What Is Warehouse Automation Solution?
Radio Warehouse
automation solution is the process of automating the
movement of inventory into, within, and out of warehouses to customers
with minimal human assistance. As part of an automation project, a
business can eliminate labour-intensive duties that involve repetitive
physical work and manual data entry and analysis.
For example, a warehouse worker may load an autonomous mobile robot
with heavy packages. The robot moves the inventory from one end of the
warehouse to the shipping zone and software records the movement of that
inventory, keeping all records current. These robots improve the efficiency,
speed, reliability and accuracy of this task.
What Is Digital Automation?
Digital automation uses data and software to reduce manual workflows. Automatic
identification and data capture (AIDC) technology, like mobile barcoding, is an example of
digital automation in the warehouse.
The benefits of digital process automation include the ability to integrate with enterprise
resource planning (ERP) systems, enhanced security, greater data management efficiency,
reduced operational and legal risks, and improved safety—but from the warehouse perspective,
it reduces manual processes and eliminates human errors. AIDC technology like radio
frequency identification (RFID) and mobile barcode scanning can enhance the worker
experience, improve customer service and reduce operational costs associated with human
error.
How Does a Warehouse Automation Company Work?
Warehouse automation company work by using software and technology like robotics and sensors
to automate tasks. Warehouse automation helps ensure that business-critical operations in
your facilities meet customer demand. It starts with a warehouse management system (WMS)
that automates manual processes and data capture, inventory control and supports data
analysis. These warehouse automation company integrate with other solutions to efficiently
manage and automate tasks across different business and supply chain functions.
Type of Warehouse Automation
Warehouse automation varies from relatively simple to quite complex. Basic automation uses
planning, machinery and vehicles to reduce repetitive tasks. Advanced systems take advantage
of artificial intelligence and robotics.
Type of warehouse automation categories include:
-
Basic Warehouse Automation: This type of warehouse automation refers to
simple technology that assists people with tasks that would otherwise require more
manual labor. For example, a conveyor or carousel moves inventory from point A to
point B.
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Warehouse System Automation: This type of warehouse automation uses software,
machine learning, robotics and data analytics to automate tasks and procedures. For
example, a warehouse management system reviews all the orders that need to be filled
in a day and has users pick like items to fulfill all those orders at once so they
don’t traverse the warehouse back and forth multiple times.
-
Mechanized Warehouse Automation: This kind of warehouse automation uses
robotic equipment and systems to assist humans with warehouse tasks and procedures.
Autonomous mobile shelf loader robots that lift racks of products and deliver them
to human pickers to retrieve and sort is one example.
-
Advanced Warehouse Automation: Advanced warehouse automation combines
mechanized warehouse robotics and automation systems that can replace
labor-intensive human workflows. For example, a robotic forklift fleet that uses
advanced AI, cameras and sensors to navigate a warehouse and communicate each
forklift’s location to an online tracking portal.
Type of Warehouse Automation with Example
There are many types of warehouse automation because there is a wide range of warehouse
technology and systems available. Warehouse automation aims to minimize manual tasks and
speed up processes, from receiving to shipping.
Type of Warehouse Automation with Example includes:
-
Goods-to-Person (GTP): Goods-to-person fulfillment is one of the most popular
methods for increasing efficiency and reducing congestion. This category includes
conveyors, carousels and vertical lift systems. When properly applied, GTP systems
can double or triple the speed of warehouse picking.
- Automated Storage and Retrieval Systems (AS/RS): AS/RS are a form of GTP
fulfillment technology that includes automated systems and equipment like
material-carrying vehicles, tote shuttles and mini-loaders to store and retrieve
materials or products. High-volume warehouse applications with space constraints
tend to utilize AS/RS systems.
- Automatic Guided Vehicles (AGVs): This class of mechanized automation has
minimal onboard computing power. These vehicles use magnetic strips, wires or
sensors to navigate a fixed path through the warehouse. AGVs are limited to large,
simple warehouse environments designed with this navigation layout. Complex
warehouses with lots of human traffic and space constraints are not good candidates
for AGVs.
- Automated Sortation Systems: Sortation is the process of identifying items on
a conveyor system and diverting them to a warehouse location using RFID, barcode
scanners and sensors. Companies use automated sortation systems in order fulfillment
for receiving, picking, packing and shipping.
Why Should You Automate Your Warehouse?
An inefficient warehouse negatively impacts the customer experience. Warehouse Automation
solutions do more with less and thrive under increased customer demand.
Benefits of Warehouse Automation Solution
Using automation to improve warehouse operations brings a wide range of advantages, from
running more efficiently to minimizing human error. Here’s a list of the most commonly cited
benefits:
- Increased warehouse throughput
- Better resource utilization
- Reduced labor and operational costs
- Improved customer service
- Reduced handling and storage costs
- Reduced human error
- Minimized manual labor
- Increased productivity and efficiency
- Improved employee satisfaction
- Enhanced data accuracy and analysis
- Reduced stockout events
- Optimized warehouse space
- Greater inventory control
- Improved workplace safety
- Fewer shipping errors
- Reduced inventory loss
- Enhanced material handling coordination
- Improved order fulfillment accuracy
Challenges of Warehouse Automation Company
Despite the benefits related to warehouse automation, it also has some challenges. For
example, it requires significant capital to get up and running and expertise to establish
and maintain the system, which many companies don’t have in-house and can be difficult to
find. Additionally, equipment can break down, often at the worst of times, leading to
downtime and repair/maintenance costs.
To minimize maintenance issues, you’ll want to set up maintenance schedules. Consider
contracting with a third-party vendor that provides skilled maintenance and repair experts
to ensure the new systems and equipment stay operational. The high upfront costs for
equipment and setup typically pay for themselves over time through efficiencies and
increased sales, but businesses need to carefully anticipate and mitigate some challenges
with proper risk assessment and planning. The planning phase should include regular
inventory audits to verify the accuracy of new data from automated processing against
existing records. See below for more details on how much it costs to automate your
warehouse.
Warehouse Automation Solution Best Practices
The warehouse’s role in the supply chain has evolved significantly. Modern warehouses
provide business-critical, cost-saving functions and add value to customer experiences.
Here’s a list of six warehouse automation best practices to consider:
- Integrate with a WMS: Make sure the warehouse automation systems you choose
integrate with a WMS platform. Look for a solution that can manage inventory
controls, track inventory, monitor and report on labor costs, integrate dashboards
and automates these capabilities. Learn more about WMS features and the difference
between inventory management and warehouse management.
- Invest in Scalable Solutions: Your technology should scale with your
business. The system should account for adding future warehouses, employees,
equipment and new supply chain partnerships, like 3PLs or drop shippers.
- Automate Data Collection: Regardless of the type and level of warehouse
automation, you're considering long term, start with a solution that automates data
collection, transfer and storage. Cloud-based solutions paired with mobile barcode
scanners create a low-cost, low-risk path to automation. This ecosystem will help
you eliminate human error, capture critical warehouse performance and inventory
data, and store it in a centralized cloud database for further analysis.
- Perform Continuous Cycle Counts: Cycle counts monitor inventory levels
against the inventory data record and are a key feature of WMS. Once you have
automated data collection systems in places, you can automate continuous cycle
counts with mobile barcode scanning or RFID sensors. Then you can use dashboards to
check for inventory discrepancies.
- Optimize Receiving: Warehouse data collection starts with receiving, so you
want a system that can collect as much data as possible upfront to help direct
warehouse workflows. Identify the incoming product (dimensions, classifications,
packaging), then set rules in your WMS that determine how to handle it, where to
store it and how to direct available resources to put it away.
- Evaluate Warehouse Design: Many physical automation solutions, including GTP
and AS/RS systems, AGVs and sortation systems, require specific warehouse layouts
and ample space to be successful. Consider reworking the design of existing
warehouses and distribution centers to optimize them for automation technology. Work
with solutions vendors, architects and contractors that understand your unique
requirements. You’ll want to include this evaluation in your implementation budget.
Real World Examples of Warehouse Automation
The popularity and growth of ecommerce has increased the demand for warehouse automation.
Here are some examples of how it works across various industries:
- Barcode Scanning: Amazon uses automated barcode scanning and labels to
dominate online retail and optimize warehouse operations. This automation is
responsible for Amazon’s famously innovative storage system. Unique barcodes are
placed on incoming products and on the shelves where they reside. When it’s time to
ship a product, employees use the updated picking list to find the product location
based on automated routes optimized for efficiency and flow.
- Picking Automation with GTP Systems: Nike implemented a GTP picking system in
its new distribution center in Japan. The automated GTP picking system uses
autonomous robots to carry products and packages loaded on shelves or pallets
directly to warehouse workers for order fulfillment. The new warehouse automation
helped transform logistics and enable Nike to provide same-day delivery to customers
in Japan.
- Automate Data Collection: Regardless of the type and level of warehouse
automation, you're considering long term, start with a solution that automates data
collection, transfer and storage. Cloud-based solutions paired with mobile barcode
scanners create a low-cost, low-risk path to automation. This ecosystem will help
you eliminate human error, capture critical warehouse performance and inventory
data, and store it in a centralized cloud database for further analysis.
- Inventory Automation with AS/RS Systems: IKEA operates highly automated
warehouse facilities worldwide. Its distribution centers feature AS/RS inventory
automation systems and equipment, including 100-foot-tall trilateral stacker cranes
and conveyor rack systems capable of automatically transferring 600 pallets an hour
to dispatch areas.
How Much Does It Cost to Automate Your Warehouse?
The cost of warehouse automation varies depending on the level and type of automation.
However, a full overhaul of your existing infrastructure can cost millions of dollars.
To determine if a warehouse automation company is right for your business, start by
calculating your estimated ROI. Estimate the budget for current warehouse labor and existing
equipment and include any expected annual increases. Next, calculate your average turnover
rate for warehouse employees and factor in the cost of hiring and training new employees.
Now, determine the purchase cost of the new automated systems and equipment, and factor in
estimated labor and cost savings, training and implementation costs and ongoing maintenance
expenses. Finally, compare these figures to determine the estimated minimum ROI for
warehouse automation.