THANK YOU FOR SUBSCRIBING
The landscape of warehousing is undergoing a transformative shift, emphasising agility, resilience, and technological integration.
FREMONT, CA: Today's innovations in track and trace, robot automation, wearables, and warehouse management systems (WMS) combined with hybrid, multi-cloud warehousing make warehousing much more convenient. These advancements allow for better asset optimisation.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
State of Warehousing in ASEAN
Although the COVID-19 pandemic led to a notable increase in warehouses in the ASEAN market, recent trends point to a slowdown. During the pandemic, businesses built more warehouses and increased inventory due to the surge in online shopping. Nonetheless, the post-pandemic environment indicates a slowdown in building new warehouses. The ASEAN market is clearly diverse, with less developed markets like Vietnam and more developed ones like Singapore.
There are several obstacles in the way of ASEAN warehouse sector modernisation. Even in developed markets such as Singapore, certain industries still use outdated warehouse management systems that don't work well with contemporary gadgets. The workforce, frequently used to manual labour, is the warehouse's most valuable resource. Gradual changes in technology are necessary to overcome resistance. Implementing digitalisation plans in warehouses can be made easier by starting with simple scanners and working the way up to sensor-based technologies like RFID.
Automation and Robotics in ASEAN
The warehouse robotics market is expected to grow significantly, which was valued at $6.74 billion in 2023 and expects it to reach $15.22 billion by 2028. Industries are undergoing a revolution as a result of the industrial Internet of Things (IIoT) and linked systems, which are improving operational efficiency for tasks like material batching, picking, ordering, packaging, security, and inspection. The need for hardware and software solutions to be harmonised and identifies integration challenges for operators who have not yet started automation. Furthermore, it's critical to empower staff members to move on to higher-value duties. The cost and knowledge gaps as barriers to the widespread adoption of robotics in ASEAN.
Sustainability and Warehouse Modernisation
The recent government laws and directives, such as the EU's corporate sustainability reporting directive (CSRD) and commitments to achieve net zero by 2050, will make sustainability a top priority for warehouse decision-makers in the coming years. Southeast Asia has a growing focus on sustainable warehouse operations, with the adoption of technologies like solar panels, efficient lighting, and integration with energy monitoring software to optimise efficiency. This change aligns with international campaigns that support environmentally friendly industrial operations and demonstrates a deeper commitment to environmental responsibility.
Modernisation projects are being expedited by decision-makers in order to meet changing customer needs and resolve operational difficulties. Return rates for online sales are double the median for all sales categories, making returns management—especially in e-commerce—a major challenge. The e-commerce industry is still growing, but the warehouse market is expected to grow.
A growing number of smaller distribution centres are being located closer to consumers, and there are a variety of drop-off options available for last-mile delivery. Automation empowers workers, as robots and RFID are essential for improving inventory visibility and streamlining warehouse operations. The study supports this pattern, which finds that employees with access to technology have higher job satisfaction.
More in News