How labor shortage affects the logistics industry

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How labor shortage affects the logistics industry – Stuart Coulton, OMRON Regional Manager Northern England The logistics industry in the UK is going through an unprecedented time. The once-in-a-century pandemic and the end of half a century of European Union membership have come together to cause serious labor shortages. As if that’s not enough, all these events are taking place in an unprecedented growth process, with the effect of more consumers turning to online shopping in anticipation of fast delivery to their doorstep.

How labor shortage affects the logistics industry

How labor shortage affects the logistics industry

The industry is currently facing serious challenges as there are fewer employees. So, how is it possible for warehouses to overcome workforce shortages and meet deadlines at the same time?

Fortunately, technology is ready to take action and revolutionize the industry. Thanks to the digitization and automation of applications, warehouses can meet the demands of the modern world by increasing employee productivity and reducing waste.

Let technology help us do more with less.

Reasons for the decrease in the number of existing warehouse workers
Although logistics is one of the most challenging sectors, labor shortages affect many sectors. Research shows that the UK’s largest staffing gap since 1998 occurred in summer 2021, with the supply of workers falling at the fastest pace in four years. The reopening of industries after quarantine has resulted in a spike in workforce requirements; moreover, due to Covid travel restrictions and Brexit, there are no workers coming to the UK from abroad.

Three important consequences of the reduction in the number of existing warehouse workers
A shortage of workers means warehouses have to offer more wages to get more people to apply. This cost increase not only affects logistics employers, but also affects consumers and manufacturers/suppliers.
Having less staff in a warehouse puts a significant strain on existing employees. Being asked to work longer hours at an already tiring job prevents employees from performing their tasks correctly or causes them to make more mistakes.
Warehouses cannot deliver the same results without finding ways to provide the same services with less staff. For their customers, this means longer delivery times and reduced overall goods transfers.
To overcome the dwindling number of warehouse workers available, warehouses need to reconsider their functioning.

Advantages of warehouse automation
Fortunately, there are technologies specifically designed to automate every stage of warehouse operations. Automation; The arrival of the inventory is included in the on-site movement and delivery processes, significantly reducing manpower usage. Whether … or

Warehouse management software,
Inventory scanning with mobile devices,
Easy access to cloud-based storage,
Smart shelves and pallets using RFID technology,
IoT sensors,
Or include robots,
There are many ways automation can streamline the operation of warehouses. “Never let a good crisis go to waste.” they say. The current shortage of workforce can be the impetus needed for warehouses to embrace automation and take advantage of it.

Autonomous Mobile Robots (AMRs)

AMRs is one of the most exciting areas for warehouse automation to grow. AMRs evaluate their environment and move goods within the facility without direct human supervision, replacing manually operated forklifts. As a result, it eliminates labor-intensive and repetitive physical tasks, improves warehouse efficiency and reduces employee workload.

AMRs are a great way to overcome the current headcount reduction and change the way goods are handled in warehouses.

With the number of warehouse workers dwindling, now is the time to learn more about automation and how it can change your business processes. Check out OMRON’s most powerful AMR, the HD-1500, and see the next logical step in logistics. Contact us for more information

Consult with Omron experts
Do you have any questions or would you like personal advice? Do not hesitate to contact one of our experts.

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