Can new built-to-suit facilities become your jump start to modern supply chain?
Strengthening manufacturing and warehousing capacities in Europe seems like a time-consuming and costly adventure, but with global conditions pressing companies further to adjust, it can be used as an opportunity to win on several fronts.
We are still slow to adapt digital and AI technologies, which is partially understandable – upgrading existing facilities that were designed to completely different levels of advancement, sometimes has far too many limitations. A costly compromise is never good enough, and data shows the level of reluctance. Building new facilities gives a chance to make them digitally advanced straight away, getting ahead of competitors, winning at efficiencies, and stepping into the frontlines of autonomous supply chains.
Slow digitalisation’s pace means lagging more and more behind the leaders
A study from 2 years ago analysed digital supply chain readiness of 179 European manufactures. 13% of them had level 3, prescriptive supply chains, being close to turning them into self-learning autonomous. 31% planned to have them in place by 2023. 28% of survey’s participants were using AI, sensor networks, Internet of Things (IoT) and robotics having even lower adoption rates.
It seems a big leap to adapt everything at once, but on the other hand, as in any system, one element can’t fully operate without the other. IoT needs sensors to gather data and AI to interpret them. Robotic solutions then take all the data and use them for implementing tasks at hand. Having all the pieces in place, the main progression is upward, increasing the level of how self-learning and autonomous the supply chain gets.
Need some more data?
- Recent industry research reveals that 65% of warehousing operations are expected to invest in conveyors and sortation systems over the next 3 years.
- 56% will adopt shuttle systems, which allow warehouses to increase throughput and storage density. Even well-established technology – such as stacker cranes and traditional automated guided vehicles (AGVs) – are expected to see relatively high levels of automation adoption.
- It’s estimated that there’ll be around 50,000 robotic warehouses by 2025 with over four million robot installations.
(Source)
Challenges for supply chain digitalisation
Legacy equipment is what we started with – it seems easier to build a new warehouse than equip the standing one with all the gadgets.
Cyber security should probably be seen as a must-have layer of modern tech maintenance. There has to be cyber risk monitoring, prevention and management. What else? A well-thought-through backup system, taking care of your data and making sure operations can be restored and continued even if there are major electricity, network or other disruptions.
Organisational changes needed to run a digital supply chain are major. Looking at all 4 levels of digitalisation, each of them requires a change in business thinking, but also in the roles and capabilities of employees. Robots don’t take away jobs, but they turn them upside down when there are no more boxes to carry or labelling to do.
Looking for a strategic location to build your dream warehouse?
Technological advancements aside, classical requirements for warehouses remain the same: location, location, location. Dommo Industrial Park has it – we offer up to 40ha land plots just out of Riga, the capital of Latvia.
At the centre of Baltics, 670 km from Warsaw by road and just a sea away from main Nordic ports, it is a strategic choice for any business wanting to establish themselves up North in Europe.
In a radius of 300km around Riga, there are a number of universities, providing the region with a highly skilled tech workforce. This means that you won’t have a challenge equipping facilities with talented people. Even such a detail as a stable speed of internet becomes crucial when digitalisation comes to a picture, which Riga can offer as well.
Built-to-suit solution by Dommo Industrial Park offers the full adaptation of 3000-5000 sq. m. size property for modern industrial facilities according to the specific requirements. That’s convenient for any business that wants to avoid the hassle of industrial development but expects digitally advanced solution that perfectly answers their operational and strategic needs.
Want to learn more? Let’s talk.