The supply chain crisis in the Red Sea, where Houthi rebels are preventing ocean cargo vessels from transiting the Suez Canal, is putting pressure on global fulfillment centers. The Suez Canal is the most direct route from Asia to Europe; due to the ongoing threat of attack, vessels have been forced to transit around the Cape of Good Hope in Africa, adding up to two weeks to the journey. That’s a significant impact on transit times.
Elongated transit times are forcing manufacturers to rethink their supply chains. The National Retail Federation recently found retailers are reconfiguring how they prepare for peak shipping activity events like Back to School and holiday shopping seasons; the range of goods and retailers impacted by the effectively shuttered trade route touches nearly every industry.
If this all feels familiar, it is. It was only in 2021 when the Ever Given blocked the Suez Canal for six days, holding up more than $9 billion in goods each day. The Red Sea supply chain disruption has already convinced the World Trade Organization to consider downgrading its global trade growth prediction for 2024.
Retailers in 2024 have already seen their trade routes impacted for months. Some seem to be preparing for the long haul. Where can these companies turn to make up some of the time they’ve lost to prolonged transit? The answer starts in the warehouse with Goods-to-Person order fulfillment mobile robots.
What are Goods-to-Person robots?
The term autonomous mobile robots applies to a range of automated solutions. Unlike Person-to-Goods systems that accompany workers through the warehouse, Goods-to-Person solutions bring totes, bins, full shelves and even pallets of goods to pickers, eliminating the need for them to walk through the warehouse searching for goods. This increases throughput while improving worker retention (all that walking certainly takes a toll).
Warehouse operators were increasing the adoption of mobile order fulfillment robots even before the supply chain disruptions of the past couple of years. Interact Analysis predicts 12 percent of warehouses globally will house order fulfillment robot solutions by 2027.
How can order fulfillment robots help?
Companies turn to order fulfillment automation to drive down fulfillment costs while improving picking throughput. This cost savings is important, as the Red Sea crisis is driving up shipping costs, but the long-term benefits aren’t solely financial.
Companies see a range of benefits from Goods-to-Person solutions:
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☑️More accurate forecasting and business planning
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☑️Streamlined return logistics processes to improve customer loyalty and satisfaction
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☑️Increased material handling and picking speed, accuracy
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☑️Reduced carbon footprint of warehouse operations
The best order fulfillment solutions providers also allow customers to scale up their projects and to grow as they go. There’s no need to implement a large order fulfillment solution right away; the right partner can help their customers add mobile robots as needed. Also, these additions don’t stop the flow of orders; in a business where downtime can mean lost customers, adding new solutions without shutting down the entire picking operation is crucial.
One-stop shop for Goods-to-Person robots
Geekplus is the only company that offers a comprehensive suite of goods-to-person order fulfillment solutions – spanning the pioneering Shelf-to-Person and innovative Tote-to-Person and Pallet-to-Person robots – all on one platform. This one-stop shop for order fulfillment automation brings companies flexible solutions designed to fit a variety of picking requirements in a volatile, uncertain market. Customers know Geekplus order fulfillment robots offer flexibility, scalability and reliability.
With the company's range of Goods-to-Person solutions available, there’s a robot, or combination of robots, to fit every business need.
Learn why Geekplus is your reliable partner for innovative order fulfillment solutions, allowing business to grow at their own pace and scale up quickly to meet new consumer demands.
