Whether you are an enterprise considering cutting edge warehouse robots or a startup looking for ways to streamline paper-based order picking, we recommend taking a hard look at your operational processes before deciding on warehouse automation solutions to avoid common pitfalls and maximize ROI.

Over the last several years, interest in warehouse automation and optimization has skyrocketed due to rising labor costs and evolving business models that demand consistent fulfillment across multiple channels. COVID-19 has accelerated the transformation by further reducing labor availability and forcing businesses to rapidly adjust to a world in which SKU proliferation and high-volume parcel shipments may be the new normal. In addition, many industries that previously optimized for seasonal or cyclical demand are seeing consistent demand and believe the trend will continue far beyond the pandemic.

If you are still exploring your automation options, the first step is to determine what kind of warehouse “automation” you should really be looking for to provide the highest ROI with the budget you have.

If you are still exploring your automation options, the first step is to determine what kind of warehouse “automation” you should really be looking for to provide the highest ROI with the budget you have. The market has become much more complicated in the last few years, with a myriad of software and hardware-based solutions to improve productivity. However, not all these solutions are appropriate for every level of operational and technological maturity.

Most fixed or flexible automation systems have a relatively long payback period and require integration to a warehouse/inventory management module to provide maximum ROI. Some vendors will claim to function independently through unintegrated processes and may offer leasing programs to reduce barriers to entry, but further consideration will reveal prerequisites for a compelling business case. If you are considering robots or a sorter before implementing a real-time picking process, you won’t get the full benefit of the expensive automation because your processes and systems won’t be optimized to properly orchestrate the flow of inventory.

If you don’t know where you are going, any road will get you there. – Lewis Carroll

Due to the currently unavoidable needs for integration and orchestration, we recommend a crawl-walk-run approach for most businesses that starts with a holistic assessment of your people, processes, and technology – in that order. The reality is that unless your operation is pallet-in/pallet-out, you are unlikely to run lights-out without enormous investment. Since you can’t run without people, the best way to successfully automate your facility with machines is to start by considering the role of human workers in an end-to-end process design. Once you know where you want to go, it’ll be a lot easier to determine the appropriate systems and machines.

As you start on your automation journey and undertake your evaluation, here are a few tips from our many project experiences that will hopefully help you avoid a lot of pain and lost family time down the road.

Don’t prevent future scale by making efficiency a matter of chance

During every automation implementation, whether WMS software, robots, or pick-to-light systems, there will be points during implementation where you will face budget, timeline, or system constraints that tempt you to leave efficiency up to chance through manual steps or loose integration – leaving gaps for inefficiency to creep into processes. You can recognize these decisions by asking yourself “will this process only work if the same thing happens every time?”

The reality is that real-world operations, especially fast-paced ones, have inevitable exceptions due to variations in timing or human and system behavior. If an unexpected behavior happens in “only” 1% of transactions, the scenario may seem unimportant in the beginning but will add up to significant inconvenience and support effort down the road. Avoid as many of these compromises as you can afford and keep a list of known design compromises, so you have a chance to close the gaps through continuous improvement initiatives in the future.

Don’t buy automation to make a bad process better

If you are looking for automation solutions because you feel trapped by your current process and want to make it “better”, it is likely that you need to take a second look at your process before you add another system to it. Just like you usually can’t fix an unhealthy romantic relationship by taking an expensive vacation, you can’t fix inherently flawed processes by throwing money at them.

If you are looking for automation solutions because you feel trapped by your current process and want to make it “better”, it is likely that you need to take a second look at your process before you add another system to it.

It is common for operations to get into “tunnel vision” when daily demands leave no time for process improvement and long-term strategic planning. Sometimes operations fall into a routine of doing the same processes for many years before reaching a breaking point (usually driven by significant volume increases or requirements). If this sounds familiar, know that you’re not alone and that there are ways to take back control bit by bit.

Many companies double down on processes they know to be inefficient due to a belief that options are limited by the specific demands of their item and order profiles or customer requirements. Before going down this path, consider all possible changes you could request from sales, vendors, and customers to improve your situation. We have often seen difficult requirements removed or updated once the real purpose of the requirement is identified and addressed directly.

Don’t commit to a physical layout without considering the tech required to enable the process

With so many options in the market, it’s important to consider the necessary information system capabilities in addition to physical automation and layout.

With so many options in the market, it’s important to consider the necessary information system capabilities in addition to physical automation and layout.

Are you looking at racking and automation solutions for a greenfield warehouse? Make sure to consider the systems and integration needed to drive the physical flow you hope to achieve.

Interested in gravity flow racking? You’ll need inventory management logic to drive replenishments properly.

Considering ASRS or goods-to-person systems? You’ll need systems that can drive inventory induction and human worker interactions.

If your current warehouse processes are paper-driven or manual, consider a warehouse management system to get real-time visibility and process control. These systems vary widely in cost depending on your inventory and order management requirements, but it is essential to have the real-time data so you can build further with other types of automation.

If you have a real-time inventory tracking system with processes that don’t accurately reflect physical reality, consider investing in a workforce execution layer that can handle exceptions and provide more flexibility in your floor processes. This type of system is often cheaper and more flexible than modifications to your system of record and can also orchestrate the connection between legacy systems and future automation.

Are you starting a new phase of your automation journey? Click here to learn more about our team and automation services.

Interested in learning more about flexible automation and connected worker technology? Click here to learn about the LogistiVIEW automation platform or contact us today to speak with our experts to find out how we can help you automate your warehouse processes.

Learn more about Accelogix Cloud here!

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