Like any industry, warehousing is evolving. Advances in technology, mounting labour costs and ‘the Amazon effect’ (which we’ll get into in a bit) are driving constant progress within the sector and making efficiency more valuable than ever before.

LTS Global Solutions is a global leader in warehousing solutions, and in this blog post, we’re going to look at what automation in warehousing is, the key benefits, some emerging trends and how you can bring your operation up to speed. Read on to discover the world of warehouse automation in more depth.

What is Warehouse Automation?

Automation in warehousing is the process of replacing previously manual, labour-intensive operations with autonomous alternatives. This helps warehouses operate faster and more efficiently, keeping costs low and improving customer service simultaneously.

This automation can take a few forms, from implementing automatic data capture software to replace time-consuming paperwork to advanced systems such as drones, autonomous forklifts and voice integration.

Types of Automation in Warehousing

Speaking in the broadest terms possible, there are two overarching categories of warehouse automation: digital and physical.

Digital Automation

Digital warehouse automation is centred around a warehouse management system (WMS). This system can be integrated with a range of processes and allows for a world of improvements, including more accurate stock management, item retrieval planning to reduce the number of trips needed, route mapping for maximum efficiency and much more.

Physical Automation

Physical automation could be considered the more traditional form of automation in warehousing. This is the integration of robotic assistance equipment such as arms, conveyor belts, automated vehicles, shelf loading robots and more. Physical automation equipment augments workflows, helping to reduce labour costs, minimise manual strain for workers and improve accuracy.

Four Types of Automation

Digging a little deeper, automation in warehousing can be further broken down into four brackets, including basic, system, mechanised and advanced automation.

Basic

Basic automation covers the most rudimentary forms of warehouse automation. This can include things like conveyor belts, forklifts and barcode scanning systems. These systems are easy and cost effective to implement and use. However, they still depend on a reasonably high degree of manual labour to operate machinery, move stock and track inventory. Basic automation is often ideally suited to smaller operations, but the dependence on physical labour can make it costly at larger scales.

System

System automation revolves around the capture and use of data to drive efficiency. Digital solutions can track order progress, help workers find stock faster, plan picking routes and produce detailed reports to enable informed decision making.

Typically, system automation is twinned with physical automation, with each allowing the other to work at maximum efficiency. The driving principle behind system automation is to ‘work smarter, not harder’.

Mechanised

This form of automation involves augmenting your warehouse workflows using robotics. Solutions such as Automated Storage and Retrieval Systems (AS/RSs) allow warehouse operators to minimise the need for manual labour while improving picking speed and accuracy.

AS/RSs include two main categories: Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs). Both AGVs and AMRs allow you to reduce the amount of labour needed to pick or return stock by bringing items to warehouse operators, saving them time and minimising physical strain and the likelihood of injury.

Advanced

Advanced automation in warehousing is the culmination of all three of the above types to create a system that delivers maximum efficiency and speed. System automation is integrated with mechanised equipment to simultaneously track and plan storage while guiding robotic units to gather items in the most time-effective way possible.

These systems are highly sophisticated and usually represent a total automation of all warehouse operations. They bring the need for manual labour down to a bare minimum and ensure a largely seamless, highly efficient operation.

The catch, however, is the cost. Advanced warehouse automation can deliver huge leaps in efficiency, particularly at larger scales, but is costly to install.

Warehouse Automation and Technology

The world of warehouse automation and technology includes a breadth of different equipment and systems. Each is designed to keep manual labour to a minimum and improve speed and efficiency.

Goods-to-Person (GTP)

Goods-to-person systems remove the need for manual stock movement. Networks of conveyors, lifts and carousels bring goods straight to the workers. This drastically increases picking speeds and allows warehouse operators to fulfil orders faster.

Automated Storage and Retrieval Systems (AS/RS)

AS/RS systems take GTP one step further. They enable automated picking and storage as well as transporting goods to operatives. AS/RS technology includes loaders, robotic cubes, stacker cranes and shuttle systems.

Autonomous Mobile Robots (AMRs)

Autonomous mobile robots (AMRs) are able to independently navigate your warehouse to gather or place goods at specific locations. They learn programmed routes and use GPS to determine their position, avoiding obstacles as they go.

Automatic Guided Vehicles (AGVs)

AGVs are more simplistic than AMRs but are larger and able to carry more goods per load. They navigate using sensors, wires or magnetic strips that define predetermined routes through your warehouse. Their size and lack of navigational flexibility make them less suitable for smaller, busier warehouses.

AI Analytics

One of the most powerful tools available to warehouse operators is data. Implementing AI analytics tools allows you to gather, sort and utilise vast amounts of data, informing smarter decisions and predicting trends such as seasonal fluctuations in demand.

Voice Picking and Tasking

Voice picking and tasking rely on intelligent software. This software creates efficient routes for operatives and feeds directions to them via a headset. Operatives can then confirm directions and locations via voice recognition.

Pick-to-Light and Put-to-Light Systems

Pick- and put-to-light systems work via barcodes and lights. Operatives scan a barcode for an item and are then guided to its storage location via lights. This method helps make each journey more efficient and reduces human error.

Automated Sortation Systems

Automated sortation systems rely on barcodes and RFID (radio frequency identification) technology to rapidly identify items on a conveyor belt and divert them to their target location. This can be used for storage or order fulfilment and can drastically improve efficiency.

Drones

A relatively new form of automation in warehousing is drones. Typically, these are equipped with cameras and sensors and work at night or during weekends to autonomously track inventory. Drones allow for automated stock taking and can save countless man hours, producing inventory reports ready to be acted upon the next morning.

RFID Technology

RFID technology is based on the use of scanners and identification tags. Inventory items are tagged and can then be scanned simultaneously in large batches by operatives with a handheld scanner. Fixed scanners at locations throughout your facility can also allow you to track inventory as it moves through different stages.

Benefits of Automation in Warehousing

Automating your warehouse brings a range of benefits:

• Improved efficiency – the primary benefit of automation in warehousing is efficiency. Automation technology allows you to, for example, make fewer journeys around your warehouse, plan the most efficient routes and utilise the smallest amount of time and resources for the greatest possible return.
• Better customer experience – thanks to what’s known as ‘the Amazon effect’, customers are beginning to expect rapid delivery regardless of who they order from. Automating your warehouse means you can fulfil orders faster, improving customer experiences. LTS is a registered fulfilment house under HMRC’s Fulfilment House Due Diligence Scheme, which means we meet strict standards for handling and storing goods imported by non-UK sellers.
• Fewer errors – automation reduces errors and the knock-on effects associated with them, such as unexpected costs and order delays.
• Lower operating costs – thanks to the drastic improvements in efficiency that automation unlocks, your long-term operating costs can be heavily reduced, particularly in larger-scale facilities.

Challenges of Automation in Warehousing

Despite its benefits, there are some challenges associated with automation in warehousing:

• Transition disruption – the process of switching to automated systems can be disruptive in the short-term, and careful management is needed to make the change as smooth as possible.
• High initial costs – automation technology can be expensive up-front, making it harder to access for smaller organisations.
• Maintenance needs – relying more heavily on technology makes your operations potentially vulnerable to disruption if it breaks down, so preventative maintenance is crucial.
• New skills requirements – the use of new technology requires new skills, which can be difficult to find. This process can also displace more traditional skills, and employers will need to help staff upskill to keep pace with changes.

Which Processes Can Be Automated?

Almost every stage of warehousing can be automated thanks to the vast range of technologies available.

• Receiving – systems such as barcode scanners and RFID can help rapidly track and log incoming goods.
• Sorting – automation in warehousing can make stock sorting effortless, ensuring items are accurately diverted towards their intended destination.
• Storing – AGVs, AMRs and other technology can collect goods after sorting and take them to their storage locations.
• Packing – autonomous systems can be used to identify items for packing, choosing the most efficient packaging based on item size, fragility and weight.
• Shipping – software can then determine the best available carrier for items, calculate shipping rates and print labels.
• Replenishment – stock alerts can be set, and AI can keep track of inventory, ensuring that low stock levels are flagged for replenishment.
• Returns – returned items can be processed and checked quickly, ensuring they’re in good condition and are stored back in the correct location.
• Quality checks – camera-enabled computers can visually check items for faults before they’re shipped, improving quality control procedures.

Preparing for Warehouse Automation

Without proper planning, the process of automation in warehousing can be disruptive and unnecessarily costly.

Warehouse automation technology can be costly upfront, so it’s important to prioritise spending. Identify the areas of your operation that could most benefit from automation. These could be tasks that are particularly time-consuming or labour-heavy, such as stock taking or travelling around your facility.

You should also look for automation solutions that are likely to be easy to integrate with your existing procedures and working methods and make sure your staff are adequately equipped to use your new systems.

Best Practices in Warehouse Automation

• Prepare your staff – be clear with your staff about exactly what’s happening, what they need to learn and support them in any upskilling.
  Ease into it – diving into your automation too quickly can cause unexpected difficulties and disruptions. Try a phased approach and learn as you go.
• Communicate – make sure to communicate with all members of your team during the integration process, listening carefully for feedback to help iron out any issues early on.
• Consider scalability – whatever system you choose should be installed with scalability in mind. It needs to be able to grow as you do to avoid higher costs later on.
• Start with data – automating your data capture and use should be one of the first steps you take. It’s the easiest way to realise improvements in your procedures and can inform further changes.

Top 5 Trends in Warehouse Automation

One of the primary drivers behind automation in warehousing is labour costs. In 2018, the US Bureau of Labor Statistics issued a report stating that the average warehouse was spending $3.7 million each year on wages alone. As a result, many of the prevailing trends are centred around improving efficiency and reducing the need for manual labour.
Here are our top five emerging trends in warehouse automation:
1. AI – artificial intelligence and machine learning are changing almost every industry, and warehousing is no exception. AI can rapidly process vast amounts of data and help make informed decisions that save time and labour.
2. Faster shipping – the trend of faster shipping is likely to continue, with next- and same-day delivery becoming the new normal. The only way to achieve these kinds of turnaround times is with automation.
3. Supply chain services – warehouse operators are beginning to leverage their new automation capabilities to offer turnkey supply chain fulfilment as a service.
4. Robotics and ‘cobots’ – robotics and ‘cobots’ (robots that work alongside human operators) are becoming increasingly prevalent, able to tackle or aid with manual tasks such as stock picking or placing, saving time, reducing the risk of injury and minimising errors.
5. Autonomous vehicles – self-driving vehicles such as autonomous forklifts are also likely to continue growing in popularity, removing the need for human operators and being able to work for hours without stopping.

Automation in Warehousing: Cost Considerations

Automating a warehouse can be costly in the short term, but the rewards in the long term can be significant. To determine whether automation is financially viable for your warehouse, you need to calculate the expected return on investment (ROI):
Labour + machinery costs + turnover and hiring costs = current costs

Vs

Automation costs + maintenance costs + training costs – labour savings = new costs
If the projected new costs are less than your existing costs, you can expect an ROI. The amount of difference will indicate how long it might take to see that ROI. It’s also worth considering the wider benefits that automation might bring, such as improved customer satisfaction, reduced errors and greater productivity. These can help improve ROI in the long term, but could be harder to quantify in advance.

Why Choose LTS for Warehousing Solutions

At LTS, we offer end-to-end supply chain services, utilising the latest advancements in automation in warehousing to deliver the best value for our customers. We’re centrally located in the heart of the UK, with excellent access to major motorways—making transport fast and efficient.

We offer a range of solutions, including logistics, warehousing, ambient storage, pallet storage, food warehousing and much more. To learn more about what we can offer or to discuss your needs, speak to our friendly team today by calling 0121 753 0080, emailing info@ltsglobalsolutions.com or filling out our contact form.