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Volatile demand: costs and service level in warehouse automation

Study guides businesses making decisions about warehouse automation

Finding a balance between available capacity and efficiency in warehouse planning is a constant challenge for supply chain. Too much warehouse space is cost-inefficient, while a design that has insufficient space risks low service levels and can even force businesses to depend on expensive external warehouse solutions. Determining which technology to use in warehouses is another important decision. Warehouse planning only grows more challenging given volatility in supply chains and uncertainty of future demand.

Jan-Niklas Grafe, principal and part of the Intralogistics & Production Practice at 4flow consulting, Wendelin Gross, head of 4flow research, and Alexander Zienau, researcher at 4flow research, contributed a chapter to the Practical Handbook for Logistics (Praxishandbuch Logistik, Wolters Kluwer, 2022) to help businesses with these challenges: “Volatile demand: costs and service level in warehouse automation”. Based on practical project experience, the chapter recommends a three-step approach to choosing automation technology for warehouses.

Read more about 4flow’s research on warehouse automation (English and German).

Find more information about the Practical Handbook for Logistics (German only).