They say you have to spend money to make money, and it seems more warehouse operators are buying into that notion these days – especially those that are trying to grow their businesses.
Consumer spending in the U.S. has been on the upswing since March 2021, driving record-setting inventory movements through warehouses and distribution centers (DC). And even if spending slows or stabilizes, billions of dollars of goods must still be properly processed, stored, and routed across multiple supply chain touchpoints. So, operators have been exploring different ways to increase velocity of both inbound and outbound logistics while testing new methods for inventory management.
For most, the prudent first step is to go paperless. They just want to get data digitized and make some forms, reports and manuals available on mobile devices or PCs. For others, the effort is focused on replacing legacy hardware and software with modern touchscreen mobile computers and warehouse management systems (WMS) that allow them to move past the “green screen” once and for all.
But at the end of the day, the consensus seems to be that automation is the best way to make the efficiency gains required to match consumers’ spending tempo – even among small and medium-sized businesses (SMBs). Nearly six-in-10 SMB warehouse operators Zebra recently surveyed say automation is top of mind and expressed a strong desire to gain real-time visibility over product flow. They want to stay abreast of what’s happening in the warehouse and be able to spot logjams in workflows. They know any glitch in warehouse operations can have a ripple effect on related in-house tasks and supply chain processes both upstream and downstream. So, eliminating operational bottlenecks and delays is a strong desire.
But is automation really the solution to warehouse operators’ biggest problems? Absolutely. In fact, some argue automation could help solve almost every problem, and I tend to agree.
Automation In Its Simplest Form
When you hear the term “automation,” what comes to mind? Robots? Expensive industrial machines powering manufacturing lines? Mobile computers?
Automation has historically been seen as an advanced technology category or, more commonly, discussed as an abstract goal. “It would be great if we could just automate our processes,” my team is often told by customers. Without a clear definition, or perhaps a broadening of the definition, I can see why automation seems too ambitious for many warehouse operators, especially smaller operations comfortable with manual processes.
But the reality is that automation can be used to describe everything from robotics automation and industrial automation to workflow automation or even decision automation. And warehouse automation can encompass all the above – and more.
For example, we worked with a medical supply company to automate its picking, packing and shipping processes right before COVID-19 started. (Talk about perfect timing.) The solution, which now includes autonomous mobile robots (AMR), started out far more fundamental: with mobile computers.
We outfitted workers with touchscreen enterprise-grade Android™ mobile computers, smaller wrist-worn computers that can connect to the “host” mobile computer (which is often stored in a pocket or on their hip), ring scanners and headsets. We then worked with a partner to connect this hardware to a pick-by-voice software platform, as well as a warehouse automation system, and instantaneously transformed the company’s fulfillment operations.
Forklift operators are automatically prompted to go retrieve or replenish picked items. And mobile computers make it easy for them to scan and report item movements in real time. This has tremendously improved inventory management, as it’s easy to confirm the location and status of items as well as the latest utilization and stock levels.
In addition, voice-directed floor pickers know where to go and what to grab off the shelf – which is easier now that their hands are free. They’re even told exactly where to look to find the correct item, with the pick accuracy verified by a fast barcode scan using the wearable devices. But the best part is that they have been able to move to batch order picking supported by AMRs.
The WMS sends the batch order to the warehouse automation system, which analyzes the order and decides the most efficient picking strategy for each item. It then sends a group of orders and a robot to a pick cart, which the robot transports to the first pick zone. A human worker is told via the voice-directed system when and where to meet the robot. Once there, the worker is told what to pick – and in what order. They can visually verify the accuracy of picked items on their devices with a quick on-screen check. The items are loaded into the cart, then the worker moves on to the next set of pick orders per the automated system’s directions.
The customer has seen a 4x boost in efficiency in fulfillment processes, but not just because workers are taking more direct routes. Many of these gains come from the prescriptive – or guided – nature of the entire process. Workers can see and hear their task instructions and feel confident they picked the correct item based on the barcode scanner’s beep and light confirmation.
In another instance, we helped a bulk foods distributor reduce the number of mispicks simply by giving its workers mobile computers that could automate accuracy verifications. It didn’t have robots or other “automation” systems online. Just mobile computers with software tools that could automatically deliver specific information to speed up – or automate – decisions.
And before the medical supply company started to automate fulfillment workflows with mobile technologies, it was using print-and-apply labelers on its packaging lines. That’s right, print engines are technically “automation” technologies, too.
Orchestrating a Symphony of Processes
Fundamentally, warehouse automation is just the choregraphing of tasks and information so they flow to the right person at the right time, and they can play their part with perfection.
It doesn’t have to be anything elaborate. In fact, some of the most successful automation projects are those that prioritize simplicity – in system design, worker instrumentation, onboarding, management, and usability.
The medical supply company’s approach to automation is one example. It used handheld mobile computers, wearables, and voice-directed software to keep people working harmoniously together and with the AMRs.
Another example of simple automation would be using radio frequency identification (RFID) sleds to turn workers’ mobile computers into RFID readers that can practically automate inventory counts – and most certainly automate inventory replenishment orders.
Once workers snap on the RFID sled, they simply wave their mobile devices in the general direction of the items they want to count – or locate, if used for picking or auditing purposes – and within a second pull in data for over 1300 tags. Yes, 1300 tags! And when I say pull in, I really mean blast it out to every information, automation and decision system running in the warehouse. If certain SKUs are confirmed to be low or out of stock, the inventory management system could be prompted to automatically reorder. It could also simultaneously notify stakeholders of the shortage so they can adjust impacted operations accordingly.
And that same “wave” can help pickers confirm the precise aisle, shelf, and position of the item they need to retrieve. In turn, they can head there without delay, which if you think about it, is the essence of automation: driving actions or processes forward without delay.
So, before a small or growing business says it’s not feasible for them to automate picking, packing or shipping processes, I remind them of what it means to automate. Then I give them numerous examples of how they can simply begin to automate everything from task assignments, to progress reports, and even purchases. Before they know it, they can envision a “fully automated” operation in which sourcing, receiving, fulfillment, and even compliance actions are flowing smoothly and on schedule, even if labor availability and business demands remain imbalanced.
In other words, don’t think you need a dark warehouse or DC to increase your velocity. You can automate with the “lights on” and still achieve the same outcome for your small or medium-sized operations. In fact, automating workflows and decisions using technologies that are within reach, or possibly already in your possession, is key to keeping the lights on in this competitive market. It may also be the key to unlocking new opportunities that could enable you to open the doors at new, bigger warehouses and DCs in the years to come.
