“Hey! I’m Mr John! I’m a businessman as well as a warehouse manager myself. I mean, before I was a businessman of my own, I worked in the warehouse management sector as an employee and now coming up to a managerial position in the warehouse sector.
I am in love with them both, and you might wonder why I did not give up as warehouse manager since I am a businessman of my own. It’s because I have never learnt fully! The trends and changes in warehouse automation systems are just like in any other field, and how can I give up when I get to learn a bunch of things in “warehouse automation”?
This article is about all that I have learnt in regard to warehouse automation! Take a glimpse if you are leaner, just like me!”
What is warehousing?
Let’s start with what warehousing means…
Visualise that you own a “grain business”.How do you plan to store the grains stock? Are you willing to take it to your home? Are you going to dump it in your garden premises? And for sure, none of these can happen if you want your business to succeed!
The ultimate reason why people came up with warehousing is to store the physical goods and inventories so that the business can run smoothly with any intervention.
If the goods are needed to be stored temporarily, the ideal place to store the bulks until they are distributed to the right place would be a warehouse!
What is warehouse automation?
Since you now have an idea about warehousing, let’s check on warehouse automation.
In a world where everything is automated, why not the warehouse sector?
Warehouse automation is the process where repetitive tasks are automated in order to minimise time-consuming duties and to use the employees in revenue-generating duties.
What are the two main types of warehouse automation?
Warehouse automation is of two types:
a. Digital automation
b.Physical automation
Digital warehouse automation
Digital warehouse automation system consists of software and electronics to minimise manual processes.
Physical warehouse automation
A physical warehouse automation system is where equipment is used to minimise manual processes.
Now let’s move on to examples separately for each category..
Examples of digital warehouse automation:
1. Warehouse Management Software
Warehouse management software, such as Simplr WMS, is a solution that provides real-time visibility for handling the entire inventory chain. It involves managing supply chain operations from distribution to the storage location of the goods.
Warehouse management software has several benefits of its own :
a.Real-time visibility
b.Quick up-scaling
c.Reduction of operating costs
d.enhance demand forecasts
e.High Security
2. Handheld terminals (HHT)
An HHT or handheld terminal is used to provide fast and efficient access to the warehouse management system. It involves barcode scanning, instant information updating, creating, assigning, booking goods to the warehouse, and even flagging any stock issues.
Overall benefits of handheld terminals:
a.Time-saving
b.Reduction of errors
c.Reduce lines at checkout
d.Instant updates of information
e.Increased productivity
3. Machine Learning algorithms
And this is in regard to “warehouse bots”.These warehouse bots cooperate in picking up the ideal packaging routes and the right products, analysing bulks of disorganised data, making predictions on customer demand and monitoring the performances of employees.
Benefits of ML or Machine Learning algorithms include:
a.Ability to determine the best type of packaging
b. Optimisation of space and materials
c.Determines the efficient picking and slotting routes
Examples of physical warehouse automation:
- Automated storage and retrieval system
You need something to carry on the loads and get them onto a storage location, don’t you? And AS/RS system is magnificently specialised for it.
It can be referred to as a complex computer base system which automatically places and retrieve loads from storage locations, and it includes different equipment such as shuttles, cranes,mini-loaders and even material-carrying vehicles.
Benefits of AS/RS systems include:
a.Able to better utilise the floor capacity
b.Labour requirements are minimised
c.Enhanced picking accuracy
d.Enhance safety options
e.Accuracy in inventory control
2. Autonomous Mobile Robots(AMRs)
AMRs have the special ability to create routes which are effective and localised, and their advanced laser guidance system enables them to detect hurdles or obstacles which are along the way and also have the ability to navigate even in numerous human traffic.
Benefits of Autonomous Mobile Robots (AMRs):
a.Ability to perform repetitive tasks
b.Stimulates outage detections
c.Enhanced productivity and efficiency
d. Minimised mistakes and accidental occurrences
e.Increased scalability
3. Sortation system
Yes, just as the name implies, it is something in regard to sorting out the goods.
The sorting out occurs with the usage of a conveyor belt, and then this has the ability to intact them to the specific location of the warehouse abruptly.
A sortation system usually consists of barcode scanners, sensors and radio-frequency identification(RFID).
Benefits of a sortation system :
- Little to no double handling of orders
- Optimisation of different picking strategies
- Quick order processing
- Enhanced number of product orders
- Optimisation of floor space
4. Smart shelving and pallets
Smart shelving and pallets would be an ideal choice to count on if you need to calculate the sum of inventory in your warehouse premises.
The weight sensors integrated underneath these could help out the warehouse manager to know when the products are over and when to restock.
Benefits of smart shelving and pallets :
a.Involves in utilising vertical space
b.Enhances flexibility
c.Stock amount will always be fulfilled
d.Enhance durability
e.Quick and easy access to inventory
This is not it. Physical automation includes Pick to light and put-to-light systems, Goods-To-person(GTP), and Automatic Guided Vehicles, to mention a few more.
When is a good time to automate the warehouse system?
You might wonder or even keep wondering what will be the right time that I should start automating the warehouse system of my business.
Maybe I, here, you know me, Mr John, can give you a few questions to ask yourself out, and this is actually how I found out it’s the right time…
1. Does your company have labour issues?
If your company is expanding or overloading with orders in which it is at a peak where it is going to be out of hands, it might be time to consider having an automated system.
Moreover, if the labour costs need to be reduced, this can be done through the warehouse automation system as well.
For example, the time spent on repetitive work can be cut-off, and the labour could be used for non-repetitive tasks to deal with revenue-generating tasks.
2. Are you thinking of eliminating your errors?
If your company is stuffed with delivery and pick-ups and your employees have to work day and night, human errors might occur drastically.
This can impact your reputation as well as the customer feedback in regard to your business.
If minor faults keep happening repeatedly, one of the best options in which you can go is a warehouse automation system.
3. Are you on the verge of lacking space?
The moment where you feel like the space is not going to be enough, you might feel like you are screwed up, but no, you are not!
Using a warehouse automation system will lead to providing you with a better-optimised space.
For example, you won’t have to use wide-spaced aisles; instead, you can use smart shelving and pallets and also increase the stock storage vertically.
4. Does your inventory count seem to be inaccurate?
As mentioned previously, human errors while counting is extremely viable to occur. Hence, this can lead to inaccuracy in counting the stocks which are available, and might even have no inventory up until the last minute.
Furthermore, this could lead to clutter in the work process since the inventory has not been appropriately managed.
In order to minimise or perfect the count of inventory warehouse automation system would be an ideal choice.
5. Does your company have high return rates or chargebacks?
If yes, it is time to change to an automated warehouse system.
By any chance, if your loyal customers start to complain about high returns rates and chargebacks in no time, it is better to go for the automation system because if it continues for a long time, your company will lose its efficiency, time as well as might go into bankruptcy in future.
A few other questions that you could as yourself are :
- Are you able to fulfil the orders to meet the customer’s demands?
- Are you getting negative feedback rather than positive feedback from your customers?
- Are you still using spreadsheets to document data?
- Can your workforce meet the fluctuating demands?
Try to answer these questions, and you will be able to figure out whether you and your company are in need of warehouse automation or not.
What are the three levels of warehouse automation?
According to the 2 main areas(decision-making and shifting of goods), warehouse automation can proceed in 3 types as follows:
1. Low-level automation
2. Automation with WMS
3. Advanced automation
Low-level automation
This type of warehouse automation is more manual and has significantly less usage of automation techniques.
Here more time is spent recording on spreadsheets and employees manually picking up and counting up inventory.
Automation with Warehouse Management System
At this point, the warehouse sector uses software like WMS, which helps in easy decision-making through proper documentation, real-time visibility, or even handling the entire supply chain system.
Advanced automation
Advanced automation is where both digital automation, like WMS, as well as physical automation, like As/Ar systems, are integrated within the company.
Specifically, it deals with the installation of equipment as well.
6 Tips to consider when you are about to automate
Here are 6 tips and steps to consider when you are about to automate your warehouse premises:
1. Establish a committee
The first step what you need to do is to establish a committee.
This committee should have a thorough knowledge of warehouse management as well as the warehouse management system of the company.
They should be able to run a deep analysis of the state of the warehouse system and find the gaps which are holding back the development of the sector.
2. Collect the relevant data
After establishing the committee, as mentioned, it will be the committee’s duty to run through and evaluate the most crucial data, which will help to find out the gaps, the financial budget of the company and much more relevant information which are required in enhancing the warehouse automation system.
3. Document the needed aspects
After a critical analysis, summarise and document both the needs and wants that should be taken into account.
Then check on what needs to be prioritised in the company according to its current situation.
For example, inventory management is one of the most crucial parts of warehouse management; if that does not happen at a reasonable rate, consider changing it with the warehouse management system.
Then after prioritising the needs, you can next consider integrating the other options into the company.
4. Reflect on the type of warehouse automation system.
What type of warehouse automation system you need to integrate is another prominent factor which you need to consider, whether it should be digital automation or physical automation.
Check on what side of the warehouse sector is much weaker in your company than the other, whether it is the criteria of decision-making or whether it is about handling the inventories and goods.
5. Consider the company’s budget.
The financial budget which the company can allocate is another important aspect since going above it can lead to losses.
Make sure that integrating a warehouse automation system into the company is always a profit to your company instead of a loss.
Hence, allocate a specific budget, but in case, make sure you are able to arrange 2 times the said amount of quotations when integrating the warehouse management system.
6. Implement the project at the right time.
After you have followed up step by step and after the deep analysis, documentation and everything, make sure the time is right to implement your project of a new era in the warehouse management system of the company.
What are the evolving trends in 2023 in warehouse automation?
Here are a few of the evolving trends in the year 2023:
- A surge in the usage of robots
There is an increasing surge in the usage of robots for different tasks such as sorting, packaging, transportation, batching and the security of inventories.
For example, a company such as Amazon consist of about 200,000 mobile robots in their warehouse premises.
Mobile robots(AGV/AMR) are used to perform multiple operations in the warehouse facility, and also they seem to be replacing the usage of conveyors in the warehouse management sector.
Drones are used to navigate around the warehouse and involve in helping out with shipping and delivery criteria.
Cobots which are highly fancy collaborative robots are also designed to collaborate with the working styles of humans. So yes, they could collaborate with humans! No team issues!
2. IoT or Internet of Things
IoT is not just a thing. It is a fleeting trend which involves uprising the sector of warehouse management.
This system allows connecting, synchronising and monitoring the robots such as mobile robots, drones, and cobots and allows it to retrieve data, scan and store the data from them as well.
It involves tracking the status, which also includes the temperature, vibrations and so on.
3. Tagging of RFID technology
Real-time data access, storage of a large amount of data, and the ability of RFIDs to locate products at the right destination have made RFIDs a current trend in the field of warehouse management.
Additionally, RFID integrated with IoT can enhance the management of inventory to the next level.
Hence, due to these reasons, RFID has been a trend as well.
Why do you need to automate the warehouse system?
There are several reasons why you need to automate the warehouse system; here are a few of them:
- Helps eliminate human errors
- Gives the ability to optimise space
- Enhances customer satisfaction
- Enhance revenue-generating tasks
- Reduction of operational costs
- Enhances safety and reliability
- Able to scale-up fast
- enhance sustainability
- Increase stock accuracy
- Improves picking efficiency
- Enhances inventory optimisation
- Allows real-time visibility
Final thoughts…
Even if the up-cost were a high expense, a warehouse automation system would bring a massive amount of benefits to the company, enhancing the warehouse criteria through different aspects.
After all, knowing what is warehouse automation system, knowing its types and how to choose the best automation system for your company will aid in bringing the desired outcomes for you, your employees and your entire business.
Since business is itself a completion adapting to the best trends in the sector of warehouse automation would definitely help you out in the long run!
