Is it time? Warehouse efficiency is essential in our fast-paced, high-demand world. However, many facilities are challenged by processes that hinder productivity, accuracy, and safety. When designed and integrated appropriately, an automation solution or Automated Storage and Retrieval System (ASRS) can streamline your operations, improve efficiency, reduce costs, and create a safer workplace.
The first consideration is whether it is feasible and cost-effective. If you have one or more of the following key indicators, it may be time to contact a subject matter expert to audit your facilities and processes to determine whether the ROI of automation meets your business goals.
1. Replenishment OverloadDoes your team spend as much time (or more) replenishing inventory as they do picking it? An imbalance here may indicate that an ASRS may help your company avoid wasted time and resources. Replenishment should be a seamless part of your workflow, not a process that slows down picking operations. A well-planned and executed automated solution may be the answer to minimize repetitive replenishment tasks and support efficient inventory management.
2. Extensive Travel Time
Are your workers putting on the miles every shift? Is your equipment showing unnecessary wear and tear? Because an automated system centralizes inventory storage, it can reduce warehouse travel distance and time. An automated system helps workers remain productive because it delivers items to where they are stationed.
3. Excessive Search Time
After traveling to the pick aisle, how much time are your employees spending searching for items because they were placed in the incorrect bays? How many people are assigned to cycle count your space due to misplaced items? An automated system with item identification and retrieval capabilities ensures that the correct product is delivered to the picker, virtually eliminating excess search time.
4. Rising Picking Errors
Manual picking errors are costly and challenging to eliminate, risking your money and reputation. Is your team spread thin, overworked, or prone to errors? If you notice increased mistakes in your fulfillment process, consider an automated solution to reduce human error by automating item selection and retrieval.
5. Struggling With Throughput
Meeting daily order cut-off and truck turn times can be challenging, especially during peak seasons. Are you hiring temporary or seasonal workers to keep up with demand? Are demurrage and detention fees hitting your P&L hard? Automation may help. An automated system significantly increases throughput capacity by accelerating picking and packing processes. You may be able to scale up to higher volumes while reducing or eliminating the need for temporary workers, saving costs, and reducing the complexity of onboarding new employees.
6. Damaged Items
Is valuable inventory damaged in your facility due to inefficient storage practices or excessive manual handling? Is the equipment or structure consistently damaged by MHE collisions, spills, or dropped loads? An automated solution reduces manual contact, controls storage environments, carefully handles inventory to preserve product quality, and reduces the risk of damage by removing the human and the MHE from the storage and retrieval equation.
7. Misplaced Inventory
Next, consider your inventory tracking and warehouse management systems. Do you frequently have misplaced or lost inventory? Do you cycle count daily? You may need more efficient inventory tracking systems not subject to human input. Automated systems can use sophisticated software to track every item’s exact location, preventing misplacement and reducing your time spent searching for lost items. These systems archive every touch an item has received from the moment it comes through your doors to the moment it leaves. Track and trace for recall has never been more efficient than it is today. Automation helps maintain a clear and updated inventory picture, leading to smoother operations, fewer disruptions, and major reductions to OS&D activity.
8. Pilfered Product
Inventory shrinkage from pilferage can significantly impact your bottom line. When inventory mysteriously goes missing, it affects your stock levels and requires extra time and resources for investigation. An automated solution can reduce pilferage by maintaining secure and automated storage spaces that limit direct access to inventory. With automated systems, approved personnel only access your inventory, decreasing the theft risk.
9. Facility at Max Capacity
Are you at total capacity and finding it difficult to manage inventory and accommodate growth? While a new facility may be an option, first consider a facility audit to see if you can further maximize vertical space with an automated system, allowing you to store more inventory in the same footprint. Automated systems provide scalable solutions to immediately handle your needs while buying time as you plan your expansion.
10. Risk of Operator Injury
Warehouse environments have inherent risks, especially when employees handle heavy or awkward items and operate heavy industrial equipment. An automated solution minimizes physical strain on workers by automating heavy lifting and reaching activities. Reduced manual handling can improve worker safety, decrease time-loss accidents, improve your EMR, and foster a healthier and more productive workforce.
To answer whether an automated system would be a good solution, first consider the 10 signs above. If you see your situation in these indicators, a facility audit would likely be a good next step. Look for a subject matter expert with proven experience who is transparent and willing to be guided by your business goals and objectives. They should act as a consultative partner who can analyze your situation and provide an honest cost/benefit analysis as well as make recommendations on appropriate equipment, processes, and operational needs.