Improving warehousing operations with video technology

Abstract: In the last decades, the role of warehouses has increased due to wider product range, emphasis on shorter lead times and constant changes in customer demand. The increased demands forces companies to improve their warehousing operations for better service level and decreased costs. Different technology solutions like WMS and RFID are currently available for supporting this improvement. However, there is still improvement potential. The purpose with this research is to investigate if video technology can make warehousing more efficient. The research should contribute with an insight of how different types of warehouses can benefit from video technology and how barriers prevent implementation. The authors have chosen to collaborate with a world-leading company in the field of video technology. A multiple case study has been performed, including nine companies in three different warehousing categories. The categories are contracted warehouses, distribution warehouses and production warehouses. The multiple case study was performed in two sessions where the first included a visit to the warehouses to better understand their most demanding operations. Ideas were generated during the interviews of how video can facilitate warehousing operations. These ideas were evaluated in the second sessions together with an identification of barriers that prevent video implementation. The research has shown that video technology is interesting to all warehouse types, with the objective to enhance warehousing efficiency. Contracted warehouses were mostly interested in applications that facilitate operations from picking and forward. Distributing warehouses were interested in applications enhancing all warehousing operations. Production companies were foremost interested in video applications that can enhance the receiving and shipping operations. Video technology can be useful for analyzing events and should be considered as a new way of improving warehousing. The authors believe video is a complement to WMS and RFID rather than a substitute. Two appreciated video applications were the possibility to read barcodes with cameras and identify goods’ volume. Barriers to video implementation that were considered as obstacles for investing were primarily connected to the uncertainty of economical and operational benefits. Companies also experienced union restrictions and interface problems as great barriers. A key success factor for managing barriers is providing warehouses with benchmarking examples for clearer explanation of video’s benefits. Future research has also an important role to document advantages with video technology. The authors believe that easier integration would increase the probability of successful implementation. Integration could be facilitated by providing video with other systems like WMS or automation as a package solution. If these aspects are considered, video has a great potential in enhancing warehousing efficiency.