A new study from Lucas Systems finds that more than three-quarters of U.S. supply chain executives say at least half of their warehouse systems are not ready for unplanned disruptions.
The study, conducted with Wakefield Research, surveyed 114 U.S.-based supply chain executives and found that 77% admit a large portion of their automation infrastructure lacks the flexibility needed to respond quickly to unforeseen changes, new requirements and operational disruptions.
More than half of respondents, 51%, said their automation systems are unprepared to handle unforeseen changes and disruptions happening today.
Disruptions are no longer rare events
Eighty-five percent of executives said their warehouses experienced up to 10 significant, unplanned disruptions over the past year. Another 7% reported more than 10 major disruptions during that same period. About 51% said they are seeing more unplanned operational disruptions than they were three years ago in the aftermath of COVID.
The lack of agility is coming at a cost. Among executives who reported rigidity in their systems, roughly 60% said they took on additional operating costs or losses of 11% to 25% when responding to disruptions or new requirements. That includes expenses tied to system downtime, equipment failures, labor shortages and sudden demand spikes.
“Unplanned warehouse disruptions are on the rise since the COVID pandemic,” said Ken Ramoutar, CMO at Lucas Systems. “If your automation can’t quickly adapt to in-the-moment shifts, then your warehouses are at a real disadvantage.”
Executives know adaptability is critical
Despite widespread recognition of the issue, many operators say reconfiguring their systems is no small task. Seventy-two percent of respondents said it would take considerable effort to reconfigure their automation in response to disruption.
At the same time, 86% said adaptable warehouse technology is critical.
The gap between what executives say they need and what their systems can actually deliver appears to be widening.
Still, there is evidence that flexibility pays off. More than one in four respondents, 26%, said adaptable automation helped reduce their operational costs by more than 25%.
