Automated robot conveyors in modern distribution warehouse.
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Warehouse automation is booming. Driven by the success of e-commerce, forecasts show that the market is expected to exceed $54 billion by 2030, driven by the growth of new autonomous mobile robot (AMR) technologies such as the 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 expect quick delivery of their orders. This in turn requires improved visibility into warehouse operations for efficient stock management and rapid response to customer needs. Without real-time insights, decision-making becomes challenging, leading to inefficiencies and delays. So what might the options be?
HOLISTIC warehouse systems can be an aid in managing high-volume warehouse operations and integrating complex supply chain logistics with warehouse and distribution processes, providing high levels of visibility and control that in turn enables better decision-making.
“‘Slotting used to be a very tedious job, used to only look at historical data, and used to be a manual thing to set up,'” said SAP’s Kam Ghossaini on the latest episode of the Future of Supply Chain podcast , “Today, with AI-driven slotting, the real-time system can use historical and real-time data, as well as forecast data, to continuously optimize where goods are placed in the warehouse.
Automation of warehouse operations with AI driven SySTEmS can significantly improve order fulfillment accuracy. Technologies such as automated storage and retrieval systems (AS/RS) and AI-powered robots increase accuracy 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 we think about the future, we (at least I) usually imagine robots being everywhere and performing every possible task. In the field of warehouse management, this futuristic vision has become a reality, with a wide range of robot options available, including pick and pack robotic arms, collaborative robots, warehouse drones and the emerging AMR.
“We see more AMRs today in warehouses, and these can dynamically navigate the warehouse,” Ghossaini said. “They have many advanced sensors and also use AI algorithm to adapt to changing environments. “In the past, when we talk about AGVs, you have to have a layout designed to drive these AGVs. Today, you can bring the AMR and throw it in the warehouse and it will work.”
While some of them are semi-autonomous robots that work alongside humans, helping with various tasks such as transporting goods or following workers around the warehouse as they pick up orders, others navigate independently using sensors and software. advanced, allowing them to create their own paths and avoid obstacles.
Obviously, robots have a significant advantage over manual work performed by humans alone, as they can work continuously without interruption, thus helping to ensure a stable workflow in the operation. By taking over manual and repetitive tasks, robots make the warehouse environment safer and more efficient for human workers.
Labor Shortage: Humans vs. Robots
The growth of e-commerce has increased the demand for warehouse workers. As online shopping continues to grow, warehouses must handle more orders and ensure on-time deliveries, putting additional pressure on an already tight labor market.
While repetitive, physically demanding tasks in warehouses are typically performed by humans, new generations of the workforce, including Millennials and Gen Z, may have a different view of such a career path that requires more advancement opportunities.
And that’s where robots come to the rescue. Putting robots in the warehouse has a more important benefit: it takes over repetitive tasks from humans, making room for more value-added ones.
“When robots take over physically demanding tasks, they allow workers to focus on more complex and rewarding activities,” said Ghossaini. “Furthermore, the deployment of robots could lead to the creation of new jobs in robot maintenance, programming and supervision, highlighting the shift to a more technologically advanced workforce.”
This will enable 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 warehouse management, but that’s only when you know how to use them properly to your advantage.
“With the power that AI brings and the power that robotics brings to make sure that they work together, it’s going to be more accuracy, less errors, more efficient, safer environment and ultimately, they have to be able to do more. with less,” Ghossaini said “AI needs to be across your supply chain, understanding customer demand, understanding your offering, and that’s where the value comes in.”
To learn more, discharge IDC Infobrief: “The Importance of AI in Supply Chain and Operations.“