Tech-enabled Warehouses:

With the upcoming festive season, e-Commerce retailers as well as modern trade outlets start ordering a massive inventory of stock, catering to various consumer preferences in terms of colour, sizes, materials and locations of delivery. Further, the time-bound ‘Same-Day-Delivery’ or ‘Next-Day-Delivery’ models further add to demands on efficient storage & retrieval of inventory for enabling time definite arrival of orders.

This means a swelling up of the inventories in the central & distribution warehouses. The need to efficiently manage growing SKUs, fulfil same and next-day deliveries, reduce cycle times and optimize resource utilization are driving businesses to focus on warehouse productivity and tech-enablement.

Warehouses are investing in large-scale automation to meet these demands. Rapid technological adoption in warehousing includes robotics, machine learning, AI and the Industrial Internet of Things (IIoT).

The global warehouse automation market is estimated to grow at a CAGR of 14%, reaching a value of US$30 Bn by 2026. The market size for mobile robots is expected to reach over US$334 Bn between 2032 and 2042. Robots can perform various warehousing functions such as sorting, picking, packaging, batching, transportation, fulfilment, security, and inspection.

By using solutions like data analytics, automated sorting, picking and packing, and drones to inspect inventory, we have streamlined our processes and predict disruptions to manage them. Digitalization of warehousing processes not only helps to reduce inefficiencies, but reduces the logistics industry’s impact on the environment.

• Automated Storage and Retrieval Systems (AS/RS)
• Automated Conveyor Systems
• Automated Sortation System
• Material Handling equipment
• Material storage systems

While various technologies are being adopted, Logistics service providers must seamlessly integrate technology with smart resource management (both people and space) so that optimal storage & throughput efficiencies can be delivered to the end client.

Strategies to Enhance Warehousing Efficiency:

• Advanced Picking Strategies: Advanced picking strategies help warehouse staff to organize items into discrete zones/islands each dedicated to a specific type of product. Then using a smart-forwarding system orders can be directed to appropriate picking zones based on order priority, product type, or location. Together this ensures efficient picking routes and higher pick rates.
• Cross-docking: Deploying cross-docking is a great way to minimize handling and storage time, reducing warehouse space requirements and expediting the flow of goods through the distribution network.
  
  
• Inventory Slotting Techniques: By categorizing products according to demand velocity, size, weight, etc, modern inventory slotting strategies allow warehouse managers to optimize warehouse space management. This not only maximizes space utilization but also improves picking efficiency.
  
  
• App-Based Operations: Using mobile-based picking, put-away, cycle count and inventory movement empowers warehouse staff to gain real-time updates, better communication and execute tasks more efficiently.
  
  
• Creating Zones & Subzones for Faster Processing: Grouping similar products significantly improves picking, packing and shipping and makes locating items quicker. This is crucial in cases where SKUs appear similar as it ensures that the right product is sent to the right customer.
  
  
• AI-Powered Performance Feedback: Leveraging AI-powered analytics allows warehouse managers to offer Account specific performance reports to customers, fostering transparency & trust. This enables the clients to evaluate performance against Service Level Agreements (SLA) helping decision making in renewal & improvement evaluation.
  

Some key impact areas of an Advanced Warehouse Management System (WMS) that directly improve operational efficiency are as follows –

* Indicative figures, results may vary from case to case.

These are the Key metrics that manufacturing companies look for when optimizing their Production Logistics & Finished Good Logistics costs. Ability to deliver tangible increase in efficiencies at multiple levels, usually become the primary choice for manufacturers while selecting their Warehousing Service Providers.

FAQs:

What is warehouse automation?

Warehouse automation involves using technology such as robotics, AI and IIoT to streamline warehousing processes, improve efficiency and reduce manual labour.

How does automation impact warehouse efficiency?

Automation enhances efficiency by optimizing storage, retrieval, and inventory management processes, reducing errors, and speeding up order fulfilment.

What are some key technologies used in warehouse automation?

Key technologies include Automated Storage and Retrieval Systems (AS/RS), automated conveyor systems, automated sortation systems, material handling equipment, and material storage systems.

What are the benefits of using an advanced Warehouse Management System (WMS)?

Benefits include high inventory accuracy, SLA adherence, compliance adherence, reduced loss due to expiry, reduced inventory shrinkage, increased productivity, reduced delivery TATs, and cost savings for customers.