Supply Chain News: Where are Warehouses and Distribution Centers Headed? Warehousing 2018 Predictions

SC Digest will provide you the facts based on their survey from a cross the world industries. The report said that when the DC getting larger, cross docking and task interleaving will be one solution to be implement in your operation, How can this happend ? See the reports below.

New Report Says DCs to get Larger, Use of Cross Docking and Task Interleaving to Increase

We must admit a fondness here at SCDigest for “future supply chain” sorts of thinking, so we were interested in a new report from Motorola Solutions on From Cost Center to Growth Center: Warehousing 2018.

We’d argue that the move to growth center has been around a long time, but nevertheless the new report – based in part on a survey of logistics professionals Motorola conducted earlier this – has some interesting data and observations.
SCDigest Says:

31% of respondents say they are using some form of cross docking currently, a number expected to rise to 45% by 2018.

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The report starts by noting several trends identified from the survey data.

Those include:

• 35% of companies say that plan to increase their number of distribution centers over the next 5 years, while 38% say they plan to increase the size of their facilities.

• 54% expect the number of SKUs they carry/manage will increase – only 10.7% expect SKU counts to drop.

• 48% say they plan on increasing their use of so-called task interleaving, which involves combining DC tasks in something akin to a “continuous move,” such as a putaway move with a full pallet replenishment.

• Yet, 51% expect inventory turns will rise, whereas only 7% expect them to fall – that’s a tough challenge with rising SKU levels.

Obviously, these and other trends will put more pressure on DC operations and likely require a higher level of supporting technology to maintain performance levels. Task interleaving in a large DC can be quite complex to implement effectively, for example, and almost by definition requires a high-end WMS and wireless terminal and/or Voice system for operators.