A Guide to Warehouse Automation for Every Warehouse
The evolution of technology has been marked by the emergence of technologies that were once considered impossible. The first televisions and computers were bulky, expensive, and limited in their capabilities. However, they paved the way for the development of more advanced devices such as smartphones and tablets. These devices are not only more affordable but also more accessible to a wider audience, enabling them to benefit from the features that were once exclusive to the privileged few. The automation landscape has undergone a similar transformation in recent years. The traditional approach of relying on large, robust, and rather expensive solutions has given way to a more modular, scalable, and affordable approach. This shift has enabled smaller companies to leverage the many advantages of automation that were once only available to larger companies. In this blogpost, we will focus on the advantages of automation, introduce the main technologies, and introduce some operational and budgetary considerations, before jumping into some specific examples.
Advantages
The rise of automation has revolutionized the way warehouses operate. By leveraging technology, warehouses can now process more orders in less time, optimize their use of space, labor, and equipment, and reduce their reliance on manual labor. This has led to increased revenue, reduced costs, and improved efficiency. In this blogpost, we will explore the benefits of automation in more detail and how it can help warehouses achieve their goals.
Increased warehouse throughput: Automation can help warehouses process more orders in less time, which can lead to increased revenue and customer satisfaction.
Better resource utilization: Automation can help warehouses optimize their use of space, labor, and equipment, which can lead to reduced costs and increased efficiency.
Reduced labor and operational costs: Automation can help warehouses reduce their reliance on manual labor, which can lead to reduced costs and increased efficiency.
Real-time visibility into workflows: Automation can help warehouses track inventory and orders in real-time, which can lead to better decision-making and improved customer service .
Ability to forecast with greater accuracy: Automation can help warehouses predict demand and optimize inventory levels, which can lead to reduced costs and increased efficiency.
In conclusion, automation has transformed the warehouse landscape by enabling warehouses to operate more efficiently and effectively. By embracing automation, warehouses can stay ahead of the competition and achieve their goals.
Main Technologies
Another purpose of this blogpost is to have a deeper look at warehouse automation technologies that can increase efficiency and reduce labor costs. Across different industries and clients, the following technologies would be recommended:
Autonomous Mobile Robots (AMRs): AMRs are a type of robot that can navigate through a warehouse without human intervention. They are equipped with sensors and cameras that allow them to detect obstacles and avoid collisions. AMRs are highly customizable and can help warehouses automate the movement of inventory from one end of the warehouse to another, which can lead to increased efficiency and reduced labor costs.
Automated Storage and Retrieval Systems (AS/RS): AS/RS are a type of warehouse automation technology that can help automate the storage and retrieval of inventory, leading to increased efficiency and reduced labor costs. They are designed to store and retrieve inventory or products automatically, replacing large areas of shelving to save floor space, improve safety, and increase overall productivity. These systems can be designed to work with bins of smaller goods or full pallets and can work with people or integrate with other automated systems.
Automated Guided Vehicles (AGVs): AGVs are another type of mobile robots, equipped with sensors and cameras, that can help warehouses automate the movement of inventory within the warehouse, which can lead to increased efficiency and reduced labor costs.
Warehouse Management Systems (WMS): WMS is software that can help warehouses manage and control daily operations, from the moment goods and materials enter a distribution or fulfillment center until the moment they leave. It offers real-time inventory visibility, picking and packing processes, resource utilization, analytics, and more 1. By automating inventory tracking, order processing, and other tasks, WMS can lead to increased efficiency and reduced labor costs.
One of the most promising technologies in warehouse automation is the Autonomous Case-handling Robot (ACR). ACRs are mobile robots that can autonomously move cases or trays in shelf racks. They can help warehouses increase storage density and improve picking efficiency. ACRs are gaining popularity worldwide due to their flexibility, fast deployment, and high pick rate with huge SKUs. ACRs are used in goods-to-person automation models in warehouses, where they provide a shuttle-type retrieval function to handle totes from static shelves.
In conclusion, the implementation of warehouse automation technologies will provide significant benefits to your organization. By automating inventory movement, storage, and retrieval, one can increase efficiency, reduce labor costs, and improve customer satisfaction. The recommended technologies are proven to be effective and are gaining popularity worldwide. They also offer solutions that can work with operators or in a fully automated warehouse, allowing for flexibility and phased implementations of automation. We recommend implementing these technologies in a phased approach over a period of 18 months to minimize disruption to our operations and maximize the benefits.
Checklist
While it is true that automation can benefit businesses of all sizes, there is no one-size-fits-all solution. Every operation is different, and the potential of automation varies depending on the specific needs of the business. For this reason, we propose the following checklist to identify the viability of automation for your business:
Identify the process: Identify the business process that you want to automate.
Evaluate the process: Evaluate the process to determine if it is repetitive, time-consuming, and error prone.
Determine the benefits: Determine the benefits of automating the process, such as increased efficiency, reduced costs, and improved accuracy.
Assess the feasibility: Assess the feasibility of automating the process by considering factors such as the complexity of the process, the availability of technology, and the cost of implementation.
Develop a plan: Develop a plan for implementing the automation, including the selection of the appropriate technology and the training of employees.
Implement the automation: Implement the automation according to the plan.
Monitor and evaluate: Monitor and evaluate the automation to ensure that it is achieving the desired results.
Establish can assist you in identifying the viability of automation for your business and help you develop a plan for implementation.
Budget
The cost of implementing warehouse automation technologies can vary widely depending on the complexity and scale of the automation solutions chosen. Here are some factors that can influence the budget:
Initial investment: This encompasses costs for acquiring and installing automation equipment. These expenses can vary widely depending on the complexity and scale of the automation solutions chosen.
Operational efficiencies: Evaluating how automation will reduce ongoing operational costs is critical. This includes labor savings, increased throughput, storage capacity, and scalability for peak volume, to name a few.
Total cost of ownership (TCO): Future-proofing your investment means accounting for regular maintenance and potential upgrades of the automation systems, ensuring they remain effective and efficient over time.
Return on investment (ROI) analysis: Undertaking a detailed ROI analysis is essential. This step helps in quantifying the long-term financial benefits and justifying the investment in automation.
Establish can assist you in identifying the scope and budget of automation for your business and will keep the above financial indicators in mind when proposing potential projects and implementations.
Examples
While there is an abundance of use cases and considerable number of providers within each technology introduced, here is a list of some recent automation integration projects:
DHL has deployed up to 2,000 AMRs to reduce nonproductive walking time in their warehouses.
Amazon uses AGVs to transport shelves of goods to human workers, who then pick and pack the items for shipping.
Swisslog’s AS/RS system helped a leading pharmaceutical company increase their storage capacity by 50%. DHL also uses an AS/RS system to store and retrieve items in its warehouse.
A WMS helped a leading retailer increase their order fulfillment rate by 200% and can help businesses eliminate labor-intensive duties and improve operations.
A big retail client uses automated picking systems to fulfill online grocery orders.