Over 95% in supply chain sector call for urgent IT upgrades

New research has revealed that a significant 97% of supply chain professionals are of the opinion that their IT infrastructure requires at least some form of modernisation.

The study, conducted by Manhattan Associates, underscores the pressing need for businesses to update their IT systems to remain competitive in a rapidly evolving technological landscape.

The findings from Manhattan Associates point to a crucial and often overlooked aspect of warehouse management: the role of IT infrastructure. According to the ‘State of Warehouse Operations’ report, outdated IT hardware emerged as the principal challenge for warehouse operations. This challenge is compounded by the widespread recognition among businesses—79% of them—that extensive IT modernisation is needed in their warehouses.

The importance of IT infrastructure in warehouse operations cannot be understated. Warehouses are critical nodes in the supply chain, reliant on sophisticated software and hardware to manage inventory, track shipments, automate tasks, and analyse data. Without modern IT systems, these processes become cumbersome, inaccurate, and inefficient, hindering overall operational effectiveness.

The negative consequences of failing to modernise IT infrastructure are considerable. Outdated systems lead to inefficiencies, higher operational costs, and difficulties in scaling operations to meet demand. Legacy systems also present significant security risks, as older software becomes more vulnerable to breaches when patching options cease. This vulnerability can, in turn, lead to reputational damage—a risk no company can afford to ignore.

Henri Seroux, Senior Vice President, EMEA at Manhattan Associates, emphasised the strategic importance of modernising warehouse IT infrastructure: “Warehouses are at the heart of a unified supply chain. Tackling the challenges highlighted in our report is key to the long-term competitiveness and success of companies. Modernising the IT infrastructure that underpins warehouses is not merely about upgrading one system here, one system there: it’s a strategic investment in the future of your business. Choosing the right partner with the most mature solutions, tech vision and experienced team is the key to ongoing success.”

Upgrading IT infrastructure brings numerous benefits. Modern, hyper-connected, data-driven technology ecosystems optimise every aspect of warehouse operations. Real-time inventory tracking and data analytics help minimise stockouts and wasted space, while seamless communication across unified systems enhances order fulfilment and delivery efficiency. This, in turn, leads to better customer satisfaction.

Additionally, integrating robotics and automation technologies can significantly optimise workflows, allowing human workers to focus on more complex tasks. The data captured through modern systems provides invaluable insights, enabling managers to identify bottlenecks and adapt to changing demands swiftly.

The journey towards IT modernisation may seem daunting, but it is manageable through strategic assessment and planning. Companies can start by evaluating their current IT infrastructure to identify immediate optimisation opportunities and develop a comprehensive long-term digital transformation strategy. Cloud-based, composable solutions offer scalability and cost-efficiency, while technologies like robotics and Automated Guided Vehicles (AGVs) can streamline manual processes for maximum efficiency gains.

As digital transformation becomes imperative, it is clear that modernising warehouse IT infrastructure is not just an operational necessity but a strategic investment in the future of any business. By addressing these challenges and choosing the right technology partners, companies can ensure they remain competitive and effective in an increasingly dynamic market.