Why warehouse automation is on the rise – Top 10 Reasons
Summary
As the eCommerce market expands, many warehouse owners struggle to finish last-mile deliveries as fast as possible. However, there is a complication during order delivery due to the high number of internet order orders.
Businesses must incorporate technology in their warehouses and fulfillment centers to efficiently streamline last-mile delivery.
This blog post discusses why warehouse automation is gaining momentum among business proprietors with ten convincing explanations.
Written for:
- Warehouse Automation Manager:
Incorporating and managing security activities and ensuring efficient and secure warehouse equipment utilization.
- Operations Specialist:
Responsible for effectively analyzing the daily operations, managing systems, and optimizing day-to-day warehouse tasks.
- Business Strategist:
Sets an organizational benchmark for meeting yearly milestones and monitors the staff. Also, creates structural and cost-cutting strategies for the organization’s development.
Introduction
The growth of eCommerce is accelerating automation in the warehouse and logistics industries. However, almost all verticals had no idea how bad the situation could get after the pandemic lockout was declared. Several workstations were forcibly shut down for a prolonged period, resulting in substantial losses. Businesses must restructure their workspaces by integrating warehouse technology into workstations to combat the deficit.
An Overview of Digital Warehouses - How They Are Becoming More Popular
Imagine a scenario in which intelligent robots execute various warehouse tasks such as picking, slotting, cartonization, and transferring pallets and packages from one place to another inside the warehouse floor. Do you have any guesses as to how long it will take to automate the warehouse completely? Perhaps in 2030? No, it’s today’s automated warehouse. According to a new report, as of 2017, more than 13% of warehouses have begun implementing automated warehouse solutions to workstations, and this percentage is predicted to increase by upto 15 times in the future years.
Warehouse automation is not a new concept. Why is it so popular right now?
Warehouse automation is gaining traction because of increasing costs and operational pressures caused by expanded customer demands.
The following are the three key reasons why automation has recently become popular:
1. Increasing property and labor costs
when a company decides to enlarge, it either hires additional warehouse workers or expects to purchase more space. The implementation of automation becomes more attractive as the valuation of land grows year after year. We can minimize labor benefits like work breaks, paid days off, seasonal labor spikes, overtime changes, and health care by applying warehouse automation. Additionally, we smartly run round-a-clock with minimal maintenance by effectively applying warehouse automation.
2. Increased customer expectations
As the eCommerce industry is rising steadily, shoppers have begun to demand urgent assistance when they need it. To upsurge the business, we need to provide consumers with a personalized shopping experience and same-day and one-day shipping options. Besides, we can address other customer expectations such as security, detailed product details with validated customer feedback, the opportunity to generate a range of personalized deals depending on the order, and round-the-clock customer support.
3. More regular and complex order requests
Post covid, almost all the eCommerce industries face colossal order request waves. To manage the last-mile delivery, the warehouse should standardize the workflow. Businesses must successfully incorporate warehouse automation into their workspace to achieve workflow regularization.
Latest Trends of warehouse solutions that drive moe profitability
We can address insufficient labor shortages, warehouse storage space, and inventory operations by introducing warehouse automation. According to a recent survey, the internet-centered retail purchase of physical products is anticipated to approach $500 billion, uplifting warehouse service demands.
Below are a few warehouse automation solutions that empower the modern warehouse:
Automated parcel dimensioners:
The AI-based automated parcel dimensioners help quickly measure dimensional details such as length, breadth, width, and dim /volume weight of various size parcels. This automated parcel dimensioner comes in two types: automated static parcel dimensioners and automated package dimensioners. The automated static parcel dimensioning systems are designed to calibrate small and medium-sized parcels’ volume weight and dimensional information. On the other hand, the package dimensioners are built to measure the dim weight and dimensional information of large-sized and irregular-shaped packages.
This dimensioning technology effectively braces warehouse, logistics, 3PL, distribution, and order fulfillment centers. In addition, with these automated parcel dimensioners, we can integrate other devices such as label printers, barcode scanners, and weighing scales to perform multiple warehouse operations in one go.
How can automated parcel dimensioners optimize warehouse operations?
Below are the three innovative ways to optimize warehouse operation using automated parcel dimensioners:
Increase productivity:
Can you believe you can replace 17 seconds of manual dimensioning with 1 second by deploying an automated parcel dimensioner? Yes, it’s true! The automated parcel dimensioners are built in such a way that you can dimension any shaped parcels in a jiff, leaving no space for error. And this saves a lot of time and money and can accelerate your productivity by many times.
Organizing slotting and maximizing storage:
As you may be aware, Warehouses have a limited amount of space. However, the quantity of space utilized to keep the product and the number of workers available inside the warehouse will double if distribution systems and warehouse racking aren’t designed properly. A good warehouse manager may ensure that their warehouse space is used to its full potential by introducing automated parcel dimensioners into their operations.
Any automated parcel dimensioners worth its salt will integrate seamlessly with your warehouse management system (WMS), providing real-time information on the size and weight of arriving parcels to your employees. As a result, your warehouse personnel would be able to slot products swiftly and easily thanks to the dimensions data for being convertible and methodical.
Improves warehouse efficacy
Warehouse technology will significantly affect warehouse quality. This is one of the most critical business priorities and differentiators for logistics companies since inadequate warehouse activities require the company to expand the staff to sustain high-quality standards.
On the other hand, adding additional personnel frequently results in lower profit margins and a warehouse system that is more prone to human error. As a result, to overcome this barrier, many warehouses resort to automation for technologies that streamline regular processes and decrease errors.
With the deployment of automated parcel dimensioners, you can quickly reduce the time spent measuring parcels and packages and can effectively envigorate warehouse efficacy.
Autonomous robots:
The new estimates forecast that the pace of investments in warehouse robotics has heightened by 57 percent in the first quarter of 2020, and this development will continue to see traction in a post-pandemic. Autonomous robots use sensor technologies to conduct different warehouse operations, including transferring items in warehouse environments from one location to another, lifting heavy-weighted objects, and effective sorting.
Warehouse drones:
The AI-powered drones in the warehouse are built with advanced algorithms that perform several warehouse activities such as surveillance, roof, and floor detection, moving small objects from one place to another, and inventory management.
Top Ten compelling reasons to automate your warehouse now!
An unorganized warehouse paves the way for a negative customer experience. We can promptly perform several warehouse tasks with the automated warehouse within an estimated timeframe.
Below listicles are the top ten reasons why warehouse automation is on the rise:
1. Reduced human errors:
It is impossible to knock out a human error. However, with the right automation, we can reduce human error. The critical goal of warehouse automation is to automate 75% of the warehouse operation, leaving the remainder for warehouse employees to perform value-added functions.
2. Improve warehouse performance and analysis:
To maximize warehouse quality, you must first involve a comprehensive analysis of the areas that need attention. To do so, you’ll need first to build a benchmark to see how the warehouse’s operations and practices compare to others. Then, by incorporating the required automation, you can maximize the productivity of your warehouse.
3. Outstanding quality management:
Strong quality can make a huge difference! By integrating quality management into your warehouse, you can lessen the number of defective goods in our warehouse and detect accuracy concerns before they hit the customer.
4. Enhanced information security:
Security plays a massive role in the warehouse. Risk-related everything should be aligned properly. We can polish up information security by deploying warehouse solutions, not relying on manual data entry processes, improving frequent communication, utilizing remote technology, and regularly testing warehouse equipment, among other things.
5. Reduced shipping costs:
With the appropriate warehouse automation, like an automated dimensioning system, we can significantly improve the warehouses’ efficiency and operation, reducing shipping costs.
6. Expanded accuracy in order fulfillment:
eCommerce is getting more orders, and to be the winners, businesses should strive hard to ship and deliver products rapidly. In addition, the warehouse and distribution centers should invest in the right automation to streamline seamless order fulfillment in their working environment.
7. Enhanced warehouse throughput:
Warehouse throughput refers to the method of sorting and transferring a large number of units through your warehouse or during stocking, inventory, or order fulfillment. By implementing a suitable warehouse solution, we can efficiently increase warehouse throughput.
8. Reduced storage and handling costs:
Dealing with a vast amount of materials can be costly. To stop this, we can follow a set of critical preparation approaches such as maximizing storage capacity, reducing contact time, engaging in emerging technology, and optimizing warehouse productivity.
9. Decreased stockout events:
A stockout is a positive indicator that a commodity is doing well in the marketplace. Although, if you look at it from the other perspective, you’ll find that it inevitably loses revenue. You can set a re-ordering threshold that works for you, predict demand, and automate the inventory process to prevent running out of stock.
10. Increased customer satisfaction:
Your warehouse efficiency is a secret tool for rising consumer loyalty and earnings. No other aspect of the company would match the warehouses’ effects on reaching consumers, lowering product costs, and raising quality levels; this means that good warehouse and inventory management benefits both your customers and your organization.
Conclusion
The global warehouse automation industry expanded by more than 40% in 2020, reaching revenues of more than USD 12.5 billion. However, there are no off-the-shelf solutions in warehouse automation; instead, each system is tailored to each client’s specific requirements. As a result, warehouse automation will become the latest standard in the coming years.
