A Quick Guide to Warehouse Automation Software
Most of today’s warehouses are either entirely manual or have implemented only low-level automation.
While the average logistics company might be expecting a return on investment for automation innovation within 4-5 years, the payoff is worth the wait.
E-commerce retail sales is increasing at over 15% annually, so automation suppliers need to keep up, delivering goods in smaller quantities, and doing it faster. And that’s what warehouse automation allows them to do.
We’ve made a short guide on what warehouse automation is, how it goes, and what hardware & software requires. And backed everything up with a couple of well-known companies that automated their warehouses.
4 Layers of Warehouse Automation
Let’s start by figuring out what warehouse automation stands for.
Automation is about uncovering repetitive tasks and finding ways to automate them. Warehouses are full of such tasks—from picking, storing, and shipping done by hand to manual data entering.
And the more manual operations are involved, the higher is the chance of human errors. Like misplaced orders, poorly planned packing paths, or storing too much inventory.
This leads to delays, unsatisfied clients or partners, and, in turn, lower margin.
Warehouse automation helps companies reduce the number of errors and expenses connected to them and put the workflow optimization on a new level.
But that’s in case warehouse owners find the right approach to its automation.
There are four warehouse automation levels called ‘layers’—from simple solutions like barcode labeling to AS/RS (automated storage and retrieval systems). All these layers require businesses to use some kind of automation software.
For example, here’s the interface of label printing software. By using labels, warehouse workers reduce the number of errors they could have made while tracking or shipping goods. Or entering their details into the system.
To choose the right layer of warehouse automation, business owners should be fully aware of their company’s baselines, goals, and limits (including financial ones).
Layers of warehouse automation by technologies:
Basic (scanners, applications, printed papers);
System (warehouse management systems, mobile radio frequency, voice-directed technologies);
Mechanized (conveyors, automated storage and retrieval system);
Advanced (automatic sorters, palletizer, robotic picking, AGVs, and AGV software).
Hardware and Software for Warehouse Automation
There can’t be any automation without hardware and software to control it.
When it comes to equipment, you’ll probably need some of these standard devices:
Portable data terminals
Barcode scanners
Label printers
Rugged tablets
Fixed-mount computers
Storage and retrieval machines
Rack structures
AGVs conveyors
Software Options
Warehouse owners might be fine with using paper books or Excel for their business, especially if their business isn’t large yet. But they should not forget that manual inventory management entirely depends on workers.
Usually, their job is to track goods and enter or write down information into a spreadsheet accurately and timely.
Though the process is quite simple, it works only for (very) small-size businesses. As the load grows, people start making errors.
One day, you may find out that a sofa is shipped to Alabaster, Alabama instead of Alabama, New York, and the buyers aren’t happy about it.
Inventory management done on paper is ineffective as it takes more of your employees’ time than a digitized system.
The most common digital options are warehouse management system (WMS), warehouse control system (WCS), or warehouse execution system (WES).
WMS
Warehouse management system controls inventory flows, labor tasks, orders—it’s mainly used for inventory management and tracking. WMS helps warehouse workers to manage orders within a few channels and control the quality of customer services.
WHS works best for small and medium-sized companies that want to start implementing an automation control.
Enterprises often build a few software products to make their life easier. For example, they may opt for custom CRM development, then integrate the CRM with an existing WMS. Both systems have to work together, fetching data from one another. Or it’ll be a massive loss of time and money.
WCS
The warehouse control system manages the flow of goods, cartons, and pallets as they’re being moved by conveyors, sorters, ASRS, and other automated robotic hardware.
WCS is a good fit for technologically advanced businesses. It synchronizes the work of multiple automated systems and let workers control them with a uniform interface.
WES
The warehouse execution system combines the features of both WMS and WCS. It’s suitable for task and inventory management as well as for picking cargo and its shipping. WES is a more complicated solution compared to WMS, yet not as complex as WCS systems.
WES is a good choice for small to mid-sized retailers.
TL;DR: WMS software is the most appropriate solution for non-automated companies. While WES and WCS are the right fit for technologically advanced businesses.
Examples of Successful Warehouse Automation
It’s always great to take a look at some real-life examples. Here’s the list of three companies that managed to automate their warehouses—and gain profit from it.
Amazon
One of the world’s largest retailers requires large storage spaces (Amazon’s 150 million cubic feet large). And such volumes require advanced management software.
Amazon uses an inventory management system to check where each item is stored and make routes for pickers to collect it. Besides, the company has enough money and talented developers to start using in-house robots, tailoring each unit to deal with a specific company-related task.
IKEA Components
This time, it’s the world’s leading home furnishing retailer that required an automated warehouse.
IKEA Components is the company’s subsidiary that handles the packaging and delivery of furniture accessories and parts. Here’s how they automated the warehouse located in Malacky (Slovakia).
In 2014, the warehouse was fitted out with a conveyor circuit, a hydraulic table for picking, and trilateral stacker cranes that handle 4,500 pallets. IKEA used the equipment to house whole pallets from the production area, then transport them to the picking area and, finally, the dispatch area.
The company also uses Easy WMS warehouse management software delivered by Mecalux to control all automated processes.
Nike
The world’s largest sportswear company has integrated robots from Geek+ into their warehouse in Japan.
Nike uses smart robots that carry packages directly to warehouse workers, making it easier and faster to pick goods and reduce warehouse operators’ workload.
By cooperating with Geek+, Nike managed to introduce same-day delivery to its Japanese customers.
There’s no general approach to warehouse automation, especially when it comes to picking the software and hardware. For example, warehouse owners may either build a web or mobile solution from scratch and tailor it to their business needs. Or use an existing product with slight modifications—or no modifications at all.
The point is to carefully think through what automation means for each business and what warehouse workers really need to work faster and make fewer errors.
