With costs and inflation rising, warehouse owners need to look at ways to drive down overheads to sustain their own growth. As experienced warehouse consultants, one of the main recommendations we offer to clients is to invest in supply chain automation, as it enables you to deal with a multitude of issues cost-effectively, while also improving the way the way you work. Here we discuss warehouse automation in supply chain management, highlight some real world examples and cover the many benefits of an automated warehouse.

What is supply chain management automation?

Supply chain management automation utilises digital technology to make warehouses and distribution centres more efficient. They streamline processes and connect applications within supply chain operations in a variety of ways, increasing productivity and lowering costs to produce better outcomes.

While use of automation was growing over the past 5-10 years, in a post-pandemic world the need for these types of solutions are more important than ever.

Driving Down Overheads with Warehouse Automation

As costs and inflation rise, warehouse owners must find ways to reduce overheads and sustain growth. As experienced warehouse consultants, we frequently recommend clients invest in supply chain automation. This approach addresses various issues cost-effectively while enhancing overall operations. In this article, we explore warehouse automation in supply chain management, provide real-world examples, and discuss the benefits of automated warehouses.

What is Supply Chain Management Automation?

Supply chain management automation uses digital technology to improve warehouse and distribution center efficiency. This technology streamlines processes and connects applications within supply chain operations, ultimately increasing productivity and lowering costs.

Although automation usage grew over the past 5 to 10 years, its significance has surged post-pandemic. Traditional supply chain methods faltered during the lockdown, revealing automation’s potential to modernize practices and benefit suppliers and their customers.

Examples of Supply Chain Automation

Here, we highlight common types of supply chain automation and explain the benefits of an automated warehouse.

Warehouse Management Systems

A successful warehouse operation hinges on strong backroom support, and warehouse management systems (WMS) provide that essential framework. These systems enable staff and management to access business data and analytics, offering real-time insights into cost and product movement throughout the supply chain.

For instance, some WMS utilize Radio Frequency ID (RFID) technology to gather, verify, and update bulk data about product locations. This real-time system minimizes scanning errors and reduces the manual labor typically associated with inventory management.

Improving your inventory management system maximizes warehouse space, elevates productivity, and boosts sales. A WMS enhances stock visibility, simplifies returns and refunds, reduces waste, and enables businesses to seize new market opportunities.

Automated Picking Systems

Order picking is one of the most labor-intensive and time-consuming tasks in any warehouse. Workers spend time walking to aisles, finding products, and returning to the sorting area. An automated picking system streamlines this process, enhancing speed and overall supply chain efficiency.

This system significantly reduces human error and shortens the time needed to locate and sort products by determining the most efficient routes every time. The optimal picking system will depend on your inventory size, warehouse setup, and order volumes.

Automated Guided Vehicles

Automated guided vehicles (AGVs) include various types of vehicles, such as pallet carts and smart forklifts. They facilitate easy transportation of goods within the warehouse. Digital pathways allow these vehicles to navigate safely, often with human assistance.

Some warehouses with limited aisle space utilize narrow automated trucks specifically designed for tight areas. These machines can access high shelving units to retrieve or deposit items safely and efficiently.

Robots and Drones

Robots and drones increasingly support warehouses, assisting with picking, packing, and moving goods. Automated robotic arms handle repetitive tasks, boosting accuracy and reducing errors while enhancing health and safety. This allows human workers to focus on other priorities.

Drones help by checking items at height, performing stock checks and audits, and conducting high-risk safety inspections. Drones equipped with imaging technology can send alerts to relevant teams, enabling faster, informed decision-making.

Pick-to-Voice Systems

A voice-directed system provides hands-free functionality using voice prompts to direct workers toward specific locations in the warehouse. The system recommends products to pick to complete outstanding orders. This technology frees pickers’ hands, which improves picking accuracy and speed.

Automated Storage and Retrieval Systems

Automated storage and retrieval systems (AS/RS) come in various forms, including carousels, lifting modules, and shuttles. They reduce the need for manual labor in picking tasks, enhancing speed and accuracy.

Additionally, AS/RS optimize storage, essential for companies facing space constraints. These systems allow for narrower aisles and taller storage racks, leading to increased storage density. Implementing such technology can result in greater throughput and improved profitability.

Wireless Fleet Management

This technology enables efficient monitoring and management of a fleet of vehicles, which may include manual or automated forklifts. Tracking activity and equipment locations helps analyze fleet efficiency and routing within the facility.

The usage data can also inform vehicle maintenance, minimizing downtime. Telematic systems provide data on incidents and safety alerts, creating a safer environment for workers and extending equipment lifespan.

Conclusion

As warehouse automation continues to evolve, companies can leverage these technologies to improve efficiency, accuracy, and cost-effectiveness. By implementing these solutions, businesses position themselves for sustained growth in an increasingly competitive landscape.

“`xposed during the lockdown era and automation can play an important role in modernising and improving many of these practises to help both suppliers and their end customers.

What are examples of supply chain automation?

Below we cover some of the most common types of supply chain automation and explain the benefits of an automated warehouse.

Warehouse management systems

An efficient warehouse operation is dependent on strong backroom support and warehouse management systems (WMS) help to provide that. They ensure staff and management have easy access to crucial business data and analytics that can provide real-time insights that can better manage costs and product movement across the supply chain.

For example, some WMS are based on Radio Frequency ID (RFID) which enables you to collect, transfer, verify and update bulk data related to the location of your products. This is a real-time system covering the full breadth of the warehouse supply chain, which minimises scanning errors and the manual labour usually associated with this type of work.

By improving the system responsible for managing your inventory, warehouse space can be maximised, productivity elevated and sales increased. Use of a WMS gives you clearer visibility on stock levels and makes it easier to process returns and refunds, reducing wastage and making it easier to capitalise on new market opportunities.

Automated picking systems

One of the most labour intensive – and time consuming – aspects of any warehouse is order picking. It takes time to go to the aisle, find the product, retrieve it, and then head back to the sorting and packing area. An automated warehouse picking system simplifies the process while also making it faster, which improves subsequent parts of the supply chain.

Using an automated warehouse picking system will help to reduce human errors and lower the time it takes to find and sort products by identifying the most efficient routes each and every time. There are a host of different automated picking systems available and picking the right one will depend on how many items you hold in your inventory, your warehouse set-up and order volumes.

Automated guided vehicles

There are several different types of vehicle that can be included in the automated guided vehicle (AGV) category. This includes everything from pallet carts to smart forklifts, making it easy to transport goods to different locations in the warehouse. Digital pathways are created to enable the vehicles to safely move around with human driver assistance.

Some warehouses that are restricted on aisle space rely on narrow automated trucks that are specifically designed to work in constricted spaces. Where high shelving units are in use, these machines can enter the space to safely retrieve or deposit items, reaching higher levels than would be possible with humans.

Robots and drones

Robots and drones are becoming increasingly common in warehouses, finding use in tasks such as picking, packing and moving goods. Automated robot arms are put to use for more repetitive jobs, which increases accuracy and reduces errors, while also improving health and safety and allowing human workers to be used elsewhere onsite.

Drones are helpful for checking items at height, carrying out stock takes and audits and performing high risk safety checks. Models that include imagery technology can also send visual alerts immediately to relevant teams who can take faster, decisive information based on the information they have to hand.

Pick-to-voice systems

A voice-directed system is a hands-free solution that uses simple voice prompts to direct workers to specific locations in the warehouse. It then provides information about which products should be picked to complete outstanding orders. One of the best benefits of this technology is that it leaves pickers’ hands free of any other tasks such as pressing buttons or reading information, which improves pricking accuracy time and speed.

Automated storage and retrieval systems

Automated storage and retrieval systems (AS/RS) vary in type, including carousels, lifting modules, shuttles and more. They are an attractive option because they reduce the need for manual labour in picking operations, which improves speed and accuracy.

Just as importantly, AS/RS help to optimise storage, which is crucial for many companies where space it as a premium and moving to larger premises is not a cost-efficient option. This allows for narrower aisles and higher storage racking, which increases storage density. Using this type of technology and warehouse setup can lead to greater throughput and profitability.

Wireless Fleet Management

This type of technology refers to the monitoring and management of a fleet of vehicles, which inside a warehouse can be things like manual or automated forklifts. By digitally tracking activity and having clear sight of equipment location, you can analyse the efficiency of the fleet and the routes taken around the facility.

The usage data provided can also be used to manage maintenance of the vehicles and minimise downtime. Telematic systems will be able to feed back data related to incidents, impacts and other security and safety alerts, which makes the environment safer for workers and increases the lifespan of your equipment.

Get in touch with a member of our team for more information about warehouse automation in supply chain management.