What are the benefits of warehouse automation?
When utilised effectively, warehouse automation can benefit every area of a business. This section will provide an overview of the key benefits of warehouse automation and why it is worth the investment.
Increased speed and accuracy.
Warehouse automation helps to reduce human error and increase accuracy in order fulfilment. It provides faster processing times, meaning orders can be completed quicker and customer satisfaction is more likely.
Reduced operational costs.
Automation eliminates manual labour costs associated with order picking and sorting processes. Picking errors are an unsurprising occurrence within a warehouse setting. As commonplace as they can be, they should be avoided as each error costs time and profitability. Discover how your business can reduce warehouse picking errors and build a more efficient operation here.
Increased safety and security.
Automation minimises workplace accidents due to reduced human involvement in hazardous processes such as lifting heavy objects and operating machinery. Find out more about examples of warehouse accidents and how to reduce occurrences from happening here.
Reduced human error.
Modern, integrated, intelligent software eliminates human inaccuracies regarding inventory control and management. Deliverable goods will also be processed quickly and with minimum chance of downtime.
Improve sustainability.
Automation can help reduce energy consumption, remove inefficient processes and create more space in your warehouse. It also enables businesses to reduce waste materials and supplies. Find out how here.
How much does warehouse automation cost?
To help you evaluate your decision before investing in warehouse automation solutions, here is an overview of the costs associated and what to consider to take the leap.
What type of costs should you be aware of?
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Initial Investment: Depending on the level of automation you want to implement, initial investments can reach hundreds of thousands of pounds. Before investing, you should work with a specialist like Toyota Material Handling UK. We will audit your entire warehouse and provide a breakdown of the best solutions for your needs.
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Labour costs: Although automation will reduce labour costs in the long run, it will usually require highly trained technical staff to maintain and install these systems.
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Floor space: Be sure to factor in potential floor space costs as part of your considerations. This is why you should always optimise your warehouse layout, which we will discuss later.
What are the challenges of warehouse automation?
Warehouse automation presents a range of challenges your business should address before investing in the solution. By doing so, you can successfully achieve cost savings, improve efficiency and increase customer satisfaction. But what are these challenges and how can you overcome them?
Compliance.
Many industries have regulations that need to be considered when automating business processes. Any changes to the workflow must take the law into account. It is not always easy to do, so we recommend working with an automation specialist like Toyota.
Infrastructure.
Automation requires reliable infrastructure such as power sources, data networks and backup systems. Automated solutions are likely to fail or become unreliable without proper infrastructure in place. You should audit your warehouse before deciding to implement automated solutions.
Training.
Employees must be trained on the new technology for it to be used effectively, but this can be expensive and time-consuming, depending on the complexity of the system being implemented. You also want to ensure the training is worthwhile, which is where an expert like Toyota makes a real difference.
Cost.
Capital is needed to invest in warehouse automation. You need the budget available to make the initial investment and maintain these solutions, which is why you should weigh up your options before jumping into the deep end with warehouse automation. Instead, follow an approach like Kaizen, where continuous improvement is seen over time.
Layout optimisation: What to consider.
A well-designed warehouse layout is a key factor determining a business's productivity and cost-effectiveness. It is also essential that a warehouse is optimally designed to gain a competitive advantage and ensure you are able to make the most of warehouse automation.
There is no one-size-fits-all approach to warehouse layout optimisation, but our seven best practices will aid your redesign efforts.
What are the four best practices for optimising automation and warehouse layout?
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Identify key areas of improvement:
Start by identifying what areas need improvement within your warehouse operations. This includes picking speed, accuracy of order fulfillment and safety protocols. Once you know what issues need to be addressed, you will have a better idea of what type of automation equipment will help you achieve those goals.
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Determine appropriate technology:
Once you have identified key areas that need improvement, research different types of automated technologies that might be able to help solve those problems. Consider factors such as cost-effectiveness, ease of use and scalability.
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Design an efficient layout:
After determining an appropriate technology for each area of improvement identified, it is time to create a plan for how those technologies will fit into your existing warehouse layout—or design a new one if necessary. The three most effective warehouse layouts are:
The L-shaped layout.
The U-shaped layout.
A warehouse may have the loading/unloading space and the shipping space at the tips of the ‘L’. This means the main bulk of the workflow — production and storage — should be housed at the ‘L’ intersection.
The U-shaped layout is a standard design. It features production and storage in the bend of the ‘U’, while loading/unloading and shipping take place in the arms.
The I-shaped layout.
I-shaped layouts denote a warehouse design with loading/unloading at one end of the warehouse and shipping at the other. Production and storage are centrally located. -
Test & document performance:
Once everything is installed properly according to your design plan — it is important to test out every new system before implementing them into daily operations. You should also document performance metrics or KPIs (Key Performance Indicators) to monitor progress over time after any warehouse automation implementation has taken place.
When you are designing the layout of your warehouse, you should keep sustainability in mind. There are a range of initiatives you can implement for sustainable warehouse design, including:
Solar panelled roofs.
Your warehouse should look to reduce its energy consumption — fitting solar panelled roofs on your warehouse can do this. There are three main types of solar panels:
- Monocrystalline solar panels.
- Polycrystalline solar panels.
- Thin-film solar panels.
Decentralised distribution centres.
By strategically positioning your distribution centres, you can limit the sprawl of transporting products and cut back on carbon emissions. Decentralising your distribution centres to smaller warehouses will also allow you to drastically reduce the amount of energy you use and reduce transportation costs.
LED lights and sensors.
Low-energy lights reduce the unnecessary usage of lighting in buildings. They operate using sensors and only turn on if an activity happens in an area. LED lights are also known to have a long lifespan compared to your average incandescent bulb.
Warehouse insulation.
By insulating your warehouse, you can significantly reduce energy bills and greenhouse gas emissions. Having the right insulation in place is also crucial for employee morale. Regulating room temperatures, appropriate sound levels and sustainable methods create a better work atmosphere.