The logistics conference held in Klaipėda on September 26, 2024, provided valuable insights into evolving market trends and challenges faced by the logistics sector. Discussions covered the European and Lithuanian economic outlook, industrial real estate, technological advancements, and transformations in the labor market.
Despite more pessimistic forecasts and consumer sentiment across Europe, optimism still prevails in Lithuania. Speakers highlighted that industrial real estate in the country remains expensive but has likely reached its peak, suggesting a possible stabilization in the near future.
E-commerce continues to grow, driving increased demand in warehousing. Warehouses are increasingly investing in smart systems and automation solutions to streamline logistics processes, reduce costs, and improve operational efficiency.
Artificial intelligence (AI) played a key role in the discussions. AI can significantly address logistics challenges.
In the labor market, employees still hold the upper hand, and the conference emphasized that companies that respect their employees, offer flexibility, and adapt to the needs of the new generation are the ones that benefit the most. Employee loyalty is increasingly tied to the work environment and employers' ability to attract and retain talent.
Insights from the presentation by our colleague Andrius Junevičius, Head of Sales for the Baltic States at Equinox Europe:
Trends in E-Commerce Logistics
Andrius highlighted the balance between online and omnichannel shopping experiences – customers want to buy online but pick up in-store or order in-store and receive their goods via couriers directly from the warehouse. This new dynamic creates additional challenges for logistics. Higher inventory levels are needed to ensure sales continuity, especially in the face of supply chain disruptions. Additionally, the rising cost of construction makes warehouse space more valuable than ever before.
Key Features of a Modern Warehouse Management System (WMS)
Flexibility, broad functionality, the ability to manage both central and regional warehouses, and integration with automated systems are critical components of today’s WMS.
How to Achieve Optimal Warehouse Performance
Andrius emphasized that a modern WMS should automate task planning, maximize the efficient use of work time, and provide real-time visibility into ongoing and planned tasks. Features like Batch picking are essential to improving efficiency in high-volume environments.
AI Integration
In the future, WMS will rely on artificial intelligence to optimize picking, order grouping, and product placement in the warehouse. By analyzing large datasets in real-time, AI will enhance operational efficiency, improve decision-making, and help predict potential issues.
Inventory Management
Andrius stressed the importance of managing inventory effectively, particularly when a small portion of the assortment generates a large percentage of sales. Long-tail management requires balancing inventory control with service levels.
Warehouse Automation
Warehouse automation can start with conveyor systems for Zone picking to VLM (Vertical Lift Module) and robotic arms that reduce the need for manual labor. Management of returns is a key part of e-commerce, can also be streamlined through automation to improve both the process and customer experience.
