2 February 2022 Discover the technologies that enhance the performance of logistics operations, understand when to implement them, and how to prepare your DC for automation. Imagine this scenario: warehouse labor costs have been reduced by 70%. Your DC operates day and night with the same costs. Inventory counts are updated daily, and accuracy is close to 100%. Does it seem like an unattainable situation? For those who have already invested in warehouse automation, this is already a reality. Currently, relying on technology is no longer a differentiating factor but extremely necessary to remain competitive in the market, reducing costs and offering the best customer service. In this sense, the central question shifts from “do I need to automate my DC?” to “when to automate?”. Before acquiring new equipment and resources, the company must be prepared to receive the technologies and use them optimally. Planning is essential, respecting deadlines and budgets. Moreover, the team must be well-trained to handle the innovations. What is warehouse automation? When talking about automation, many think only of management software (WMS system), essential for accurately managing activities, ensuring productivity, and the best use of resources. But, in reality, complete automation also involves other technologies associated with the software, bringing even greater benefits, such as storage, picking, packaging, shipping systems, among others. These systems involve machines and robots that begin to perform functions previously carried out manually. There are three essential factors that allow these systems to operate autonomously: – Artificial Intelligence (AI) and machine learning – Better sensors and responsiveness – Integration with warehouse management software (WMS) Artificial intelligence refers to the robot’s ability to perform cognitive functions similar to human ones, such as learning, reasoning, and problem-solving. According to McKinsey & Co, the transportation and logistics sector is expected to gain an incremental value of 89% over time due to the adoption of artificial intelligence. This innovation can either make a machine operate autonomously, without human intervention, or assist people in performing their tasks. Sensors and responsiveness make the work of robots safer. Today, there are sensors of various modes, such as visual, auditory, thermal, and tactile. Used in conjunction with artificial intelligence and machine learning, sensors help robots make decisions. The WMS, in turn, besides managing the entire warehouse, controlling inventory, directing tasks, and systematizing information, is an ally for the operation of robots. The system provides all the necessary data and commands so that functions can be executed precisely and at the right time. And this is crucial for the proper execution of processes: artificial intelligence allows robots to make data-driven decisions, and it is the WMS that provides this data correctly, ensuring the assertiveness of the functions. Types of automated systems Currently, there is a wide range of automated systems capable of optimizing warehouse performance, such as AGVs or automated guided vehicles (transport and movement of goods), autonomous mobile robots (help in the picking and sorting process and also in daily inventory checks), drones (help optimize inventory processes), automated storage and replenishment systems (store products, pick and replenish goods automatically), and voice technology (used for order picking, receiving goods, storage and pallet disposal, inventory control, stock monitoring, and cycle counting). There are also systems that handle other processes, such as order distribution based on delivery routes, bringing greater agility and precision. With the use of these robots, it is possible to drastically reduce picking costs (which represent about 50% of the total costs of a traditional warehouse), in addition to increasing productivity. According to the Logiwa website, Alibaba Group, the world’s largest retailer and owner of AliExpress, has demonstrated how automated systems can be useful in its operations in China. By using 60 robots, they reduced human labor by 70%. As a result, their activities skyrocketed, with productivity tripling. When to automate the warehouse Consider the following questions: – Where are your current bottlenecks in the warehouse? – Do your employees spend a lot of time sorting orders and traveling long distances? – Do you spend a lot of time on inventory? – Do you often run out of stock due to inaccurate inventory? If you recognize that the operation’s progress is not what you desire and you already know where to improve, it’s time to decide which innovation to adopt. For a distribution center with a high volume of incoming and outgoing goods, large movements, and a large quantity of merchandise, automation can make processes more effective and agile. Moreover, if the company does not have much space available for stock, has poor accuracy, and deliveries are slow, automatic systems can also be the solution. By implementing innovative tools and resources, it is possible to reduce the space required for storage, increase accuracy, and performance within the DC. The so-called carousels, which can be vertical, horizontal, or with a “vertical shuttle” design, are recommended to ensure the safety and control of high-value-added product stocks. They also offer greater agility in separation and reduced movements, automatically bringing products to operators. Automated vehicles eliminate the need for specialized labor, reduce the incidence of load damage, and can work in three shifts. In other words, each innovation brings specific benefits, so it is important to know in advance all the available resources and define those that will meet your company’s needs. What to consider before implementing automation Before implementing automation systems, it is important to evaluate the cost-benefit ratio and return on investment (ROI), also remembering that it is not necessary to completely automate all operations. Each company has its specificity and can achieve high performance by being fully or semi-automated. For example, an e-commerce company struggling to organize delivery might need an automation system like a sorter, which distributes orders into channels based on each courier’s route, more than another technology like drones, which, in turn, can help a batch in large warehouses. Furthermore, the warehouse must have the necessary infrastructure to implement certain systems. As highlighted in an article by Mundo LogĂstica magazine, in the case of stacker cranes, for example, the warehouse must have a high ceiling, over 20 meters. In other cases, it is necessary to have a larger surface area to install structures that occupy large spaces. Therefore, before adopting any innovation, remember to assess whether your warehouse has all the necessary conditions. And it’s not enough just to set up the infrastructure. You must train your team to use new tools and implement a culture of innovation in the company, showing everyone the benefits obtainable with new technologies. They need to understand that technology adds value, brings more productivity, and improves everyone’s work. So? Are you ready to take the first step towards Logistics 4.0? With good planning, considering both investments, implementation deadlines, infrastructure, and team preparation, the automation of operations tends to be a success. Warehouse Automation: Are You Ready to Boost Your Business? 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