Overview of the Smart Warehousing Industry
- Definition and Classification of Smart Warehousing
Smart warehousing is an integral part of logistics, encompassing warehousing, storage, picking, packaging, sorting, and more. It leverages technologies such as control systems, positioning and navigation, the Internet of Things (IoT), big data, artificial intelligence, and robotics to enhance the coordination of various logistics operations within the warehouse. Key advantages over traditional warehousing include: higher space utilization, three-dimensional storage saving over 70% of land; dynamic storage with better integration of upstream and downstream processes; and unmanned machine control, which reduces labor costs and improves accuracy.
Operational Process and Underlying Technology of Smart Warehousing
- Comparison Between Smart Warehousing and Traditional Warehousing
Smart warehousing significantly enhances land utilization efficiency, decreases labor costs, minimizes material waste, lowers picking error rates, and improves overall warehousing automation and management. The use of high-rise shelves optimizes space, reducing ground area and land costs by over 40% compared to traditional warehouses, yielding substantial economic benefits. Additionally, advanced software like Warehouse Management Systems (WMS) increases overall management accuracy and effectively addresses inventory backlog issues.
Background on the Smart Warehousing Industry's Development
- Policies Supporting Smart Warehousing Development
In recent years, the State Council and relevant departments have rolled out various laws and policies to promote the smart warehousing industry. The "5G Application 'Sailing' Action Plan (2021-2023)" focuses on enhancing 5G logistics innovations across parks, warehouses, and communities, facilitating applications in unmanned delivery, intelligent sorting, automated warehousing, and smart identification. This initiative aims to foster automated logistics and strengthen the integration of 5G tech in smart logistics.
Economic Factors Influencing Smart Warehousing Development
With tightening labor and land resources in China, rising costs have accelerated the smart warehousing industry's growth. From 2016 to 2021, despite fluctuations, the national average monthly land transaction price increased from 11,180 yuan/square meter to 15,966 yuan/square meter, marking a 40% rise and an average annual compound growth rate exceeding 7%. This surge in land costs incentivized factories to improve land utilization through intelligent warehousing solutions, thereby reducing expenses.
III. Intelligent Warehousing Industry Chain
- Overview of the Intelligent Warehousing Industry Chain
The intelligent warehousing industry chain consists of hardware and software developers, system integrators, and end-users. The upstream includes hardware (automatic warehouses, AGV robots, sorting robots) and software systems (WMS, WCS, MES), with significant barriers in software development. Notable upstream companies include Hikvision Robotics and SAP. The midstream focuses on system integration, which involves researching upstream products, understanding downstream client needs, and creating customized warehousing and logistics solutions. Some midstream integrators are also venturing into upstream sectors, such as Noli Co., Ltd. The downstream comprises industrial production, commercial logistics, and related sub-industries.
