As all warehouse owners and managers are fully-aware of, running a warehouse operation is a challenging task. The processes are often complex and dynamic, making it one of the most difficult balancing acts ever. One of the keys to making your warehouse management life easier is through technology.
Warehouse automation can be simply put as a step warehouses can take to enable their operation to achieve greater outcomes with significantly less effort through the use of one or more technologies. Many companies have adapted to it throughout the years, and many more are testing out innovations on said technologies especially since it’s become accessible even to small and medium-sized businesses. This push towards automation is majorly driven by solving common warehousing problems and streamlining operations in order to fulfill customer expectations.
Automation technology taps into the knowledge-base that warehousing developed over the years to improve performance and support company growth. The value that automation brings to the table is apparent hence why it is emphasized. Read on more about the importance of warehouse automation in this article.
Reducing costs
While it is true that the upfront cost of automation is not cheap, the pieces of technology that you invested in will eventually start to pay for themselves. Automation will help you realize savings in other aspects like in manual labor. Paying manual labor actually eclipses the costs of automation technology over a period of time.
In a couple of years, the return on investment (ROI) that automation technology can give your business will stand at 90% as compared to the cost of your manual labor. Since automation does not have capital investment, the yearly production expenses will be lower compared to the manual system due to the reduced labor costs. This is especially true for retailers during peak holiday season where overtime pay will be much higher because of the customer demand because they can keep their machines running without incurring extra expenses.
Greater efficiency and accuracy which leads to quicker customer service
One of the benefits that automation brings to any commercial warehouse is speed. Automated warehouse systems promote accuracy and efficiency in the operation process which streamlines the tasks correlated to fulfillment. With a more efficient and accurate process, your business will be able to satisfy more customers.
Automated warehouse systems are able to identify and locate items in real-time quicker than human personnel. It also lessens errors as it has the ability to collect data and retain important information about your products which increases the output of each shift. Picking and counting inventory will be much easier and faster, streamlining the shipping and delivery.
You may also opt to partner with a US freight forwarder to Singapore to take the hassle out of buying and shipping products.
Maximizing space
Some people don’t equate this benefit with warehouse automation but in reality this is one of the reasons why it is important. In warehouses that are packed with items, space is a finite resource. The more your business grows, the larger your inventory grows, the more difficult it is to maximize the space that your property has.
Since most warehouse automation technologies feature machines that help in handling product retrieval and storage, you can make do with less spacious environments. The flow of movement will not be affected, as machines and robots won’t occupy much space and do things quicker. In to pick an item then out right away straight to loading.
Sustainability
Automation reduces the required amount of energy usage to operate. This means lowering costs, waste and land use, and minimizes the impact of your facility to the environment. These benefits will be felt more particularly in temperature-controlled warehouses and warehouses that handle hazardous wastes.
Final thoughts
The importance of warehouse automation cannot be overstated. It can benefit your business and it’s stakeholders as well. There is no mistake that can be found in investing in something that is sustainable and can help your business grow as it moves forward and adapts in this fast-paced world.