Managing Risks in Smart Warehouses from the Perspective of Industry 4.0

The implementation of modern Industry 4.0 (I4.0) technologies in manufacturing processes has led to the need for intelligent or smart warehouses. These warehouses must work seamlessly with their smart manufacturing processes. The use of modern technology has significantly increased the reliability of warehouse processes by eliminating inherent risks. This involves managing risks comprehensively through the processes of receiving, storage, picking and shipping customer’s orders. The use of I4.0 technologies in managing risks can provide improved real-time control over warehousing processes, fewer manual handling operations, reduced operating costs and a lower risk of work-related accidents. Their use, moreover, facilitate error-free expedited or cancelled customer orders, and minimize qualitative errors. The adoption of modern warehouse technology can lead to the more efficient use of space and reduced energy and labor costs. While there’s a significant amount of literature exploring Supply Chain Risk Management (SCRM) and the integration of I4.0 technologies into risk management practices, relatively fewer studies specifically target warehouse risks or those associated with warehouse operations. There is a notable gap in literature when it comes to this specific area within the broader context of SCRM. This research aims to explore I4.0 technologies used to manage risks throughout the warehouse’s specific internal activities or operations of receiving, storing, picking, and shipping goods. Two databases, Scopus and Web of Science (WoS) were used for comprehensive research. Different keywords were combined to identify the currently adopted technologies for managing risks in a smart warehouse. The impact of these technologies on warehouse risk management was also determined. According to our findings, we identified four major categories of risks in the forementioned warehouse processes: product recognition risks mainly at the receiving and the picking processes, controlled mostly through IoT, RFID, QR; handling goods and inventory level risks, which are focused on the storage process and are mitigated by the use of automated robotic systems or vehicles and smart shelves that can broadcast information for low inventory; human health safety and ergonomic issues which have a high risk of injuries due to repetitive lifts, picks and bends during the storage and picking processes, the utilization of robotic systems can be of great importance; finally risks regarding the quality and traceability of goods in the warehouse can be dealt with the use of smart sensors through IoT technology. We concluded that the predominant technologies used are: IoT through the use of RFID, QR and products identification enablers and robotic automations systems via robotic system and unmanned vehicles. Other I4.0 technologies in warehouse risk management, are beginning to arise such as the use of AI, AR/VR, Blockchain, Big Data, Digital Twins but are still limited.