The use of automated systems within warehouses can positively impact performance, but to ascertain whether this is a suitable option for your business, you'll need to calculate your likely return on investment (ROI). Here are some of the factors you'll need to take into account.

If you're considering automating your warehouse operations, it's vital to think your decision through carefully before committing to anything. Here are six things to investigate before you take the plunge:

Popular with owners of contemporary warehouses attempting to automate their procedures, automated storage and retrieval systems (AS/RS) are designed to enable companies to store goods in a compact and logical manner, and retrieve them with ease. These computer-controlled systems come in a number of different forms, but here are five ways in which your business could benefit if you install one of these practical systems.

Warehouse management systems are becoming more innovative by the month. Automation improves productivity and accuracy in ways that weren’t possible only a year ago. Orders can be grouped intelligently enough to reduce travel time, and that pace can be further enhanced by high-speed sorting, automatic storage and retrieval systems.

Every aspect of warehouse automation is controlled by your IT system. Warehouse management systems (WMS) can’t function without accurate data input, and they shouldn’t be left to their tasks without the support of analytics. The best systems improve efficiency, speed, and cost. It’s tempting to rush into warehouse automation thinking that if it’s technologically evolved, it must be better than what you’ve been using until now, but your software should be built around your strategy. Your strategy should not be built around your software. WMS platforms are complex. They must be honed to suit your unique inventory and the rest of your business processes.

Logistics is the biggest influencer on your customer satisfaction ratings. If that seems like a blanket statement, then think of it from your customers’ perspective. Happiness is getting the product they ordered quickly or at least on time. Their opinion of your business is rapidly broadcast across social media and review sites. What they say influences potential customers and therefore the growth of your business. The tricky bit is balancing 5-star fulfilment with tightly controlled costs and efficiencies.

Available space inevitably gets used up under normal operating conditions. It’s almost a law of nature, just like Parkinson’s Law (work expands to fill the available time). Opportunistic bulk discount purchases, overstocking, old stock or just inefficiency eats up costly space. Suddenly you cannot add new lines that consumers are demanding. Your stock represents too much capital. Business is constrained by your warehouse capacity but expanding to an additional facility may not be feasible at this point. The only option is to increase storage space by better utilisation of what you have available. Where do you start?

Automating your warehouse can deliver very significant improvements in productivity and efficiency. It is possible to reduce costs while improving safety and improving productivity.

In this week's article, in the series from members of the Automated Material Handling Systems Association (AMHSA), David Hayward-Browne, Director of Logistics Planning Consultants International (LPC), considers one of the key requirements when procuring an automated system: the use of Requirement Specifications within the project process and their benefits. LPC is a consultancy that has extensive experience in helping companies automate and run their operations.

You have just bought your shiny new automated system. It has been installed and commissioned. In some respects, that was the easy part. There are challenges of course in doing so, but you have had a lot of expertise from the supplier and you have your own project team. But the people who delivered the solution will move on. It is vital for the successful operation of the system that knowledge is gained and retained within the operations team, and that processes and team are put in place to run and maintain the system. The easiest way to accomplish this is for key people to be part of the project team or work closely with them.