Software First

Warehouse Orchestration: The Next Great Supply Chain Breakthrough

Warehouse operations have become increasingly complex over the past decade. Labor shortages, enhanced customer demands, and an influx of data sources have all contributed to the fact that it's never been harder to run a warehouse efficiently.

Warehouse orchestration is a cutting-edge approach to managing the operational flow of modern warehouse environments. Orchestration involves synthesizing data from existing inputs — systems for warehouse management (WMS), labor management (LMS), transportation, production and inventory management — to create dynamic, optimized plans for the entire facility. It’s typically enabled by an orchestration platform, which provides a control layer over the top of existing software.

In short, warehouse orchestration helps get things out the door in the most optimal fashion. It simplifies labor forecasting and streamlines task execution to turn individual efforts into synchronized operations.

In recent years, distribution executives have expressed the need for greater visibility over their facilities, and better data to help them make informed decisions. But like many industries, warehouse operations can be slow to adopt new trends. According to a study by Zebra, 77% of warehouse decision-makers admit to being slow to implement new technology and devices, even if they recognize the need to modernize their operations.

Warehouse orchestration addresses the most common challenges of modern facilities. Going beyond a desire for analytics to tell managers more about the warehouse, it foundationally changes the way in which distribution facilities operate.

A handful of emerging trends have made warehousing more complex in recent years.

Growing complexity means that distribution operations are now non-linear, with every site juggling multiple workflows. Warehouse professionals with decades of experience might be able to coordinate around all these variables. But not every shift has a seasoned vet running the show.

An orchestration layer takes these shifting inputs, uses artificial intelligence to analyze them quickly, and produces a data-driven plan. It allows decision-makers to plan shipments more strategically, balance labor, and make life easier for shift managers and coordinators — even in the face of fluctuating demand.

Orchestration can increase efficiency, address data gaps and reinforce safety standards. Warehouse orchestration answers questions before they’re even asked. Teams don’t have to physically cross-reference dozens of reports or tools; orchestration platforms pull from inventory, activation plans, production and others variables to coordinate automatically.

It all comes back to the primary goal of many businesses: maximizing service levels. Less time strategizing means more time for pallet movements. The path to greater load readiness and higher fill rates is in motion.

Beyond the obvious productivity increases — which pay the bills —an orchestration system can help address data gaps and silos. Since orchestration coordinates data from various systems, it’s easy to identify when companies lack the requisite data inputs for optimal planning. And from a safety perspective, orchestration helps reduce congestion and create more efficient plans for staff.

A successful warehouse orchestration plan includes some baseline ingredients. Following are five elements to incorporate when building an effective warehouse orchestration strategy:

Warehouse complexity. An orchestration layer is likely only necessary for larger operations. If the warehouse has a linear process flow, only a few people in operation, or could easily be planned on a spreadsheet or whiteboard, a warehouse orchestration platform might not be a good fit.

Quality data. A certain level of data maturity is required for proper warehouse orchestration. The term “garbage in, garbage out” holds true for producing the most meaningful analytics. Required data points include inventory levels and locations, what needs to ship and when, production schedules when running a plant, and real-time visibility into transportation data.

Effective change management. Orchestration requires commitment. Rolling out AI systems in any network is complex. Decision-makers must lead by example and effectively communicate the status of changes to achieve buy-in. Companies with in-house champions can implement their orchestration strategy more effectively across multiple sites.

Well-defined SOPs. Building out great standard operating procedures is a prerequisite for orchestration. Baking the base-layer functions of day-to-day operations into orchestration software helps businesses achieve the vision that works best for their sites' unique needs.

Thoughtful training and communication. Help staff understand the value-add that orchestration brings to their jobs. Warehouse orchestration isn’t about replacing labor; it's designed to alleviate the annoying snags that arise in warehouses daily, so that staff can focus on more strategic work. Achieving buy-in means properly educating and training employees on the use and purpose of orchestration software.

Warehouse operations could use some modernization. Orchestration combines data and automation to maximize the value of existing staff and systems. The results include faster shipping times, less staff burnout, and more time for high-level decision-making. That's something everyone in the supply chain can appreciate.