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Advanced Warehouse Automation: Don’t Forget to Train and Upskill Your Employees

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Advanced Warehouse Automation: Don’t Forget to Train and Upskill Your Employees

The distribution centers (DCs) at the heart of today’s global retailers reflect the velocity of business, from the instantaneous purchasing made possible by e-commerce to the fulfillment operations that enable same-day deliveries. What makes this high-speed commerce possible is an increasingly wide array of high-performance automated warehouse systems and robotics.

Within DCs, sophisticated systems integrated with advanced software move materials faster, more effectively, and more accurately than ever before. Roaming shuttles deliver items directly to goods-to-person workstations, often supported by an automated army of fork trucks, palletizing robots, and robotic pickers.

Of course advanced automated systems and robots don’t operate in a vacuum. It is easy to forget the human side of these systems and the role it plays in their success. Like all technologies and tools, even the most advanced automated systems and robots must be backed up by people who are skilled in their use and best practices required to realize their full potential, maintenance and upkeep. 

Any system implementation is incomplete if it does not also include strategies to train and upskill employees. To do so, consider the following:

  • Focus on the opportunities that come with automation and robotics. For those in roles that are being augmented with automation, the opportunity to learn about the care and use of such systems represents a significant career advancement to acquire highly marketable skills. Additionally, this limits the manual, highly-repetitive tasks that make warehouse roles some of the most injury-prone according to recent estimates from the Bureau of Labor Statistics. Leadership should stress these and other positive impacts.
  • Experience in manual warehouse roles is often very valuable in the operation of automated systems and robots. I recently worked with a client’s pickers during the initial planning sessions for a new, highly automated high-capacity DC. As in other deployments, many of the most experienced and longstanding employees in manual roles possessed the most comprehensive understanding of the business processes that would need to be considered. Their knowledge of workflows was particularly valuable. These individuals are therefore some of the first that should be considered, not only for new roles focused on the operation and upkeep of automation, but also the upskilling required.
  • Look for employees who possess the talents and desire to work with automated systems like robots, AS/RS, autonomous vehicles, etc. Candidates should be driven employees, but those who are mechanically inclined are not the only ones to consider. Gamers, for example, are typically very strategic and adept at seeing patterns – an inclination directly applicable to fast-based warehouse environments. Remember that desire and attitude are key: the skills required to use, perfect and maintain automated systems can be learned and honed. Ideal candidates should also be self-starters who can take advantage of the autonomy automation gives to end users.
  • If possible, involve your top-pick employees and members of your automation team during the construction phase of automated and robotic systems. This is particularly important when new DCs are built or facilities are modernized. A large DC for a multi-channel retailer can include innumerable components. You want your workforce to be immediately familiar with the system when you turn it on – not a year after its operational. Early in your automation project is also the perfect time for your employees to learn from those who implement the systems and robotics and creates an opportunity to upskill in-house staff that should not be missed.
  • Create opportunities to invest in your employees. Access to a formal “Higher Education” course of study is inaccessible for many, and at times over-emphasized in the corporate world. There is, however, an alternative. Many colleges and universities now offer established training programs and certifications in robotics and engineering-related topics that can be used to strengthen in-house automation teams. Often such programs can be designed to directly address your operational imperatives.

Behind every great automated warehouse are knowledgeable and skilled people. Today, when the pace and scale of business requires more automation and innovation than ever before, it has never been more important to focus on the human resources needed to operate it, maintain it and perfect it over time. Keeping that in mind is the first step in realizing the full potential of the most promising innovations now revolutionizing materials handling.

Author’s Bio

Colin Thompson has more than two decades of experience in materials handling. He currently serves as the Vice President of Operations at Vanderlande, North America, where he oversees day-to-day operations. Colin received his Bachelor of Science in Computer Sciences from the University of Liverpool and also serves on the Robotics and Mechatronics Engineering Industrial Advisory Board at Kennesaw State University.

 

micro fulfillment

LET’S GET SMALL: WHY MICRO FULFILLMENT IS SO BIG RIGHT NOW

It’s almost hard to believe that two years have passed since the onset of the COVID-19 pandemic and its merciless impacts on the supply chain, consumer behavior and how the world conducts business as usual. There is really nothing “usual” about conducting business nowadays, particularly for fulfillment operations in a myriad of sectors now saturating the e-commerce market. 

The fact of the matter is that e-commerce is no longer just thought of for a holiday list or bargain deal that cannot be found in traditional brick-and-mortar shops. E-commerce is becoming more of a first option for some and a permanent solution for others. Grocers, retailers, department stores and beyond are feeling the full effect of the e-commerce trend and despite the pandemic, it could very well be here to stay. 

So, how does this change the way fulfillment providers conduct operations? According to KPI Solutions’ Brittain Ladd, micro fulfillment is the key to capturing lost dollars and keeping up with demand.

“About 20% of all sales today are direct-to-consumer,” Ladd shares. “Prior to the pandemic, only about 3% of grocery sales were online. And only about 6% of all retail sales were online prior to the pandemic, so we’ve seen a massive shift. Grocery retailers and retailers of general merchandise had to change their business models to keep up with direct-to-consumer demand.”

Ladd serves as the chief supply chain and marketing officer with Kuecker Pulse Integration (KPI) in addition to his position as a Forbes Councils member. KPI Solutions is the result of an integrated partnership between Kuecker Logistics Group Inc., PULSE Integration and QC Software. Known best for bringing system integration and robotics automation to a variety of sectors, KPI Solutions approaches fulfillment operations uniquely by implementing and innovating their own software to meet demand.

“KPI Solutions has partnerships with leading robotics companies, and we can install basically any system that exists,” Ladd says. “We work with some of the largest global companies to help them automate their fulfillment and sharpen their strategy to identify more cost effective and innovative ways to meet customer demand. Consumers want more speed, especially now, and a lot of analysts are confused because they fail to realize that the goal isn’t to just deliver groceries in 10 to 15 minutes, it’s to deliver apparel, shoes, electronics and other products as well.”

So, where does micro fulfillment fit? And more importantly, how can it support fulfillment operations now and in the future? Let’s start by understanding how companies–such as grocers—a re struggling beyond the surge in e-commerce. Ladd shares that contrary to the widely held belief, grocers are suffering significantly with e-commerce, as they not only spend more to fulfill these orders, but they must keep up with the labor involved in third-party services, which further complicates the process.

Keep in mind, grocery retailers are now faced with a new wave of demand and speed. Ladd shares that companies in Europe that have entered the U.S. market, such as Buyk and Jokr, are now offering “rapid grocery delivery” in as little as 10 minutes.

“On average, grocery retailers lose anywhere from $7 to $15 on every online order they fulfill,” Ladd says. “And in some cases, they can lose as much as $25 on every online order they fulfill. Most retailers barely break even on any of their curbside pickup orders, except for the product since it’s a little higher value. 

“Imagine being a retailer who is now forced into a model where they’re having to change everything they do to meet the changing demands of consumers, but everything the consumer wants them to do the retailer loses money on. That’s the challenge.”

That’s also where micro fulfillment centers and technology can not only capture these costs but turnaround the way e-commerce fulfillment is streamlined. 

Geek+, Berkshire Grey, AutoStore, and Addverb Technologies are a few of the companies that are innovating fulfillment operations through automated robotic systems. These fully automated systems reduce the chances for human errors with mobility and capability of reaching inside inventory bins quite literally to fulfill orders. Ladd shares that most of these automated solutions cost around $1.2 million to $1.5 million with a return on investment realized within 18 to 24 months, paying for themselves while re-inventing fulfillment.

“The best way I can describe it is like holding a Rubik’s cube in front of you,” Ladd says. “Each of the cubes has some type of inventory inside and sitting on top of the Rubik’s cube are robots that go back and forth and side to side reaching down and picking up these cubes and moving them from one side to another, pulling out inventory. That’s exactly what they do as a robotic picking and fulfillment system.”

Embracing technology is what comes full circle for retailers attempting to overcome the e-commerce surge. And options such as these not only fully automate fulfillment processes but keep human involvement to a minimum. Retailers are catching on and the U.S. market is now starting to see what the European market has already adopted. In fact, Ladd shared that three European companies have recently entered New York City, and they are bringing exploding growth with them.

What makes these systems even more enticing (beyond the fact that they are fully automated) is the ability to operate after-hours–or in the dark when stores are closed. Micro fulfillment centers are intelligent enough to automate the fulfillment process, but small enough that grocery retailers can install them inside their stores–completing all of the fulfillment tasks and mileage usually completed by employees. 

“These systems are quite easy for retailers to embrace and adopt,” Ladd says. “Companies including Kroger, H-E-B, Albertson’s, Instacart and DoorDash are among the more recognized brands that are exploring these innovative options and either installing these systems or exploring how to use these systems. Make no mistake, the future of retail is robotics. Retailers that don’t embrace robotics will never be able to survive long term.”

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Brittain Ladd, chief supply chain and marketing officer with KPI Solutions, is recognized as a leading expert in business strategy, supply chain management, logistics and last-mile delivery. He was one of the first individuals to research, design and recommend that retailers install micro-fulfillment centers in their stores and chains.