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It is widely acknowledge that the COVID-19 pandemic has accelerated transformation of several industries. One such industry that grows against the odds is the warehouse business as a result of the rise of the e-commerce which tends to expand even after the pandemic situation has improved in the future.

So why upgrade to Smart Warehouse? Because smart warehouses automatically classify, move, store and unload goods as well as arranging products by orders. These abilities help to simplify work procedures and increase storage efficiency through technologies such as Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs). According to the International Federation of Robotics (IFR), sales of logistics robots in 2021-2023 is expected to grow approximately 42% annually, from US$2.6 billion in 2020 to US$7.5 billion in 2023. In addition, software such as Warehouse Management System (WMS) which is a fully integrated warehouse automation system that can collaborate with other systems such as ERP, barcode and RFID to capture real-time data will help to make future business estimation easier.

In Thailand, although the ratio of smart warehouse space is only 5% of the country's total warehouse area due to the high cost of the system setup, the impact of COVID-19 has encouraged Thai entrepreneurs to invest more in smart warehouses. This is reflected in the value of imported automated goods conveying vehicles (AGVs) that are mostly used in smart warehouse during the first 10 months of 2021 at about 2.4 billion baht, a 9% YOY growth, which is higher than the average growth during 2015-2020 at approximately 2.7% annually. This investment will help boost efficient, precise, and lean warehouse management. A case in point is SCG Logistics which uses automatic storage systems and a warehouse management software to control the inventory and distribution of goods. This allows retailers who use the service to monitor and track their inventory in real time.

Upgrading a warehouse management system will help entrepreneurs enhance their competitiveness, improve their responses to modern consumers’ ever-changing expectations, and increase the opportunity to achieve success as planned with more confidence.

Source: SCB Economic Intelligence Center