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Supply Chain and Logistics

2025 has brought manufacturers both challenges and opportunities in warehousing. The shortage of workers continues to be an issue. Companies are feeling pressure from customers and the general public to “green” their operations, including warehouse management and maintenance. The artificial intelligence boom has kicked into high gear, causing massive changes in supply chain management—and warehousing is no exception. As companies seek to tackle these and other pressing issues, there are five key trends emerging in warehouse operations.

Automation and Workforce Management

Companies are embracing technology to enhance workforce productivity while prioritizing worker safety and efficiency. Transportation & Logistics International puts it this way: “Technological advancements and rising consumer expectations are reshaping traditional operations. Automation is leading this shift, ushering in a new era of efficiency, sustainability, and adaptability.” Here are a couple of ways that manufacturers are managing their warehouse operations.

The artificial intelligence boom has kicked into high gear, causing massive changes in supply chain management—and warehousing is no exception.

Specialized Robots

One way automation benefits both workers and employers is by taking over tasks that require heavy lifting. This both prevents debilitating injuries and allows workers to focus on higher-value, less-risky activities. Adding robots may also reduce the number of workers needed.

There are a variety of manufacturing robots in use today. Here are the types most commonly found in warehouses:

Automated storage and retrieval systems are robotic systems that use cranes or shuttles to move goods between storage locations and picking stations, which minimizes the need for manual labor. They also enable real-time inventory tracking, allowing supply chain managers to make informed, data-based decisions about when to order products.

Collaborative robots differ from traditional industrial robots in that they are intentionally designed to physically interact with humans in a common workspace. They augment human capabilities with extra precision, strength, and data capability, allowing humans to do more.

Autonomous mobile robots are a real game-changer for moving goods across the warehouse. They utilize AI and sensors to gather and analyze a range of geophysical variables, enabling them to transport items without needing set paths or the tracks used by their predecessors, automated guided vehicles. These AI-enhanced mobile robots maneuver around obstacles and can modify their routes in real time to deftly navigate congested areas.

Finally, robotic picking systems are becoming more prevalent, especially in e-commerce and fulfillment centers. They use AI and advanced vision technology to identify, grab, and sort items with high precision. These automated picking systems are gradually replacing the cranes, conveyors, and other fixed mechanical systems that have long been used in warehouses.

Workers Are Scarce, But Can Be Found

Finding—and retaining—warehousing workers remains a serious problem throughout the industry. Demographic shifts are changing the labor force: The current workforce is aging and there aren’t enough younger people entering the field to compensate. At the same time, the rise in e-commerce has increased the demand for labor.

While automation is a part of the long-term solution, humans are still essential to a functioning warehouse operation. So forward-thinking companies are taking steps to broaden their labor pool. In addition to traditional hiring and training efforts, they’re increasing their outreach to include people with disabilities. These companies have discovered what numerous studies have shown: Employing workers with diverse abilities consistently increases both productivity and profit margins, while absenteeism and turnover decline.

Inventory Control and Visibility

Warehousing professionals need to know where their inventory is located and how much of a product they have on hand. In addition, customers expect to know where their shipment is at all times, and when it will arrive. Fortunately, the Internet of Things (IoT) is making inventory control and tracking easier and more accurate.

Combatting Inventory Shrinkage

Keeping tabs on inventory has always been a struggle. Items get misplaced or damaged, and are occasionally stolen. But now, real-time tracking technologies can reduce losses and allow warehouse managers to maintain precise control over inventory. These are a few of the game-changing technologies:

  • RFID (radio-frequency identification) tags consist of a small chip and an antenna that transmits location information wirelessly. They can be placed on pallets and shipping containers to automatically track an asset’s location.
  • Smart sensors are used to monitor and track inventory levels and the movement of goods, as well as monitor the temperature and humidity levels where goods are stored.
  • Beacons use Bluetooth technology to transmit information to nearby smartphones and other devices so that warehouse workers can track the location of assets and inventory in real time.
  • AI-enabled cameras capture and analyze a wide range of visual data, enabling them to detect motion and recognize objects and faces. These cameras not only enhance warehouse security, they also enable more accurate tracking of goods within the warehouse.
A warehouse worker stands in the middle of a warehouse, using a handheld device and looking up at stacks of products.
RFID and GPS technologies can track items throughout their journey from producer to warehouse to end user.

Used together, these tracking and control technologies make it possible for workers to quickly locate and transfer products. They also enable managers to monitor goods and determine if their movement is authorized or not, preventing theft and other forms of loss.

Advanced Monitoring of Shipping and Receiving

RFID and GPS technologies can also track items throughout their journey from producer to warehouse to end user. These devices offer real-time information about the item’s location, environmental conditions, and transit times. The data provided by these technologies enables workers to identify potential issues and take preventive measures when needed, leading to a better customer experience.

Blockchain Enables Supply Chain Transparency

As a digital ledger that records transactions across numerous computers, blockchain technology is most commonly associated with cryptocurrency. But the technology is increasingly important for supply chain management—including warehousing—because it allows manufacturers, retailers, and distributors to connect via a permanent digital record of every transaction throughout the supply chain. Blockchain technology also allows for “smart contracts”—computer programs that automatically execute actions based on predetermined rules. Smart contracts remove the need for paperwork and further automate inventory management.

Warehousing Sustainability

While the federal government is revisiting some environmental regulations, warehouse operations are nevertheless under pressure to implement sustainable practices in order to reduce pollution and increase the use of renewable energy. Manufacturers across multiple industries have made impressive strides toward those ends, and in many cases these changes make economic sense as well.

Eco-Friendly Warehousing Practices

There are many steps warehouse owners can take to improve sustainability. Among them are installing solar panels and better managing waste.

The large, flat roofs of modern warehouses are a perfect location for solar panels. Besides providing clean energy, an average warehouse can meet 176% of its annual electricity needs by fully building out its rooftop solar potential. Given the ever-rising cost of electricity, it’s an option worth considering on economic grounds as well.

Waste management, especially recycling, is another aspect of sustainability that receives a lot of attention. To optimize waste management efforts, companies clearly label recycling bins and place them in convenient locations. Depending on how ambitious a recycling program is, there can be several types of bins and distinct locations dedicated to different types of recyclable waste. Cardboard recycling, for example, requires large containers that can be easily moved up and down aisles, as well as balers and compactors.

Recycling is just one aspect of eco-friendly waste management. “Up-front” sustainability practices are just as important. For example, warehouses can use less packaging by making sure boxes are the right size for goods so that packing materials are minimized. In addition, some goods can be wrapped together or even placed directly into boxes. And some packaging materials can be reused numerous times, such as attached lid containers and pallets.

Circular Supply Chains

A growing trend in supply chain management is to create a closed-loop system where resources are continuously cycled back into production, minimizing waste and maximizing resource use. A key component of this is reverse logistics. And here warehousing plays an important role.

Reverse logistics involves collecting used products from customers and returning them to the supply chain through recycling, refurbishing, or repurposing. Warehouses can serve as hubs for collecting, sorting, and processing returned products. Adding these services can not only enhance a company’s reputation, but also create new revenue streams from the resale of refurbished goods and components.

Energy-Efficient Technologies

Energy costs continue to climb, providing warehouse owners with a compelling reason to explore ways to improve their buildings’ energy efficiency. The three areas where the most gains can be made quickly are lighting, powering equipment, and heating and cooling.

  • LED lighting. According to the U.S. Department of Energy, LED lighting uses at least 75% less energy, and lasts up to 25 times longer than incandescent lighting. Because it produces less heat than other lighting systems, LED lighting can also reduce cooling costs. In addition, LED lighting integrates well with smart lighting systems, which offer energy-saving features like occupancy sensors that automatically activate or deactivate lights in response to motion.
  • Energy-efficient warehouse equipment. As inventory is replaced, consider upgrading equipment to energy-efficient equipment like electric tugs, roller skids, and optimized aerial lifts. Newer models are generally better at performing tasks while saving money on energy bills.
  • Smart HVAC technology. Smart sensors and thermostats can determine which areas of the warehouse need to be heated or cooled, and when to do so, and newer heaters, air conditioners, and heat-recovery ventilators are more effective and use far less energy than older models. Another measure to consider in colder weather is air destratification. Warm air naturally rises to the top of the warehouse, where it serves no purpose. By pushing that hot air down to the floor where it’s needed—through large fans, for example—the HVAC system becomes more efficient, and workers are more comfortable.

On-Demand Warehousing

The same technology that enables ride share and vacation rental apps is fueling another rapidly growing trend: on-demand warehousing. This new approach lets businesses rent warehouse space and fulfillment services only when they need them. On-demand warehousing offers numerous potential benefits, including:

  • Faster shipping and fulfillment. For example, online retailers can ramp up for a busy holiday season by accessing additional space and logistical support for a set period of time.
  • Reduced fixed-operating costs. While traditional warehouses usually require long-term leases and investments in equipment, maintenance, and labor, with on-demand warehousing, companies only pay for the space and services they need.
  • Time to focus on core competencies. Warehousing management takes up time and resources. By outsourcing those functions during peak periods, companies can focus instead on higher-impact operations to help grow their bottom line.
Two men, wearing dress shirts and hardhats, look at paperwork as they walk together through a warehouse.
On-demand warehousing services can be a good solution for businesses that have fluctuating inventory and logistics needs.

Predictive Analytics and Maintenance

More and more warehousing operations are leveraging predictive analytics and maintenance to avoid expensive emergency repairs and extend equipment lifespans, achieving significant cost reductions. It also frees warehouse staff from performing important but repetitive and time-consuming work such as scheduling repairs and assigning technicians.

Predictive maintenance is made possible by sensors that monitor variables like temperature, vibration, and pressure levels, making it possible to assess the condition of crucial assets like forklift engines, conveyor belts, and automatic picking systems, and automatically triggering alerts when abnormal patterns are found.

The data gathered by warehouse sensors can be fed to a CMMS (computerized maintenance management system) or other software tool to determine when maintenance should be scheduled and automatically generate work orders. This allows maintenance to be performed based on need, not at fixed intervals, and provides maintenance teams with real-time information about the condition of a warehouse’s assets, enabling faster response times and better decision-making.

Like other warehousing trends, predictive maintenance is helping manufacturers streamline operations and reduce costs, and is part of the reason why today’s warehouses are so much more than just distant storage facilities. Modern warehousing is linked more closely than ever to the manufacturing process, providing valuable data that can help further streamline operations and provide insights into distribution and other issues.

Your Warehousing and Logistics Partner

Looking to optimize your inventory management? PRIDE Industries provides full-service solutions, including kitting and assembly, order fulfillment, forward and reverse logistics, and back-end warehousing. Let’s streamline your warehouse needs together.
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Across industries, efficient warehouse management is more critical than ever. Gone are the days of relying on reams of paper to keep records and manage workflows. Technology has transformed warehouse operations, automating every step from receiving and storage to picking, packing, and shipping. This makes processes faster, more accurate, and cost-effective. And at the heart of it all is the warehouse management system.

What is a Warehouse Management System?

SAP defines a warehouse management system (WMS) as a software-driven solution that helps companies control and optimize daily warehouse operations, from the moment goods arrive at a distribution or fulfillment center until they leave. More than just an inventory management system, a WMS enhances picking and packing processes, resource allocation, analytics, and overall operational efficiency, making it an essential tool for effective supply chain management.

More than just an inventory management system, a WMS enhances picking and packing processes, resource allocation, analytics, and overall operational efficiency.

The modern WMS interfaces with multiple software programs, all from within a single platform and with a single sign-on. It quickly and efficiently runs inventory reports, sets up shipping labels, and automates monthly customer billing charges. People no longer need to do these tasks one at a time—a process that is slow, arduous, and prone to error.

The History of the Warehouse Management System

The first warehouse management system was created thousands of years ago, when the rise of agriculture led to a need for storage facilities. The Romans took the concept to another level by building large warehouses near ports to store products brought in from their far-flung empire. Since paper hadn’t been invented yet, merchants likely used papyrus scrolls or wax tablets to keep track of their stores of olive oil, wine, food, clothing, and other commodities.

In the early 1900s, as the second industrial revolution brought exponential increases in production, new technologies like forklifts and motorized carts came along to aid workers. A hint of today’s technologies was launched in the 1950s when the first automated guided vehicle—essentially a tow truck that followed a track of wires embedded in the floor—entered service. But inventory was still controlled on paper.

That began to change when the automated storage and retrieval system, or AS/RS, was developed in the 1950s to manage and optimize warehouse storage efficiently. The first fully automated warehouse using this technology was built in 1962 to manage nearly seven million books in a 65-foot-high facility in Germany. Soon after, in 1975, the first true warehouse management system was developed for department store chain J.C. Penney. The software-driven system was able to update stock inventory in real time, which greatly streamlined operations.

Since then, technology has grown by leaps and bounds. Today’s warehouse management system is an online hub connecting inventory to all areas of the supply chain. It stores warehouse information in a central location, easily accessed by people from terminals spread throughout a company’s operational sites. This eliminates multiple manual paper processes, reducing the time lag for recording interactions with and within a warehouse by ten-fold, and saving companies thousands of labor hours each year.

5 Key Warehouse Management System Benefits

Warehouse management systems are becoming essential for large and mid-sized companies because they deliver five key benefits:

  • Improved operational efficiency: A WMS automates workflows, reducing inefficiencies, minimizing picking and shipping errors, and eliminating redundant tasks. This allows businesses to handle more orders with greater speed and accuracy.
  • Reduced waste and costs: For businesses handling perishable or time-sensitive goods, a WMS ensures that products are picked based on expiration dates or sales priorities, reducing waste. It also optimizes warehouse space by strategically placing inventory and by mapping the most efficient travel paths for workers.
  • Real-time inventory visibility: With barcoding, RFID tagging, sensors, and tracking tools, a WMS provides real-time inventory insights as goods move through the warehouse and beyond. This enables more accurate demand forecasting, supports just-in-time inventory strategies, and improves traceability—critical for recalls and compliance.
: A worker in a hardhat and orange vest, looking bored, leans against a piece of equipment
A WMS eliminates redundant tasks and reduces picking and shipping errors.
  • Optimized labor management: A WMS helps forecast labor needs, streamline scheduling, and assign tasks based on employee skill sets, location, and workload. This creates a more organized and less stressful work environment, improving employee morale and productivity.
  • Stronger customer and supplier relationships: Customers benefit from faster order fulfillment, fewer errors, and more reliable deliveries, leading to higher satisfaction and stronger brand loyalty.

Types of Warehouse Management Systems

There are three main types of warehouse management systems. The kind that suits your operations best will depend on your company’s size and the types of products you offer.

  • An ERP module-based system features a WMS module within a broader ERP software system which integrates and manages core processes such as finance, HR, and procurement. This system integrates easily with other systems and likely will allow support, updates, and maintenance to be performed by a single vendor. If your company already has an ERP system, this could be a cost-effective choice for you. However, ERP-based systems can lack the inventory control and labor management tools that benefit large distribution center operations.
  • A supply chain module-based WMS includes a WMS module within a broader supply chain management (SCM) system that comprehensively manages the flow of goods, information, and finances as they move through the supply chain. It integrates neatly with the broader SCM system but could lack advanced inventory control and labor management tools.
  • A standalone system focuses solely on managing warehouse operations. These systems are typically highly specialized and include advanced features not found on the two more common systems. High-volume operations and those spread across multiple locations can often benefit from this customized solution. The downside is that the system could have difficulties integrating with existing enterprise resource planning (ERP), customer relationship management (CRM), or e-commerce platforms. It will likely cost more as well.

Regardless of the platform, warehouse managers must also decide whether to use an on-premises or cloud-based WMS application. A cloud-based system is usually more accessible offsite and from mobile devices, generally has reduced upfront costs (since it likely operates on a subscription model), and reduces a company’s IT burden. An on-premises system may make it easier to comply with strict regulatory compliance requirements in industries such as healthcare, finance, energy, defense, and others where sensitive data is stored and accessed. Companies doing business in the European Union may also face stringent compliance requirements.

When to Upgrade Your WMS

Cloud-based WMS systems provide real-time accessibility.

Given that the modern warehouse management system has existed since the 1970s, many companies have at least a rudimentary WMS. Or maybe your company acquired a system within the last few years. In either case, because warehousing technology is evolving rapidly, at some point your WMS will need to be upgraded. But when? A 2024 survey of third-party logistics providers (3PLs) found several factors that indicate it’s time for an upgrade:

  1. Too much reliance on manual processes. If too many functions still rely on manual processes, it may be time to consider an upgrade.
  2. Need for more real-time inventory visibility. Real-time tracking provides clear insights into incoming orders and current inventory levels and includes predictive analytics tools to forecast customer demand and avoid stockouts or oversupply issues.
  3. Few integrations with e-commerce platforms. Online sellers and retailers rely on third-party logistics providers. A WMS that doesn’t integrate with popular platforms makes it nearly impossible to keep up with a retailer’s demands.
  4. Poor scalability and flexibility. Predicting market changes and customer demand is tricky. In the worst cases, managers may rely on manual processes and spreadsheets to make predictions. The latest WMS systems include AI fulfillment management tools to help spot early trends.
  5. Too many order fulfillment and shipment mistakes. Too many errors can damage relationships with customers and supply chain partners. Newer WMS systems utilize operational data to manage packing procedures and reduce manual mistakes.
  6. Inadequate reporting and analytics. Older WMS systems have outdated dashboards with limited functions. Newer systems with powerful data management features can streamline processes and make accessing data easier.
  7. High operational costs. Over time, older WMS systems can become costly to maintain, and with an in-house system, managers may struggle to find software technicians with the skill set to maintain it. While investing in a new system may require a sizable up-front cost, the return on investment can be significant.

The Future of Warehouse Management Systems

As warehousing technology continues to evolve and expand, what will tomorrow’s WMS systems look like? While it’s impossible to predict the future, the same changes that are sweeping through other areas of manufacturing and logistics will affect the warehouse management system as well.

Expect greater integration with physical tools like drones and collaborative robots (cobots). Cloud-based systems will continue to gain popularity due to their scalability, flexibility, and cost-effectiveness. Artificial intelligence will be applied to more and more aspects of the WMS, improving predictive analytics, demand forecasting, and process optimization. And all of these developments will require greater attention to cybersecurity.

These and other changes will continue to drive efficiencies in warehouse operations, lowering costs for companies of all sizes. The days of hand picking and taking notes on paper are coming to an end, and the warehouse management system is making that possible.

Inventory Management You Can Rely On

Looking to optimize your inventory management? PRIDE Industries provides full-service solutions, from kitting and assembly to order fulfillment and back-end warehousing. Let’s streamline your supply chain together.
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The first manufacturing robot was installed in a General Motors plant in 1961. Called Unimate, it was able to stack hot die-cast metal pieces accurately, but that was all it could do. Since then, robots have come a long way, taking on jobs previously done by humans: precisely building small electronic components, washing windows on high-rise buildings, or assisting surgeons in the operating room. Purina even fittingly employs a quadruped “dog” robot, dubbed Spot, that can literally climb stairs as it makes routine inspections. Now collaborative robots (cobots), which are designed to work alongside humans, are taking robotics in yet another direction. Cobots in manufacturing are boosting flexibility, productivity, and safety—often at a fraction of the cost of traditional manufacturing robots.

With their flexibility, affordability, and ease of use, cobots can be a powerful manufacturing solution for companies of all sizes.

Because of their ability to work alongside humans and enhance human output, cobots in manufacturing are a fast-growing segment of the robotics industry. Fueled by shortages of qualified workers as well as increasing labor costs, the cobot market is expected to explode from $1.5 billion in 2023 to $23.5 billion by 2033, according to Tech Target. Automation—especially in the industries of healthcare, manufacturing, and logistics—is one of the primary drivers for the growth of these collaborative machines.

When is a Robot a Cobot?

While they are a segment of the robotics industry, cobots are different from traditional industrial robots. Cobots, by definition, are collaborative, intentionally designed to physically interact with humans in a common workspace. While a traditional robot may be designed to replace a human, a cobot is made to augment human capabilities with extra precision, strength, and data capability. Simply put, cobots allow humans to do more.

Cobots have many of the capabilities of traditional robots, with the addition of enhanced safety features that make them suitable for collaborative applications. These features include one or more of the following:

  • Safety Monitored Stop—enables the cobot to halt motion when safety parameters are triggered
  • Hand-Guided Programming—allows an operator to program the cobot by manually guiding it
  • Speed and Separation Monitoring—enables the cobot to adjust its speed based on its proximity to humans
  • Power and Force Limiting—triggers a drop in the cobot’s power or force to prevent harm to humans or objects

5 Advantages of Cobots in Manufacturing

Cobots in manufacturing usually have an arm with joints that allow the arm to bend, rotate, and extend. These cobots are ideal for assembly, machine tending, and product quality inspection and control, and they offer many advantages over traditional robots.

  • Safety: Traditional robots routinely work at high speeds and quickly perform repetitive tasks. Unfortunately, these speeds can pose immense danger to humans, necessitating safety measures like fences to keep humans separate—and safe—in their presence. In contrast, cobots are specifically designed to collaborate with humans and comply with enhanced safety standards. For example, fenceless cobots, also known as speed-and-separation cobots, have laser scanners that create safety zones around their workspaces. These scanners detect when a person is nearby so that the cobot can stop or slow down to avoid an accident. Likewise, speed limits, power limits, and ergonomic designs all contribute to the safety of cobots.
A closeup of a cobot working on a device assembly.
Cobots cost less than traditional robots, with payback periods measured in months not years.
  • Flexibility: Cobots are much more flexible than traditional industrial robots. For example, they can more easily be re-programmed to perform different tasks. Likewise, their smaller size makes them adaptable to multiple workspaces. This flexibility can be especially useful for mid-sized businesses that might not have a level of production that justifies large, dedicated automation systems. For these businesses especially, flexibility helps justify an investment in robotics.
  • User-Friendly: Gone are the days when you needed to be a technical expert to take advantage of digital technology. Today, an iPhone can act as a human-machine interface for your glucose monitor, your washing machine can send you a text for required maintenance—and an average factory worker can reprogram a cobot. To do this, a worker simply guides the cobot through the required paths and positions to complete the new task. The cobot literally learns by doing. Hand-guided programming is one of the breakthroughs that has made cobots practical. And it’s especially useful in situations where a cobot needs to move between stations to accomplish different tasks, as it eliminates the extensive downtime traditionally required for reprogramming.
  • Lightweight and Compact: Cobots are lighter than traditional robots, allowing them to be easily moved and positioned. Likewise, they are more compact, enabling them to fit into tight workspaces and existing workstations. These attributes make it easier for manufacturers to integrate automation into an existing workspace, without the need for major modifications to a facility. 
  • Cost/Return on Investment: Automate.org reports that the positive cash flow from robotic systems can turn a $250,000 investment into approximately $1.5 million of positive cash flow by the seventh or eighth year, primarily through labor savings and productivity gains. Yet, despite the exponential payout from robotics, not all companies desire—or have the means—for the large initial investment required of traditional industrial robots. Cobots, however, cost a fraction of their traditional robotic counterparts, meaning payback periods are measured in months not years. So, while a fully automated smart factory may be the ideal for a large company, cobots are leveling the playing field for medium-sized companies.

Cobots in Manufacturing are Boosting Efficiency

Cobots in manufacturing are bringing increased efficiency to many industries. In the car industry, for example, cobots are the newest automotive technology to be added to the factory floor. Passenger safety is a top priority for car manufacturers, and even a small misalignment on a critical part during assembly can compromise a car’s safety. Cobots, working alongside humans, can add precision and accuracy that are beyond human capabilities.

One example of cobots in action is at BMW Group’s Spartanburg site in Greer, South Carolina. At this manufacturing plant, four cobots equip the insides of the BMW X3 model door with sound and moisture insulation. Previously, workers used a manual roller to adhere the insulation. This highly labor-intensive task is now performed by systems with roller heads on robot arms. The cobots can handle the job with much more precision—better protecting the electronics in the door and the entire vehicle against moisture.

“Robots that assist production workers by assuming labor-intensive tasks will characterize the factory of the future,” explains Harald Krüger, member of the Management Board of BMW AG. “Their benefits are strength and mechanical accuracy—and they perfectly complement humans’ flexibility, intelligence, and sensitivity.”

5 Tips for Integrating Cobots in Manufacturing

Before investing in cobots, it’s important to make a detailed plan for implementation, and to develop well-defined protocols for equipment maintenance. Here are five issues to keep in mind when developing your plan.

  • Set Goals and Key Performance Indicators: Before jumping in with a cobot purchase, you need to define clear goals and key performance indicators. What will success look like? What are you trying to accomplish? In setting your goals, remember to include qualitative as well as quantitative goals. For example, in addition to setting a goal for an increase in units produced, set goals like improved employee safety or increased employee satisfaction.
Hand-guided programming means factory workers need only minimal training to reprogram cobots.
  • Understand the Limitations: According to Ron Potter, Director of Robotics Technology for Factory Automation Systems, Inc., “many people don’t understand that collaborative robots are not a direct replacement for conventional robots.” While cobots have many unique advantages, keep in mind that cobots can’t compete with traditional robotic systems in some areas. For instance, your company needs to set realistic expectations for payload and speed when working with cobots in manufacturing.
  • Choose the Right Cobot: Cobots in manufacturing vary in size, power, price, precision, and functionality. The right cobot for you will likely depend on your budget and the problems you are trying to solve. If the world of automation is new to you, you may want to consult with a robotics specialist or an experienced integrator.

    Keep in mind when choosing a cobot that you aren’t just planning for the present. You need to account for compatibility with future expansions as well as existing systems. Fortunately, the versatility of cobots in digital manufacturing—the integration of digital technologies into the manufacturing process—can make the transition process less painful. Since cobots can easily be reprogrammed, they make it simple to meet changing production needs without significant additional costs or downtime.
  • Involve your current employees: In your automation journey, it’s important to involve your current employees. Your transition will go more smoothly if you emphasize that automation is not about employee replacement. Instead, it’s a way to allow employees to focus on higher value-added activities rather than the manual, repetitive, mundane tasks that can be given to robots. Another way to gain employee buy-in is through employee feedback. For example, most companies will need to analyze current manufacturing processes before choosing a cobot. Therefore, if you are doing a time-and-motion study to identify bottlenecks, don’t forget to solicit employee input. Employees can be one of the best resources for identifying tasks that are repetitive, dangerous, or labor-intensive—and therefore possibly a good fit for a cobot.
  • Develop a Detailed Road Map/Plan: You will need a detailed plan to keep all parties coordinated throughout the implementation process. This plan should include a timeline, a clear definition of roles and responsibilities, and steps to address potential risks. Your plan should also outline the parameters for a simulation test. Fortunately, specialized software is available that will allow you to create realistic simulations of your production process without risking production delays or defective products as you prepare for full cobot integration.

    Your road map should also include instructions for the actual integration, including proper employee training. And your plan shouldn’t end at cobot integration. Be proactive in monitoring and maintaining your new robotics system—establish a schedule for preventive maintenance and address problems promptly.

Because of their ability to leverage the best of humans and robots, cobots are here to stay. Through seamless integration with human workers, cobots are enhancing safety, productivity, and efficiency. With their flexibility, affordability, and ease of use, they are providing powerful solutions for companies of all sizes that are seeking to take advantage of the world of automation. Manufacturers that develop a detailed cobot integration plan—and prepare their human workers in advance—will be poised to take advantage of the cobot evolution that is underway.

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In 2020, McKinsey & Company surveyed senior executives about their supply chains. They found 85% of respondents struggled with inefficient digital technologies, and 75% reported problems with production and distribution. So it’s no surprise that 93% of respondents said they hoped to increase the level of resilience across their supply chain. Increasing resiliency, however, can be an elusive goal—especially without careful planning. Gone are the days when supply chain planning was as simple as logistics and inventory management. To succeed in today’s business environment, manufacturers must manage every aspect of the supply chain, from raw materials to product returns and recycling.

Why Supply Chain Planning is Essential

Effective supply chain planning is more than a logistical necessity; it’s a strategic imperative.

While an enthusiastic manufacturer may be tempted to skip the planning and “get to work,” inadequate supply chain planning can lead to higher costs, lower profits, and dissatisfied customers. So, when mapping out the flow of your goods from component sourcing to the end user, it’s crucial to carefully consider every step of your product’s journey. Doing so can help:

  • Improve delivery reliability and timeliness
  • Predict variability in demand
  • Identify and anticipate “what-if” scenarios
  • Standardize procedures
  • Reduce unnecessary waste
  • Lower manufacturing costs
  • Increase product quality
  • Enhance customer satisfaction

The 6 Stages of Supply Chain Planning

Gartner regularly recognizes companies like Apple and Cisco as masters of supply chain strategy, but you don’t have to be an industry behemoth to practice good supply chain planning. While it can be a complex process, keeping in mind the important stages below will help companies of all sizes improve their supply chain planning.

1. Product Planning

Before sourcing your materials, you need to start with product planning. What products should you bring to market? How many units will you need? How can you be as efficient as possible to avoid wasting time and raw materials, while still producing a high-quality product? One way to be efficient is to keep the manufacturing process in mind when you first design your product. Following design for manufacturability (DFM) principles will help you produce a higher quality product at a lower cost, and avoid supply chain disruptions. For example, by using DFM principles, an electronics manufacturer can avoid designing a device with nonstandard components, thus bypassing the need for hand soldering and eliminating material sourcing uncertainties.

Photo of a worker in an electronics factory using a mobile data device.
Supply chain planning can take into account hundreds of variables, thanks to access to real-time data.

2. Demand Planning

Accurately forecasting demand for your product is essential for maximizing profit. Your goal should be to have sufficient inventory on hand to meet your customers’ needs, while avoiding both shortages and excess inventory. To do this, you should take into account a number of factors. How will new technological developments and trends impact demand for your product? How are consumer preferences evolving? Effective demand planning allows you to quickly adapt to changing situations.

Inefficient demand planning can have serious consequences, as the automobile industry discovered a few years ago. When the COVID-19 pandemic first hit in 2020, many automakers saw a decline in cars on the road and quickly canceled or reduced orders for chips. Then, when consumer demand rebounded more quickly than expected, carmakers found themselves competing with other industries for a limited supply of chips.

While no company possesses a crystal ball to predict demand, good data can provide a close approximation. Good demand planning means keeping track of many things at once, including historical data, lead times, market trends, and even external factors such as weather and oil prices, which can impact the cost of transportation. Pulling all this together requires robust vendor and supply chain connections, real-time tracking of lead times, and strong planning processes that use precise material forecasting even for seasonal and peak-volume demand. 

Demand planning can be especially important to electronics manufacturers, as their products often have short lifecycles. Companies that skip demand planning can become victims of the rapid pace of technological change within the industry. Those that embrace it are able to make informed decisions about production levels, inventory management, and resource allocation.

3. Supply Requirement Planning

Next, manufacturers need to plan for supply. How much inventory do you currently have on hand? What is your production capacity and that of your suppliers? Do you have good relationships with your suppliers? How reliable are your partners?

When planning the sourcing of your raw materials and components, you also need to be prepared for factors out of your control. For example, is your plan resilient and able to weather geopolitical turmoil, material shortages, disease outbreaks, and labor instability?

Success at this stage relies on having a well-established network of reliable, quality suppliers. To establish those relationships, supply chain planning strategies at this stage might include supplier market research, request for proposals (RFPs), contract negotiations, and supplier performance evaluations.

4. Production Planning

It may have a similar name, but production planning is very different from product planning. Whereas product planning is centered on the product itself, production planning is focused on how the product will be manufactured. For example, during this stage, you might create detailed schedules for manufacturing activities, such as the timing of production runs. This stage is also the time to plan your production methods based on your product’s characteristics and demand patterns. Your production plan should also consider the labor, equipment, and facilities that will be needed to manufacture your product.

A robust supply chain plan includes protocols for e-waste recycling.

5. Sales and Operations Planning

This executive-level process is an ongoing effort to synthesize demand, supply, and financial planning in order to forecast the profitability of a product over several years. This process incorporates input from post-production teams like marketing and sales so that operational teams can better meet a company’s organizational and financial goals. Traditionally, sales and operations planning (S&OP) was a quarterly process. In today’s world, however, S&OP can be conducted more frequently, thanks to technological advances that provide instant access to real-time data.

6. Reverse Logistics

Savvy manufacturers know that their product isn’t out of their hands just because it’s been sold and delivered, which is why they have a plan for reverse logistics. When it comes time to process a customer exchange or properly dispose of a product, companies with a plan in place can easily handle either scenario. In the case of returns, for example, forward-thinking companies are now using location technologies like RFID chips to aid in real-time tracking of returned items. Unlike traditional barcode systems, RFID tags provide automated data capture, reducing the need for employee intervention. These specialized tags can help companies automatically capture critical information about returned products, such as product condition, reason for return, and product handling requirements.

Digitally Transforming Your Supply Chain Planning

RFID chips aren’t the only tools transforming the supply chain. If you’re not taking advantage of technology, you are missing out. Not only have advanced technologies changed the way business is done, they’re also optimizing the end-to-end management of the supply chain. This is why industry leaders like Lenovo have implemented a wide range of technological innovations, including G5, AI, AR/VR, and IoT, which together have enabled the company to slash lead times, improve product quality, and reap a host of benefits throughout the supply chain.

As companies like Lenovo have discovered, effective supply chain planning is more than a logistical necessity; it’s a strategic imperative. A company that carefully focuses on each stage of supply chain planning—from product planning to reverse logistics—will enhance its resilience against disruptions, while cutting costs and maintaining quality. And as the manufacturing landscape grows more complex, companies that prioritize data-driven supply chain strategies will gain a competitive edge.

Are You Ready to Optimize Your Supply Chain?

Our responsive team has worked with companies of every size, and we know how to customize a plan to meet your supply chain planning needs. Whether you’re seeking to reduce material lead-times, cut inventory costs, streamline your shipping, or effortlessly track your products, we have the services you need. Contact us today to learn more.
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When the car was first invented, models were built slowly, one whole automobile at a time, just like every other manufactured product of that era. Then in 1901, Ransom Eli Olds introduced the first mass-produced vehicle, the Oldsmobile Curved Dash, which was built using a method developed by Olds—the stationary assembly line. Years later, Henry Ford added a conveyor belt to the assembly line, revolutionizing manufacturing and setting the standard for how products would be made for the next century. Now the industry is undergoing another revolution—digital manufacturing.

What is Digital Manufacturing?

The term “digital manufacturing” describes the integration of computer systems and digital technologies into the manufacturing process. It’s an approach that relies less on traditional manufacturing practices and more on emerging technologies such as robotics, artificial intelligence, and the Internet of Things (IoT). This confluence of new technologies has created such a buzz in the manufacturing world that Klaus Schwab of the World Economic Forum coined the phrase “the fourth industrial revolution” to describe this shift.

Digital Manufacturing Technologies

From design to delivery, digital manufacturing technologies are adding efficiency, flexibility, and productivity to the entire product lifecycle—yielding higher quality products while accelerating time to market. Here are six of the most impactful of these new technologies:

Digital Twins

Digital twins are virtual counterparts of physical objects or systems. These real-time digital replicas allow companies to test new products before they are built in the real world, and can cut the time it takes to go from design to finished product. Volvo, for example, uses digital twins of new vehicle designs to virtually test the aerodynamic properties of different materials and proposed design features. Using this technology, Volvo can improve vehicle performance and create more fuel-efficient models—even before the first prototype is built.

And Volvo is hardly alone. McKinsey & Company reports product development leaders are rushing to build their digital-twin capabilities, with the global market for this technology predicted to grow approximately 60% annually, reaching $73.5 billion by 2027.

From design to delivery, digital manufacturing technologies are adding efficiency, flexibility, and productivity to the entire product lifecycle—yielding higher quality products while accelerating time to market.

An early 1900s model of the Oldsmobile Curved Dash, parked outside.
The Oldsmobile Curved Dash was the first car made on an assembly line.

Additive Manufacturing and Rapid Prototyping

Additive manufacturing, also known as 3D printing, is the process of building objects layer-by-layer using a 3D printer that converts digital data into a physical object. With its ability to create complex shapes and customized products directly from design files, additive manufacturing allows device prototypes to be produced rapidly and cost-effectively. In addition to slashing lead times, this rapid prototyping gives manufacturers greater flexibility. For example, while it’s not practical to produce a small batch of PCBs with traditional prototyping, an electronics manufacturer using rapid prototyping can efficiently produce prototype batches of as little as five units.

Artificial Intelligence

Artificial intelligence (AI) is a specific field within digital technology that focuses on developing intelligent machines that can approximate human thinking. Using machine learning and natural language processing, AI systems can learn, reason, and make decisions—mimicking human reasoning while working far more quickly and processing much larger data sets than the human mind is capable of.

With AI, manufacturers can mine and analyze vast amounts of data to optimize product design, material choice, and other facets of production. Leveraging data can also help a manufacturer better navigate its supply chain, especially when managing inventory. And AI has even been used to help manufacturers determine when it’s more cost-effective to simply raise wages vs. hiring new staff.

IoT Technology

The Internet of Things (IoT) is a network of physical devices embedded with sensors, powered by software that allows communication across the internet. At home, this technology might help you control your lights or notify you when it’s time to put your laundry in the dryer. On the factory floor, IoT technology is transforming the way manufacturers make their products. For example, using electronic tags and sensors, manufacturers can track products throughout the supply chain; inventory managers can locate devices within a warehouse; and plant operators can service equipment before malfunctions occur.  

Industrial Robots

Worldwide, there are approximately 3.9 million industrial robots, according to the International Federation of Robotics. Increasingly, these machines are helping manufacturers become more efficient. For example, German automaker Mercedes-Benz has entered into an agreement with robotics company Apptronik to test humanoid robots at select Mercedes-Benz factories. These robots—such as Apollo, a 160-pound, 5’8” bipedal robot—will be used to automate repetitive tasks, according to Mercedes-Benz and Apptronik.

Augmented Reality

Augmented reality (AR) uses computer-generated images, projected onto or near a real object or scene, to enhance our perception of the real world. From flight training to road navigation, this technology is changing our world. For manufacturers, AR has proven to be a productivity-boosting enhancement in production. 

A robot stands next to a couple of pieces of equipment in a large warehouse.
While still a novelty, humanoid robots are expected to make their way into factories and warehouses over the next several years.

Traditionally, manufacturers share work instructions through physical or digital manuals. This requires workers to switch their attention from the product they’re working on to a book or computer screen. But with AR, important information is projected directly onto the work surface, eliminating switching time and decreasing the distraction and fatigue that workers can experience when required to constantly shift focus.

Some Key Benefits of Digital Manufacturing

Digital manufacturing technologies offer many benefits to manufacturers.

  • Increased Efficiency: Digital technologies allow manufacturers to create new efficiencies. In 2019, for example, General Electric discovered that using AR glasses at its jet engine manufacturing facility increased the productivity of the engine mechanics.
  • Faster Innovation Cycles: Advanced design tools and virtual prototyping allow products to go from design to finished product faster than ever before.
  • Improved Customer Satisfaction: Digital manufacturing technologies give manufacturers the flexibility to rapidly adapt to market shifts.
  • Cost reduction: AI systems are enabling manufacturers to streamline manufacturing processes to save time and reduce material waste. Access to detailed data also enables manufacturers to keep manufacturing machinery in peak operating condition through predictive maintenance, avoiding costly shutdowns and delays.
  • Better Quality Control: With real-time monitoring of manufacturing processes, product issues can be identified and corrected immediately. Manufacturing processes can also be more easily standardized, leading to higher quality products.
  • Greater flexibility: With advanced technology, manufacturers can now quickly reconfigure production lines for different products and varied batch sizes.

How to Start Your Digital Transformation

Given the many benefits of digital manufacturing, it may be tempting to dive straight into the process. But before starting your digital transformation, you need a plan. A blueprint, or operating model, will provide a clear vision of what your finished manufacturing system will look like once it is complete, and will help you stay on track during your transformation.

In order to develop a reliable blueprint, you need to first evaluate your operational value stream—the sequence of activities required to deliver your product or service to your customer. Once you’ve clarified your production steps, you can prioritize the business process improvements that will have the most impact. For example, if your goal is to cut production time in half, what process improvements will be required to reach that state? Can you eliminate steps or streamline a process through automation? Can you analyze data better to save time in the long run?

Industrial robots, augmented reality, IoT technology—implementing these digital technologies can be a daunting process. How do you figure out the right balance between new technology and your traditional processes? How fast do you transition? How much can you afford to spend on new technology? Fortunately, you may not need to stress over these difficult questions. A reputable third-party vendor will likely already understand how to deliver the services and products you need in the most efficient and cost-effective way. For many manufacturers, this approach is the right solution as they grapple with the best way to transition into the new world of digital manufacturing.

Reliable Electronics Manufacturing

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Hippocrates, famous for the Hippocratic Oath, urged doctors “namely to do good or to do no harm.” This admonition—routinely paraphrased as “first do no harm”—is also a good adage for medical device manufacturers to keep in mind, as the practice of medicine relies more than ever on the devices they make. But while most medical device manufacturers are careful to ensure that their products are safe and reliable, they don’t always give medical device packaging the same careful attention.

That oversight can have serious, even fatal, consequences.

7 Common Mistakes in Medical Device Packaging

There are two main purposes for medical device packaging: protecting a product so that it arrives intact and in good working order, and maintaining a sterile environment. Contamination is an especially urgent concern. According to the U.S. National Library of Medicine, viral and bacterial infections are among the ten leading causes of morbidity and mortality in the United States.

One way to prevent contamination—and the subsequent recall—of medical devices is with reliable, high-performance packaging. According to the U.S. Food and Drug Administration (FDA), packaging and labeling issues account for 13% of all medical device recalls, which is why some experts assert that medical device packaging is nearly as important as the device itself.

According to the U.S. Food and Drug Administration (FDA), packaging and labeling issues account for 13% of all medical device recalls, which is why some experts assert that medical device packaging is nearly as important as the device itself.

Now more than ever, healthcare organizations are working hard to reduce the number of hospital-acquired infections. And to help their customers achieve these goals, savvy medical device manufacturers have learned how to avoid the seven most common packaging pitfalls.

Mistake #1: Losing Sterile Integrity

Ensuring the sterility of medical devices is critical for reducing infection, yet it is the most common defect found in medical device packaging. Unfortunately, some medical device manufacturers fail to create a truly sterile barrier system (SBS) in which to encase their products for transport. This means that in some cases, when their products arrive at the point of use, they fail to meet the aseptic standards required by FDA and International Organization for Standardization (ISO) regulations.

While nonsterile packaging can be the result of contamination at the packaging site, often the issue is more fundamental—the design of the packaging itself. It’s important to keep in mind that packaging can only be made sterile on the inside. A package’s exterior will always arrive at its destination in a nonsterile state. This means it’s essential to design packaging that can be opened without introducing contamination.

So, how can you design your package to limit contamination? The National Library of Medicine found that pouches that had outward-curling seals had significantly lower contamination rates. In other words, if the exterior of a package curled away from the interior as the package was opened, it was far less likely that the outside of the package (the nonsterile surface) would come in contact with the interior’s sterile contents.

Mistake #2: Not Accounting for the Device’s Entire Journey

A sterile barrier system is only useful if it stays intact for its entire journey, which is why your package design must include protective material to shield the SBS from the time of assembly to the point of use. Many sterile packages are damaged due to pinholes, slits, cuts, and tears. To avoid these outcomes, wise manufacturers design an entire packaging system that protects the device—and its SBS—throughout the journey from factory to hospital. This means designing resilient packaging that can withstand exposure to road vibration during long hours of transportation. Packaging must also be strong enough to survive warehouse mishaps like a fall to the ground.

Mistake #3: Ignoring Best Practices for Medical Device Packaging

A medical device wrapped in a sterile pouch, part of a sterile barrier system
To keep your product free of contaminants, avoid folding, wrinkling, or creasing the sterile pouch.

Whether you’re shipping something as simple as a box of bandages or as complex and delicate as a tracheotome, your packaging is critical. Both the United States and Europe have stringent regulations for medical device packaging. Yet not all manufacturers adhere to best practices and regulations when it comes to certain aspects of their product packaging.

Some manufacturers, for example, fail to get their medical device packaging properly validated. It’s true that validation is an extensive and at times complex process. But the regulations serve a purpose. Rigorously testing your proposed packaging will ensure that it provides an effective barrier against microbial ingress, moisture, and environmental contaminants. Furthermore, a good validation process does more than ensure your packaging meets regulatory requirements. It also guarantees that your device gets to your customer in sterile condition, able to perform as advertised right out of the box. This preserves your brand reputation, and eliminates liability headaches as well.

Of course, your efforts to comply with FDA and ISO regulations can be negated if your product is contaminated by a vendor. So, if you’re working with third-party contractors, be sure to screen them carefully to ensure they’re also adhering to best practices for medical device packaging and shipping.

Mistake #4: Using the Wrong Packaging Material

Many medical devices are packaged using thermoform trays—plastic trays that are made by heating plastic sheets and molding them into the desired tray shape. But there is a wide range of plastic available for this purpose, and choosing the wrong one can lead to packaging failure. For example, if you’re packaging a medical device with a lot of mass, you might need a high-impact plastic such as polycarbonate to reduce fracturing during distribution and handling.

The design of the thermoform tray is also critical. The tray or case must be tight enough to hold the medical device firmly in place. Otherwise, a loose product could jettison through the tray lid and fracture the plastic casing from the inside out. Conversely, packaging must have a bit of give, so that it doesn’t damage sensitive sensors or other high-tech components. A good package design strikes the right balance between these two extremes.

Mistake #5: Using the Wrong Container

In addition to using the right packaging material, you need to choose the right size and strength for your exterior shipping box. For example, if you are using an outer carton to protect your sterile pouch, you need to avoid squeezing the pouch into a too-small carton. You should choose a container that avoids any folding, wrinkling, or creasing of the ends of your sterile pouch. Otherwise, the vibrations of a moving truck could lead to pinholes at the junctures of the creases or folds of the pouch. Complex pouch folds are even more problematic, as they form a concentrated point of stress at the juncture of the materials.

When it comes to the sterile pouches themselves, however, bigger isn’t always better. Some research has found that increased contamination rates are associated with larger pouches versus smaller ones. Unfortunately, the reason for this is not entirely clear. One theory is that larger pouches require more hands-on repositioning to open, and that this increased handling offers more opportunities for contamination.

Product trays should hug—not squeeze—the items they were molded to protect.

Mistake #6: Inadequate Testing

Just as it’s important to test and inspect your product, you need to test the effectiveness of your packaging material—and package design—to ensure that the SBS and the outer carton will protect the device as it travels from assembly to customer to storage.

Testing might reveal, for example, that a single sterile barrier is not sufficient to maintain a sterile environment for a product that might sit in a hospital storeroom for up to a year; instead, a double barrier is needed. Real-time aging testing like this will enable you to see how your medical device packaging holds up under storage conditions in which both temperature and humidity can fluctuate widely, especially over an extended period of time.

But what if you’re trying to beat a competitor to market? Or more importantly, get a life-saving medical device to patients as quickly as possible? That’s where testing via accelerated aging—elevating temperatures to artificially speed up the aging process—can be useful. For example, subjecting a sterile barrier system to 40 days of +55°C temperatures has roughly the same effect as storing the SBS at +23°C for a year. That’s a huge time savings.

There is a caveat, however. Using temperatures that are too high—in the hopes of cutting a few more days off the testing process—can cause a package to melt or warp in a way it never would under real-world conditions, negating the purpose of the test. So, exercise caution when applying accelerated aging techniques. Or work with a laboratory that specializes in testing via accelerated aging.

Mistake #7: Neglecting to Develop a Recall Protocol

In addition to protocols for testing, manufacturers should develop specific protocols in case the need for a recall arises. Such a protocol might involve plans for recall initiation, reporting, execution, and monitoring. Recall protocols are especially important right now, as medical device recalls are on the rise. Between 2012 and 2022, recalls increased by 125%. (And medical device adverse event reports increased by over 500%.)

Having protocols in place means you’ll be better prepared to initiate a voluntary recall, which will do less damage to your business reputation than a forced recall. That was the case for medical manufacturer Nurse Assist, LLC. In November 2023, the company issued a voluntary recall on its saline and other water-based products over concerns of compromised sterility. These included various bottles, spray cans, cups, and syringes. When the recall was initially released in November 2023, no adverse effects had been reported. And while the FDA has since received reports of adverse events, Nurse Assist’s prompt, voluntary action has enabled the company to mute the damage to its brand.

Diligence is Needed in Medical Device Packaging

As healthcare providers continue to prioritize infection reduction, and medical device recalls continue to rise, designing and deploying effective medical device packaging is more important than ever. Avoiding the seven pitfalls outlined here is the first step in making sure that your packaging performs in a way that increases patient safety—and enhances your company’s reputation.

A Packaging Partner You Can Rely On

Are you looking for a medical device manufacturing and logistics partner you can count on? At PRIDE Industries, our trained engineers can customize a turnkey manufacturing solution for your unique product. And our specialized knowledge doesn’t stop there. We’re also experts in medical device packaging, warehousing, and shipping. Discover what PRIDE Industries can do for you.
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