What is Warehouse Automation: Types, Trends, Process, And Best Practices

Let the promise of fastest deliveries become a reality with warehouse automation! Get speed, accuracy, efficiency, soaring profits, productivity, cost savings, and more. Want to delve into details? Here’s everything covered!

What is Warehouse Automation?

Warehouse automation uses AI and the latest automated technologies, such as sensors, robotics, and software. These technologies perform several repetitive warehouse tasks and eliminate manual work to ensure efficiency, accuracy, and productivity.

In short, warehouse automation is the process of automating the movements of inventory in a warehouse, which entails several processes, such as picking, packing, shipping, etc.

How Does An Automated Warehouse Work?

In all automated warehouses, advanced technologies, such as robotics, AGVs, AMVs, and Warehouse Management Systems (WMS), replace inefficient, error-laden, and sometimes dangerous manual tasks.

Warehouse automation handles all the small and big tasks of the warehouse, like storage, picking, packing, retrieval of orders, and their fulfillment. This frees the labor force for more skilled tasks. In short, warehouse management uses the latest and most advanced technologies to automate workflow instead of manual work to increase efficiency, accuracy, and productivity.

Amazon’s Kiva robots transport shelves of products to replace manual work. This has reduced walking time and has made order fulfillment quicker. Other top logistics brands have also embraced warehouse automation. Let’s examine different types of warehouse automation technologies.

What Are The Types of Warehouse Automation Technology & Robotics?

Smart warehouse technologies include robotics, IoT, AI, sensors, and other techniques significantly improving warehouse efficiency and productivity.

1 – AS/RS Automated Storage and Retrieval Systems:

These are computer-controlled programs used for storing and retrieving goods from different locations. Equipment like VLMs, vertical lift modules, carousels, and crane-based systems are used for automated storage and retrieval.

AS/RS has multiple benefits. It enables more efficient use of warehouse space, as unused vertical spaces can also be used. There are no labor constraints in case of shortage, fewer accidents, improved product safety, accuracy in order picking, and reduced labor costs.

2 – Autonomous Mobile Robots (AMRs):

This is one of the most commonly used warehouse automation technologies. AMRs, or Autonomous Mobile Robots, navigate through warehouses using Artificial Intelligence and sensor technology. They assist in various ways, such as picking, packing, and shipping goods.

AMRs use navigation software to create paths and transport goods without human intervention. Cameras and sensors also determine the cost-efficient routes in real time to prevent fuel wastage.

These robots significantly improve workplace safety, optimize workforce efficiency, and improve productivity, among other things. They are different and more advanced than their predecessors, AGVs or Autonomous Guided Vehicles, which rely on predefined paths. Some of the top AMR market players are Clearpath Robotics, Omron Adept, and Vecna.

3 – Robotic Picking Systems:

Robotic picking systems use robotic arms equipped with Artificial Intelligence and computer vision to pick items from one location and drop them at a suitable location. They are used in warehouses and e-commerce order fulfillment centers.

Robotic picking systems can include robotic arms that locate items and deliver them to packing areas. They may also consist of collaborative robots, or cobots, which pick items from a container or tote and place them into another. E-operators use the latest cameras or robotic arms to handpick items.

These warehouse robotics or Warehouse Execution System Software automate all the picking processes in the warehouses, resulting in greater efficiency, cost, time, and resource savings.

DHL, Amazon, Walmart, and other top companies dealing with logistics are using robotic picking systems.

4 – Sortation Conveyor System:

A sortation conveyor system uses sensors, software technologies, and mechanical devices to sort items according to their shape, size, weight, and other parameters. This reduces long, monotonous, and error-laden manual tasks and improves efficiency plus accuracy.

This automated warehouse technology efficiently handles goods. A conveyor belt transports the items, and the sorter locates and directs them to the designated areas. This fast and efficient mechanical handling of the materials increases productivity.

5 – Warehouse Management System:

A Warehouse Management System is an integral part of warehouse operations. It is software technology that monitors, manages, streamlines, and optimizes warehouse operations. It manages the entire supply chain from when goods enter the fulfillment center until they reach the end customers.

WMS’s multiple benefits make it an indispensable tool. It optimizes warehouse space, increases supply chain visibility, optimizes routes, manages the labor force, provides real-time data insights, ensures regulatory compliance, and much more. The demand forecasting feature of WMS prevents overstocking and stockouts.

Agriculture, food and beverages, construction, and e-commerce are some of the top industries using WMS.

6 – Voice Picking and Pick-to-Light Systems:

As its name suggests, this warehouse automation technology uses voice commands to pick orders hassle-free and hands-free. Pick-to-light warehouse technology solves the problems of traditional manual work. It uses LED displays to guide the workers to the items they need.

The innovative technology of voice picking directs the employees in the warehouse. The voice commands direct the operators to the appropriate storage location and tell them what and where to pick from.

7 – Drones For Inventory Management:

Drones equipped with RFID and barcode scanners conduct double inventory checks, which helps improve inventory monitoring and management. During the inventory count, these UAVs (Unmanned Aerial Vehicles) reach the inventory locations from the floor level to the highest track count to scan the barcodes accurately.

Drones are helpful in multiple ways. They can be programmed to work around the clock, scan damaged and difficult-to-read barcodes, and more. Lost/damaged inventory can be easily identified, leading to better efficiency. They are used in logistics for inventory efficiency and can be one of the most profitable logistics business ideas, as they are used for deliveries in congested areas.

Some leading logistics companies, such as GEODIS, DSU, and Gather AI, use drones for inventory tasks.

Other smart warehouse automation technologies include IoT sensors, RFID tags, automated palletizing, etc. Automating the warehouse means simplifying complex and repetitive manual tasks to enhance speed, precision, and productivity.

Warehouse Technology Trends For Automation

Several warehouse automation technologies, such as WMS, AI, robotics, etc., have revolutionized logistics operations through rapid advancements. Let’s examine the most popular trends.

Trend #1: Robotic Arms For Smart Warehouses:

Integrating AI with robotics can revolutionize several warehouse operations. Robot arms can manage inventory and streamline order fulfillment with greater accuracy. They can be programmed to work 24/7 and have better speed and precision.

Trend #2: AI-Enabled Predictive Maintenance:

IoT sensors monitor warehouse equipment, predict asset and machinery failures. The Internet of Things collects and analyzes equipment, asset, and machinery data. This data reduces unplanned downtimes and increases efficiency.

Trend #3: Delivery Optimization By Sensors:

This trend leverages the latest IoT data to optimize last-mile deliveries, especially in densely populated areas. IoT sensors on delivery vehicles provide real-time location information, package delivery status for the supplies, etc.

Trend #4: Digital Twins:

The technology of digital twins creates virtual replicas of warehouses. This enables businesses to try the simulation process on the layouts. Also, testing automation strategies before implementation results in massive success.

Trend #5: IoT-Driven Cold Chain Integration:

IoT in warehouse management has a vital role to play. Smart sensor technology monitors temperature and other weather conditions, such as humidity, light exposure, shock, and more, and tracks sensitive supplies throughout the cold chain in real time.

Trend #6: 5G Connectivity For Seamless Communication:

5G connectivity enables smooth and hassle-free communication between different automated parts. This ensures real-time data exchanges and faster warehouse operational processes.

Trend #7: Blockchain Technology For Better Security:

This technology improves traceability in the logistics process, increases security with the ledger, and reduces the chances of any transaction anomalies.

Trend #8: Smart Wearables and Augmented Reality:

Wearable technology, such as Smart glasses with embedded sensors, guides the labor force through repetitive tasks like picking, packing, etc. Smart wearables, along with augmented reality, significantly increase efficiency.

Trend #9: Eco-Friendly and Sustainable Warehousing:

With an increasing number of people becoming aware of saving the environment, sustainable warehousing, like energy-efficient robots, eco-friendly packaging, etc., leads to sustainable warehousing.

Let’s get to know why automating your warehouse is essential!

Why Automating Your Warehouse Is Important?

Businesses can reduce operational costs and improve efficiency, productivity, and profits by automating several manually handled, inefficient, and error-laden warehouse processes.

There are so many repetitive warehouse tasks that can be fully automated. Several prominent market leaders have integrated the latest technologies, such as AI, WMS, robotics, IoT, etc., to gain a clear edge.

Benefits of Automating Your Warehouse:

Automating your warehouse has several benefits, including improved speed, accuracy, and cost savings. Let us have a quick look at some of the top few:

Increased Accuracy Levels: It reduces human errors, improves inventory tracking, and increases speed.

Better Efficiency: Integrating AI in warehouses and other automation technologies automates essential repetitive tasks like picking, packing, labelling, etc., improving efficiency.

Cost Savings: WMS and other technologies’ predictive maintenance feature reduces fuel and resource wastage. Also, automating manual tasks leads to huge cost savings.

Increased Safety: It reduces the injuries that may occur to the laborers at the workplace.

Better Inventory Management: Better inventory management is possible with real-time inventory tracking.

Valuable Data Insights: Useful data analytics help logistics businesses optimize tasks, improve resource utilization, and streamline tasks.

Challenges of Warehouse Automation

Though automation has plenty of benefits, it can also present challenges if you are not well-prepared. Here are some commonly faced challenges of warehouse automation.

High Initial Investment:Though automation has plenty of benefits, it also requires an upfront cost, depending on your business’s needs and size.

System Compatibility: The automation you choose should be compatible with your existing hardware or software.

Training is required:The labor force working at the warehouse should be taught how to use technology, etc.

High level of Technical Maintenance:Regular maintenance is needed for high-tech technology.

Also, there may be other challenges of warehouse automation, like the scalability of the technology with the business needs, etc.

Which Warehouse Processes Must Be Automated?

Automating these processes is crucial for a high level of efficiency and productivity.

Inventory Tracking: Mismanagement of inventory is a major challenge that leads to resource wastage. Automating inventory with barcode and RFID scanning solves the problem of under and overstocks.

Order Picking: Advanced level robotics solves the problem of repetitive manual work.

Packing and Sorting: The latest technologies, such as RFID and barcodes, help choose the right packing materials and methodologies.

Shipments and Dispatchment: Automated label generation, tracking of inventory, Other warehouse processes must also be automated, such as detecting anomalies in supplies (Quality control), storing and retrieving goods, and analytics.

Leading Examples of Warehouse Automation

Realizing the importance of warehouse automation, several leading logistics companies have automated their warehouses. Let us see how they are using warehouse automation technologies.

Amazon (Kiva Robots and Barcode Scanning):

Uses highly automated fulfillment centers where RFID and barcode scanning are major in inventory tracking.

This uses Amazon Robotics or Kiva robots to replace several manual tasks. This increases warehouse efficiency and productivity.

Advanced algorithms for picking orders and speeding up the order fulfillment process.

Automated sorting and packing streamline the warehouse processes for better efficiency.

Walmart (Bossa Nova Robotics and AI-driven Inventory Management):

Walmart leverages the latest AI-driven inventory management systems for monitoring stocks.

Walmart uses Bossa Nova Robotics to scan shelves and monitor stocks in its stores to maintain accuracy.

An advanced level of demand forecasting feature optimizes inventory and reduces stock shortages.

Check-out processes are automated.

FedEx (Roxo Robotics and OCR):

FedEx depends on an advanced level of robotics to sort, handle, and manage millions of packages every day.

It also uses OCR or Optical Character Recognition for scanning labels and shipments with efficacy and accuracy,

Roxo (an Autonomous Delivery Robot) has also been used for last-mile deliveries.

Zara (RFID technology and Automated Inventory System):

Zara uses RFID technology to track the apparel logistics.

Its automated inventory system ensures rapid restocking with real-time sales data.

Its AI predicts the latest fashion trends and updates its stocks accordingly.

In addition, Tesla, DHL, and many other leading companies are also using automation technologies like AGVs, IoT, etc., to ease warehouse operations.

When is The Right Time To Automate Your Warehouse?

There are so many repetitive and error-laden manual tasks in warehouses that are unavoidable. The right time to automate your warehouse is when you think that inefficiencies and inaccuracies hamper productivity and adversely affect profits.

Consider these factors before starting with warehouse automation:

Questions To Ask Before Starting the Warehouse Automation Process:

What are your present operational inefficiencies?

What type of automation will best suit your business requirements and needs?

How much ROI do you need?

Do you have adequate time to train workers?

Will the technology be integrated into your present system?

Do you have the required budget?

Once you understand what you need, you should know what steps to follow for warehouse automation, etc.

Step-By-Step Guide To Automate Your Warehouse:

Here is a step-by-step guide for automating your warehouse. Follow these simple steps to get set and go!

Step #1 – Know Your Exact Needs First:

First, you need to evaluate your exact needs. Understand your pain points, identify inefficiencies and inaccuracies, and recognize the areas where automation is needed. You must assess where human intervention can be replaced with smart warehouse technologies.

Step #2 – Be Clear About Your Automation Motive:

Know what exactly you need from automation technologies. What exactly is your purpose? Do you want efficiency, accuracy, or better speed? This will help you integrate the best automation technology to prevent wastage and ease warehouse operations.

Step #3 – Choose the Right Automation Technology:

Select solutions for needs, such as robotics, IoT Sensors, WMS, etc. You must also check whether your existing system can be integrated with your chosen automation technology or if updates are needed.

Step #4 – Integrating Warehouse Management Software:

A Warehouse Management Software (WMS) automates and optimizes several warehouse operations. It increases order accuracy and leads to better inventory control and better usage of resources. You can track stock levels in real time, automate the order processing, and bring down human errors to a great extent.

Check Out CommuteLogix – WMS!

Step #5 – Training The Labor Force:

Comprehensive training should be provided to the employees on how to use technology best. All the employees should be well-trained not only on how to use the technology but also on troubleshooting. This reduces downtime and ensures better efficiency.

Step #6 – Monitoring and Optimizing Performance:

Analyze the performance metrics thoroughly and regularly for continual improvements. Real-time data insights can identify several bottlenecks and help you make data-driven decisions.

Best Practices To Follow For Warehouse Automation:

These are the best practices to follow for automating your warehouses.

Plan and Begin a Pilot Project:You must test the automation process before deploying it full-time.

Choose Flexible Automation Tools:You must choose flexible automation tools that can grow with your business requirements.

Seamless Integration:Automates the processes that can better align with the systems you have.

Ease of Integration:Choose automation solutions that can easily integrate with your present systems.

High Scalability:The automation technology you choose should be able to scale with your business’s growing needs.

Employee Training is Required:The staff should be well-trained and know how to use automation effectively.

Utilize Data Analytics:Use the latest real-time data insights to optimize logistic operations.

Choose a Reliable WMS Service Provider: ike CommuteLogix, which ensures streamlined warehouse processes.

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We have answered a few commonly asked questions here!

1. What is warehouse automation?

Warehouse automation uses the latest and most advanced technologies, such as AI, robotics, WMS, etc., to automate repetitive, manually handled, and unavoidable manual tasks like picking, packing, counting, etc.

2. What are the three levels of warehouse automation?

The three levels of warehouse automation are:

Manual:Here, human-operated equipment like the forklifts perform all the warehouse tasks.

Partially Automated:These are partially automated systems in which human labor is required, using technology such as robotic systems and conveyor belts.

Fully Automated:Minimal labor force is required as technologies manage all the tasks.

3. What is the ROI of warehouse automation?

ROI depends on factors like how much you invest. But you get the maximal returns on investment.

4. Which are the three most used picking systems in warehousing?

The three most used picking systems in the warehousing are:

Manual picking

Automated picking

Voice directed picking

5. Why is warehouse management software necessary for automating warehouses?

WMS significantly improves warehouse automation. This centralized software platform automates repetitive tasks, enables real-time inventory tracking, optimizes warehouse space, and more.