Why warehouses need to be automated

HomeWhy warehouses need to be automated

Warehouse automation is the process of using technology, both digital and physical, to automate repetitive tasks and intralogistics with minimal human intervention. Warehouse automation has the capability to eliminate labor-intensive work along with manual management of supply chain and production pipeline. Warehouses are now transforming into an augmented place where mobile robots and humans work hand-in-hand to drive efficiency while minimizing accidental risks.

Warehouse automation can be divided into two main areas of focus-
● Digital Automation- Use of WMS, Software Applications, Cloud Database, AI/ML, Data
Analytics Platforms, etc.
● Physical Automation- Use of Robotics, AGVs, Sortation equipment, AS/RS equipment,
etc.

Why warehouses need to be automated

Why warehouses need to be automated

The evolution of e-commerce and increasing customer demands have pushed warehouses to the edge to keep pace. While hiring more workforce is expensive, warehouse space also becomes congested at the same time. Leveraging technological advancements is the answer to increasing warehouse challenges.

Let’s look at some of the problems warehouses face without automation-

 

Delayed customers orders

Labor-intensive tasks with risk of accidents

Declining order fulfillment capacity

Inaccuracy in inventory management

Unorganized intralogistics

Decreasing customer satisfaction

Broken supply chain

Inability to optimize budget and workforce with fluctuating demand

Uninformed decisions due to scattered data

These are the most common problems traditional warehouses face every day, and it is putting a dent in their top line and bottom line. Digital and Physical warehouse automation is the key to stay relevant in the market and achieve operational efficiency with a competitive edge. Mobile robotics and AGVs coupled with warehouse management systems (WMS) are the way forward for warehouses to meet customer demands, expectations, and satisfaction.

 

Warehouse automation has clear benefits from day 1 with a high return on investment.

1. Increased warehouse throughput – AGVs can handle efficient goods transport to and from selves without any error. It improves overall efficiency for inward and outward logistics.
2. Better resource utilization – Using mobile robots, you can offload repetitive and labor-intensive tasks from your employees and put them to more valuable tasks in the warehouse.
3. Reduced labor and operational costs – Manpower is becoming expensive day by day, and modern warehouses need more of it. Mobile robots minimize manual work and reduce operating costs.
4. Improved customer service – Warehouse automation helps efficiently process every customer order without any delay or delivery error. It increases customer satisfaction and builds trust.
5. Reduced handling and storage costs – Specialized AGVs can move and store goods in an optimized way across your warehouse aisles which is very hard for humans. So it not only optimizes your space utilization but drastically reduces handling and storage costs.
6. Reduced human error – Warehouse automation technology minimizes the chance of human error and avoids service disruptions. It also increases overall accuracy and ability to make informed decisions.
7. Increased productivity and efficiency – Mobile robots and AGVs can operate 24/7
without any tiredness to fulfill orders and manage inventory. It helps achieve ambitious
business goals by accelerating your supply chain.

8. Improved employee satisfaction – Since warehouse automation frees up employees from doing repetitive and mundane tasks, your overall employee satisfaction increases.
9. Enhanced data accuracy and analysis – Warehouse automation supports connected workforce with streamlined data from every process with maximum accuracy. It enables you to process and analyze data for business intelligence.
10. Reduced stockout events – Stockout is one major problem every warehouse faces due to manual data entry and human error. Warehouse automation minimizes the stockout events by relaying accurate inventory information to all stakeholders and systems.
11. Greater inventory control – With warehouse automation, not only can you efficiently move your inventory but also do an accurate forecast. It helps in the timely procurement and efficient management of existing inventory.
12. Improved workplace safety – Mobile robots for warehouse automation can perform risky material handling tasks in a very safe manner to avoid any accidents. It also helps keep humans away from transporting goods themselves, risking injury.
13. No shipping errors – Manual order processing is prone to shipping errors. It can ship different items than ordered to a customer. Mobile robots and automation software reduce the chance of it happening to almost zero.
14. Reduced inventory loss – Manual inventory handling risks the damage of goods, and manual data entry might miss the items in your warehouse, causing inventory loss. Warehouse automation minimizes this problem with safe handling and accurate inventory tracking.
15. Enhanced goods handling coordination- AGV fleet can efficiently coordinate with

Warehouse automation using WMS, mobile robots, and AGVs can support every aspect of order fulfillment, such as picking, packing, shipping, replenishment, returns, receiving, sorting, and put away. It also gives you the capability to forecast the demand and supply for greater control of your inventory and operational efficiency. Warehouse automation is the need of the hour for rapid, seamless, and cost-effective supply chain operations.

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