Does an Automated System Need to be Complex to be Efficient?

Looking for a Way to Automate Distribution without it Being too Complex?

Simplifying material handling processes can often seem daunting—especially when going from a manual to an automated process. Even when taking what seems to be a simple process and trying to figure out how to automate it, it sometimes feels overwhelming. Furthermore, researching warehouse automation or automated fulfillment can leave even the best operation managers wondering where to start or trying to figure out if warehouse automation can truly be this complex. With so many different options on the market like AGVs, AMRs, automated systems, sortation solutions, and standalone storage modules, trying to understand the nuances—not to mention software, can leave even the best supply chain executives second-guessing.

Start with the Warehouse Automation Basics First

Given that you’re researching the topic of automating a distribution center or a warehouse, it usually indicates that you have some problem that needs solving. Research is the typical starting point for automation, and these issues tend to circle around three to four topics:

1. SPACE: The current footprint doesn’t have enough storage space for current or growing number of SKUs,
2. THROUGHPUT: Input vs output, process times through delivery, and not being able to get orders out the door fast enough to meet customer demand,
3. LABOR: trying to offset labor scarcity, cost, multiple shifts vs. automation, and maintenance skillsets.
4. EFFICIENCY: needing to upgrade existing software or implement software from a manual operation, or to increase efficiency of current operations and improve processes.

Breaking down each issue, with individual pros and cons, tends to focus on the more significant issues. Plus, it makes each solution simpler and more obvious. The 80/20 rule is normally useful to find focus points in more manual systems. However, sometimes it’s the last 5 percent of efficiency within some existing or partial automation that may have been outgrown. Let’s explore each of these issues step by step so it’s a little more straightforward.

1. Needing more SPACE:

Automation significantly optimizes spatial utilization, allowing for a more efficient and compact warehouse layout. By integrating an automated storage and retrieval system (AS/RS), you can make the most of your typically unused vertical space while minimizing the physical footprint required for storage. An automated storage and retrieval system will also give you a much higher storage density within the available space. This is possible because automation reduces the need for extensive manual pathways and aisles. Thus, the layout creates a more dense, usable storage area. Return on investment (ROI) by cost per square foot is relatively easily achievable with automation.

2. Wanting more THROUGHPUT for order fulfillment:

Automated storage systems are pivotal in amplifying order throughput within a warehouse environment. By seamlessly integrating technology, such as an AS/RS, businesses can realize substantial gains in operational efficiency. Throughput and accuracy also increase, which is almost everyone’s goal as it almost always accompanies higher customer satisfaction with more complete accurate orders, fewer packages and waste, and shorter delivery times.

A key factor is the rapid access and retrieval of inventory facilitated by automated warehouse systems. An AS/RS utilizes precision technology, cranes, or robotic shuttles with automated load-handling devices to match your products to swiftly locate and retrieve items from storage. This eliminates travel times and delays associated with manual searches. This also results in a significant reduction in order processing times and allows for quick fulfillment. This alone can provide the ability to meet peak demands and add shock absorbers to dampen typical peaks and valleys of seasonal fluctuations in order volume. Knowing your throughput by area and by units per day, hour, or minute is usually the key to fitting the right technology to each process. A calculated ROI via throughput is normally the fastest and easiest.

3. Offsetting LABOR Costs, Scarcity:

The need to find labor in today’s market has many warehouse operations looking to implement automation—either with a semi-automated solution or with a fully automated system. Repetitive and sometimes strenuous lifting tasks such as locating items, picking, and transporting products can now be done either completely with automation, or it can supplement. Picking and packing, for instance, can be accomplished almost entirely by robotics, or it can be done with a goods-to-person solution where the user is told via voice or visually shown what to pick and how many. The reduction of errors and the ability to remove or limit workplace injury are both considerable benefits to accuracy and overall efficiency.

4. Increasing EFFICIENCY, Implementing or Upgrading Warehouse Software:

Most warehouse operations have some underlying software in use. Either it’s an existing warehouse management system that enables manual picking or even the most simplistic process of order management software. Either way, many times companies need to integrate into an ERP or obtain real-time visibility. It may be because of the type of product and the need for compliance or perhaps to reduce picking errors and save cost.

When an organization starts to look at implementing a software solution, it also brings up optimized workflows or cost efficiency. From there, most companies may begin to automate one or two processes. This usually prompts a phased approach to automating fulfillment.

Starting with the Basics Removes Some of the Complexity

While you may be curious about how straightforward this sounds, it truly is when you have an experienced partner or integrator who’s done it hundreds of times, providing a wide variety of solutions to resolve myriads of process and performance issues. Breaking it into sections removes some of the complexity on how to view a project. Of course, you’ll still need to work with an experienced partner who can calculate your desired throughput rates or reduced labor output with the appropriate automation equipment. An automation expert can work on a complete turn-key plan or a phased-in approach for your project. They can also layer in the facility footprint and know what equipment would work and fit best in tight spaces.

If you need an exact return on investment or a business case to support an automation project, an engineering study can give you the details you need. An expert can reveal precisely how much space savings, increase in throughput volume, reduction in labor, and which software is the best fit to orchestrate a complete solution or at least some processes.

If you’re considering implementing automation into your warehouse or fulfillment center, call GEBHARDT Intralogistics. The GEBHARDT team of experts can work with you to determine what’s best for your organization.