When we think about the highly automated systems in distribution centres today it can conjure up images of highly specialised and complex equipment and robots whizzing around.
By definition, automation refers to the use of technology to perform tasks or processes without human intervention. It involves creating systems, machines, or software that can carry out repetitive, manual, or complex tasks automatically. The goal of automation is to increase efficiency, reduce human error, and improve productivity across various industries.
Automation can be implemented in small more practical steps and does not need to be a big bang approach. Misconceptions abound.
1. Warehouse Automation Is Only for Large Companies
- Misconception: Many people believe that warehouse automation is only cost-effective for large companies with vast resources or massive order volumes.
- Reality: Automation technologies are becoming more affordable and scalable. Even small to medium-sized businesses can benefit from automation, especially as technologies like robotic process automation (RPA), automated guided vehicles (AGVs), and autonomous mobile robots (AMRs) become more accessible. With modular and flexible systems, small warehouses can implement automation for specific tasks, such as inventory management or order picking, without needing a complete overhaul of their operations.
2. Automation Will Replace All Jobs
- Misconception: A common fear is that automation will lead to massive job losses in warehouses, with robots taking over every aspect of work.
- Reality: While automation can take over repetitive and physically demanding tasks, it often enhances human roles rather than replaces them. Workers are typically shifted to more strategic or higher-value tasks, such as overseeing robotic operations, managing inventory, and handling exceptions that the automation systems can't manage. In fact, automation can create new job opportunities in areas like system maintenance, programming, and logistics optimization.
3. Automation Is Too Expensive for Small or Mid-Sized Warehouses
- Misconception: The upfront costs of warehouse automation are often viewed as prohibitive, leading smaller businesses to believe that automation is beyond their reach.
- Reality: While initial investments can be significant, many automation systems have a fast return on investment (ROI) through cost savings, improved efficiency, and reduced labour costs. Additionally, financing options and subscription-based services make automation more accessible. Many automation solutions are modular, meaning businesses can start small and scale as needed.
4. Automation Will Lead to Less Flexibility
- Misconception: Some believe that automation systems are rigid and cannot adapt to changing needs or product varieties.
- Reality: Modern warehouse automation solutions, such as modular robotic systems, are highly adaptable. These systems can be reprogrammed or reconfigured to handle new types of products, adjust to seasonal fluctuations, or respond to changes in order volumes. Many automated systems also integrate with warehouse management software (WMS) to improve flexibility and responsiveness.
5. Implementing Automation Is Quick and Simple
- Misconception: There's a belief that automating a warehouse is as simple as installing robots or software and flipping a switch.
- Reality: While some automation solutions can be set up quickly, fully automating a warehouse involves careful planning, process analysis, and often a period of integration with existing systems (such as inventory management or ERP). Depending on the size and complexity of the operation, it can take months of planning, testing, and adjustments to ensure everything works seamlessly. Proper training and change management are also crucial to success.
6. Automated Systems Are Maintenance-Free
- Misconception: Some assume that once automation systems are in place, they’ll run smoothly without needing much attention.
- Reality: Like any technology, automated systems require regular maintenance and monitoring to ensure they continue to operate efficiently. Maintenance tasks may include software updates, hardware checks, and troubleshooting. In fact, unexpected downtime in automated systems can be costly, so regular upkeep is essential.
7. All Automation Solutions Are the Same
- Misconception: There's a belief that all warehouse automation technologies or vendors offer the same capabilities and features.
- Reality: Automation solutions vary widely in terms of features, compatibility, scalability, and industry-specific functionality. Some solutions might be better suited for high-throughput environments, while others excel in small-batch or high-variability settings. Selecting the right system depends on factors such as the size of the warehouse, the types of goods being handled, and the specific goals of the business.
8. Automation Reduces the Need for Human Workers
- Misconception: Many assume that once a warehouse is automated, human workers are no longer necessary.
- Reality: While automation can significantly reduce the need for manual labour, it does not eliminate the need for human workers. Humans are still crucial for tasks that require judgment, troubleshooting, and complex decision-making. Warehouse automation is most effective when it augments human capabilities, improving efficiency without entirely removing the need for people.
9. Warehouse Automation Is Only for Order Picking
- Misconception: Automation is often seen as something that can only improve order picking and fulfilment processes.
- Reality: While order picking is a key area for automation, it can be applied across various warehouse functions, such as receiving, sorting, inventory management, packing, and shipping. Systems like automated conveyor belts, robotic arms, and automated storage and retrieval systems (AS/RS) can optimize the entire flow of goods in a warehouse, not just picking.
10. Automation Is Only for Large-Scale Operations
- Misconception: Many believe that only very large warehouses or distribution centres benefit from automation.
- Reality: Even smaller operations can realize significant improvements in efficiency, accuracy, and throughput with relatively simple automation technologies. For example, smaller warehouses might implement automated sorting systems, robotic pickers, or automated palletizing systems to streamline operations and reduce costs.
11. Automation Is a One-Time Investment
- Misconception: Some assume that after implementing an automated system, they can simply “set it and forget it.”
- Reality: Automation systems require continuous improvement and upgrades. As business needs evolve or new technologies emerge, it may be necessary to update or expand the automation infrastructure. The system might also need optimization over time to keep up with changing product types, inventory volumes, or demand.
LPC has worked with many businesses to improve their operational efficiency and productivity by considering automation and robotics in existing operations and new facility designs. If you are at the start of your journey of considering automation, contact LPC here.
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