Smart Warehousing as a Wave of the Future

Abstract

Background: The unprecedented supply chain disruptions caused by the prolonged COVID-19 pandemic forced many firms to change their way of doing business dramatically. These changes include quickly responding to the growing demand for online orders and the corresponding direct shipments to customer locations. These changes have been further accelerated by rapid technological innovations resulting from the fourth industrial revolution (Industry 4.0). One of the most notable technological transformations that we have witnessed is the growing popularity of smart warehousing concepts. Although smart warehousing may represent a wave of the warehousing future, the published literature rarely documents its underlying principles, specific application targets, and potential impacts on supply chain performance. This research aims to identify key drivers of the digital warehousing revolution and describe important value propositions for warehousing automation. Methods: To help companies develop smart warehouses successfully as an integral part of a supply chain link, I conceptualize an ideal smart warehousing system, design its basic architecture, propose specific milestones for monitoring the progress of smart warehouse development, and then, identify critical success factors for its full utilization in today’s volatile warehousing environment. This paper employed qualitative content analysis to conceptualize smart warehousing development and establish a smart warehousing framework. Results: A smart warehouse will bring many managerial benefits, including warehousing cost efficiency, labor productivity, and agility in the era of the knowledge economy. Conclusions: This paper will enable companies to accelerate digital transformation and improve their competitiveness amid the post-pandemic industrial revolution.