Whitepaper by TMX Global 

The COVID-19 pandemic is accelerating the adoption of warehouse automation 
technologies in the supply chain industry, although price rises and long lead 
times are challenging businesses, a new report from Asia Pacific's leading 
business transformation consultancy TMX has found. Whitepaper found here: 
https://tmx.global/insights-news/white-paper-pallet-to-parcel-covid19-need-to-automate/ 


Drawing on first-hand experience in the sector, the new report, Pallet to 
parcel: COVID-19 and the need to automate co-written by senior TMX consultants 
Paul Stringleman and Nick de Klerk, finds that as customer demand continues to 
boom, businesses are needing to find ways to keep up with record order volumes, 
leading to a rapid and urgent uptake in automated solutions.  

Nick De Klerk, Senior Consultant at TMX says, "If you are not looking at how 
you can automate your warehouse operations now, you will be left behind. The 
time to automate is now. Industry leaders are already looking to the next wave 
of technology to improve current processes in the short term and future proof 
their business in the medium term."

However, COVID-19 has thrown up a series of obstacles, from shipping delays, to 
longer lead times, travel restrictions and price rises in the cost of materials 
associated with the deployment of automated solutions and infrastructure. 

The report reveals first-hand industry observations from TMX, including the 
comparative cost increases of various warehouse operations technologies. For 
example, the cost of implementing manual operations has risen by up to 36 per 
cent. Systems reliant on Automated Mobile Robots (AMRs) saw price rises of 20 
per cent, while goods to person systems saw rises of 15 per cent. 

The report outlines that three interconnected factors are putting pressure on 
businesses who are currently automating their material handling operations. 
These are:

1. Labour force pressures. Exacerbated by COVID-19 control protocols and worker 
shortages.  

2. Demand for expertise in system commissioning. This highly specialised and 
globally mobile workforce was shut out of Australia when borders closed.

3. Raw materials are in short supply. Steel price rises have increased the cost 
of racking and construction while chip shortages have lengthened delivery times 
of smart handling devices.

These supply pressures have occurred at a time of rapidly increasing delivery 
volumes as consumers stayed home and shopped online. Now, not only are 
consumers expecting prompt delivery but constantly available information on the 
status of their parcel and precise delivery times. 

To respond and stay competitive, businesses are turning to automation to 
improve delivery accuracy and reliability while also reducing costs in 
operations and construction.

Paul Stringleman, Senior Consultant at TMX says, "The scale of this challenge 
and the need to respond is prompting a widespread acceleration in the adoption 
of logistics automation. What we are witnessing at the moment is a radical 
change."

To assist businesses in navigating this dynamic landscape and avoiding 
unnecessary costs and fluctuations, such as those from high shipping costs and 
currency exchange, the Pallet to Parcel report proposes a client-centred 
approach to automation. Selecting the technologies appropriate for the task, 
combined with careful planning and experienced execution, has seen businesses 
reap the benefits of automation in operations and customer satisfaction without 
being hit by commodity-driven price rises and shipping delays.

As early adopters move further towards fully automated operations, and consumer 
demand shows no sign of slowing down, there is an increased urgency in the move 
towards automation, albeit dependent upon the right advice to ensure the 
technology meets the need of the business. With more technology vendors 
entering the market for warehouse automation than ever before, it is critical 
to have a trusted partner with proven experience.

Travis Erridge, CEO at TMX says, "What we have observed over the past two years 
is that the supply chain industry in Australia has had no choice but to rapidly 
scale up to meet demand through a combination of local upskilling and 
innovation. As the industry moves into the 'new normal' of sustained growth in 
e-commerce volumes, businesses will have to implement more permanent solutions 
that remain flexible to meet future fluctuation in customer needs. We think 
automation will be an essential part of this solution," he said. 

Download whitepaper here: 
https://tmx.global/insights-news/white-paper-pallet-to-parcel-covid19-need-to-automate/ 


About TMX

TMX is Asia-Pacific's leading business transformation consultancy. While others 
plan for the future, we invent it – creating the digital and supply chain 
solutions of tomorrow to make you go further, faster.

TMX's specialist team brings deep industry experience to optimise the entire 
value chain, from top-of-the-funnel demand generation right through to final 
fulfilment. 

TMX boasts more than 200 experts in supply chain, property, project management 
and ecommerce in more than seven countries across the Asia-Pacific region. The 
team have led major business transformations for the likes of Coles, Kmart, 
Coca-Cola Japan Bottlers Inc, Asahi, Singapore Post, Bunnings and Universal 
Robina.

SOURCE: TMX Global