The Future Of Warehouse Automation & Why You Need To Be In It

The Warehouse Defined

The general, widely accepted definition of a warehouse is “A large building where raw materials or manufactured goods are stored until they are exported to other countries or distributed to shops to be sold.” Over the years, it has also adopted a much distinct classification that explains it as “a planned space for efficient storage and handling of goods and materials”; which allows for “warehouse” and “distribution centre” to be used interchangeably.

The concept of warehousing dates back to the creation of granaries that were used to store emergency food for events such as drought and famine. The need for warehouses continued to grow when European explorers began to create shipping-trade routes with other nations and looked to store products and commodities that hailed from afar. Ports were the main location of the warehouses and the reason behind this was that the majority of the trade that took place between the countries was carried by ship.

As civilization developed, railroads began to expand travel & transportation, making the creation of rail depots necessary for the storage of materials. With time, the government placed restrictions and railroad companies’ control over freight depots became challenged, therefore introducing the idea of commercial warehousing.

Current Modern Warehousing

Now knowing the history of warehousing, it’s quite intriguing to note how we have shifted into an era where warehouses has developed in a lot of ways, including in both function and form. Warehousing has continually evolved with changes in production, procurement and distribution methods all serving as influential factors. Manual processes are being replaced by automated solutions which has resulted in greater efficiency and improved productivity. Companies in the supply chain and logistics field across the globe have started to embrace new trends and technologies and began recognizing that in order to succeed in today’s competitive industry, flexibility and technology are crucial components to adopt. Over the past few years, new technology has greatly improved supply chain visibility and has allowed for greater collaboration opportunities. This improvement inspired discussion, desire and curiosity around the possible advancements that could change the landscape of warehousing which then saw the concept of warehouse automation being conceived. Before we digress into that aspect, let’s take a look at current technological trends that warehouses have embraced.

Barcoding

While this was one of the early technological advancements adopted in warehousing, there’s been a rise in the attainment of barcoding scanners. Companies have started using barcode scanners to keep track of cargo as it moves within the warehouse. Barcoding reduces the amount of errors and allows organizations to view vast information concerning a product all in one platform.

RFID

Without even realizing it, we use technology that automatically captures data and relies on radio frequency electromagnetic fields. This technology is known as Radio Frequency Identification – an automated data collecting system that consists of four basic components, namely, tags, readers, antenna and software. RFID enables products to be automatically scanned in larger volumes and at higher speeds. The RFID tag is made up of a microchip attached to an antenna, the tag picks-up signals from and sends signals to a reader, and the tag contains a distinct serial number. Warehouses have taken to RFID technology for its ability to streamline warehouse processes, reduce costs, increase data accuracy and improve execution.

Cloud integration

This is the process whereby multiple application programs are used to share data in the ‘cloud’. Cloud-based solutions and applications are fast becoming the phenomenon in markets all over the globe and are considered to be cost-effective, highly scalable and easy to manage. Software companies are also now introducing software applications that can be accessed via the Cloud to encourage cloud usage. These applications can be used on tablets, smartphones and tablets, allowing it to be a highly versatile solution for companies.

Voice and mobile applications

Voice and mobile technologies in warehouses have been increasingly employed in order to improve efficiency and make tasks easier for the staff. Workers now use voice technology for picking, packing, replenishing and warehouse shipping functions. This advancement has improved system controls, increased picking accuracy, provided real-time data analysis and communications and has returned higher ROI. Mobile devices have also revolutionized the warehouse and have enabled workers access to software remotely with their smartphones and tablets.

IoT Enhancements

The Internet of Things is about connecting devices to the internet; including not only smartphones and laptops, but everything with an “on and off switch” as well. IoT is used in logistics to connect various technologies in order to increase the efficiency of the manufacturing process of supply chains. The technologies under this concept are linked to and can communicate well with other technologies such as Bluetooth, RFIDs & cloud-technologies; keeping record of en-route products so to meet the demands of both suppliers and consumers. They are integrated in the overall management of a supply chain and predominantly improve shipment workflow.

Warehouse professionals are currently facing numerous changes in the scheme of warehouses, distribution centres and in supply chain operations generally. Some of the new, current warehousing realities include:

·        An increase in the number of SKUs, leading to increased inventory visibility, accuracy and efficiency needs so to meet customer personalization demands and needs.

·        More facilities and lager spaces that are demanding high-speed mobile communications on and off the floor.

·        Increased need for inventory control, flexibility and faster, more accurate fulfilment due to the growth of omnichannel transactions.

·        New regulations that call for more accurate product tracking and tracing.

·        More focus on fuel cost volatility given its impact on logistics.

Warehousing in the Future

Being in the digital age, there’s absolutely no denying that societal and technological trends that continue to emerge will influence and shape the future of warehousing. Those include 3D printing, predictive analysis and machine learning, robotics and autonomous vehicles and drones.

Society has also become more fast-paced and demanding, urging supply chains to move at higher speeds, manage smaller batch sizes, and provide ground for a broader range of products. Having mentioned warehouse automation earlier, operations have turned to this progression to keep up with these changes and demands. Warehouse automation is the use of deploying technology to automate the storage and distribution of goods in a warehouse. It entails automating a variety of aspects of operations, from automatic data capture to software systems, storage and retrieval, and more.

The main goal around automation is identifying repetitive tasks that are process-orientated, time-consuming and/or error-prone and coming up with ways to automate them. Warehouses have a tremendous problem that concerns repeatable, process-orientated and error-prone tasks. These include manual documentation errors, picking and stocking errors, shipping and receiving errors, etc. This then partly prompted the needs to have many aspects of warehouse operations automated.

Warehouse automation has sparked several discussions around the globe over the years, with the final general consensus revealing that it’s a technological revolution that will indeed transform warehousing. Many of the world’s biggest retailers such as Amazon, Nike and Coca Cola took heed to this call first and have major warehouse automation operations. Nike, for example, has a warehouse that features a 280 meter automated conveyer that handles 43 million items each year. Online retailer, Zappos also has one of the most efficient automated warehouses that deploys robots to locate and retrieve goods from all over the warehouse to bring them to human employees for packing.

The future of warehousing will continue being dominated by automation and the following has begun to prevail as the main reasons why:

·        Increased speed – An automated system immediately identifies the locations of all items in a given order and can find the optimum route to collect them as well. This maximizes productivity during the product retrieval process. Warehouse automation doesn’t just do this, but it additionally speeds up order fulfilment. Inventory management process is also included in the elements that are sped up along with the ability to use technology that automatically counts items.

·        Maximized space – Space is said to be a finite resource especially in warehousing and distribution facilities that consist of a wide array of goods. Automation helps maximize space and some warehouses have warehouse automation systems that feature machines dealing with product retrieval and storage. This eliminates need for wide aisles that accommodate bulky pallets and pallet jacks with a wide turning radius.

·        Improved productivity – Automated systems are faster and more accurate, making sure that products are moved & transported correctly. Automation technology guarantees an efficient arrangement without certain time constraints. Systems also cover a vast amount of space, moving both horizontally and vertically, as well, equating to increased competence.

·        Better inventory accuracy – Implementing software such as a warehouse execution system and integrating it with the AS/RS, allows organizations complete control over inventory. Manufacturers and distributors then focus on more critical areas like fulfilling orders when not having to worry about inventory and maximizing space.

·        Safe working environments – Warehouse automation has systems that adopt the idea of “bringing the product to the worker” as opposed to having the warehouse employees retrieve the goods. That immediately decreases the physical labour involved with these tasks, including walking, lifting and carrying heavy loads. Workers are additionally kept out of sub-zero temperatures in frozen food warehouses – which all means a safer working environment.

·        Cost effective – Automated warehouses prior to speculation, actually provide cost savings and profit potential that automated storage and retrieval systems offer. Cost savings may accumulate from:

o  Reduced energy costs

o  Reduction in land use requirements

o  Low maintenance costs

o  Reduced waste

 It’s no question that automation is changing paradigms in traditional warehouse operations; providing direction and indication of what will be the future of warehousing. Organizations are seeking for ways to maximize throughput and warehouse automation offers this extensively. With technology still to be deployed in this discipline to ensure transformation, and with the world hurrying excitedly towards technological advances, warehouse automation is the future you definitely may need to be part of.