As businesses grow, warehouses and inventory must mature at the same rate however, the current systems used in your network may not be able to keep up. Inefficiencies of these systems often go undetected and can conjure up many unplanned costs. While you may be aware of the systems and technology available on the market, we’ve come up with 5 reasons why warehouse automation technology is the key to solve your challenges.
Warehouse automation has different meanings to different organizations, for some, it is a ‘lights out’ warehouse run by robotics, for others, it’s the use of automation for varied purposes. For example, customers moving from paper-based picking to system picking, can also be called automation. To go even further, there are several methods of automation that can be introduced to picking, robots, autonomous vehicles, conveyors and goods to person.
Below are 5 reasons why our supply chain experts think you should automate your warehouse:
- Reduce Labor Costs
It’s no secret that as your business grows, your order rate grows alongside it, especially during peak season. To alleviate the burdens of this growth, more laborers are needed for order fulfillment and more warehouse space is needed for inventory management.
Labor costs comprise of the largest part of a warehouse’s operating costs. An ongoing challenge is managing those costs without affecting customer service and productivity. Here is where automation can quickly become the number one choice to minimize number of labor for warehouse operations. Automation will reduce the labor cost, increase speed of click to door, and help utilize all corners of your space
- Meet Customer Expectations
We’re all aware of the “Amazon Effect” leading to businesses shifting strategies to meet the new customer expectations for order fulfillment. Supply chain systems are working hard to stock and locate products smoothly for quick and precise delivery. Trends like same day delivery and complimentary standard delivery charges are arising with increasing competition in the market.
The modern customers is looking for quick delivery and expects companies to deliver the orders without delay. How do you meet these expectations? Automate your logistic operations such as picking , packaging, and inventory movements to increase the number of units you move out the door and to guarantee a happy customer.
- Utilize Warehouse Space
You have increased your warehouse space and adjusted your inventory accordingly, what do you do now?
Begin by utilizing every square inch of your new space. Differentiate the sku’s that are constantly fast moving for your business versus the popular seasonal sku’s. While you may have the strategy down, space utilization can be difficult without system optimization. Take for example, a high density AS/RS. With one in place, more products can be stored in a smaller amount of space than the conventional warehouse rack. This will allow for more storage of those sku’s driving up your sales and eventually a faster delivery to your customer.
- Accurately Track Inventory
By bringing in systems similar to AS/RS, companies have total control over their inventory.
Warehouse automation enables tracking of metrics with more accuracy. It also allows for eliminates human touch and leads to less product damage. Having the production rate available from the metrics, you can control the amount of inventory needed for the DC, produce and ship it. This takes the guessing out of the game, leaving you to factually allocate your product.
- Improve Efficiency & Moral
When introducing automation to your warehouse, you can improve efficiency by moving workers into skilled tasks and allowing robots to perform repetitive functions. Doing so can eventually lead to higher worker retention rates and better worker moral.
There is abundant value in implementing automation in your warehouse, but where do you start? The initial assessment to find the best use of automation and integrating it with your existing systems can be daunting. Here at Bricz we have experts equipped to provide you with agnostic views to get you the best return on your investment! Contact us at email@example.com to get the process started.
Contributor: Brahmini Reddy, Supply Chain Leader at Bricz