David Gilroy is the managing director of Store Excel
Are you ready to seize the future? Then unleash the skunks. The term ‘Skunk Works’ refers to a specialised and often secretive group within an organisation that focuses on advanced, breakthrough or innovative projects. Typically, such groups work with a high degree of autonomy, minimal bureaucracy and a streamlined process to foster rapid development. This small team can concentrate solely on the project without the distraction of their day jobs.
They operate in many commercial enterprises across a spectrum of industries, including aerospace, technology, pharma, biotech and the automotive industry. Examples include Facebook Reality Labs, Toyota Research Institute, Johnson & Johnson Innovation and Disney’s Imagineering. A Skunk Works team will scour the world across multiple sectors for ideas, then develop them into workable pilots for potential roll-out. Three key areas in wholesale would benefit from a Skunk Works approach.
Front end and payment systems
The integration of advanced technologies in wholesale checkouts and payment systems is transforming the commercial landscape. By embracing AI-powered checkouts, contactless and mobile payments, real-time B2B transactions, biometric authentication, and blockchain technology, operators can enhance efficiency, security and customer satisfaction.
Staying abreast of these innovations is crucial for businesses aiming to remain competitive in the rapidly evolving wholesale market. The adoption of contactless and mobile payment methods has surged, particularly in the UK and Europe. In 2023, contactless cards were used in 62% of all card transactions in the UK. Mobile wallets such as Apple Pay and Google Pay offer customers a secure and convenient way to make purchases, often incorporating biometric authentication for added security. Firms are responding by upgrading their point-of-sale systems to accommodate these payment methods, thereby reducing queue times and enhancing the overall shopping experience.
In the wholesale sector, the shift towards real-time B2B payments is gaining momentum. A study by PYMNTS Intelligence revealed that 81% of large retail firms consider real-time payments pivotal to their operations. These systems enable instant transaction processing, improving cash flow and operational efficiency. Additionally, 85% of retailers are likely to collaborate with fintech companies to enhance their real-time payment solutions. Biometric authentication methods, including fingerprint scanning and facial recognition, are becoming increasingly prevalent in payment processing.
These technologies offer enhanced security and convenience, reducing the risk of fraud. By incorporating biometric authentication, retailers can provide a seamless and secure checkout experience, aligning with consumer expectations for quick and safe transactions.
Inventory management
Inventory management has long been a cornerstone of wholesale operations, but with the rapid evolution of technology, the systems of the past are quickly being replaced by smarter, faster and more predictive solutions. As wholesale businesses grapple with increasingly complex supply chains, fluctuating demand and tighter margins, future-forward inventory management powered by advanced tech is becoming not just a competitive advantage, but a necessity.
One of the most significant advance-ments is the use of AI to improve demand forecasting accuracy. AI algorithms can analyse massive data sets, including historical sales, seasonal trends, market shifts, social media signals and even weather data to predict future inventory needs. For whole-salers, this means fewer stockouts, reduced overstock and optimised procurement cycles.
Internet of Things (IoT) devices are transforming warehouses into smart environments where real-time inventory visibility is the norm. Radio frequency identification (RFID) tags, global positioning sensors (GPS) and smart shelves enable automatic tracking of items from inbound logistics through to delivery. This granular tracking not only boosts inventory accuracy, but also enhances security and theft prevention. Combined with warehouse automation systems like robotic picking and autonomous forklifts, it creates a seamless, efficient and responsive logistics ecosystem.
Blockchain is another technology gaining ground in wholesale inventory management because of its ability tooffer immutable, time-stamped records of every transaction and inventory movement. This transparency is especially valuable for managing complex supply chains with multiple stakeholders. Through blockchain, wholesalers can verify product origin, track shipments in real time and ensure compliance with regulatory standards. That’s particularly important in sectors like pharmaceuticals, food distribution and electronics.
Beyond AI forecasting, machine learning models are being used to continuously improve inventory strategies. These models learn from past performance and adjust recommendations in real time based on new data. This enables more dynamic replenishment planning, automatic safety stock adjustment and even scenario planning, allowing businesses to test the impact of disruptions like supplier delays or demand spikes before they occur.
Augmented reality (AR) is starting to play a role in inventory picking and stocktaking. With AR glasses or mobile apps, warehouse staff can receive visual guidance on where items are located and how to handle them, speeding up processes and reducing errors. As AR hardware becomes more affordable, this technology will likely become a staple in high-volume wholesale warehouses looking to improve labour productivity.
Automated storage and fulfilment
The wholesale industry worldwide is rapidly embracing advances in robotics, intelligent storage systems and smart order assembly. Advanced robotic arms, equipped with AI and computer vision, are now capable of identifying, picking and packing a wide range of items. Startups such as RightHand Robotics and Covariant are pushing the boundaries by enabling robots to handle even irregularly shaped items, making them perfect for wholesale businesses that deal with diverse inventory.
By 2030, robotic picking systems are projected to perform more than 65% of all warehouse picking tasks globally, according to Interact Analysis. Automated storage and retrieval systems (ASRS) have become a staple in modern wholesale distribution centres. These systems use robotic shuttles, lifts and conveyors to retrieve items from high-density storage racks with speed and precision.
Future-ready warehouses are embracing mobile and modular racking systems that adapt to seasonal demand, stock keeping unit (SKU) turnover rates and evolving storage needs. These systems are often integrated with robotic platforms that move entire shelving units on command – no forklifts needed. Instead of warehouse employees searching for products, goods-to-person (GTP) systems bring the products to the pickers. These set-ups significantly reduce worker fatigue and increase productivity. Retailers such as Ocado and Zalando are already using GTP robots to fulfil thousands of orders per hour. For wholesalers, GTP can drastically speed up large, multi-line order fulfilment while reducing picking errors. AI is revolutionising how orders are grouped for picking.
By analysing orders in real time, smart systems batch orders with overlapping SKUs or similar picking zones to minimise movement and boost throughput. Combined with robotics, this leads to a synchronised flow oforders from picking to packing to loading docks. The future of wholesale order fulfilment is not just about individual technologies, but how they connect. Cloud-based warehouse management systems (WMS) integrate robotics, storage solutions and order assembly into a unified platform. These systems provide real-time visibility into operations, enabling data-driven decisions on labour allocation, inventory forecasting and system performance.
Our industry is full-on and demanding. So, there’s a need to find tech solutions to improve customer service, streamline business and enhance profitability. Over to you, skunks!
