<h3>Introduction to Agility in Warehouse Logistics</h3>
<p>Goldman et al. introduced <strong>agility</strong> as a concept in 1995. It means “readiness to change.” If we look at the warehouse logistics challenges with, for example, <strong>e-commerce</strong> and <strong>e-grocery</strong>, I think everybody understands that we must be prepared for change. As I have said before, the static state belongs to the past. Actually, both <strong>B2B</strong> and <strong>B2C</strong> markets are becoming more and more volatile, and when using agility, your goal is to get your warehouse logistics responsive and demand-driven.</p>
<h3>Similarities Between Agile and Lean Philosophy</h3>
<p>The agile mindset has many similarities with some parts of <strong>lean philosophy</strong>. An abundance of resources is a big no-no. Many parts of a warehouse logistics budget are fixed costs. That is why it is so important to work actively with the items that can be influenced. Labor costs are the most important factor. Even if I work mainly with B2B, I have to use work agencies and hire temporary labor in the peaks to achieve good cost efficiency over the year; it is impossible to staff with only a permanent workforce. There are too large fluctuations in inbound and outbound flow to be agile.</p>
<h3>Challenges in Adopting Agile Mindset</h3>
<p>When I network, I still often meet colleagues who have problems accepting the above mindset. They have too much labor over the year to manage peaks and almost “invent” tasks when they have less pressure in the flow. It is strange that senior management accepts that.</p>
<h3>Implementing KPIs for Agility</h3>
<p>To stimulate an agile mindset, you need <strong>KPIs</strong> in warehouse production that are connected to financial figures, especially labor costs. You need to compare the costs with turnover. The KPIs should include working hours. For example, how many order lines per hour, how many goods receivings per hour, etc. The more detailed, the better. That is why I repeat the importance of a competent <strong>WMS</strong> being able to measure hours and have statistics codes for every process. Preferably per department, also, to avoid sub-optimizations in larger warehouse operations. With the right KPI and the right tools for measuring, every unnecessary hour will be visible.</p>
<h3>Quickness and Responsiveness in Agile Mindset</h3>
<p>An agile mindset also means quickness and responsiveness—quick reactions to changes in the flow, like in e-commerce. The warehouse needs staff with competence in all processes to move the workforce from one department or task to another. No silos at all if you are going to be agile. The goal is to improve efficiency, consistency, and quality control in warehouse processes to move goods through your warehouse at maximum speed, improving every stage of the fulfillment process.</p>
<h3>Adding Agility in Automation Investments</h3>
<p>If you invest in automation, you also need to add an agile mindset. For example, is it possible for one warehouse assistant to control more than one picking station during periods of low order flow to keep the KPI at an acceptable level? Can you handle peaks in the automation flow without delays? For example, by having parallel manual flows.</p>
<h3>Importance of Employee Engagement</h3>
<p>To achieve agile warehouse management, high levels of employee engagement are necessary. That is why competent leadership is so important. I have written several articles on my blog about that. Engage your employees at all levels by involving them in process improvement activities. It works perfectly fine to combine lean with agility to achieve that. It is all about making operations more efficient and reducing waste to improve agility from a cost perspective, leveraging the best ideas in the organization.</p>
<h3>Communication in Agile Organizations</h3>
<p>Communication is also very important in an agile organization. You want to avoid “ad hoc” as much as possible. <strong>Digital control towers</strong> are a product of volatile flow in the supply chain and will be an important part of warehouses. You want information about changes in your outbound and inbound flow as early as possible to react. For most of us who work in warehouse logistics, digital control towers do not exist yet. Therefore, it is extremely important to work cross-functionally with both purchasing and sales organizations to plan as much as possible.</p>
<h3>The Future of Agile Warehouse Management</h3>
<p><strong>Agile warehouse management</strong> is here to stay. Customers’ demands for better service make it impossible to run a warehouse as we did before. Accept and adapt is the way forward.</p>
<p><strong>Roberth Karlsson</strong></p>
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Agile warehouse management
