Key Takeaways:
- Automated warehouses offer countless benefits, especially amid rising labor and transportation costs. Warehouse managers can gain a competitive edge by adopting an automated system and ultimately positively impact their bottom line.
- Enhanced safety, optimized space utilization, and improved inventory management are also important advantages.
- To gain the full benefits of an automated system, adopting plastic pallets to integrate within the ASRS framework is best.
- Durable iGPS bulk plastic pallets work better with automated systems than traditional wood pallets. They don’t jam equipment and have more consistent size and weight.
It’s a well-known fact that labor and transportation costs are continuing to rise; warehouse operators throughout the supply chain have been feeling the pinch. With higher warehouse expenses, it has become more costly to move products while keeping prices manageable for consumers, and more difficult for supply chain managers to increase profits while lowering their Total Cost of Business.
As the volatile economy evolves, it is imperative to keep costs contained and pursue increased efficiencies. Slimmer margins eat into profits or necessitate raised prices, which can impact customer satisfaction and retention, which in turn can stall or halt business growth. On the other hand, keeping costs stable — or better yet, reducing them while improving speed and accuracy — helps give brands a competitive edge in the marketplace. Warehouse automation, which involves robotics and other technology to streamline and automate inventory management, order picking, and shipping, can be a pathway to this success.
11 Benefits of Warehouse Automation
Whether a supply chain manager’s primary goal is cost savings, increased safety, faster shipping times, or a combination of the above, the implementation of warehouse automation — while often requiring a significant up-front investment — offers a host of key benefits:
Minimizes Human Errors – Automated warehouse systems use sensors, barcodes, and other technological innovations to track inventory in real time, which can reduce mislabeling, stock counts, and other errors. It can also minimize pick errors and monitor for issues like mismatched SKUs to ensure accurate order fulfillment.
Reduces Operational Costs – While human expertise is necessary for maintenance and other critical automation operations, robotic equipment works faster and more efficiently than people while automating manual tasks, which reduces overhead costs. Improved space utilization and decreased error rates (and therefore, fewer returns and other customer issues) also lead to lower Total Cost of Business in the long term.
Boosts Productivity – Automated picking systems powered by robotic pickers and conveyors significantly reduce the time needed to retrieve items, and automated systems can also automatically alert warehouse management when stock needs to be reordered or replenished. Automated systems can also organize warehouse workflows more efficiently, eliminating bottlenecks.
Enhances Safety – Automated warehouse equipment moves heavy loads and performs repetitive tasks, reducing the risk of strains and repetitive stress injuries for human workers and eliminating the possibility of hazardous mistakes caused by fatigue. Most modern systems have sophisticated safety features that include collision avoidance and rapid shutdown when needed.
Shortens Processing and Fulfillment Times – Another benefit of warehouse automation is the streamlining of the fulfillment process. Automated Storage and Retrieval Systems (ASRS) swiftly locate and retrieve items, while automated conveyors, autonomous guided vehicles, and automated packing machines further minimize delays. Other advancements include automated labeling and sorting and even real-time automated carrier coordination.
Maximizes Space Limitation – Warehouse automation enables smarter and more efficient storage solutions. ASRS systems use high-density vertical storage to maximize floorspace and use the full height of a facility efficiently. Automated shuttles and cranes can also operate in narrower aisles than forklifts, while robotic stackers can stack and store items higher and more precisely than human warehouse workers.
Optimizes Machine Maintenance – Advanced technologies in automated facilities can monitor and predict maintenance processes. Sensors that monitor machine performance are able to detect early signs of wear and malfunction, and system alerts and automated diagnostics can help human operators diagnose and fix issues more quickly.
Improves Customer Satisfaction – Ours is a fast-paced and highly competitive industry, with countless manufacturers and retailers vying for customer attention and dollars. Reduced processing time, error-free picking, optimized stock levels, and real-time inventory transparency and order tracking are just some of the many ways in which warehouse automation ensures smooth handling of customer orders and ultimately increased customer retention.
Improves Inventory Management – Effective inventory management is central to the success of any busy warehouse operation. Integrated Warehouse Management Systems (WMS) powered by barcode scanning and RFID technology increase accuracy, visibility, and efficiency across all inventory processes. Today’s automated systems can optimize stock levels with demand forecasting, dynamic replenishment, faster cycle counts and audits, and even enhanced security against theft and loss.
Provides Long-Term Sustainability – Today’s consumer is more environmentally conscious than ever, and automation can play an important role in reducing the carbon footprint of an enterprise’s supply chain. Many automated systems incorporate smart energy management systems, including more efficient lighting and reduced electricity use. More accurate order fulfillment and efficient packaging minimizes needless waste and reduces the amount of truck miles consumed by reverse logistics processes. Many automated systems are also modular, meaning that they can be expanded or reconfigured without the waste associated with installing new systems.
Increases Resilience – The rigors of the fast-paced supply chain require enterprises to adapt quickly to disruptions and fluctuating demand. Automated systems reduce dependence on manual human labor and can often operate around-the-clock regardless of workforce availability. Automated systems typically include redundancies and backup solutions for power and data, which can help preserve and maintain operations during an outage. The recent pandemic served as a powerful reminder of the need to develop resilient operations without the constant need for robust human teams on-site.
How to Get the Full Benefits of Warehouse Automation
While they have been viewed as a reliable mainstay in the logistics sphere for decades, wood pallets are actually a common source of issues within the supply chain. Wood pallets tend to break and shed pieces and splinters. Because of their malleability and ability to absorb moisture, wood pallets can warp, vary in weight, and change in size depending on their environmental conditions. A human forklift operator can deal with these varying wood pallets more efficiently and quickly spot broken boards, loose nails, and other problems. Automated systems, on the other hand, have difficulty with this.
A far superior option to the common wood pallet is the iGPS plastic pallet. There are many characteristics of plastic pallets that make them the best option for automated warehouse systems:
- Consistent Dimensions: Plastic pallets don’t absorb moisture; therefore, they don’t expand or shrink like wood pallets. This ensures that the ASRS and its components has a firm connection to the pallet, making any issues less likely.
- Lighter Weight: Plastic pallets don’t weigh as much as wood pallets. Plastic pallets typically weigh less than 50 pounds, while wood pallets can vary between 75 and 80 pounds, with absorbed water adding more. The consistency of plastic pallets ensures that the ASRS can properly lift the load each time. Plus, less weight equals less wear and tear on the machinery.
- Greater Durability: Plastic pallets can take up to 100 trips throughout the supply chain (actual, not lab-tested) while the typical wood pallet lasts closer to 25 trips before it breaks down and must be replaced. While most wood pallets end up in landfills, plastic pallets can be recycled, offering true “cradle-to-cradle” sustainability.
While we don’t know everything that the future holds, it is clear that the overall supply chain and its reliance on automation will only continue to expand. By adopting intelligent automation solutions and automation-friendly assets such as plastic pallets, supply chain managers can help their enterprises maintain a manageable Total Cost of Business while sharpening their competitive edge.
Frequently Asked Questions:
What are the key benefits of automation?
The key benefits of automation include increased throughput by making processes faster and more efficient, improved quality through consistent and precise operations, and cost savings by reducing labor expenses and minimizing errors.
What are the benefits of warehouse automation at a major player like Amazon?
Warehouse automation at Amazon enhances efficiency by speeding up order fulfillment, reduces employee injuries by handling repetitive tasks, and improves operational flexibility to adapt to changing demands.
What are the four benefits of a warehouse management system?
A warehouse management system provides real-time inventory management, ensuring accurate stock levels, enhances accuracy by tracking product locations, facilitates faster product delivery through optimized operations, and improves customer satisfaction with timely and accurate orders.
Manufacturers embracing the benefits of warehouse automation choose iGPS plastic pallets. iGPS pallets are more consistent, more automation-friendly, and contribute to improved sustainability. For more information, contact us at 1-800-884-0225, email a specialist at switch@igps.net, or visit our contact page.