Over the past few years, warehouse automation has become a buzzword in the logistics industry. As technology progresses rapidly, more companies are adopting new warehouse storage trends to improve operational efficiency and cut expenses.
The options for automating warehouse tasks are infinite, from automated storage and retrieval systems to package handling lifts. Learn about the types of warehouse automation available today and explore the latest warehouse automation trends for 2023.
What is Warehouse Automation?
Warehouse automation uses modern technology to automate and optimize warehouse operations. This approach uses computer-controlled systems, machines, and robots to perform tasks previously done by humans. The primary objective of warehouse automation is to enhance warehouse operation efficiency, accuracy, and cost-effectiveness.
Quick and precise order fulfillment is essential for many companies to meet customer demands, meaning warehouse automation is necessary. The advantages of using warehouse automation include:
- Enhanced efficiency and productivity: Automated systems can perform tasks faster and with greater precision, reducing errors and increasing output. Automation can also counter labor shortages by requiring fewer employees to perform routine tasks. These systems can operate 24/7, increasing overall productivity and decreasing lead times.
- Improved workplace safety: By automating dangerous and repetitive tasks, companies can reduce the risk of workplace injuries. This enhances employee safety and minimizes the likelihood of workers’ compensation claims and related costs.
- Real-time data and analytics: Warehouse automation provides managers with real-time data and analytics, allowing for better decision-making and optimization of warehouse operations. By monitoring key metrics such as inventory levels, order fulfillment rates, and machine performance, managers can make data-driven decisions to improve capability, reduce waste, and increase profitability.
- Affordable for SMEs: With the advent of cloud-based technologies and affordable automation solutions, small and medium-sized enterprises (SMEs) can also benefit from automation. By implementing automated systems in their warehouses, SMEs can reduce operational costs and improve their competitiveness in the market.
- Positive impact on the bottom line: Warehouse automation significantly impacts a company’s productivity growth. According to the McKinsey Institute, automating various tasks can raise productivity growth to 1.4% annually.
Types of Warehouse Automation
Several types of warehouse automation systems are available, each designed to tackle different tasks within the warehouse environment. The four main types include:
Automated Storage and Retrieval System (ASRS)
An ASRS uses computer-controlled systems to store and retrieve products from a storage system automatically. These storage systems can handle a variety of product sizes and weights and can be integrated with other material-handling equipment.
They are typically used in high-density storage applications and can help optimize warehouse space, increasing efficiency and accuracy.
Modula OnePick from Shelving + Rack Systems is a fully automated ASRS that works without an operator. It seamlessly integrates with material handling systems and features a specially designed extractor that handles products stored in boxes or bins without external handling systems.
Horizontal Carousels
Horizontal carousels are a popular warehouse automation system that uses a series of rotating shelves to bring stored products to the operator. These shelves move horizontally along a track and can be customized to meet various storage requirements.
Accessing a large number of products quickly and efficiently is essential in high-speed picking applications. That is why horizontal carousels are perfect for use in these types of scenarios, where the size and weight of products are consistent.
Shelving + Rack Systems Modula Diamond Phoenix Horizontal Carousel is the perfect solution for high-speed picking operations. Its carriers are supported on an oval track that effortlessly delivers stored goods to the operator. Its multiple carousels can be integrated with a workstation equipped with batch-picking software and pick-to-light, increasing productivity by up to 65%.
This machine has up to 90 bins, standard or dual-bin bin types, pod-based or stacked unit arrangements, and a net unit load capacity of 135,000 lbs. It has a high-efficiency direct-drive design with minimal energy consumption and a powder-coated steel frame structure and bins for long-lasting durability.
Vertical Lift Modules
Vertical Lift Modules (VLMs) are tall, narrow units that store products on trays that move up and down inside the module. VLMs are designed to recover floor space in the warehouse by operating vertically instead of horizontally.
They are typically used for storing small to medium-sized products and can be configured with pick-to-light or pick-to-voice technology for increased accuracy and productivity.
Modula LIFT VLMs can recover space on your shop floor or distribution area while improving your picking operations’ efficiency, speed, and accuracy. They feature pre-coated exterior panels for durability and protection and a steel-reinforced toothed belt lifting design for extra durability.
Package Handling Lifts
Package handling lifts transport products between different warehouse or distribution center levels. They are typically configured with a conveyor belt or roller system and can be used for various product sizes and weights.
Package handling lifts can be used with other material-handling equipment to create a fully automated system. They are designed to increase efficiency and reduce labor costs by automating the transportation of products between different levels of a warehouse.
How Does Warehouse Automation Work?
Warehouse automation uses computer-controlled systems to automate routine tasks in a warehouse. These systems can perform order picking, inventory management, and package handling tasks.
Automated systems are typically integrated with the existing equipment in the warehouse, such as conveyor belts, storage racks, and material handling equipment, to enable seamless operation. They can operate continuously, increasing overall productivity and decreasing lead times.
The systems can also be integrated with warehouse management software to provide real-time information about inventory levels, order status, and shipping information.
Automation Trends for 2023
Automation has been rapidly growing in warehouse and logistics operations, and there are a few key trends that you expect to see continue to gain momentum in 2023. These trends include:
Increased Adoption of Robotics and AMRs
The adoption of robotics and automated mobile robots (AMRs) in warehouse automation has seen significant growth in recent years thanks to their many benefits. These technologies improve capability and speed in warehouse operations, reduce errors, and improve safety by removing the need for manual labor in dangerous or repetitive tasks.
According to a report by MarketsandMarkets, the global market for warehouse robotics is expected to grow to $9.1 billion by 2026, representing a compound annual growth rate (CAGR) of 14%. Similarly, according to a report by Mordor Intelligence, the global market for AMRs is expected to grow at a CAGR of 17.6% from 2023 to 2028.
Examples of recent developments in the use of robotics in warehouse automation include the use of robotic arms for picking and packing. These arms can pick up items and place them in the correct location, reducing the need for manual labor and increasing efficiency.
Another example is the use of mobile robots for transporting goods. These robots can navigate around the warehouse, carrying goods from one location to another. eCommerce giant, Amazon, has been using robots for goods transport for almost a decade but has only recently announced a fully-automated picking and storing system, Cardinal, designed to lift and turn heavy inventory in confined spaces.
Implementation of AI and Machine Learning
The increased implementation of AI and machine learning in warehouse automation results from their potential to enhance efficiency, reduce errors, and optimize operations. These technologies can be used for demand forecasting, inventory management, and even predictive maintenance.
Amazon, Alibaba, and DHL have implemented AI and ML in their warehouse operations. For example, Amazon uses machine learning algorithms to predict which products will likely be ordered together. This allows them to group these products in the warehouse for faster and more efficient picking and packing. Alibaba uses AI-powered robots for sorting packages, which has increased efficiency and accuracy in their operations.
According to a report by Grand View Research, the global market for artificial intelligence in the supply chain was valued at $136.55 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030. Similarly, according to a report by Mordor Intelligence, the global market for machine learning in the supply chain is expected to grow at a CAGR of 42.97% from 2022 to 2027.
Cloud-Based Warehouse Management Systems (WMS)
The popularity of cloud-based warehouse management systems (WMS) in the warehouse automation market has increased owing to their numerous benefits. These systems allow for real-time visibility of inventory, orders, and shipments and can be accessed from anywhere with an internet connection. This eliminates the need for on-premise servers and allows for more flexibility and scalability.
Cloud-based WMS offers reduced IT infrastructure costs, easier upgrades and maintenance, and improved team collaboration. According to a report by Grand View Research, the global cloud-based WMS market is expected to reach $13.34 billion by 2030, advancing at a CAGR of 19.0% from 2023 to 2030.
A great example of the use of cloud-based WMS is the implementation by Walmart. The retail giant has implemented supply chain automation to manage inventory and optimize warehouse operations across its vast network of stores and distribution centers.
The system provides real-time inventory level visibility and helps reduce out-of-stock situations by automating re-ordering and replenishment processes. The cloud-based WMS has enabled Walmart to improve its inventory accuracy and reduce manual labor, increasing productivity and cost savings.
Growth of the Internet of Things (IoT) in Warehouse Automation
The growth of the Internet of Things (IoT) in warehouse automation has been driven by the benefits they offer in real-time monitoring and control. IoT can be used for tasks such as tracking inventory levels, monitoring equipment performance, and even optimizing the temperature and humidity of the warehouse.
Projects and developments in IoT for warehouse automation include using RFID tags for tracking inventory, sensors to monitor equipment conditions, and smart devices to control and optimize warehouse operations. According to a report by Grand View Research, the global market for IoT in warehouse management is expected to reach $19.06 billion by 2025.
One example of the use of IoT in warehouse automation is the implementation by John Deere, a leading agricultural equipment manufacturer. The company uses IoT sensors to monitor its warehouse equipment’s condition and predict maintenance needs. This has allowed the company to reduce downtime and increase efficiency in its operations.
Another example is using smart devices such as wearables for warehouse workers. These devices can provide real-time updates on inventory levels and order status and even offer voice-activated picking instructions. This has increased productivity and reduced errors in warehouse operations.
Bring Your Warehouse into the Future with Shelving + Rack Systems
Shelving + Rack Systems is a renowned provider of innovative warehouse automation solutions. Our team of experts can streamline your warehouse operations and increase efficiency, accuracy, and overall capability.
Our automated systems are designed to work seamlessly with your existing equipment, making the transition to automation as smooth as possible. With Shelving + Rack Systems, you can bring your warehouse into the future and stay ahead of the competition.
If you’re interested in learning more about the benefits of warehouse automation and how Shelving + Rack Systems can help transform your warehouse, contact us today at (800) 589-7225. Take the first step towards a more efficient and profitable future with warehouse automation.
