Warehouse automation decisions require complex research

When evaluating automation as part of the overall supply chain strategy, companies need to be creative and must consider all aspects of the business, not just how to reduce cost as a means of profitability.


Automation has existed for decades, yet today, it is often not given a second thought when new production, packaging and filling lines are installed. As a result, because of the complex business strategies and supply chain structures in many organisations, making a case for automation in the warehouse can be difficult. Air conveyor, case conveyor, packaging equipment and high-speed palletisers are all forms of automation, which by definition means ‘the removal of human intervention to complete a function’.

Consideration should be given to facets of the business that will simultaneously reduce cost while putting the company at the forefront of the industry, maximising customer service, and positioning the company for future growth. To best evaluate automation, it is important to understand a few of the primary areas of warehouse automation, such as information technology (IT), full-pallet handling and case handling. Be aware that new technologies are emerging and gaining significant attention in the marketplace.

IT automates the organisation and dissemination of information within a warehouse, based on a defined set of rules; WMS technology allows companies to efficiently manage inventory, space, and resources. The value proposition of WMS is much broader when one considers the ability to maximise resources (people, equipment and docks) and increase accuracy (inventory and order fulfillment).

Although radio frequency (RF) terminals are the predominant delivery mechanism for WMS work instructions, voice technology is rapidly gaining popularity. Voice technology delivers commands using audio, so it is hands-free and offers a primary benefit of picking and order accuracy, and works in conjunction with WMS technology or by itself. Independent studies show that mispicks can be reduced by as much as 25 percent.

Pick-to-light technology is also gaining popularity. Pick-to-light directs operators to locations using lights at the individual locations. When a location is lit, the operator goes to the location, picks the quantity displayed, and places cases onto a takeaway conveyor. Although there are conflicting studies, picking productivity can reach 400 to 600 cases per hour.

New to the full-pallet handling scene are automated guided vehicles (AGVs), capable of performing virtually all functions that have typically been reserved for forklifts. AGVs have received somewhat of a bad reputation in the past, primarily due to a perceived lack of flexibility.
The latest laser-guided vehicles (LGVs) can manoeuver freely throughout the warehouse, performing the some functions as AGVs, but also with the capabilities of placing pallets into storage locations, retrieving pallets and loading trailers.

Although various systems can be engineered to achieve similar throughput rates, storage capacity varies widely between technologies. Within the same footprint and clear height, deep-lane automated storage and retrieval systems (ASRSs) can have 30-35 percent more storage capacity than rack solutions supported by LGVs. If minimising or eliminating outside storage is a main driver to justifying an automated solution, then these storage capacity differences must be considered. To this point, companies must clearly define their goals for automation.

To many, automated case picking is the holy grail of warehouse operations, and numerous attempts have been made in recent years to create a breakthrough technology.

It is clear that the demands in the warehouse will continue to increase. Companies striving for best-in-class service and cost cannot abandon the search for the right automated solution. Be creative and consider all facets of improvement opportunity.