Impact of Automation on Warehouse Management

Introduction

Manual inventory management is a task in itself. It's almost like running a traditional library with no automated systems. You are mostly dependent on card catalogs or a Google sheet to record inventory, manual organization to shelve items, or physical effort to retrieve and process an order and manual data entry when it comes in. 

Not only is this process time-consuming, but it is also prone to errors. However, businesses often automate warehousing to create a systematic process. Automated systems reduce manual tasks and manual labour while ensuring warehouse processes maintain peak efficiency.

In this article, we're going to discuss what warehouse automation exactly is and how it's changing the typical warehouse management method. 

What Is Warehouse Automation?

In simpler terms, warehouse automation is the process of using advanced technology to eliminate manual, repetitive, and physically demanding tasks in a warehouse and make inventory management more accurate and efficient. In fact, automated processes of inventory management can also help you minimize the risk of warehousing errors. 

The main idea behind automating warehouse operations is to cut off time that goes into manual management so the delivery time can be improved. 

Hence, businesses opt for various technologies and automation processes, most of which include: 

• Robotic process automation (RPA) for sorting, picking, and packing 

• Conveyor system to move products through different stages

• Pick-to-light system to identify the current product location

• Warehouse automation tools for inventory tracking and order management 

• Drones for checking inventory levels And more. 

How Automation is Shaping the Future of Warehousing?

The global warehouse automation market size stood at $18.81 billion by 2023. In fact, the number is expected to reach $95.45 billion by 2034. Artificial intelligence and machine learning are quickly becoming necessities and not just luxury, as automated sortation systems and collaborative robots become more commonplace.

This simply indicates the growing demand for automation, especially in warehouse management. Fully automated warehouses are no longer in the distant future, but much closer. Let's check some reasons fueling this craze and the benefits of warehouse automation. 

1. Faster order processing

Automation significantly minimizes the time needed to process an order in the warehouse. Advanced technologies like automated storage and retrieval systems (AS/AR) help retrieve items from the storage. Likewise, autonomous mobile robots and automated sorting systems transport and organize goods across the warehouse in a limited time. 

Plus, barcode scanning and RFID systems like Honeywell scanning solutions and Zebra Technologies RFID make it easier for workers to pick and pack the items. Nowadays, brands like Dematic and Swisslog have launched exclusive technology like pick-to-light solutions that direct laborers with light signals to quicken the picking and packing process. 

Together, these automation technologies speed up the order manifestation journey, so you can reach your order on time.

2. Minimized human error

In the logistics industry, a small error can disrupt the entire operation. As per a recent study, human errors can cause around 80% of process deviations in industries like warehousing. 

Warehouse automation reduces this risk to a great extent. For example, barcode scanners or RFID systems help workers identify items in real time, which saves brands from picking the wrong products. In addition, pick-to-light and put-to-light systems help workers to the correct picking locations. 

These solutions not only eliminate shipping discrepancies but also reduce returns rates caused by delivering the wrong items. 

3. Real-time inventory updates

Large warehouses mostly use complex storage systems like batch storage, zone storage, and so on. Additionally, in such warehouses, items are constantly moving. These make it a bit tough for brands and warehouse managers to keep track of inventory levels. 

With barcode scanning and RFID readers, you can automate data entry and monitor items when they move through the warehouse. In addition, drones with RFID scanners and cameras help scan labels from high storage racks. Take the example of IKEA. It has partnered with Verity and incorporated over 250 drones across 73 locations in 9 countries to manage their inventory. 

Also, warehouse management systems help update the inventory levels across all channels, so your team members can stay updated with real time data. Additionally, it offers in-depth data analysis on your stock levels, so you can make more informed decisions. 

4. Reduction of Operational Costs

If you’re spending a high amount on warehousing, adding automation can be your best bet. There are various ways warehouse automation can help cut down your budget. First off, it helps reduce labor costs. Say you need 30 people to perform a particular task in a warehouse. Automation can single-handedly pull off the task of those 30 people and that too in significantly less time. 

Second, it drastically reduces return costs incurred due to delivery errors. Plus, automation helps in better warehouse space utilization. For instance, there are lots of innovative warehouse automation tools like vertical lift modules and automated storage and retrieval systems that ensure high-density storage in the facility centers. This further saves you costs that you had to invest in expanding warehouse networks. 

5. Optimized resource allocation

Before, managers had to manually assign tasks to warehouse workers and schedule shifts. They used to follow paper notes and lists to pick items. This process was highly error-prone and used to lead to miscommunication. 

After the launch of warehouse automation, the allocation method has become more efficient. Through warehouse automation tools, especially WMS solutions, managers can allocate tasks to the employees based on their workload and skill levels. At the same time, it determines the better storage locations for items in the warehouse. This is vital for enhanced operational efficiency and effective supply chain management.

To take an example, through AS or RS systems, you can adjust the positioning of fast-moving items in easily accessible areas and rarely sold items to other picking zones. This, in turn, speeds up the order-picking process and makes warehousing more streamlined. 

6. Agile workflow adjustments

The entire eCommerce ecosystem keeps changing because of customer demands and market trends. That’s why you need to adopt agile workflows in warehouse management to keep up with these changes. 

Thankfully, warehouse automation systems help in this case as well. Systems like robotic picking and pick-to-light solutions lead to faster order processing, which is needed during peak seasons. At the same time, it provides real-time visibility of the inventory, so you can see the stocks and determine warehouse wastage or shortage. 

7. Increased employee output

After the rise of automation in the warehousing industry, human workers are able to complete their given tasks within less time. What took them a whole day before, they can now complete it within just 2 hours with the innovative technology. The report also found the same.

According to a study by Meteor Space, warehouse automation technology can improve productivity by 35%. An increase in efficiency and productivity in manual processes can simplify warehouse tasks drastically.

Warehouse automation systems like automated guided vehicles, and robotic arms speed up the order-picking process. Nowadays, brands are incorporating voice-redirected picking systems to route workers to the right locations. In fact, robots can take care of repetitive tasks, so human laborers can focus on other high-value tasks like quality control, customer communication, or troubleshooting. 

Here’s How ClickPost’s Automation Drives Logistics Efficiency

If you want to achieve success in delivery operations and provide customers with a top-notch shopping experience, you need to automate both the warehousing and logistics processes. By doing so, you can automate the entire supply chain operations and improve operational efficiency. However, you don’t need to rely on a completely different system to manage logistics. If you are already using a warehouse automation software, you can seamlessly integrate ClickPost with it to create an integrated workflow for the warehouse and logistics management. 

Wondering what ClickPost can bring to the table?

ClickPost is a logistics intelligence platform that comes up with multiple shipping APIs to improve the entire logistics journey.