In mid-December 2024 the UK officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and in doing so, became the first European member of this trade bloc of 12 countries. Current members comprise a dynamic mix of developed and emerging economies including: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and now, the UK.

It is a very significant trade development because the bloc represents approximately 15% of global GDP, trading across a market reaching 500 million plus people. After the economic fallout from Brexit and the Covid pandemic, this presents many new business opportunities, but it will also create new challenges for logistics managers operating in the UK and across the CPTPP region. The new agreement will clearly increase trade levels and should be a wakeup call for UK companies to invest in the right warehouse automation and re-engineer warehouse processes, if they have not already.

How will the CPTPP benefit UK manufacturers?

The CPTPP offers many critical benefits for logistics managers, with the potential for tariff reductions being the most obvious and immediate. Over 99% of UK goods being exported to CPTPP countries will be eligible for zero tariffs. And when goods are traded between member countries, this will eliminate 95% of tariffs. With trading tariffs reduced, UK manufacturers could see rapidly increased trade volumes and new opportunities for cross-border shipments.

In addition to the advantageous trading tariffs, the CPTPP introduces more flexible rules of origin. This will be particularly beneficial for the complex supply chains typical among manufacturers in the UK. Specifically, manufacturers within the bloc will be able to claim preferential treatment if 70% of their product components come from participating countries. And any products sourced from multiple CPTPP countries can qualify for low or zero tariff treatment when exported within the bloc. For logistics managers, this creates the challenge of potentially needing to manage far more intricate supply chains spanning multiple CPTPP countries.

Additional sector-specific opportunities

Some industry sectors will most likely see greater growth of export sales. For instance, the UK’s motor vehicle exports to CPTPP countries are projected to increase by £712 million according to reports in The Manufacturer magazine. Pharma is another big export sale for the UK and likely to benefit from the reduced costs and expanded supply chains resulting from the trade agreement, along with large machinery exports.

All these opportunities highlight the urgency for logistics managers to scale their operations to be able to cope with the increased demand and trade. One of the most efficient ways to prepare is by investing in a warehouse management system (WMS).

5 ways a WMS helps maximise opportunity from CPTPP

Here’s how a WMS will enable UK manufacturers to maximise their CPTPP export opportunities:

Improved stock visibility and control

A best of breed WMS provides real-time inventory visibility, which is essential for managing the extra flow of goods expected from CPTPP trade. This level of visibility allows warehouses to:

• Precisely track all products originating from CPTPP member countries;
• Manage inventory levels highly efficiently to satisfy new demand patterns;
• Ensure compliance with the CPTPP rules of origin requirements.

Improved warehouse space utilisation

These days, warehouse space is always at a premium with property and rental prices being at an all time high. The potential increases to trade volumes will increase pressure on warehouses to maximise their storage capacity and this is easily achieved with the introduction of a WMS. Once implemented a WMS will automatically optimise putaways and space allocation, based on incoming and outgoing shipments. Very significantly, a WMS will also enable up to 30% more stock to be stored in a given area, which is critical for coping with projected increased trade volumes. For regulated industries requiring special storage and handling requirements, these instructions can be programmed into the WMS and automatically adhered to.

Streamlined customs compliance

Becoming part of the CPTPP brings additional new compliance requirements for UK manufacturers and a WMS helps warehouses by removing time consuming administration tasks. For instance, this includes being able to automate the tracking of product origins to ensure compliance with CPTPP’s 70% rule for preferential treatment. In addition, it will automatically generate the documentation needed for customs clearance, reducing delays and potential late shipment penalties.

Improved supply chain integration

Participating in the CPTPP will result in greater diversification of supply chains across its member countries. Without a WMS this would be highly complex to manage, but a WMS makes light work of this complexity. Best of breed WMS solutions can integrate with transport management systems (TMS) to optimise inbound and outbound logistics operations. In addition, supply chain visibility and planning capabilities are enhanced by providing valuable data that can be shared with ERP systems to improving the overall customer experience. A WMS also provides analytics on warehouse performance, helping managers adapt to new trading patterns and inventory models.

Faster stock picking and packing rates

As trade with CPTPP countries ramps up, it will be critical to have highly efficient order fulfilment capabilities. A WMS will enable this by optimised picking strategies (including zone, batch, or wave picking models) to handle the increased order volumes. As documentation can be generated automatically, advanced shipping notification (ASN) reports can be generated automatically, improving customer relations and meeting CPTPP market expectations.

Becoming part of the CPTPP is a fantastic opportunity for UK manufacturers. By implementing a best of breed WMS, warehouses will have the resources to navigate any new challenges and capitalise fully on the export sales increases available.

Regardless of whether you are an ecommerce business or sell through more traditional channels, poor reviews are always very damaging for your brand. Consider these statistics, compiled by Fera – and they should know, their entire business is based around reviews.

72% of customers in their survey admitted they will not take any action until they read reviews about your business and having any reviews at all will improve conversion rates. In fact, just a single review can improve conversion rates by 10% or more and hitting 30 reviews can improve sales conversions by 25% or more. Things get really interesting when the reviews are for premium priced products. Reviews on higher-priced goods can increase conversion rates by 380%, compared with 190% from cheaper products.

Let’s look at the flip side. What happens when your business has negative reviews? It’s simple and unequivocal, negative reviews have a very negative impact on sales. More than four negative reviews can decrease sales by up to 70% and will dent a brand’s reputation and customer confidence. Longer term, poor reviews will make customers less likely to purchase. 86% of customers surveyed said they hesitated to purchase from online stores with negative reviews and the same number of customers also said that reading a negative review would change their mind about making a purchase. Negative reviews are to be avoided at all cost.

The trouble is that in some cases, the negative review results from poor order fulfilment and delivery execution. There is nothing wrong with the company’s products per se, but the actual user experience, the transaction experience, was poor. This is a common outcome for companies that do not have any warehouse management automation in place. They still rely on paper pick sheets and manual processes to get sales orders out the door and they need to invest in technology to oversee their operations.

The exact problem happened to a customer of ours. They were not using a warehouse management system (WMS) because they didn’t realise they needed one and then experienced a succession of negative reviews. Customers were not getting what they ordered and became frustrated.

Shipments to customers were often delayed, and stock accuracy was low. Products appeared as available on the website, but were in fact out of stock, resulting in order cancellations or only partial fulfillment of customer orders.

Even more annoying for customers and employees, the contact centre wasn’t able to help either – the call centre staff had the same poor stock visibility as the customers and whilst they did their best to manage expectations this usually only ends in one place – the customer was angry!

This company had experienced a period of rapid growth and their warehouse was simply overwhelmed by the paper-based systems they relied on. It was clear they needed a strategy to rapidly increase their site review rankings and implementing a WMS would help solve many of these problems. Introducing a WMS helped the client to see a rapid improvement to customer satisfaction levels. There were multiple ways their investment in a WMS generated clear benefits for warehouse efficiency, improved contact centre morale and helped the client to replace its negative reviews with glowing ones.

3 ways a WMS can reverse poor customer reviews

Here are three ways that implementing a WMS has a rapid and direct impact on improving customer review scores:

1. Better inventory management

Inventory is perhaps the biggest overhead in a manufacturing business and a WMS makes a significant contribution to improved inventory management. It enhances inventory visibility and control by providing real-time tracking of stock levels, locations, and statuses. This then allows for more accurate demand forecasting and the flexibility to employ just-in-time inventory strategies; the ability to set automated alerts for low stock levels and expiration dates, set up specific inventory management techniques like FIFO and LIFO and generally eliminate out of stock issues.

2. Greater operational efficiency

A WMS acts as the control centre of a warehouse, automating and streamlining every warehouse process. This in turn leads to rapid improvements like:

• Faster order processing and reduced labour costs;
• Optimised picking routes by plotting the most efficient routes and reducing travel time within the warehouse;
• Automated generation of shipping documents and packing instructions;
• Reduced need for manual paperwork because accompanying documentation is generated and sent electronically.

3. Improved customer service

A WMS directly contributes to better customer satisfaction (and customer review ratings), by enabling accurate order fulfilment and timely deliveries. When warehouse processes are driven through a WMS it becomes almost impossible to make mistakes, eliminating any accuracy issues. In addition, because orders are shipped on time in full, more realistic delivery dates can be provided, based on real-time product availability.

Finally, perhaps the most important benefit of a WMS in the warehouse is the ability it offers for achieving continuous improvements. A best of breed WMS includes many powerful analytics tools that allow warehouse managers to monitor every aspect of operations, delivering valuable insights and performance data. This information can be used to set targets for continuous improvement and will also help to improve future decision-making capabilities, because any decision can be based on real-time data.

By implementing a WMS our customer was able to reverse the negative impact of poor reviews in a very short space of time, and now reaps the many other benefits of their investment in warehouse automation.

At a time when many warehouse managers are struggling to recruit decent operatives, the costs of employing personnel are about to increase significantly. National insurance and minimum wage costs are rising from April 2025. These changes were announced by Chancellor Rachel Reeves in the recent UK Autumn Budget and it is going to make the business case for investing in warehouse automation even more compelling.

This article highlights what is going up and provides insights into constructing a compelling business case for warehouse automation technology, including Warehouse Management Systems (WMS) and wearable devices.

How are taxes going up in April 2025?

Increases to National Insurance costs

Employer’s Class 1, 1A and 1B National Insurance Contributions (NICs) are increasing by 1.2% from April 2025, bringing the rates to 15%. This is a tax levied against employers for their employees.

At the same time, Class 1 NIC secondary thresholds are reducing from £9,100 to £5,000 per annum. This is effective from 6 April 2025 until 5 April 2028. After this date it will then increase in line with CPI.

This change represents an increase of just under £900 Class 1 NIC per employee on an average worker’s total pay as published by the ONS on 1 October 2024.

Increases to Minimum Wage rates

In addition, the National Living Wage is increasing from April 2025. For over 21s, the rate of NLW is identical to the National Minimum Wage (NMW) and it increases from £11.44 to £12.21ph (6.7%) or £23,873.60 pa for a full-time worker. The 18–20-year-old rate increases from £8.60 to £10 (16.3%), up by £2,737 to £19,522 pa.

These cost increases will especially impact on warehouse managers who are employing workers at the lower end of the pay scale. When increases to both employer’s NICs and the NLW are considered together, this represents a very significant rise to the cost of employing warehousing operatives.

How can warehouse technology offset increases to tax?

These economic developments, together with the ongoing skills shortage, make the financial case for investing in warehouse automation – with a WMS and wearable mobile devices – even more compelling.

Let’s consider how to evaluate investing in these important technologies.

Evaluating the business case for Wearables

In order to justify an investment in wearable technology, warehouse managers need to evaluate the potential return on investment (ROI). Here are some key considerations to build a business case:

• Cost vs benefit analysis: Wearables will usually involve a higher upfront cost compared to traditional handheld devices. This is because a business typically needs to purchase both the wearable computer and accessories like ring scanners and chargers. Plus, handheld devices are a mature technology and something of a commodity today. It is not helpful to do a direct cost comparison and instead, consider the time saved performing operations. For instance, studies suggest that wearable scanners can significantly boost productivity, enabling workers to pick up to 10 additional items per minute compared to handheld devices. These savings on labour costs can very quickly offset the higher initial outlay to purchase wearables.
• Productivity gains: When building a business case, it is essential to quantify the productivity gains. Research highlights that warehouses using wearables can pick orders up to 40% more quickly. That’s just one task of many to be performed each day. Consider the increased costs of employing warehouse workers and how by adopting tech to speed up throughput rates, these costs can be minimised.
• Longevity and durability: Ruggedised construction means that wearables are built to last in industrial environments. Many devices are designed to be future-proof, offering support for multiple Android generations with ongoing software updates to ensure security. This long lifespan can make wearables a very attractive investment over time. This consideration is not only important because the long useable lifespan enables these assets to be ‘sweated’ but it also aligns well with corporate sustainability goals.
• Security: Cybersecurity is one of the most serious threats to every business today. As the majority of new wearables are built for Android, users will benefit from the extra security this brings, as they are regularly updated with the latest security patches.

Developing a business case for a WMS investment

One of the most common observations new Indigo WMS users make when they start using the software is how it enables them to ‘do more with less’. What they mean specifically is that they can increase the volumes of orders and transactions their warehouse can process in a given period without having to increase headcount.

In addition to reducing labour costs, there are some other very significant business case considerations:

• Improved inventory management. After personnel costs, stock is one of the big expenses for a business and it needs very careful management. A WMS will help optimise inventory management by preventing shortages and production delays.
• Linked to stock management, a WMS enables you to track inventory levels in real time. This means you can operate a just in time warehouse, ordering in stock exactly when you need it to preserve cash flow.
• Warehouse space is expensive to buy and even more so to rent and this trend will likely continue in the future. A WMS will allow you to optimise the way your warehouse is organised. Our experience shows that you can store up to 30% more stock in the same space when it is managed with a WMS. That is a huge space saving over the long term. The WMS will suggest where similar products can be stored and help operatives to locate items for an order quickly.

A successful WMS implementation, especially when operatives are using wearable devices, will quickly result in greater efficiency, productivity and accuracy in your warehouse. Considering the recent Budget announcement that employing workers is set to become even more expensive from April 2025, it is a great time to be building a business case. Let Indigo Software show you how.

Disclaimer: This blog relates to the recent UK autumn budget 2024 and does not constitute tax advice. Tax law is complex so speak to your accountant about the relevance and appropriateness for your business.

One of the biggest trends to hit warehouses is the rise of wearable technology. Gone are the days when wearables were seen as futuristic and niche. Today they can be found in many warehouses all over the country. Not surprising then that the global wearable technology market is expected to grow at a 34.6% CAGR from US$120.15 billion in 2023 to US$1,695.46 billion by 2032.

Widely regarded by experts as a transformative tool, adopting wearables can help management to revolutionise their warehouse operations. When implemented with a best of breed warehouse management system (WMS) solution, these devices can very quickly enhance the efficiency and accuracy of key operations including order picking, packing and inventory management.

Given their huge potential, it is important for warehouse managers to appreciate the many benefits of wearables and explore how they might fit into an intralogistics environment.

This article explores how wearables can be used in warehouses, providing insights into how businesses can evaluate the business case for investing in this important technology.

Benefit from Wearables in the Warehouse

When we talk about wearable technology, this includes a wide range of devices. It is everything from wrist-mounted mobile computers and ring scanners placed on a finger, to interactive glasses and voice headsets.

Regardless of the type of device, the feature all wearables share is the ability for an operative to be working hands-free. This means they can work more naturally, with the freedom to access data and scanning tools, significantly reducing the time spent on each transaction.

For instance, a wrist-mounted mobile computer can display instructions, while a ring scanner allows workers to scan items without needing to hold a traditional handheld device. Even the most basic wearable devices will speed up processes such as picking by up to 40%, by removing the need to constantly pick up and put down equipment.

Voice-directed systems include a headset worn by the operative through which spoken instructions in any language can be given. These systems integrate with a WMS and are very popular in fast moving warehouses. Now that the market for voice-based wearables has matured, the entry costs have adjusted too, making it a more viable option for smaller warehouses to consider.

Finally, more advanced wearables like augmented reality (AR) glasses can provide workers with a visual display of their task list or guide them through the most efficient route to a stock item for a pick. They can even include a validation stage, to ensure the right item ends up in the right tote.

No discussion of investments in wearable hardware would be complete without considering the environmental considerations. Users today expect their devices to have the longest possible lifespan and manufacturers have responded by designing wearables with sustainability and longevity in mind. Ruggedised construction means that wearables are built to last in industrial environments. Many devices are designed to be future-proof, offering support for multiple Android generations with ongoing software updates to ensure security. This long lifespan can make wearables a very attractive proposition for businesses looking to maximise their return on investment.

Three reasons why wearables are so popular

In fast-paced environments like e-commerce and food warehouses, where throughput rates and accuracy are extra critical, wearables offer a significant advantage. Here are some of the main factors behind their growing adoption rates:
 

• Increased efficiency – Wearable devices reduce the need for repetitive actions, such as picking up and setting down handheld scanners, which can slow down operations. Workers can handle multiple tasks more quickly, increasing the number of orders processed.
• Enhanced worker comfort – Linked to this first point, any tasks that are highly repetitive can also strain workers. Wearables are lightweight and designed for comfort, making them easier for workers to use throughout long shifts, without causing fatigue or injuries.
• Better accuracy – Wearables like ring scanners and voice headsets will drive productivity gains in the warehouse by truly mobilising the process. They will provide real-time guidance and feedback to workers which leads inevitably to more accurate picking, packing, and shipping. This also means that the learning curve to full productivity is very short, making it very straightforward to increase headcount during busy periods without seeing a negative impact.

Indigo WMS integrates seamlessly with many different types of wearables so that users can benefit from real-time updates, better traceability and true data-driven decision-making. As more businesses adopt these tools, staying informed about the latest trends will be key to maintaining your warehouse’s competitive edge.

While the current adoption rate of artificial intelligence (AI) technologies in warehousing is still relatively low, market projections indicate that there will be a significant growth in AI implementations over the next few years. For warehouse managers, adopting AI promises both operational efficiency and a substantial return on investment. By leveraging the vast amounts of data that warehouses naturally produce, AI can optimise processes, enhance productivity, and offer long-term savings. This article will explore how AI can be applied in warehouse environments and discusses some of the most common concerns about the impact of AI on the workforce.

Why does AI thrive in the data-rich warehouse environment?

The intralogistics environment and AI can be a perfect match. Warehouses are often inherently data-rich environments, generating massive amounts of valuable information related to product location, movement, inventory levels, and operational efficiency. AI systems, especially large language models (LLMs) and machine learning algorithms, thrive on high-quality, consistent data. The more data they can analyse, the better they become at identifying patterns, making predictions, and optimising performance.

Collecting data is always good

In an AI context, there is no such thing as ‘too much information’! The more data you gather, the better insight you will gain into your warehouse operations. Data-driven AI systems use the wealth of information generated by intralogistics to fine-tune processes, predict demand, and allocate resources more efficiently. For instance, the longer an AI system monitors your warehouse, the more accurate its predictions for stock replenishment or order fulfilment routes will become. Over time, these processes can be tweaked and fine-tuned – the result is a more efficient, cost-effective operation.

Key use cases of AI in warehousing

AI’s capabilities are very varied and extend across various operational areas, allowing warehouse managers to optimise and automate tasks, leading to significant productivity gains. Here are three of the most immediately viable use cases:

Route Optimisation

Travelling around the warehouse can waste a lot of time and resource which is entirely preventable using AI. AI can dynamically adjust required routes for warehouse vehicles, such as forklifts or autonomous mobile robots (AMRs), to avoid congestion, reduce fuel consumption, and minimise wear and tear on machinery. By analysing real-time data, AI ensures that goods are moved as efficiently as possible, saving both time and resources.

Picking Optimisation

Picking is another major cost centre in a warehouse and can represent up to 55% of the cost overhead. Using AI, warehouses can determine the most efficient picking routes for workers, reducing the time spent retrieving items. AI systems can prioritise urgent orders, ensuring they are picked and packed first, while reducing overall labour costs and speeding up the fulfilment process.

Improved Workforce Productivity

AI-powered tools can assist warehouse workers by automating repetitive tasks, such as data entry and inventory tracking. By taking over these mundane tasks, AI enables staff to focus on more complex, value-adding activities. Additionally, AI-driven insights can help assign workers to the right tasks based on their skills, further improving productivity.

How to approach data capture for AI in intralogistics

The first step in AI adoption is ensuring you have robust data-gathering mechanisms in place, which is where a warehouse management system (WMS) comes into play. A WMS will generate and continuously capture vast amounts of operational data that AI systems can analyse. To ensure your data collection is as broad reaching and accurate as possible, it is important to ensure that different operational systems are fully integrated and can share data seamlessly in real-time. If the AI system has access to integrated data coming from a WMS, transport management system (TMS), and enterprise resource planning (ERP) system, it can support real-time decision-making across the supply chain.

Business value of AI investment

While some warehouse managers might be concerned about the initial costs of AI implementation, it is important to consider the long-term benefits and ROI. Many warehouses that have introduced AI have reported a return on investment within 12 months through increased efficiency, reduced errors, and lower workforce costs. Plus over time, as the adoption cycle moves into a more mature phase, AI solutions will become more affordable and accessible, especially for smaller companies.

Smaller warehouses can see especially large benefits from introducing AI because it can level the playing field by reducing dependency on manual planning and improving operational efficiency. For instance, AI-driven inventory optimisation helps reduce stockouts and overstock situations, improving customer satisfaction and reducing carrying costs.

Appreciating the workforce implications of AI

An early barrier to AI adoption was that could be perceived as a threat to warehouse jobs. Now that people’s understanding of the technology is improving, there is a greater appreciation that AI is not necessarily a job eliminator. In fact, a better way to understand its workforce impact is to consider it a ‘force multiplier’, because it enhances the productivity of the existing workforce by automating mundane tasks and allowing workers to focus on more complex activities.

At a time when most businesses are trying to reign in their expenditure, using AI to assist with decision-making and process optimisation will enable warehouses to achieve more target goals with the same number of staff, allowing businesses to scale without increasing their headcount.

In addition, as AI becomes more integrated with routine operations, warehouse managers and staff will need to develop new business skills. Just like the way PCs changed job roles decades ago and totally transformed office life, AI will create demand for workers skilled in data interpretation, system management, and collaboration across AI-powered tools.

Reskilling and developing a workforce for the future

The warehouse workforce of the future will need to adapt to AI-driven environments, and this will require companies to invest in upskilling their employees, ensuring that they are well equipped to work alongside AI systems. In particular, mid-career reskilling will be essential, as experienced workers will need to learn how to interact with AI tools and leverage the data collected for better decision-making.

Investing in training programs and certifications such as warehouse management qualifications that include AI training, will ensure employees are ready to maximise the potential of AI technologies. Additionally, companies should foster a culture of openness and adaptability, to encourage employees to embrace new technologies.

Is there a future for AI in warehousing?

Experts all agree that AI is set to become a very widely adopted technology in logistics, but successful implementations will depend on the openness and adaptability of an organisation. AI adoption in warehouses is expected to accelerate quickly, with data showing that the global AI market in supply chain and logistics is expected to grow significantly over the next decade.

However, AI adoption in the warehouse needs to be undertaken responsibly, with careful consideration of the risks to both the organisation and its workforce. By integrating AI thoughtfully and responsibly, warehouse managers can drive substantial improvements in productivity, safety, and worker satisfaction while securing a competitive edge in an increasingly AI-driven world.

Digital transformation is the process of adoption and implementation of digital technology by an organisation in order to create new or modify existing products, services and operations by the means of translating business processes into a digital format. The goal for its implementation is to increase value through innovation, invention, improved customer experience and efficiency. Focusing on efficiency and costs, the Chartered Institute of Procurement & Supply (CIPS) defines “digitalisation” as the practice of redefining models, functions, operations, processes and activities by leveraging technological advancements to build an efficient digital business environment – one where gains (operational and financial) are maximised, and costs and risks are minimised.

Digital transformation is a broad term and encompasses a wide range of initiatives, including implementing or modernising enterprise resource planning (ERP) and / or warehouse management solutions. While the original concept of digital transformation dates back to the 1960’s business and cultural revolution, decades of research and technology advancement through to today’s AI driven society has brought it back to the forefront of business evolution.

Research backs this up. According to Gartner, 91% of businesses are engaged in some form of digital initiative. The analyst group’s 2022-23 State of Digital Adoption report highlights that 67% of enterprises are under ‘huge pressure’ to accelerate their digital transformation programmes, with 87% of senior business leaders saying that digitalisation was a company priority. This is in addition to maintaining the momentum of new product innovation, dealing with cybersecurity, maximising staff retention and generally delivering on all the other ‘business as usual’ targets.

Many companies are implementing ERP and WMS technologies as part of their digital transformation efforts. Without the right solution partner, these projects can be difficult to get right, with potentially high failure rates. For example, Gartner puts a figure on the problem, reporting that between 55% to 75% of all ERP projects fail to meet objectives.

This suggests that a significant number of the businesses attempting ERP and WMS implementations are encountering challenges. Also, whilst all this transformation is taking place the business still has to function and get goods out the door.

Given the intense pressures facing warehouse and supply chain leaders, is it really surprising that these projects can face so many challenges? They have to deliver in a commercial environment where boards are feeling intense cost pressures, time demands, political uncertainty and risk aversion necessity. When people make decisions without fully evaluating all the implications, issues can arise and the consequences can be dire.

How to evaluate investing in a WMS

This article explores best practice approaches to strategic decision making in the warehouse. It explains how to identify which supply chain digital transformation projects to prioritise, the ones to reject, and how to evaluate them objectively. This is a critical balance to achieve because warehouse managers typically have limited resources. They need to know how and why they should be saying ‘yes’ to some projects – like introducing a new WMS. Conversely, they need to know how and why to say ‘no’ to others.

Here are six powerful decision-making models that businesses can use to ensure they strategically evaluate which warehouse digital transformation initiatives to accept or decline.

1. Eisenhower Matrix: Urgency vs. Importance

The Eisenhower Matrix helps warehouse managers to categorise tasks based on their urgency and importance, according to four dimensions.

• Urgent and Important: Do immediately
• Important, Not Urgent: Schedule
• Urgent, Not Important: Delegate
• Not Urgent, Not Important: Eliminate.

This is a valuable matrix for warehouse managers to employ when faced with competing priorities, by plotting each task on the relevant matrix quadrant. It is important to focus most attention onto the ‘Urgent and Important’ quadrant but to also schedule time for ‘Important, Not Urgent’ initiatives that may generate longer-term value. For items in the ‘Not Urgent, Not Important’ quadrant, explain how they don’t align with current priorities but could be reconsidered if circumstances change.

2. MoSCoW Method: Prioritising Requirements

This methodology is useful for categorising project initiatives as:

• Must have
• Should have
• Could have
• Won’t have (this time).

When using this method, a collaborative approach works best. For items in the ‘Won’t have’ category, it’s important to acknowledge their potential value but explain how current ‘Must have’ and ‘Should have’ priorities are taking precedence.

3. RICE Scoring Model: Data-Driven Prioritisation

The acronym ‘RICE’ stands for Reach, Impact, Confidence, and Effort. It is a useful model because it provides a very transparent and quantitative approach to prioritisation, thereby removing subjectivity that could be present in the previous two. To use the RICE model, score each potential project according to these four factors and calculate an overall RICE score. RICE scores for competing projects can then be published around the business to demonstrate that some initiatives, for instance implementing a WMS, have scored more highly and should be prioritised.

4. Kano Model: Balancing Customer Satisfaction

The Kano Model is particularly useful because it evaluates a potential digital transformation project according to the perceived value for customers. The rating measures are:

• Must-be: Basic expectations
• Performance: Linear satisfaction increase
• Attractive: Unexpected delighters.

This model helps warehouse managers considering a new WMS to ensure that they are meeting basic customer expectations whilst also investing in innovations that can differentiate your organisation.

5. OKRs (Objectives and Key Results): Aligning with Company Goals

Focusing on OKRs help warehouse managers to align efforts to improve operations with overarching company objectives, therefore ensuring decisions are always evaluated strategically. To use this methodology, ensure all proposed projects clearly link to established OKRs. This helps to maintain strategic focus and eliminates initiatives that don’t contribute to key organisational goals.

6. Pareto Principle (80/20 Rule): Focusing on High-Impact Areas

One of the most well-known decision-making frameworks used in business, the Pareto principle suggests that 80% of results come from 20% of efforts. It’s therefore essential to correctly identify the 20% of projects that are likely to deliver 80% of the value and then prioritise these for maximum impact. If you are introducing a WMS into a warehouse that was previously managed using paper processes, this would automatically be an investment in the 20% category.

In summary if any of the following is applicable to you and / or your business, then a transformative WMS project should already be in your budget.

• Rapid business growth
• too busy to look at a WMS project
• you regularly win new customers
• 20% of your customers provide 80% of your revenue
• shortage of warehouse staff
• complex orders and / or picking requirements
• moving to a new warehouse
• still using paper pick sheets
• your competition has already transformed their warehouse operation to a new WMS.

Author: Jacky Farrington, Global Customer Success Manager, Indigo Software

Resilience is one of the most important traits a manufacturing business needs to cultivate if they want to maintain a competitive position in today’s business world. Now, new data shared by Hennik Research for the Manufacturing Leaders Summit has highlighted that the UK manufacturing sector is showing remarkable signs of resilience. This, despite all the challenges it has faced in recent years.

According to the S&P Global UK Manufacturing Purchasing Managers’ Index™ (PMI®), UK manufacturing as an economic sector has undergone a remarkable recovery. This continued throughout the summer of 2024, with output, new orders and levels of employment all rising. In addition, rates of inflation in input costs and selling prices have both slowed. The PMI has also signalled a steady rate of expansion during the past six months. Over three-fifths (61%) of companies included in the PMI manufacturing forecast survey said that they expected production levels would be higher one year from now, compared with only 6% anticipating a decline. This positive sentiment was linked to expecting new client wins, product launches, successful efforts to open up new markets and hopes for economic recovery.

All this is excellent news for UK manufacturing and it comes despite all the challenges the sector has faced in recent years. Brexit, the Covid pandemic, supply chain disruption, instability of the pound and constant issues relating to skills supply. UK manufacturing has been showing remarkable resilience and growth in recent years. Yet while the UK manufacturing sector is thriving, the Eurozone continues to struggle. The HCOB Eurozone Manufacturing PMI remained at 45.8 in August 2024, signalling a contraction.

Experts believe that the many challenges UK manufacturing has needed to overcome are behind its success. For instance, Brexit’s impact has led to some supply chains being re-located to the UK, which has boosted domestic production. European counterparts have not needed to renegotiate and continued with established supplier relationships whereas Brexit forced UK companies to reassess and localise their supply chains. Some experts believe this early adaptation has helped to build resilience which is again proving beneficial in the midst of ongoing geopolitical tensions.

One critical way that UK manufacturers have boosted their resilience in response to recent challenges is to adopt a ‘just-in-case’ approach to inventory management. This has helped to mitigate some of the risks that have crippled many EuroZone businesses reliant on traditional, globalised supply networks. Just in Time inventory models rely on minimal inventory and a very finely tuned and reliable supply chain. In contrast, with Just in Case inventory management, companies will over-order, to mitigate concerns about having insufficient raw materials or sales inventory. Holding all this extra stock increases the importance of having very tight controls over inventory management and is one reason why a WMS is an essential investment.

WMS technology is the critical enabler

Tracking materials and goods from the moment they enter to finally leaving the warehouse, needs significant process optimisation to deliver effective results.. A WMS ensures improved visibility with real-time tracking of inventory and shipments, helping manufacturers optimise their operations, plus anticipate and mitigate supply chain disruptions. Given that inventory is one of the biggest cost centres in the warehouse, optimising it carefully will reduce costs and improve efficiency.

Here are five key ways a WMS will help maintain resilience for UK manufacturers:

• Creating more efficient systems and streamlining how workers pick inventory either for production orders or for dispatch to customers. A WMS also automates repetitive tasks, guiding operatives through their daily workloads to increase productivity and reduce error rates.

• Ensuring that an order – whether from production or a customer – is only accepted if the relevant inventory items are available. When an ‘order’ is taken, the WMS will flag whether the item is in stock before a purchase is confirmed.

• Storing up to 30% more inventory in the same space – items can be slotted into any location and the software will notify an operative of where to find it. There is no more relying on people remembering where that extra inventory was stored.

• Tracking best-selling items and suggesting how warehouse management can make improvements to the way inventory is managed – to improve efficiency and productivity even further. For instance, a WMS will suggest where inventory should be placed so that fast moving items are picked and packed as quickly as possible.

• By gathering data captured across the warehouse, a WMS also supports more accurate forecasting which helps to reduce wastage and improves resource and production planning. All of this data is tracked digitally in the WMS database and so additional complications arising out of any audit requirements are easily met using dashboards and reports available.

Nothing is a constant but one thing manufacturers can all rely on to maintain their competitive advantage is technology. It is the key enabler and growth accelerator. In a manufacturing environment, where efficient inventory management is a critical component of success, warehouse management software is especially important for helping UK manufacturers to stay as resilient to economic challenges as possible. By embracing this technology, UK manufacturers can mitigate potential threats, and potentially keep on outperforming their international counterparts.

Sources

https://manufacturing-leaders.uk/why-uk-manufacturing-is-thriving-while-the-eurozone-struggles/

https://www.theguardian.com/business/2024/oct/02/global-supply-chains-are-under-pressure-again-will-inflation-start-rising

https://www.oxfordeconomics.com/resource/the-true-impact-of-uk-manufacturing/

Investing in a Warehouse Management System (WMS) is a big decision for any company, but when the organisation in question is a SME and transitioning from a paper-based system, it can be especially daunting. One very important consideration is finding a WMS that can scale easily as your company grows. Eric Carter, Solutions Architect at Indigo Software shares six essential tips to help you choose the best WMS for your current and future business needs.

Flexible integration capabilities

A high percentage of manufacturing businesses will be using an Enterprise Resource Planning (ERP) system, even if they are relying on paper in the warehouse. If you are investing in a WMS to enhance efficiency, ensure that the solutions you are considering will seamlessly integrate with your existing ERP system. This integration is crucial for automating data input and enhancing prediction and management capabilities. Rather than having information in silos, it means the two systems will be able to exchange data in real-time, giving you a single, accurate view of the entire logistic business operation.

In addition to the ERP system, the WMS you choose needs to integrate with financial accounting systems and Transportation Management Systems (TMS), to provide end to end operational support. Indigo Software has performed many successful integrations with leading ERP systems and other solutions that require an interface to logistics and warehousing information. Indigo WMS can integrate with Infor, Sage, Oracle, SAP, plus TMS solutions and other materials handling equipment, including racking and carousel systems.

Easy to use and intuitive interface

Introducing a WMS into a warehouse can represent a big change to working patterns for operatives who would previously have used paper pick sheets and reports. Finding a system with an intuitive and simple interface makes the transition easier and reduces the need for extensive training, allowing your team to focus on making warehouse operations more efficient. Indigo WMS has a built-in business intelligence tool with graphical reporting, so anyone can see immediately what the status of the day’s order pool is and where additional resources may be required to meet throughput targets.

Real-time updates and visibility

The single biggest business improvement realised by implementing a WMS is the arrival of real-time updates. In a fast-moving, rapidly growing business, this is essential for maintaining an efficient, customer centric operation. For instance, a WMS provides real-time visibility into inventory levels and makes it possible to introduce perpetual inventory management. This type of stock management process eliminates the need for separate stock counts because stock is being counted automatically as part of routine warehouse operations. In addition to minimising shrinkage, because stock is always accounted for in real-time, it also means that stock replenishment processes can be synchronised with the picking cycle. This further improves efficiency and productivity, because operatives are never waiting for items in a pick schedule to be replenished for example.

Support for multiple warehouses and 3PL services

Many companies will start with a single warehouse implementation when they first introduce a WMS and then, once the system is fully operational, they will extend the software to be used across multiple, integrated sites. Other companies might only have one warehouse to begin with but as they scale the business, will add more sites. If you anticipate expanding to multiple locations, ensure the WMS can manage inventory and orders across different sites seamlessly.

These are two very common scenarios and so it is essential to choose a WMS that can support multiple warehouses and handle increased order volumes and many different types of order profile as the business expands. This ensures that the system can grow alongside your company and has the flexibility to adapt to whatever direction the business takes. Given the high cost of warehousing, some businesses with spare capacity are starting to offer 3PL services to other local businesses seeking a flexible logistics partner.

Vendor reputation for customer service and industry knowledge

Investing in a WMS is a long-term decision and it is important to thoroughly research potential vendors to ensure they have an outstanding track record of system reliability and customer support. A best of breed vendor will have a clear software roadmap they will be willing to share, showing how the solution is being enhanced by incorporating existing user feedback and by offering regular system updates and security improvements. Overall, by selecting a WMS with a history of growth and innovation, you will ensure it remains relevant and effective for your business as it continues to evolve.

Clear cost analysis and ROI projection

When migrating from a paper-based system, the return on investment (ROI) to be gained from adopting a software-based WMS is very strong. Warehouse management will need to evaluate the savings achievable through reduced errors and increased operational efficiency to justify the initial cost outlay. Once this is calculated, the financial returns will be evident almost from day one and as the warehouse becomes more efficient, these cost benefits will continue to be delivered, day after day and year after year.

When obtaining the initial business approval for a new WMS, budget considerations will need to include the upfront software and hardware expenditure, ongoing system maintenance costs and initial training expenses. Depending on the type of system you select, it may be possible to implement a new WMS on existing hardware.

By considering all these factors carefully, a company looking to implement a new WMS can ensure that they select a solution that can grow with the business – one that not only meets current needs but has the flexibility to support future growth and operational excellence.

Manufacturing companies often face intense competition in the market and must overcome several unique challenges when implementing and utilising Warehouse Management Systems (WMS). These challenges are often related to the complexity and scale of manufacturing operations. Finding a WMS solution that is straightforward to implement is very important to avoid business disruption. Eric Carter, Solutions Architect at Indigo Software, shares some of the main challenges faced by manufacturers in all industry sectors in this article.

Customisation requirements can prove difficult because manufacturing processes vary significantly between companies. This requires a WMS that can be customised to fit specific operational needs. An off-the-shelf WMS solution may not fully align with the unique workflows and processes of a manufacturing setting, necessitating further customisation, which can be costly and time-consuming. Indigo WMS has been built with easy customisation in mind, enabling manufacturers to tailor the solution to their precise requirements without requiring extensive re-development.

Integration with existing systems and legacy platforms is always a key consideration when purchasing a WMS. Many manufacturers use a variety of systems, such as Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES), which have been in place for sometimes decades and need to be integrated with a new WMS. Ensuring seamless integration can be challenging due to incompatible software versions or data formats, requiring skilled integration specialists and thorough testing. Indigo WMS was designed for ease of integration and our consultants have performed many complex integrations with platforms including Oracle, Infor, Microsoft, Sage and SAP.

Manufacturing environments generate vast volumes of data, and the WMS must be capable of handling this data efficiently and also being able to utilise the information to improve business operations. Data handling requirements include the ability to process multiple customer requests simultaneously and a need for maintaining data accuracy and integrity to prevent losses and ensure smooth operations. At the same time, reporting features need to have the power to transform high volumes of data into valuable business insights to support decision making.

Scalability and flexibility can be a trade-off with some WMS platforms. As a manufacturing business grows, a warehouse software system needs to support the addition of new suppliers, customers, and rapidly increasing stock volumes. Indigo WMS is scalable and flexible enough to accommodate this growth without compromising on performance.

Many manufacturers are using paper-based systems to run their warehouses and when implementing a new WMS, they may need to make significant changes to existing workflows. In a traditional business, this can lead to resistance from employees. By offering proven implementation, training and change management strategies when introducing a WMS to the warehouse, manufacturers can ensure that their new software adoption project will be successful, with minimal or no disruptions to productivity.

Some experts describe the WMS as the hub technology of the warehouse, like an orchestral conductor, centralising the control of goods entering and leaving the business. Manufacturing companies need to coordinate closely with their supply chains to ensure timely delivery of raw materials and components. A WMS must be integrated with other materials handling equipment and other transportation and supply chain management tools, to enhance visibility and responsiveness, eliminating any supply chain disruptions.

Addressing these challenges requires careful planning, effective communication, and ongoing support to ensure that the WMS enhances operational efficiency and supports the manufacturing company’s goals. With the right software development partner and a proven WMS solution for manufacturing environments like Indigo, your operations can see almost immediate returns from an implementation.

Example manufacturing industry that benefits from a WMS – food and beverage

Food and beverage companies face several unique challenges when using a WMS due to the specific requirements of handling perishable goods and maintaining product safety and quality. Here are some of the key challenges that Indigo WMS has been optimised to overcome:

Food safety and compliance – the food and beverage industries are highly regulated to ensure that products are safe for consumption. Non-compliance can lead to severe consequences such as product recalls and damage to reputation. Indigo WMS has been developed to comply with stringent food safety regulations, including detailed labelling, packaging, protected storage, handling, and distribution.

Temperature control and monitoring – many food products require specific temperature controls to maintain optimal quality and safety thresholds. Indigo WMS has been designed to integrate with temperature monitoring systems and provide alerts if thresholds are exceeded, preventing spoilage and ensuring compliance with food safety regulations.

Food products typically have specific lot or batch numbers for traceability. Indigo WMS enables accurate tracking of lots and batches throughout the warehouse to ensure compliance with regulatory requirements and facilitate swift product recalls, if needed.

Along with batch traceability is expiry date management and effective management of food products with limited shelf lives is critical. Indigo WMS will manage expiry dates by ensuring effective product rotation, minimise waste and prevent the sale of expired goods. It can also provide alerts when products are nearing their expiry dates to trigger potential promotions.

Efficient inventory management is critical for storing perishable items with limited shelf life. Indigo WMS improves inventory management by reliably forecasting demand and inventory levels accurately, ensuring timely delivery and minimising stockouts or overstocking.

These are just some of the unique challenges facing manufacturers and especially within the food and beverage industry. Indigo WMS has proven to be a robust WMS that can integrate with other systems, provide real-time data, and ensure compliance with key industry standards to maintain product quality and safety for customers.

Order picking is one of the most important activities in a warehouse operation and has traditionally been highly labour intensive. If a warehouse is not efficiently laid out, if stocks are not easily located or retrieved, and if the order fulfilment cycle is particularly demanding to complete, picking can easily become a chaotic process. It needs to be carefully managed and the right investments made to ensure it is optimally efficient. This article explains how to evaluate different technology driven picking systems, to identify which one is most suitable to your type of warehouse.

Avoid costs of picking getting out of control

Given its significant impact on costs, optimising order picking is essential for improving warehouse efficiency and for meeting key performance indicators (KPIs) like on-time and in-full (OTIF) delivery targets. When the pick process is finely tuned, it reduces errors, increases throughput speeds and enhances overall productivity, leading to many cost savings and improved customer satisfaction levels.

Not surprisingly, many companies invest large amounts of resources into their picking activities. For instance, in some warehouses, between 50% to 75% of the total warehouse operating expenses are allocated to picking tasks. This high cost can be the result of having to employ large numbers of operatives – especially during busy periods – and the cost of time wasted when pickers are travelling between warehouse locations. Costs can also be generated by investing in technology to automate as many picking tasks as possible, although this will continue to deliver a return on investment, whereas the cost of labour is always a one off, sunk cost.

Integrate with a WMS whatever picking system you use

Regardless of the order picking system you choose, by investing in a warehouse management system (WMS), you can introduce a seamless layer of automated operational management into your picking processes. This can be achieved if your WMS is fully integrated with whatever picking system your business will benefit most from.

When the WMS is fully integrated with an order picking system, you can reap the benefits of:

• Automated task allocation, because the WMS can dynamically allocate tasks to different pickers based on workload levels, skills levels and real-time location data showing proximity to the item, ensuring optimal use of resources;
• Real-time inventory updates to avoid issues with out of stocks and overstocks, reducing errors and enhancing inventory accuracy. For instance, by requesting automated checks to confirm that the correct items and quantities are picked, thereby minimising errors;
• Optimised efficiency and productivity because a fully automated picking operation driven through a WMS will streamline workflows, reducing travel time and improving efficiency. For instance, order picks can be prioritised based on delivery schedules and customer importance, ensuring timely dispatch to meet OTIF targets.

How to evaluate the order picking system your business needs

Let’s explore the different types of order picking systems and the pros and cons of each.

Barcode Scanning. This is a picking system whereby pickers use handheld scanners to scan item barcodes in the warehouse, ensuring accuracy and real-time inventory updates. It is flexible and easy to implement and is suitable for many types and sizes of warehouse. Warehouse barcode picking is a good option for bulk picking, whereby large quantities of single items are collected in one go. For example, barcode scanning works well in beverage warehouses fulfilling large orders for supermarkets.

Voice Picking. This is a technologically advanced picking system whereby the pickers receive instructions about what to pick and where to find the items through headsets. Voice picking offers many advantages including hands-free operation and reduced errors because the operative has to perform an item check to move onto the next task. It is very effective in large, complex warehouses and environments where the types of stock sold varies significantly or where the item shelf life is short because it is very efficient.

Pick to Light exists in many forms. It can utilise coloured lights and displays to guide pickers to the correct items for an order, enhancing working speeds and accuracy. These pick to light methods are well suited to e-commerce environments using wave picking, where multiple orders are picked simultaneously, and in environments requiring quick, accurate order preparation. It is ideal for high-volume, fast-paced environments and for warehouses where the types of products being sold does not vary too frequently with seasonality. It is also an ideal system in a warehouse where many operatives do not speak English as a first language because workers are guided to the right locations. Pick to light systems have been shown to increase picking speeds, reduce errors and significantly improve productivity, making this an ideal choice for small, high-turnover items.

Paper Sheets. Strictly speaking, paper-based picking list sheets is a ‘process’ although it is rather inefficient and outdated for the majority of warehouses today. It is a traditional method and tends to be found in small operations with low order volumes and very limited budgets.

Efficient order picking is always the goal in any business, and a WMS will provide previously unseen levels of visibility to the process. This is absolutely crucial for warehouse managers to get right if they are aiming to meet and exceed KPIs – like shipping orders on time and in full. There are various order picking processes and technologies to choose from and each will cater to different warehouse scenarios, such as bulk picking, e-commerce picking and the handling of heavy goods.

Whatever picking system your business decides to use, the most important aspect is to properly integrate with a WMS. This will create a unified platform that provides comprehensive visibility into the entire operation, helping warehouse managers make informed decisions and quickly address any issues that may arise.