Automated robot carriers in modern distribution warehouse.
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Warehouse automation is booming. Fueled by the success of e-commerce, projections indicate the market is expected to surpass $54 billion by 2030, led by the rise of autonomous mobile robots (AMRs) emerging technologies like Internet of Things (IoT) and Artificial Intelligence (AI).
But with rapid growth, comes growing pains. Here’s how to identify and address these pain points—and turn them into opportunities for growth and innovation.
Poor Inventory Management and Order fulfillment accuracy
With the rise of online shopping, customer expectations have increased, and they now anticipate swift delivery of their orders. This in turn necessitates improved visibility into warehouse operations for efficient stock management and rapid response to consumer needs. Without real-time insights, decision-making becomes challenging, leading to inefficiencies and delays. So what could be the options?
Comprehensive warehouse systems can be a help in managing high-volume warehouse operations and integrating complex supply chain logistics with the warehouse and distribution processes, delivering high levels of visibility and control which in return enables a better decision-making.
“’Slotting used to be a very tedious job, used to look only at historical data and used to be a manual thing to set up,” said SAP’s Kam Ghossaini In the recent episode of the Future of Supply Chain podcast, “Today, with the AI driven slotting, the system in real time can use historical and real time data as well as forecasted data, to continuously optimize where the goods are sitting in the warehouse.”
Automating warehouse operations with AI-driven systems can significantly improve order fulfillment accuracy. Technologies like automated storage and retrieval systems (AS/RS) and AI-powered robots enhance precision in picking and packing processes, minimizing errors that often occur in manual operations. Real-time inventory tracking facilitated by these technologies ensures that stock levels are accurately reflected, reducing discrepancies, and improving customer satisfaction.
Lack of Technological Advancements
When thinking about future, we (at least me) usually imagine robots being everywhere and performing every possible task. In the realm of warehouse management, this futuristic vision has become a reality, with a wide array of robot options available, including robotic arms for picking and packing, collaborative robots, warehouse drones and emerging AMRs.
‘‘We see more AMRs today in the warehouses, and these can navigate dynamically in the warehouse,” said Ghossaini. “They have a lot of advanced sensors, and they also use AI algorithm to adapt to changing environments. “In the past, when we talk about AGVs, you need to have a physical layout designed to run these AGVs. Today, you can bring the AMR and drop it in the warehouse, and it will run.”
As some of them are semi-autonomous robots work alongside humans, assisting with various tasks such as transporting goods or following workers around the warehouse as they pick orders, the others navigate independently using advanced sensors and software, allowing them to create their own routes and avoid obstacles.
Naturally, robots have a significant advantage over manual labor performed solely by humans, as they can work continuously without breaks, thus helping to ensure a consistent workflow in the operation. By taking over both the manual and repetitive tasks, robots make the warehouse environment safer and more efficient for human workers.
Labor shortage: Humans vs Robots
The surge in e-commerce has heightened the demand for warehouse workers. As online shopping continues to grow, warehouses are required to handle more orders and ensure timely deliveries, putting additional pressure on an already strained labor market.
While repetitive, physically demanding tasks in the warehouses are typically performed by humans, the newer generations of the workforce, including Millennials and Gen Z, may have another view on such a career path demanding more advancement opportunities.
And that’s where robots come to a rescue. Deployment of robots in the warehouse has one more significant benefit: it takes over the repetitive tasks from humans, creating space for more value-added ones.
“When robots are taking over physically demanding tasks, they allow the workers to focus on more complex and rewarding activities,” said Ghossaini. “Additionally, the deployment of robots can lead to the creation of new jobs in robot maintenance, programming, and supervision, highlighting the shift towards a more technologically advanced workforce.”
This will enable the workers to become more skilled, allowing them to focus on problem-solving and complex decision-making tasks in the warehouse.
Technologies seem to be a solution to every problem in the warehouse management, but that only happens when you know how to use them properly for your benefit.
‘‘With the power that AI brings and the power that robotics bring making sure they work together, it would be more precision, fewer errors, more efficient, safer environment, and at the end of the day, they should be able to do more with less,” said Ghossaini “AI should be across your supply chain, understanding the customer demand, understanding your supply, and this is where the value comes in.”
To learn more, download IDC Infobrief: “The Importance of AI in Supply Chain and Operations.”
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