Tech-led innovation
3PLs are under pressure to provide efficient support to manage increasingly complex supply chain and logistics operations, says Harry Watts, who outlines how technology can play a key role in helping 3PLs develop.

AT THE recent IMHX exhibition, SEC Group delivered the inaugural Sustainability Zone dedicated to providing insight and education across the themes of Technology, Infrastructure & Innovation, and People.
This new event feature brought a wide range of visitors to the stand with a keen and focused interest in developing their understanding of both the physical and digital technologies available to enhance operational efficiency, and address their wider sustainability agenda.
One such group of companies, for whom the efficiencies derived from implementing the latest technology was of particular interest, was 3PLs. In the wake of the pandemic, the spiralling demand for e-commerce and supply chain resilience has driven the need for faster and more efficient shipping, a higher turnover of inventory, and better-placed inventory in locations closer to the consumer.
These factors have all put pressure on 3PLs to provide efficient support to manage increasingly complex supply chain and logistics operations. A number of core areas of focus are needed across warehouse capacity, pick and pack operations and hire and retention of the workforce, as well as potential investments in technology and automation that can help improve efficiency, and deliver demonstrable returns on investment.
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Tackling warehouse capacity and space optimisation to ensure optimal use of the available cube, is vital to the overall efficiency of any warehouse operation. Intelligent warehouse design derived through an in-depth, data-driven approach using customers’ operational data, can provide 3PLs with a warehouse design with a highly accurate SKU layout that is the most efficient use of the available space. A core part of the SEC approach is to leverage customer data and use our in-house AI and Machine Learning design bots to process 1000s of possible layouts before the most effective is reached. Furthermore, this process factors in the potential use of automation technology, providing a complete solution, with demonstrable outcomes and return on investment.
One such automation technology gaining significant traction that could significantly impact 3PLs is the implementation of Autonomous Mobile Robots (AMRs); ticking a box for both operational efficiency and sustainability. As part of the Sustainability Zone, visitors could interact with our fully immersive 3D Virtual Reality experience, based on a design for a current live project, where the user could physically ‘walk’ through the warehouse facility, and interact with the AMRs transporting totes containing the selected items to the pick stations, ready for manual processing prior to dispatch.
Those 3PLs who embrace automation technology to optimise operation efficiency are able to leverage a real competitive advantage to, among other benefits, attract new customers. AMRs as an example can deliver significant picking task efficiencies, thus improving pick speed and accuracy, resulting in improved operational performance. This in turn delivers a significant competitive advantage and has a positive impact on both customer perception and the 3PL’s ability to truly deliver their customers’ supply chain and logistics operations. Furthermore, sustainability credentials can also be achieved through implementing technology and automation to streamline operations and make them more efficient as a business.
Harry Watts, managing director, SEC Storage
For more information, visit www.sec-group.co.uk