One of the biggest challenges confronting all industries today is the tight labor market. A recent report by Korn Ferry found that the global labor force could see a shortage of 85 million workers by 2030 due to aging populations, changing demographics and skills gaps. The problem is especially acute for warehouse operators. It’s estimated that 3.5 million more warehouse workers will be required by 2025 yet 73% of warehouse operators say they can’t find enough workers right now.
For warehouse operators, a solution to this labor challenge — and to a range of others, such as concern among workers over safety — is automation. By automating their work environments, operators can maximize the productivity and safety of their workforce while also boosting their ability to respond to rapid market changes.
Here are four ways warehouse operators can use automation technologies to transform their workspaces and improve their business.
Leverage Flexible Automation Solutions to Future-Proof Operations
Many distribution and fulfillment operations aspire to automate operations, but the complexities involved can prove intimidating. Still, the benefits are clear — a recent report from Deloitte found that companies that implemented automated systems experienced an average productivity increase of 30%.
Autonomous systems have evolved to achieve new levels of speed, reliability, and accuracy, which make them easier to implement than ever before. Scalable solutions like automated storage and retrieval systems (AS/RS) are a natural entry point. They help increase capacity to improve inventory management and maximize warehouse footprint by making better use of vertical space. Plus, MHI reported an AS/RS solution picks to 99.9% accuracy.
Robotic palletizers and de-palletizers can be deployed to automatically break down pallet loads, drastically increasing speed and optimizing labor resources. For example, a major DIY home retailer found it could remove 600 packages from a pallet and place on a conveyor belt or other equipment for further handling in one hour — 30% faster compared to manual operations.
Employ Mobile Robots to Boost Efficiency and Worker Safety
Robotics companies will continue to innovate and offer new solutions to alleviate labor burdens in the warehouse. The demand is certainly there: the mobile robot market is projected to grow to $18 billion by 2025, a significant rise from $3.6 billion in 2021. A substantial portion of this growth will be around autonomous mobile robots (AMRs). Equipped with advanced sensors and machine vision, AMRs are capable of navigating through floorspaces and performing tasks without the need for predefined routes or preinstalled instructions.
For example, AMRs can automate the movement of carts used for picking orders and placing returns, resulting in improved productivity. Workers, assisted by AMRs, can leave carts in designated pickup areas and retrieve them on demand using robots, reducing the need for time-consuming manual labor.
By automating repetitive manual tasks and enhancing ergonomics, AMRs can increase line speed, output and overall productivity. Better still, warehouse operators that employ AMRs and other forms of automation to handle arduous tasks can reallocate human resources to higher-value jobs.
AMRs can also bring an improved worker experience and enhance safety, reduce injuries related to movement, and mitigate worker fatigue. The reduction in work-related injuries not only keeps workers on the job but also minimizes insurance costs and workers’ compensation claims, resulting in overall cost savings for the business.
Give Workers the Tools They Need to Connect and Execute on the Warehouse Floor
Digital workplace tools have become pervasive across industries, with nearly 80% of workers now utilizing collaboration tools and real-time mobile messaging for work-related activities. In fact, these tools have evolved from being optional to essential, as supply chains increasingly rely on employees that move around constantly in order to meet productivity targets while coping with heightened customer demands and intense competition.
Many forward-thinking warehouse operators are now proactively adopting advancements in legacy technologies. For example, they’re replacing outdated walkie-talkies and landline phones with cutting-edge push-to-talk voice systems and video communication systems. These modern tools enable workers to use mobile devices and advanced technologies on the job, facilitating seamless communication with their peers and remote managers in real time or near-real time. This enhances operational efficiency and productivity by keeping employees connected and informed, even when they’re working in different locations.
Implement Software Automation for Greater Efficiency
Modern warehouse operators increasingly rely on automation software to coordinate their activities efficiently. Two go-to solutions for digitizing facilities are a warehouse management system (WMS) and a warehouse execution system (WES).
The primary functions of a WMS include establishing effective inventory management processes, allocating goods for order fulfillment and providing an accurate inventory overview. A true WMS can achieve 99.9% inventory accuracy, allowing warehouse operations to function much more efficiently. Meanwhile, a WES plays a crucial role in orchestrating advanced material-handling processes to meet the increasing demands of ecommerce.
Though much of the physical technology already ties nicely into warehouse management and warehouse execution software, more work is needed to make every robot and automation system inter-operable and coordinated at a level of completely autonomous operation. Software is available to provide an end-to-end view of business operations, support data analysis and reporting, and enable businesses to identify trends, optimize inventory levels and measure asset health.
Together these solutions support inter-operability, allow labor resources to be allocated in real time, enable facilities to process incoming orders more efficiently, and route inventory accurately.
Consideration and Planning are Key
Automation can help warehouse operators overcome their labor challenges in many ways. But for companies venturing into automation for the first time — and for those looking to elevate their current automation efforts — the implementation process requires careful consideration and planning.
It’s important to note that advanced automation and robotic technologies need to be seamlessly integrated with existing software and control systems to achieve optimal performance. It also requires substantial investment in training. To ensure a successful implementation of automation solutions, regardless of the stage a company is at in its automation journey, it is advisable to partner with an experienced provider that can integrate technology right to achieve the best return on investment.
Keith Fisher is president of Honeywell Intelligrated.