERATIONS
To adopt digitization in warehousing, a conscious effort in that direction must be made and
systems must be put in place. It was recommended by 4 of the respondents constituting 40% that
proper training in the software used in digital warehousing is needed to achieve the aim of
digitization. 5(50%) of the respondents responded that financial investment into digital
technology made be consciously made. 1 respondent(10%) recommended that there is the need
for improved maintenance to keep the systems running smoothly and a backup system in case of
system failure.
operations
Proper Training 4 40
operations
Chart Title
10%
Proper Training
Financial Investment in digitization
40% Improved Maintenance nad Back up
systems
50%
CHAPTER FIVE
5.1 INTRODUCTION
This chapter comprises the summary of the findings, conclusion and recommendation of the
study. The findings are based on the various objectives of the research. They include the digital
trends in logistics warehousing, the challenges in traditional warehousing and the constraints in
technology impacts productivity and efficiency and health and safety in a positive way. Some of
the most common cutting edge technology in logistics warehousing employed generally in
warehouses around the globe includes Automated Storage and Retrieval systems (AS/RS),
Robots(Cobots), Automated Guided Vehicles, conveyor belts and automated order pickers.
These have the tendency to improve productivity, efficiency, reduce human errors and ensures
overall convenience in warehouse management. Coupled with these are the software that run
these systems such as warehouse management system, warehouse control system, Economic
Resource Planning Software amongst others. However most of the warehouses have not
automated their operations, though a few of them operate some warehouse management
software.
Traditional warehouses work in a non-automated mode, with activities carried out by the
company's employees with manually controlled equipment. Forklifts, hand trolleys and pallet
jacks are amongst some of the most frequently used warehouse equipment amongst the
warehouses sampled. That is an indication that they are traditionally oriented. Most of the
respondents nevertheless were of the view that warehouse digitization would do them more harm
than good.
The study also showed that traditional warehouses have lots of constraints and challenges. The
problems associated with the usage of traditional warehouse management systems may impact
the speed, efficiency, and productivity of a single warehouse activity as well as the entire chain
of activities that are connected to it. Some of the challenges revealed are along the lines of health
and safety (work related accidents), comparably low productivity and efficiency and inventory
invisibility.
Furthermore, the study identified some constraint to adopting digital technology. They include
financial constraints, lack of the necessary skills to operate automated systems, lack of
management or executive support, psychological barriers( the fear of job insecurity created by
digitization). Some were of the view that some modern warehouse technologies like warehouse
collaborative robots would actually inflate the cost of doing business and could be substituted
with Automatic Storage and Retrieval Systems which can they can leverage to get more done.
The study also revealed the fact that most of the warehouses employees are not skill equipped to
5.3 CONCLUSION
There is the need to adopt digitization in warehouse logistics. Warehouse digitization comes with
both hardware and software to enhance coordination in warehousing. Some of these include
Automated Guided Vehicles, Warehouse Drones, Collaborative robots, Automated Storage and
Retrieval systems, automated order pickers and voice directed systems. These solutions address
certain aspects of warehousing such as warehouse operation, data transmission, and commodities
identification.
Warehouses around the world that employ automation have increased productivity and customer
reduce health hazards or workplace accidents, increase product visibility and efficiency of
operations.
But due to financial hitches, lack of skill and executive support, and some psychological barriers,
Inventory invisibility
These challenges can be dealt with by automation or digitization of operations hence it was
recommended that:
Back-up systems and contingency plans must be put in place to deal with contingencies
There is the need to ensure a good maintenance culture to keep the system running
The findings of the research are inline with the objectives of the study which sought to
identify the current trend in warehouse logistics, the challenges associated with traditional
warehousing.
5.3 RECOMMENDATIONS
Digitization irrespective of whatever defenses anyone could have against it is beneficial to every
business and warehouses are no exception. The management of warehouses should look at new
policies to adopt warehouse digitization. In line with this there is the need to invest in new
warehouse technologies to scale up productivity and reduce health hazards while keeping human
errors at the minimum. As digitization cannot be achieved without the capacity to operate it,
warehouse staff need to be well trained to operate this systems. When they are trained, there will
If at all any worker will be displaced by digitisation some form of support should be provided.
Systems should also be put in place to ensure that contingencies such as system failure and
technical faults are dealt with when they arise. This will ensure that digitization in warehouse
logistics is attained.
APPENDICES
Digital technologies transform traditional warehousing by shifting from static inventory holding to dynamic inventory management, aligning with e-commerce demands for quick, efficient operations. They enhance receiving, storage, picking, and shipping through real-time data access and automation, reducing manual interventions . RFID and mobile applications increase inventory visibility and staff productivity, facilitating efficient order assembly and shipment in e-commerce environments . These technologies enable seamless coordination between warehouse activities and customer demand, curbing inefficiencies associated with manual systems .
Digitization in warehousing poses a perceived threat to job security as it automates tasks traditionally done by workers, potentially reducing labor demand . However, it also offers opportunities for employees to engage in more skilled tasks, requiring further training and skill development . While 60% of respondents see digitization as a threat, others believe the key is building skills to adapt to evolving technologies . Despite fears, digitization is seen positively for productivity and safety, suggesting that job roles might change rather than diminish .
The adoption rate of warehousing technologies varies significantly across industries and regions. In developed markets, there's a higher uptake of digitization technologies like WMS, RFID, and mobile applications to enhance supply chain efficiencies, driven by the growing e-commerce demand and technological infrastructure . In contrast, regions like Sub-Saharan Africa experience slower adoption due to infrastructure deficits, regulatory challenges, and limited access to technology . Industries that rely heavily on e-commerce and have robust technology ecosystems show rapid integration, while sectors with lower tech penetration are slower in adopting these innovations . Despite these disparities, where implemented, digital technologies consistently lead to enhanced operations and competitiveness .
Implementing digital technology in warehousing, particularly through the use of Warehouse Management Systems (WMS), significantly enhances operational efficiency by optimizing inventory accuracy, providing real-time inventory data, and improving workflow management . It reduces labor-intensive processes, minimizes manual errors in shipment processing, and improves space utilization, leading to cost-effectiveness . Digital technologies like RFID enable real-time data modifications and remote management, streamlining operations and reducing costs associated with virtual goods transit .
Warehouse Management Systems (WMS) significantly enhance logistics performance by providing real-time visibility into inventory and optimizing storage and retrieval processes . They facilitate accurate demand forecasting and efficient order fulfillment by tracking inventory data, picking, receiving, and put-away operations . This transparency improves workflow management, reduces processing errors, and enhances stakeholder visibility, thereby driving productivity in logistics operations . By automating these tasks, WMS minimizing labor-intensive processes, leading to a more efficient and cost-effective logistics performance .
Traditional warehousing systems face several challenges in adopting digital technologies, including insufficient regulatory frameworks, inadequate infrastructure, and trade restrictions that hinder digital application in Sub-Saharan Africa . These issues lead to poor inventory visibility, shipment processing errors, and extensive manual paperwork . The slow adoption of technology is also due to the costs of implementation and the skills required to operate digital systems, which are lacking in many workforce segments .
A majority of respondents, 70%, view digitization as having a positive impact on productivity, efficiency, and safety within warehouse operations . They believe that digitization streamlines processes, enhances operational transparency, and reduces manual errors, thus boosting overall productivity and safety standards . Despite some concerns about implementation costs and skills requirements, the perceived benefits of increased efficiency and improved safety measures are significant motivating factors for embracing digital technologies .
The adoption of digital technologies in warehousing is influenced by the educational and age demographic of employees, as these factors affect their receptiveness and capability to handle new technologies . The majority of respondents have formal education, with 60% being high school graduates and 40% holding bachelor's degrees, suggesting a basic readiness for digital skills acquisition . The age group most engaged in operations is between 31-40 years, who are more adaptable and open to technological changes . This demographic is likely to influence the pace and effectiveness of digitization due to their educational background and age-related adeptness with technology.
Automation plays a critical role in mitigating warehousing inefficiencies by enhancing precision and speed in handling and retrieval systems . Technologies like Automated Storage and Retrieval Systems (AR/RS) and Automated Guided Vehicles (AGVs) reduce manual labor and errors, optimize space utilization, and improve throughput efficiency . By automating these processes, warehouses achieve greater operational efficiency and lower operational costs, while improving safety standards and reducing the dependency on manual labor . The reduced need for physical handling accelerates the flow of goods and increases the overall effectiveness of warehouse operations .
RFID and mobile applications significantly enhance warehouse management efficiency by providing real-time data on inventory location and status, which improves inventory accuracy and reduces manual input errors . These technologies enable centralized issue management, streamlined data capturing, and facilitate communication and collaboration among warehouse staff, leading to decreased processing times and improved workflow . Mobile applications also enhance staff productivity by optimizing their tasks and providing access to critical data on-the-go, aligning operations with modern digital demands .