Warehouse Automation Selection: A Practitioner’s Perspective
The landscape of warehouse automation has undergone a significant transformation in the past five years, driven mainly by the growth of e-commerce during the coronavirus pandemic.
In the COVID-19 era, warehouse automation played a key enabler role, focusing on building resilient, efficient and scalable supply chains. This has led to the market witnessing an explosion of automation technologies.
This rapid proliferation has created a complex landscape for decision-makers in warehousing. The sheer variety of available solutions and an often-confusing array of performance metrics can make the selection process incredibly challenging. For instance, “presentations per hour,” a metric typically used by many automated storage and retrieval systems (ASRS) providers, can be calculated differently by each supplier, leading to potential misunderstanding when evaluating different solutions.
As a result, a company faces the daunting task of navigating several options, each with dedicated metrics and performance parameters, to choose the right solution that fits its unique operational needs and strategic goals.
In my experience designing and implementing various warehouse automation solutions, I’ve found that considering strategic and operational factors can help decision-makers make the right technology selection.
Strategic Factors
These include factors such as ROI, fit, scalability and flexibility.
ROI and strategic fit. While ROI justifies the initial investment, strategic fit determines the long-term alignment with business goals. For instance, for a grocery chain that wants to provide quick deliveries (often termed as speed play), it makes sense to invest in micro-fulfillment centers, so click-to-deliver speed becomes the highest priority, and such other factors as storage optimization become secondary.
When determining a strategic fit, warehouses must consider elements like long-term growth or expansion plans and new product introductions. This evaluation ensures alignment with the vision of the business and enhances its competitive edge.
SKU/order profile, which are critical in technology selection. The dimensional characteristics of SKUs determine size, weight and handling requirements and influence the type of automation required for efficient processing.
Additionally, understanding the order patterns (order batches, sizes, frequency, receipt of pallets versus cases, and shipping of pallets versus cases) determines the necessary design and throughput requirements. A mismatch between selected technology and SKU/order profile can lead to inefficiencies, increased costs and suboptimal performance.
Scalability and flexibility. In today’s dynamic market, warehouses must remain scalable and flexible. A scalable solution allows the warehouse to increase its capacity quickly without significant additional investment or infrastructure. Flexibility ensures that the warehouse can accommodate varying workflows, seasonal fluctuations and shifts in product handling requirements.
By prioritizing scalability and flexibility, companies can “future proof” their warehouse operations, ensuring the investment in automation stays relevant.
End-to-end integration. Supply chain technology is a collection of software systems and hardware. The automation system must ensure seamless communication and coordination across all stages of the supply chain.
A good warehouse automation system allows for real-time data flow between various components, including inventory management, order processing and customers, enhancing operational efficiency and accuracy. An integrated system can enable an agile and responsive warehouse. Warehouses may face delays, errors and increased costs without effective end-to-end integration.
Operational Factors
These include:
Reliability and vendor support. A reliable automation system minimizes downtime, ensuring the warehouse meets tight service level agreements. Reliability is essential in maintaining productivity and preventing costly disruptions. Strong supplier support provides expert guidance, timely maintenance and troubleshooting assistance. A vendor with a proven track record of reliability and robust support can help organizations mitigate the risks associated with unexpected technology failures.
It is essential to select a supplier with prior domain expertise to protect designs from various industry obligations and constraints. For instance, the pharmaceutical industry has more stringent requirements than the retail industry.
Resiliency and redundancy. An automation system that (1) can adapt to changing operational conditions quickly, (2) withstand disruptions and (3) has backup systems and processes to minimize downtime and prevent operational bottlenecks amid a breakdown. Together, resiliency and redundancy create a robust warehouse that enhances overall operational reliability.
Performance monitoring. An automation system must support data-driven monitoring of productivity, throughput and uptime. Warehouse operations must be able to track and evaluate efficiency in real time. This data-driven approach enables operations to facilitate timely adjustments to optimize workflows. This not only enhances operational efficiency but also facilitates continuous improvement.
Ergonomics. Often, this is an ignored part of automation selection. Ergonomics is a vital consideration, as it directly impacts worker safety, efficiency and job satisfaction.
A well-designed automation minimizes physical strain on employees by optimizing work-station layouts, reducing repetitive motions and ensuring that tools and equipment are easily accessible. This not only helps prevent workplace injuries but also enhances productivity by allowing the workers to perform tasks more comfortably and efficiently, leading to high employee morale and retention rates.
***
While these are key factors influencing the selection, there may be more unique requirements, depending on the industry and type of warehouse. Stakeholders should perform a thorough assessment, tailored to their specific business needs, to identify all relevant factors that could influence automation strategies.