Logistics Trends in Modern Conditions. Prospects for the automation of warehouses in Ukraine

The quarantine restrictions have ended with a welcome revival in the retail sector. The first branch exhibition XXV ALL-UKRAINIAN LOGIST'S DAY, as always, was held at a height.

The owners of the companies, directors and logisticians were able to exchange experience on topical issues and communicate live after a long break. Consulting for Retail (C4R) acted as the general partner of the event this year.

«The C4R team directs all its activities to improve the business processes of its clients and supports any initiatives in the development of retail. Such events are the best way to communicate with the market», –  said Vladimir Adamov, Head of WMS at Consulting for Retail. «Thanks to the accumulated experience and the large-scale projects implemented by the C4R team, we have the opportunity to share valuable information and industry development trends, which we decided to do as part of the report at the Logist's Day 2021 conference».

The report was co-authored by our partner UKRAINIAN INTELLIGENT SYSTEM (UIS), which was presented by CEO Andrey Varibok.

Practical solutions for the automation of warehouse logistics using software, sorting systems and robots aroused a keen interest of the audience. But first things first.

Logistics trends: how are they formed?

To understand the value of the main trends in logistics, you need to look at the processes holistically, in the context of global and local events. The entire previous year was eventful: the downed UIA plane on January 8, which caused additional control over the movement of citizens of Ukraine and Iran, the continuation of the pandemic, which led to a total lockdown in the spring and transport restrictions.

Since March 31, a land market has opened in Ukraine, which should have a positive impact on the development of the agricultural sector and logistics. As early as August 1, the gas market has started working, which implies a free choice of supplier and the end of the era of monopolies. But the tragic explosion in the port of Beirut on August 5 reminded of the importance of observing all safety measures when storing dangerous goods.

As a result, in 2020 in Ukraine, cargo transportation decreased by 11.2% compared to 2019, GDP decreased by 4% and the country's trade turnover decreased by 6.4%. For companies, this meant the cancellation of a number of activities, events, plans, suspension of decision-making and a halt in the development of a number of business projects and organizations.
Thus, Pakko Holding closed the Vopak supermarket chain and Pakko wholesale stores, and the Digma Food Market chain of grocery supermarkets left the market.

However, some companies experienced strong growth during this time. So, for example, the merger of NOVUS and Billa took place, the networks of ATB, Fozzy Group, Kolo stores grew. New formats stores are opening: Auchan - Pick Up Point, Varus - To Go, Novus - Mi Market, Fozzy - Foody, Epicenter - Food Market.

Already in February 2021, Fozzy Group bought out the assets of Furshet. And in March, the world economy suffered an unprecedented collapse due to the blockage of the Suez Canal. The continuation of quarantine restrictions in several countries has intensified the move into e-commerce and the development of Delivery.

What trends and technologies have already been implemented?

All events in the world are clearly reflected in retail, and even more so in compliance with anti-epidemiological measures. Naturally, all retail outlets began to be equipped with protective equipment, and the main task of retailers was to fight the consequences of two quarantines.

The launch of e-commerce has become mainstream: Fozzy Group - shop.silpo.ua + Dark kitchen; Ashan - Ashan Drive and ATB - ATB scan & go. And in the field of logistics, the development of the Last mile has become a decisive factor in the competition.

The popular direction of the Dark Store is only at the launch stage in our country and can be called an emerging trend. Retailers should be aware that more and more buyers are paying attention to the stability of production and delivery processes. And the trend remains unconditional - the automation of warehouse processes and production.

Trends in technology launch help compete

Retail must actively respond to changes in the market, and for this it is simply necessary to apply the achievements of science and technology, as well as innovations. The audience listened with special attention to how the main technological trends help to provide a competitive advantage for retailers.

For example, how the Pick by line and Cross-Docking processes can reduce inventory, and the Pick then Pack processes reduce the cost of goods handling operations. The speakers paid special attention to the issues of increasing the productivity of the selection and resupply, for which terminal technologies and synchronization of marks and price tags are used.

Automation of warehouse processing of goods and business processes of the company remains an unambiguously effective way to increase the productivity of a warehouse. Andrey Varibok spoke about the trends in warehouse automation projects.
According to the expert, the key point is the use of specialized packaging for e-commerce. Andrey noted that Urban Depot containers allow loading and unloading orders many times faster, and how, in practice, Pick to Light technology accelerates the selection of assortments in the Dark Store.

And how the automatic measurement of weight and dimensions by a conveyor method definitely accelerates the processing of goods. In addition, sorting systems and robots help to establish a continuous processing of parcels and distribution of goods by destination. Thanks to the production of sorting systems and robots by our partners from UIS in Ukraine, automation solutions have become available for logistics companies and retail.