This article was originally published on our solutions partners website: https://www.newcastlesys.com/
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Some of the primary drivers for investments in warehouse automation solutions are labor shortages, efficiency and productivity gains, safety, cost savings, and the customer experience. Here are some of the most prevalent automation investments in the warehousing industry.
A robust warehouse management system is often the first thing many businesses implement. And for good reason. This type of system can manage and drive many automation solutions as well as track progress. A WMS can manage inventory, direct order fulfillment, and integrate with other supply chain partners to deliver increased visibility throughout the supply chain.
Most warehouses have already implemented some form of automated data capture system. Barcodes remain popular, but RFID tags can be read without human intervention. And they can be read by RFID tag readers in bult, providing real-time data about products moving through the warehouse.
The market for autonomous guided vehicles was already expanding by more than 30% before the pandemic. These AI-powered forklifts and other vehicles can move about the warehouse to put away inventory and handle other heavy-duty or repetitive tasks.
Until recently, about 90% of warehouse picking was done manually. Today, various solutions are making this process easier and less error-prone. Automated storage and retrieval systems use a combination of racking, shelving, and pallet storage with robotics to put away inventory or pull items from shelves.
Many warehouses aren’t ready to bring in the robots yet. But, they will adopt automation solutions that can assist human workers. For example, wireless headsets can provide pickers with directions for pulling products from shelves.
It will still be a while before drones are delivering packages to consumers. But, drones in the warehouse can monitor inventory, provide security, and help search for equipment or materials.
Sensors throughout the warehouse deliver invaluable data that helps businesses make adjustments in processes and take advantage of opportunities for improvement. This data can also help businesses anticipate and react to market changes, lessening the risk of economic hardships.
Believe it or not, a majority of businesses still aren’t using the automation tools available. According to DHL, 80% of warehouses still manually operate with no supporting automation despite the many solutions available.
Long-term eCommerce revenue growth is expected to accelerate, necessitating the need for greater productivity and efficiency. According to market research firm Interact Analysis, we can expect double-digit growth rates in automation by 2025. In addition, warehouse construction growth will fuel demand for automation solutions over the next two years.
Sellers and warehousing partners will continue to invest in optimized space as well as automation solutions to improve efficiency in the fulfillment process.