Embracing Automation in Warehousing

Automation increasingly helps enhance efficiency, accuracy, speed, and cost savings in warehouses and distribution centers. However, it may not be the right fit for all processes. Human workers still excel in certain tasks, so it’s crucial to identify when and where to implement automation effectively.

For successful integration, deploy automation alongside a warehouse management system (WMS). A WMS can track and organize every transaction in real time. Moreover, even without automation, a WMS improves efficiency by optimizing pick paths and streamlining the entire shipping process.

Finding the ROI

Robotic automation involves methods that bring inventory to order pickers, reducing their movements. Goods-to-Person (GTP) systems, such as vertical lifts, carousels, and automated storage and retrieval systems (AS/RS), simplify operations. Automated conveyors also transport products to the next process stage.

One major concern for companies investing in automation is the high upfront cost and ongoing maintenance fees. Generally, physical automation can provide a good return on investment (ROI) in facilities with a high volume of activity.

Keep in mind that human workers can adapt more flexibly to changing conditions. For instance, a single operator using a carousel pod may have a limited pick rate during peak times, potentially slowing down order fulfillment. In contrast, multiple workers accessing fixed shelving during busy periods can maintain or even boost efficiency levels.

Not all businesses experience the same level of ROI from automation. Each company must perform detailed due diligence to ensure the investment is worthwhile. Assess the number of processed lines and pieces, and evaluate productivity before and after automation. Effective automation deployment can stabilize workforces in industries facing high turnover. Streamlining staff can enable businesses to increase wages and benefits for remaining employees, reducing turnover and improving stability.

Prepping for Automation

Before adopting automation, consider implementing several key processes. First, designate a team or individual to manage integration and select necessary functionalities. Ensure they are involved in planning and creating essential processes to avoid delays that could hinder team development and automation investments.

While the purchase price of initial automation solutions is crucial, consider long-term maintenance and repair costs. Factor in potential adjustments to the facility’s layout to accommodate the machinery. If future expansion is likely, ensure that the automation setup can adapt accordingly.

Your staff also requires attention. Create a support plan that offers adequate training and technical backing for the changes. This will help ensure a smoother implementation process. Additionally, integrating the new solution involves significant data migration and time commitments, which you can discuss with your automation provider.

While automation can offer numerous advantages, ensure it aligns with your business needs. Seek advice from others who have implemented similar systems, and approach investments carefully, starting in smaller areas before scaling up.

How to Prepare for Automation

To prepare for automation effectively, follow these steps:

  • Research and Plan: Assess your current product range and flexibility needs to adapt to changing demands. Identify operational areas with repetitive tasks suitable for automation. Mechanization can serve as an initial step toward full automation.
  • Meet Suppliers: Create a shortlist of potential suppliers. Give them enough information for accurate bids while allowing room for innovation. This process may take up to 6 months and require significant input from the project manager. Include site visits for suppliers to understand the project scale.
  • Choose the Supplier: Develop a method for evaluating each supplier’s pros and cons objectively. Consult other departments, like sales and marketing, IT, and operations, to ensure the solution meets their specific needs.
  • Manage the Risks: Conduct risk assessments to aid in selecting the right supplier. Evaluate whether you can manage risks through design or other methods. Consider factors such as utilization percentages, existing system integration, scalability, installation timelines, and the storage medium used.