With businesses now more than ever open to adopting innovative technologies that simplify their internal processes, warehouse automation has become highly sought after.
Retailers' attention is predicted to grow warehouse automation to a $51 billion industry by 2030. In a recent McKinsey survey of 50 retailers across apparel, grocery, and other key sectors, more than 80 per cent of respondents indicated they intend to increase automation investments over the next two to three years.
Companies are leaning toward innovative solutions for automated warehouses to solve age-old problems associated with handling inventory, like labour shortages, SKU-complexity growth, and minimising costs.
What is warehouse automation?
Imagine a typical day in the warehouse. Several tasks rely on micro-actions from warehouse workers - moving inventory and materials around, keeping track of where items must go next, and collaborating between workers in different workstations. Tedious, isn't it?
Warehouse automation uses technology to simplify and synchronise tasks that would otherwise reduce worker productivity. Automated warehouses are more efficient as human effort is augmented by software, robots, and machines to increase speed, accuracy, costs, and safety within the workplace.
From when inventory arrives at your warehouse to when it leaves, it is continuously going through different processes handled by workers. With warehouse automation, these internal processes can be reimagined - manual and repetitive tasks minimised to allow employees to complete more in less time.
A common misconception is that warehouse automation solutions are there to replace human labour. That is not true. Rather, it enables businesses and workers to leverage the perks of new warehouse automation technologies to improve speed, accuracy, and productivity.
Types of warehouse automation
Warehouse automation can take different forms depending on what a business needs. Here is a look at the various types available:
Goods-to-person technologies (GTP)
GTP solutions include warehouse automation technology that moves inventory and materials from workstation A to workstation B. For example, moving packaging materials from storage to the workstation where the person in charge of packing orders is.
Automated storage and retrieval systems (AS/RS)
These include cranes, vehicles and carousels used to transport items around the warehouse. AS/RS solutions are typically used to move transport items to and from storage. They are the most commonly known type of warehouse automation.
Conveyor systems
Used to transport materials along assembly lines or around the warehouse - moving inventory to where it is packed or sorted for shipping. Conveyors have been around for a long time and are one of the oldest types of warehouse automation.
Pick-to-light systems
Systems used to locate items in the warehouse faster. Pick-to-light technology uses LED lights and barcodes to indicate where items are so they can be brought out of storage to fulfil orders. Employees spend less time walking around in search of a particular item.
Voice picking and voice tasking
Communication systems that coordinate work between warehouse taskers and employees who pick up items to fulfil orders. Voice tasking makes it easier for warehouse order pickers to get information and give feedback as they work.
Sortation systems
Technologies used to identify, separate and direct items to designated locations. Sortation systems can send items for returns processing, to packing stations, and to pickup zones - improving accuracy and speed.
Collaborative mobile robots
Robots used to augment human-led warehouse-picking efforts. They guide workers through picking, improving accuracy and productivity. Warehouse pickers can rely on the robots' flexibility and scalability to plot and execute more reliable picking routes.
Autonomous mobile robots (AMRs)
Equipped to do the same tasks as collaborative robots, but fully autonomous - programmed to carry out tasks without human interference.
Drones
Warehouse drones provide basic functions for inventory management. Fitted with barcode scanners for tasks like inventory counts, ensuring correct storage placement, and in some cases deliveries. If you can leverage sales reports from your CRM, drones can be used to determine which items need restocking.
Warehouse management systems
Warehouse management automation software with CRM capabilities to synchronise your workflows. You can leverage such systems to limit the human aspect in menial tasks like inventory or shipping management.
How to use warehouse management systems
With the aid of workflow automation software, warehouse management systems make it easy to track and sync warehouse activities to other business processes, e.g., procurement and order fulfilment.
Warehouse tasks are generally repetitive, and - when done manually - it's easy to make mistakes. Automated warehouses reduce the probability of errors by leveraging tech for boring, tedious tasks and those requiring a higher degree of accuracy.
Managing inventory is at the top of the list when optimising your warehouse:
- Know what you have - Install workflow automation and you can have physical automation tools programmed to check inventory levels at the end of each day. Your warehouse management system provides accurate reports on day-to-day activities.
- Direct picking, packing and shipping - Automating your workflow means you can say goodbye to time-consuming meetings. Everyone can easily verify their tasks, receive communication on changes in priority, and escalate issues.
- Monitor and control activities - Supervisors have a better time monitoring activities to meet specific targets with digital automation. Warehouse management software improves your ability to coordinate material handling equipment.
The benefits of automating your warehouse workflows
Higher productivity
Warehouse automation solutions allow you to get more done in less time, while also minimising room for errors.
More efficient workflows
Incorporating automation technology allows you to create innovative processes. Employees can devise new ways to get things done and focus on complex tasks by leveraging features like automated reporting.
Increased worker satisfaction
Automating worker collaboration reduces strain on employees. An amiable working environment results in better worker satisfaction - happy workers are known to be more productive.
Reduced workplace accidents
Relying on warehouse management systems to reduce activity in dangerous areas helps minimise the number of incidents. For example, relying on automated reports to verify inventory levels in vertical storage spaces.
Improved accuracy
Leveraging technology solutions that can accurately keep track of inventory and identify mistakes makes the job easier. Fewer incidents where inventory is stored in the wrong section.
Fewer shipping mistakes
Relying on technology to match the products to the order can significantly reduce the probability of wrong orders being packed and shipped.
Lower costs
With warehouse automation, the number of people needed to maintain order is reduced significantly. You also reduce expensive mistakes in addition to labour-related risks.
Space optimisation
With software helping you optimise processes, you can better manage storage space. Rely on order/procurement forecasting to plan inventory storage.
Picking the right CRM for warehouse workflow automation
Strategic investment in the right solutions is necessary to enjoy the full benefits of a warehouse management system. To do this, you must go through three stages: planning, design, and implementation.
A good CRM for the warehouse should enable you to:
- Monitor material handling - Warehouse staff can rapidly take over inventory received if the workflows are already in place, easily checking items against invoices from procurement.
- Audit inventory - Continuous monitoring of inventory levels allows stock-taking without halting normal operations.
- Direct storage and picking of materials - Keep track of which goods are in stock and the conditions necessary for preserving quality. Assign jobs, monitor progress and evaluate outcomes from the CRM dashboard.
- Access warehouse analytics - Generate accurate reports that give you an overview of operations, trends and efficiencies.
Automated warehouse system design and implementation
In your design process, consider:
- Areas you are looking to achieve cost savings
- Processes you can augment to save time
- Existing physical automation that can be optimised with automated workflows
When automating an integrated omnichannel warehouse, a hybrid selection of solutions is the best approach. The automation systems must support each channel's specific flows, handling requirements, and order profiles.
How much does it cost to automate a warehouse?
The cost of warehouse automation differs according to your chosen method. The traditional approach is to engage a provider to fit your warehouse with their solutions. Alternatively, you can leverage several solutions from different providers.
Building a portfolio of best-fit products through an automation consultant will help you use integrations for cost savings. Consider the incoming wave of robotics as a service (RaaS) and fulfilment as a service (FaaS) - approaches that require minimal investment.
How Automaly's Workflow Automation Consultants Can Help
A CRM workflow automation consultancy like Automaly already has a hand on the pulse. We have ample experience designing and implementing automated workflows for different use cases. Our team of experts will guide your workflow automation journey with one of the top CRM solutions today.
Automaly can help you design an automated warehouse workflow for optimal productivity and storage use - whether you're a growing business building a warehouse with future-proof automation, or looking to fit your existing warehouse with scalable solutions.
Get started with your automated warehouse
Warehouse management automation aims to improve productivity and reduce labour-related risk. It simplifies warehouse processes and improves accuracy in many tasks where manual execution is prone to expensive errors.
Getting started isn't hard at all. You just need to plan ahead of implementation. Make considerations based on what type of warehouse you want automated, what type of products you handle, and how many channels your business serves.
With the right warehouse consultant in your ear, you can be on the road to optimised warehouse management automation. Contact Automaly today for modern automated warehousing management.
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