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WAREHOUSE AUTOMATION: HOW IS IT LIKE TO MANAGE WORKERS AND ROBOTS IN 2022?

In 2022, Supply Chain, inventory management, and warehouse operations have evolved so much! And the traditional practices have completely changed. As we are moving towards technological advancements, operations are now more automated than ever. Inventories are updated through computerized systems, and now robots do the lifting of cargo in almost every renowned warehouse. These advancements add great value to the company and there’s no denying that it enhances customer satisfaction as warehouse automation procedures are much more precise and quicker than ever. But it leaves us with the question; What will happen to the warehouse workers?   

Understandably, the labor community has a lot of concerns over the automation of industries because that reduces the number of employees. But on the other hand, it releases the burden of manpower required to perform heavy lifting tasks and leaves only the technical and complicated tasks for employees. Technical tasks require a skilled person and a skilled person has a higher need compared to labor. So instead of opposing the technological advancements, the labor community can look at it as an opportunity to learn skills and increase their pay scale. 

WHY IS WAREHOUSE AUTOMATION IMPORTANT?

We all are humans, and humans aren’t perfect. We all tend to make mistakes and that’s what provides us a learning opportunity. The same goes for all the tasks we perform, we enhance our efficiency and preciseness, but every business has ups and down because of mismanagement or errors, and in business, you’ve to pay for each mistake and there’s no margin for error. There are several parts of the supply chain such as manufacturing, production, shipping, etc. and each fragment is significant. That’s why increasing efficiency and delicacy is integral, and automation provides just that! 

No matter what business you’re involved in, it’s impossible to think of an employer that has never made a mistake. From creating an incorrect product to misunderstanding the customer’s order, or other logistical issues. All the mishaps and mistakes seem small and negligible, but if we add it all up, it makes a huge difference annually and affects the business. Since the supply chain operations are getting faster than ever, they’re also getting more and more complex; that means, the operations are more intricate and the probability of mess-ups is more than ever before. Especially with real-time delivery, the margin of error is thinner than ever, so to overcome that problem; companies are now gravitating towards computerized, automated, and AI-built warehouse equipment.

ADVANTAGES OF WAREHOUSE AUTOMATION 

There are multiple advantages of warehouse automation, we’re going to discuss some of them below;    

NO HUMAN ERROR 

Automated systems have less probability of making errors, along with that it is easier to trace errors in a computerized and automated system rather than detecting them in a human supply chain. 

PREVENT PRODUCT DAMAGE, AND AUTO-CORRECTION

Some Automated and AI systems have the capability to detect and correct errors by themselves which saves a lot of time and with time it also prevents the loss of product. For instance, if there’s something wrong with the production line or inventory, the system stops functioning until it corrects itself which is quite remarkable. 

FASTER THAN EVER!

In this era, where life is moving so fast, no one has time or patience for delays. Everyone wants to receive their orders, as fast as they can. Real-time delivery has made it difficult for companies to keep up with the market, but through automated systems, you can achieve quickness with high accuracy which means your customer satisfaction will be through the roof!

SAFER ENVIRONMENT

It is dangerous to work in places such as warehouses, with hundreds of thousands of containers, and goods around you, there’s always a possibility of mishandling which could have devastating consequences for the workers. Automated systems remove those risks completely. 

ACCURATE INVENTORY

Automated warehouses utilize inventory management tools that keep a perfect record of all the orders, that are in line, ready to ship, or delivered. Inventory is quite difficult to maintain for any warehouse but automation has made it so easy and errorless that it increases the downtime and makes the customers happier with the system.  

CONCLUSION 

Automation in warehouses has surely enhanced efficiency and improved the supply chain. Tasks such as Inventory update, order management, production, and complex deliveries have now become quite easy with automation. However, it does raise the question regarding the future of warehouse workers and labor, but with operations moving faster than ever, that means more production and more business, and more opportunities for technical workers. Hence, the future is in learning automation and advanced computer skillsets.

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US SANCTIONS ON RUSSIA AND EUROPE’S RELIANCE ON REGIONAL ENERGY SOURCES

Russia is showing no signs of stopping its Ukrainian invasion, resulting in increased US sanctions on Russia. Moreover, the United States is also working on new plans to reduce Europe’s dependence on Russian energy sources, especially petroleum. 

Biden’s government has announced that the economic sanctions will be doubled against Russia. The USA has announced new alliances and deals that will help Europe overcome its reliance on Russia’s Natural gas. 

US ANNOUNCEMENT OF PLANS FOR AN INCREASE IN NATURAL GAS TO MINIMIZE THE DEPENDENCE ON RUSSIAN RESOURCES   

The USA has formed a task force aiming to provide Europe with an additional 15 billion cubic meters of natural gas within a year, intending to increase the supplies as time progresses, according to a statement released by the US government.

This past Thursday, The US Treasury announced sanctions on 48 Russian defense companies, denying them access to western technology and crucial finances. Plus, the Treasury also forced restrictions on 328 members of various Russian states, including the head of Sberbank, a financial hub of Russian institutions.   

Natural gas prices were already on the rise in the international market, then the Russian invasion of Ukraine happened and raised the prices even further! Some experts believe that the increasing rates of oil and gas may push the use of coal in the United States. 

US SANCTIONS ON RUSSIA: IMPACT ON THE GLOBAL SUPPLY CHAIN 

The Russian invasion has posed a major threat to the entire global supply chain because Russia is the main resource center of Europe and Ukraine also plays a vital role in providing supplies to eastern and central Europe as well as to parts of Africa and a few areas of Asia as well. On the other hand, Russia provides two-thirds of Europe’s oil which jeopardizes the entire continent, and when a continent that is the hub of all technological and industrial advancement such as Europe faces such a severe crisis, the entire supply chain gets affected globally. 

Along with economic sanctions, the trade routes are also closed, meaning any cargo (via air, water, or land) passing through Ukrainian or Russian territory is automatically dismantled. Addressing the current situation, Moody said “The myriad risks to supply chain normalization come just as they were beginning to recover from COVID-19”, the biggest issue is the hindrance in the production of auto and semiconductors.  

Jerome Powell recently said that if they knew about all the supply chain blockages and all the chaos that resulted in inflation and created a huge gap in the supply and demand operations. If they had known prior, then there’s no doubt that they would’ve made the move of providing the resources to Europe quite earlier.   

CONCLUSION 

Countries in Europe, such as its economic hub Germany were looking to buy even more resources from Russia via a pipeline called “Nord Stream 2.” However, after the invasion, Germany decided not only to withdraw the new projects but also announced to cut ties on the ongoing projects with Russian Federation slowly.

As the US looks to increase its natural gas supplies up to 50 billion cubic meters a year by 2030, many difficulties fall ahead of that challenge. The experts in the US energy sectors were surprised by the move because it’s quite challenging to provide that many supplies in such a short period. So, it’ll be interesting to see how the entire situation plays out.