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Reimagining Warehouse Robotics: From Silicon Valley to Assembly Lines

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Reimagining Warehouse Robotics: From Silicon Valley to Assembly Lines

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Advancing technologies have increased efficiency in numerous industries. Companies are thankful for robotics and how they’ve changed best practices for running a warehouse. What once was a limited technology has become a staple for warehouses worldwide. 

Warehouse robots can make life easier for human workers and help them be as efficient as possible. Here’s how warehouse robotics has evolved and what the future holds.

How Has Warehouse Robotics Changed Over Time?

Warehouse robotics has dramatically evolved since its mid-20th-century beginnings. The changing technology has made warehouses safer and more efficient. Here are three ways warehouse robotics has changed to benefit companies worldwide.

Starting the Evolution

Understanding modern warehouse robotics starts with the first innovations. Using robotics in manufacturing and logistics on a wide scale began in 1961 in Ewing Township, New Jersey. General Motors (GM) began using a robotic arm from George Devol, the man who built the first programmable industrial robot. GM paid about $18,000 for the robot and changed the automotive industry. 

Devol’s industrial robot may seem primitive in the 21st century, but the machine was crucial in the history of warehouse robotics. The robot, Unimate, transferred die castings onto the car’s body. Unimate improved the safety of GM plants because assembly line workers could harm themselves with toxic fumes from the die-casting transferral. Devol’s Unimate sparked a robotic evolution across auto manufacturing and other industries.

Adding Sensor Technology

Sensors play a significant role in warehouse robotics, letting machines understand their surroundings and act accordingly. Employing sensors gives robots human-like abilities while still keeping their machine identity. Sensor technology is still evolving, as seen in the automotive industry. Sensors help fleet managers make their company safer, considering humans cause most car accidents in the United States. With sensors, autonomous vehicles are a closer reality.

In warehouse robotics, sensor technology has become crucial for similar reasons. Robotics use sensors to navigate the warehouse floor autonomously and perform tasks. Among the most critical advances in this sector has been light detection and ranging (LiDAR). LiDAR technology is essential for robots to create a 3D map and avoid bumping into obstacles. Additionally, they can optimize their routes within the warehouse to remain efficient.

Improved Durability

Increased reliance on robots means these systems must have maximum reliability and durability. Downtime significantly impacts efficiency despite implementing robots to improve it. Research shows downtime costs manufacturers about $260,000 per hour and the auto industry about $50,000 per minute. Fortifying warehouse robots to strengthen them has been crucial for their staying power in the 21st century. 

Developers have strengthened warehouse robotics by improving their bodies and frames. Metal has proved effective due to its safety, durability and efficiency. Manufacturers have found metal castings to be formidable solutions, with about 90% of all manufactured goods containing them. 

How Will Warehouse Robotics Grow in the Future?

The future of warehouse robotics is bright, with a growing market this decade. Facts and Factors research shows the robot as a service (RaaS) global market will grow by 16.5% annually, leading to a $44 billion market by 2028. These four innovations will drive the industry’s growth in the coming years. 

Interconnecting the Warehouse

In its infancy, warehouse robotics may work with small sections of the facility. While effective, this limitation can inhibit warehouse employees and their ability to connect with other departments in the building. However, the future of warehouse robotics is bright with evolving technology in connecting machines across large spaces. 

Evolving guidance systems will let robots work in every section of the warehouse and increase efficiency. While a fully robot-operated warehouse may be unlikely, robot adoption will increase with e-commerce demand. The European Business Review says the world should see about 50,000 robotic warehouses by 2025, emphasizing how widespread this advanced technology has become. 

Expanding Autonomous Mobile Robots

Autonomous mobile robots (AMR) are growing a stronger foothold in warehouses because they build upon automated guided vehicles (AGV). The key difference is that AMRs are even more intelligent with their programming. Warehouses can employ AMRs and let them navigate the floor by themselves. Employees don’t have to train them in navigation, saving time and improving efficiency in the warehouse. 

AMR’s evolution has let their responsibility grow in the warehouse. Modern AMRs excel in picking and packing, reducing the burden on human laborers and heightening accuracy in order fulfillment. Even careful human workers might not match the accuracy of AMRs in this task. Many warehouses also employ AMRs in receiving and storage optimization, assisting the company in making the most of its current space. 

More warehouses will adopt AMRs this decade to work alongside their human workers. Evolving technology and increased competition will make it more affordable for smaller businesses and startups. The advantages of AMRs are hard to pass up, considering how they boost safety and productivity.

Wielding Robots for Last-Mile Delivery

Last-mile delivery is the last step, albeit a crucial one, to ensure client satisfaction with their purchase. Humans have executed last-mile deliveries since the beginning of package deliveries, but robotics will soon play a more significant role in this step. Some companies have already tested last-mile delivery robots for bringing food and small items to the end user’s doorstep. 

For example, Kiwibot has machines delivering food on the University of California, Berkeley campus. 

While last-mile delivery robots have existed for a few years, logistics professionals should expect this service to expand worldwide in large cities. The next step for last-mile technology is to make these robots more efficient. TeleRetail, a Swiss company, has developed the Pulse 1 robot to reduce emissions and energy consumption. The Range+, a newer, solar-powered robot, embodies the shift to renewable energy in robotics. 

Cutting emissions is a focal point for warehouses and e-commerce as a whole. Packaging, transportation and building energy consumption combine for a detrimental environmental impact, so increasing robotic efficiency is necessary.

Employing More Drones

Expanding robotics in and out of the warehouse will rely on drones. Crewless aircraft has evolved sharply in the last few decades and will only improve with its technology. Warehouses can employ drones for multiple purposes, such as inventory management, inspection and monitoring. Modern drones have cameras and sensors powerful enough to give warehouse managers a real-time look at their stock. 

Drones will open the door to expanding warehousing and shipping this decade. With drone technology, shipping companies can easily reach rural areas without using boats or crewed aircraft. Additionally, drones will reduce shipping times and increase customer satisfaction when they can receive their orders in a few hours rather than a few days. Companies like Amazon are heavily investing in this technology.

Taking Modern Warehousing to a New Level

Efficient warehouses are a must, considering today’s e-commerce demand. Shareholders demand well-oiled machines no matter what the company ships worldwide. 

With robots, warehouses have increased productivity and reduced downtime thanks to speedier processes. The future of warehouse robotics is bright, with evolving technology pushing warehouses forward. 

 

smart
Global Logistics, Global Trade Daily, Warehousing

Smart Warehousing Market to Surpass USD 122 Billion by 2036

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According to recent study published by Research Nester, the global smart warehousing market size is expected to cross over USD 122 billion by 2036 and is projected to expand at a CAGR of over 15% from 2024 to 2036. 

Increasing Demand for E-Commerce to Promote Global Market Share of Smart Warehousing

Big data and analytics, artificial intelligence, autonomous robotics, augmented reality, and the Internet of Things are all part of the Industry 4.0 revolution, which is revolutionizing modern warehouse operations and is anticipated to drive market growth. There’s a little over 2.5 quintillion bytes of data generated every day. The value of Big Data Analytics in the healthcare sector could amount to 79.23 billion US dollars before 2028.

Moreover, with eCommerce’s popularity rising and digitalization increasing, the smart warehousing industry is on an upward trend. To reduce errors, a number of supply chain suppliers from all over the globe use cutting-edge technologies such as barcode scanner software, automatic driving aids, or radio frequency identification to improve and speed up their networks. It is important to make use of these technologies for storage so as to develop the market.

Some of the major growth factors and challenges that are associated with the growth of the global smart warehousing market are:

Growth Drivers:

    • Surge in demand for mobile devices as a means to manage operations swiftly and effectively
  • Rising focus on warehouse 4.0 for a more efficient and safer warehouse

Challenges:

In view of the fact that these organizations stock smaller quantities than large organizations, a number of small businesses do not have their own warehouses. Multiple organizations cannot afford to invest in smart warehousing solutions due to limited income from small and medium-sized enterprises. Lack of enthusiasm in upgrading existing systems as well as limited growth plans makes smaller entrepreneurs unable to understand the benefits of smart warehousing solutions. The adoption of smart warehouse solutions by different SMEs is also an obstacle to significant investment and high initial costs associated with the implementation of such systems and security and privacy issues are some of the major factors anticipated to hamper the global market size of smart warehousing. 

By offering, the global smart warehousing market is segmented into hardware, software, and services. The hardware segment is to garner the highest revenue by the end of 2036 by growing at a significant CAGR over the forecast period. The growing popularity of smartphones in many vertical areas, which can be quickly deployed in inventory control systems & and automated picking tools to simplify the management of inventories and lower total labor costs, has contributed to this growth. In response to the growing consumer demand for the Internet of Things, sensors, and AI technologies that will improve warehousing operations, vendors are beginning to develop smart warehouse equipment. More than 29 billion Internet of Things (IoT) devices are expected to be installed worldwide in 2030, nearly doubling the number from 15.2 billion in 2020. China is expected to have more than 8 billion consumer devices by 2030, which will be the world’s largest market for the Internet of Things.

By region, the Europe smart warehousing market is to generate the highest revenue by the end of 2036. In order to ensure that all products are safe and able to be traced, Europe has very strict regulations in the area of healthcare and pharmaceuticals. Smart warehousing systems capable of real-time monitoring, tracking, and notification are required to comply with these demanding standards in the region.

This report also provides the existing competitive scenario of some of the key players of the global smart warehousing market which includes company profiling of Oracle Corporation, SAP SE, Infor, Inc., Softeon, Korber AG, Manhattan Associates, Inc., PTC, Inc., Tecsys, Inc., Epicor Software corporation, and others.

Source – https://www.researchnester.com/reports/smart-warehousing-market/5313 

Author bio

Aashi Mishra is currently working as a content developer with the Research Nester. An electronics engineer by profession, she loves to simplify complex market aspects into comprehensive information. She has experience of 3 years in this domain where she has mastered in tech writing, editing, copywriting, etc. 

 

snapcontrol
Global Logistics, Global Trade Daily, Warehousing

SnapControl by Synergy Logistics: Revolutionizing Warehouse Automation with Data-Driven Precision

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Synergy Logistics, a frontrunner in warehouse technology, is celebrating the success of its cutting-edge multi-agent orchestration platform, SnapControl. This innovative software is proving to be a game changer for warehouses, providing seamless control over all automation devices and robots within distribution centers.

SnapControl distinguishes itself by offering comprehensive data capture capabilities, enabling businesses to assess real-time operational value generated by each device. This data-driven approach empowers decision-making, ensuring optimal performance and efficiency. The software’s inaugural deployment with a prominent U.S. online retailer showcased its transformative capabilities.

Through data analysis, SnapControl optimized task allocation between human and automated resources, achieving a remarkable sixfold increase in productivity. This translated into substantial labor savings, exceeding half a million dollars, with an impressive investment payback period of just 23 weeks, resulting in savings of over $40,000 per week on average.

Out of more than 40,000 stock picks, SnapControl seamlessly controlled over 24,000 automated tasks, equivalent to 61% of the workload. This automation significantly lightened the workload for existing warehouse staff, showcasing the software’s effectiveness in streamlining operations.

Smitha Raphael, Chief Product & Delivery Officer for Synergy Logistics, highlighted the software’s swift deployment, emphasizing its value in providing a complete data picture for tangible labor savings, accurate asset management decisions, and rapid time to value.

SnapControl seamlessly integrates with the warehouse management system (WMS) SnapFulfil and is compatible with any other incumbent WMS, Order Management System (OMS), or e-commerce front-end system. This versatility allows SnapControl to orchestrate task prioritization, automate workflow allocation, and assess the suitability of devices for specific operations.

With its comprehensive capabilities, SnapControl emerges as a pivotal tool in the landscape of distribution center automation. By interpreting bi-directional communication between machines and advanced WMS, the software facilitates efficient, automated decision-making—a critical component of the second wave of automation recognized by industry analysts. This targeted automation approach positions SnapControl as a key player in driving productivity improvements as robot fleets expand from various vendors and diversified portfolios.

mecalux
Global Logistics, Global Trade Daily, News, Warehousing

Mecalux and Siemens Unveil AI-Driven Robotic Order Picking System for Optimized Warehousing

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Mecalux, in collaboration with Siemens, has introduced an advanced solution to revolutionize order picking in warehouses and logistics centers, leveraging the power of artificial intelligence (AI) technology.

Developed at Mecalux’s technology center in Barcelona, Spain, this cutting-edge collaborative robotic picking system is set to enhance order fulfillment processes.

Key Highlights:

1. Siemens’ AI Technology Integration: Mecalux’s new robotic picking solution integrates Siemens’ groundbreaking SIMATIC Robot Pick AI technology, which relies on deep learning algorithms to automate and streamline the order picking process. With AI embedded into the programmable logic controller (SIMATIC S7-1500), the collaborative robot (cobot) operates autonomously and with unparalleled precision.

2. Strong Alliance: This innovative solution is the result of a robust partnership between Mecalux and Siemens, combining their expertise in industrial automation technologies. Their long-standing collaboration has enabled the creation of technology solutions to address the challenges faced by the logistics industry.

3. Versatile Solutions: Mecalux offers two collaborative picking solutions. The first is a cobot designed to work safely alongside human operators, and the second is an automated system that operates independently in high-performance pick stations.

4. High Efficiency: Developed to operate around the clock, the Mecalux system can execute up to 1,000 picks per hour, making it suitable for businesses across various sectors seeking to optimize their order processing.

5. Smart Vision System: A camera positioned above the cobot’s picking box captures a 3D image of the items, facilitating order preparation. The AI algorithm, trained on millions of items, makes split-second decisions to identify collision-free picking positions for items, even with complex shapes. Importantly, it doesn’t require prior knowledge of the 3D model of the items, thanks to the advanced artificial intelligence algorithm.

6. Precision and Adaptability: The cobot precisely deposits the selected items into the picking box, making the most efficient use of space. Mecalux has designed an algorithm to ensure the items are placed correctly.

7. Dynamic Gripping System: Guided by Mecalux’s warehouse management software, the collaborative picking system can automatically adapt its gripping mechanism to suit the type of merchandise it handles. When presented with a new box, Siemens’ vision system and AI algorithm identify the items inside and determine the most optimal way to pick each product.

8. Advanced Hardware Platform: Siemens employs its robust S7-1500 PLC range, along with the TM-MFP (Technology Module-Multifunctional Platform), to execute AI technology, all while maintaining stringent cybersecurity standards and utilizing the SCALANCE X family of intelligent switches.

This collaborative picking system signifies a significant stride towards operational efficiency in warehouses and logistics. Mecalux and Siemens are steadfast in their commitment to delivering cutting-edge technological solutions that benefit their clients and elevate the standards of warehousing and order fulfillment.

AI warehouse gartner
Global Logistics, Global Trade Daily, Technology, Warehousing

Research from Gartner Predicts Over 75% of Companies Will Adopt Warehouse Automation By 2027 

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GreyOrange is recognized in three categories of the 2023 Gartner® Hype Cycle™ for Supply Chain Execution Technologies.

A recent Gartner report predicts that “by 2027, over 75% of companies will have adopted some form of cyber-physical automation within their warehouse operations.” GreyOrange Inc., a global leader in automated robotic fulfillment and inventory optimization software, is recognized as a Sample Vendor in three technology segments of the Gartner report, Hype Cycle for Supply Chain Execution Technologies, 2023 for Multiagent Orchestration Platforms, Mobile Sortation Robots, and Mobile Robotic Goods-to-Person Systems.

With solutions like the GreyMatter™ fulfillment orchestration platform and collection of autonomous mobile (AMR) robots and other execution agents under its Certified RangerTM Network (CRN) that can help businesses, GreyOrange was reported as a vendor in the categories of Multiagent Orchestration (MAO) Platforms, Goods-to-Person (GSP) Systems and Mobile Sortation Robots.

According to Gartner, “As robot fleets expand, companies will have to transition management practices from a focus on people to a focus on automation design, which will drive the need for these types of solutions. As robots assume more responsibility for process execution, the process changes can be dramatic. Work assignment processes, which were largely built for people, will need to be completely redesigned. As robotic fleets become more heterogeneous, coordinating work between robot platforms becomes more difficult while important.”

The GreyMatter fulfillment orchestration platform demonstrates GreyOrange’s industry leadership as the company has redesigned the automation execution process.

“At GreyOrange we pride ourselves in leading the industry in automation software by offering a solution that allows other robotic vendors to seamlessly integrate into our GreyMatter fulfillment orchestration platform to create one complete, fully-customized system,” said Akash Gupta, co-founder and CEO, GreyOrange. “Given the complexity of meeting end-to-end fulfillment needs that include using real-time data to distribute work amongst and communicate with diverse fleets of agents, mapping and decision-making must be automated as much as possible.”

warehouse management You Need to Communicate Your E-Commerce Forecasting to Your Fulfillment Center
Global Logistics, Global Trade Daily, Warehousing

How top 3PLs are Automating Warehouse Cross Docking 

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Cross docking requires the ability to validate and accept incoming stock with accuracy and speed and consolidate outgoing consignments based on last-mile destinations,”

— Shaun Hagen, CartonCloud COO/ Head of North America 

With the right management and workflows in place, implementing cross docking can save you hours, and reduce costly storage overheads. So what is cross docking, and how does it work? 

Cross docking (and transloading) is used frequently in American logistics and global supply chains to optimize delivery routes and transport legs, and reduce unnecessary warehouse storage periods. 

Logistics software provider CartonCloud summarizes cross docking as where a staging area within a warehouse is used for short-term holding, as stock is sorted, collated and assigned to outgoing runs based on delivery location. When implemented correctly, cross docking can provide the ability to optimize your supply chain to be as fast and productive as possible. However, navigating incoming stock, handling stock in staging, and collating stock to outgoing runs to optimize truck load and last-mile delivery can be extremely complex. 

Many American logistics businesses use the trusty pen and paper for cross docking operations, even when they have a WMS in place for other warehouse operations — however, paper records can be notoriously inaccurate, and create hours of admin time to manually enter data into warehouse systems after the fact. So why are warehouses still using paper? The recent Q1 2023 CCLI industry survey found a staggering 97% of companies currently use paper records for at least one operation in their day-to-day business. 

The nature of cross docking requires fast processing and allocations, and clear, concise reporting in real-time — something a lot of WMS software providers are unable to deliver, and paper processes miss the mark on. Having the ability to automate the process with cloud-based software saves time and increases accuracy. Until now. 

“For cross docking, you need to have the ability to easily validate and accept incoming stock with accuracy and speed— and also have the ability to consolidate and allocate to outgoing consignments for delivery, based on their last-mile destinations,” explains CartonCloud’s COO/ Head of America Shaun Hagen. 

“We work with a range of logistics providers to help them streamline their cross docking operations, ultimately moving them off pen and paper or other platforms, to use barcode scanning and automated allocation— which boosts their accuracy and saves a huge amount of time.” 

Many American and global supply chains often have freight passing through several warehouses before it is assigned to the delivery run for its final destination. Cross docking removes unnecessary miles and storage periods, by optimizing delivery runs based on grouped end destinations.

Mr Hagen explained using the cloud-based system to automate data entry and streamline freight validation and order details for optimized cross docking can maximize supply chain efficiency by coordinating outgoing stock within combined transport consignments. 

Ohio-based 3PL warehouse ODW use CartonCloud for cross dock operations and contract logistics order charge capture. 

“It has been valuable both as a stand-alone WMS and a complement to our own WMS,” said ODW’s Ms Gates. 

Want to know if cross docking is right for your business? CartonCloud’s powerful cross dock features provide logistics businesses across the United States and North America with transparency over incoming stock, in order to manage and track stock sorting and movement. Find out more at www.cartoncloud.com, and book a FREE DEMO today to see the system in action.

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily, Warehousing

Warehouse Management: Top 6 Order Picking Problems and How to Solve Each

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One thing easily stands out when it comes to warehouse management: you must be prepared to organize, maintain and manage it as best as you can. But while this may sound like an easy-to-do job, the truth is that you can’t do it on your own.

While optimizing the entire process may help, your business may still be exposed to errors that slow down its operations and affect its bottom line. If your business has started experiencing order-picking problems, it is time to learn how to fix them.

As a warehouse executive, you can showcase your leadership skills by teaching your team how a warehouse management system can assist in addressing the issues at hand. Below is a look at the top six most common problems you’ll likely face and how to handle each.

1. Accidental Redundancies

A cursory look at any warehouse operation shows multiple operations happening at any one time. Every ongoing process follows a particular order which ensures that nothing goes wrong. In an ideal situation, none of these operations collides or get repeated severally.

The presence of redundancies in your operations will only lead to mistakes and lost time.
To address this, implement a warehouse management system to automate your operations. With it, you can rest assured that employees won’t pick, mark, and mistakenly ship one order multiple times. Integrating barcoding tech into it will assist in preventing duplication.

2. Misplaced Items

How often do your workers head to where a product is supposed to be, only to find that it has been moved? Marking and placing items in the wrong bin or category causes your pickers to spend additional time trying to trace the missing item. This, in turn, affects trucking efficiency!
Improper marking leads to delayed orders, delayed shipping, and frustrated customers.

A frustrated customer will, in most cases, leave a negative review affecting your conversion rates. You can increase efficiency by using a warehouse management system. The system tracks the location of every product in the warehouse, allowing for better order fulfillment.

3. Employees Choose the Wrong Product or Quantity

When an employee fulfilling an order chooses the wrong product or quantity, you hope that the packers will notice the issue. Regrettably, these are some of the problems that go unnoticed in warehouses where speed is critical to order fulfillment.

Sending out an incorrect order is expensive and makes your business look unprofessional, especially when there are too many returns. Remember that too many complaints online regarding your order fulfillment rates will affect your overall business reputation.

Once again, you can solve this issue by ensuring all products being fulfilled get scanned using a barcode scanner. The scanner will send a notification to the pickers ensuring this mistake gets rectified before the product gets to the hands of the packers.

During dispatch, the packer can then scan it again to confirm all its details are correct.

4. Your Warehouse Layout Is a Mess

A 2018 survey on warehouses by Logistics Management established that only 68% of all warehouse space is well utilized. And the clearest indication that something is wrong is when you find that your vertical space is open, aisles are cramped, and employees are confused.

The first thing that you’ll ask yourself here is how a warehouse management system can help solve this mess. What you may not realize is that many such programs can use gathered data and 3D modeling to provide layout recommendations.

Using the information the system provides can also offer a glimpse into which products will soon go into demand, depending on the season. From this, you can have the employees update the warehouse locations and layout of items accordingly, bringing the in-demand items closer.

5. Relying on the One Order Per Picker System

Whenever a new order comes in, what’s the recommended action? Does one picker search the warehouse for every product on the order list, or do you send multiple selectors to look for different products? While at it, have you considered using warehouse zoning for product pickups?

Different strategies work differently for each warehouse. But regardless of how you look at it, having a picker locate one product per run is ineffective. It will lead to the wastage of valuable resources making the whole order fulfillment process last longer than it should.

Often this happens in warehouses where pickers have to wait for printed order papers before scouring for products. With a sound warehouse management system, you can reduce the time wasted by using coordinated workflows.

The system will assign specific runs to one employee, enabling them to collect multiple items simultaneously. In such a scenario, the person on that run will get all the items on their order sheet from one zone, leading to better order fulfillment rates.

6. Who Selected a Certain Order?

Lack of proper accountability in the warehouse leads to increased irresponsibility. Your people will become demotivated, and their productivity will begin to decline. A functional warehouse needs visibility and accountability.

It calls for you to have a way to know who picked what order and at what time.
An ideal warehouse management system can help you set up detailed workflows. The workflows allow you to track the progress of each order. Using it, you can communicate with your people, monitor their performance, and send notifications whenever necessary.

Besides communication and alert notifications, such a system also increases order traceability. If a problem occurs with the order, you can use the system to track its progress to try and determine when the issue may have happened and take measures to prevent a recurrence.

Conclusion

Warehouse management is among the most essential processes that typically occur in a warehouse. Given its importance, this is not something that you can afford to implement incorrectly.
Considering that most processes in the warehouse are linked in a way, a problem in one phase can lead to costly mistakes in the subsequent phases. All the six problems mentioned above provide a clue about what can go wrong in a warehouse at any time.

Fortunately, you can prevent this by educating yourself and your people on the warehouse challenges you will likely face and how to deal with each. In the long run, you can implement a warehouse management system to reduce the damage they may cause or prevent them from happening.

Author Bio

Sean Richardson is the owner of Complete Plumbing Solutions, a full service plumber in Cork.

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily

A Dampening Goods Demand Has Warehouses in a Bind 

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After two years of declining availability, the industrial real-estate vacancy rate is up again. According to real estate services firm Cushman & Wakefield, the first quarter of 2023 posted a 3.6% nationwide industrial real-estate vacancy rate marking the third straight quarter increase. Warehouse space and logistics networks continue to be pared back and the remaining half of 2023 will appear to follow a familiar trajectory. 

The pandemic fueled a red-hot warehouse hiring spree adding roughly 700,000 workers over a two-year period. Average hourly pay increased by 8% and investment in logistics networks was beefed up. Tales of companies worried that workers would leave their centers for modest pay increases down the street were common. Workers maintained tremendous leverage with US warehousing employment hitting a peak of 1.96 million jobs in June 2022. Since then, however, over 41,000 jobs have been shed. 

Like most sectors, broader economic uncertainty is driving this cooling trend. There’s been a pullback of online sales and a looser US labor market has left employers with little wiggle room. Many companies had put in place attendance bonuses and similar incentives during 2021 and 2022 to retain workers, especially around the end-of-year peak season. The market for 2023, however, is drastically different, and even though the US jobs market overall has remained strong (consumer spending has boosted 1.5 million jobs over the first five months of 2023), the nature of the spending is what matters. 

For example, Americans spent more on services in May, but less on goods. Despite recession fears and lingering inflation, air travel was a service that continues on an upward trajectory. Many airlines project healthy profits and a continued strong summer demand, as does the healthcare industry. But warehousing and distribution networks rely on goods. E-commerce sales dropped by 15.1% in the first quarter of 2023. Contrast this with the middle of 2020 when e-commerce sales represented 16.5% of overall US retail sales. 

According to the Bureau of Labor Statistics, compared to two years ago the number of warehouse workers is still approximately 275,000 jobs ahead. But the ramp-up was so extreme that it will take time to move back to a more calibrated level. The average hourly wage for a US warehouse worker stands at $23.71 – this remains 8% higher than in 2022. Contrast this with pre-pandemic hourly wages in the $14 to $18 range and there is room for downward movement. E-commerce sales will eventually pick up but it’s hard to say if the pandemic peaks can be replicated again. 

 

 

 

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily

Warehouse Management: Top 6 Order Picking Problems and How to Solve Each 

Leave a comment

One thing easily stands out when it comes to warehouse management: you must be prepared to organize, maintain and manage it as best as you can. But while this may sound like an easy-to-do job, the truth is that you can’t do it on your own.

While optimizing the entire process may help, your business may still be exposed to errors that slow down its operations and affect its bottom line. If your business has started experiencing order-picking problems, it is time to learn how to fix them.

As a warehouse executive, you can showcase your leadership skills by teaching your team how a warehouse management system can assist in addressing the issues at hand. Below is a look at the top six most common problems you’ll likely face and how to handle each.

1. Accidental Redundancies

A cursory look at any warehouse operation shows multiple operations happening at any one time. Every ongoing process follows a particular order which ensures that nothing goes wrong. In an ideal situation, none of these operations collides or get repeated severally.

The presence of redundancies in your operations will only lead to mistakes and lost time.
To address this, implement a warehouse management system to automate your operations. With it, you can rest assured that employees won’t pick, mark, and mistakenly ship one order multiple times. Integrating barcoding tech into it will assist in preventing duplication.

2. Misplaced Items

How often do your workers head to where a product is supposed to be, only to find that it has been moved? Marking and placing items in the wrong bin or category causes your pickers to spend additional time trying to trace the missing item. This, in turn, affects trucking efficiency!
Improper marking leads to delayed orders, delayed shipping, and frustrated customers.

A frustrated customer will, in most cases, leave a negative review affecting your conversion rates. You can increase efficiency by using a warehouse management system. The system tracks the location of every product in the warehouse, allowing for better order fulfillment.

3. Employees Choose the Wrong Product or Quantity

When an employee fulfilling an order chooses the wrong product or quantity, you hope that the packers will notice the issue. Regrettably, these are some of the problems that go unnoticed in warehouses where speed is critical to order fulfillment.

Sending out an incorrect order is expensive and makes your business look unprofessional, especially when there are too many returns. Remember that too many complaints online regarding your order fulfillment rates will affect your overall business reputation.

Once again, you can solve this issue by ensuring all products being fulfilled get scanned using a barcode scanner. The scanner will send a notification to the pickers ensuring this mistake gets rectified before the product gets to the hands of the packers.

During dispatch, the packer can then scan it again to confirm all its details are correct.

4. Your Warehouse Layout Is a Mess

A 2018 survey on warehouses by Logistics Management established that only 68% of all warehouse space is well utilized. And the clearest indication that something is wrong is when you find that your vertical space is open, aisles are cramped, and employees are confused.

The first thing that you’ll ask yourself here is how a warehouse management system can help solve this mess. What you may not realize is that many such programs can use gathered data and 3D modeling to provide layout recommendations.

Using the information the system provides can also offer a glimpse into which products will soon go into demand, depending on the season. From this, you can have the employees update the warehouse locations and layout of items accordingly, bringing the in-demand items closer.

5. Relying on the One Order Per Picker System

Whenever a new order comes in, what’s the recommended action? Does one picker search the warehouse for every product on the order list, or do you send multiple selectors to look for different products? While at it, have you considered using warehouse zoning for product pickups?

Different strategies work differently for each warehouse. But regardless of how you look at it, having a picker locate one product per run is ineffective. It will lead to the wastage of valuable resources making the whole order fulfillment process last longer than it should.

Often this happens in warehouses where pickers have to wait for printed order papers before scouring for products. With a sound warehouse management system, you can reduce the time wasted by using coordinated workflows.

The system will assign specific runs to one employee, enabling them to collect multiple items simultaneously. In such a scenario, the person on that run will get all the items on their order sheet from one zone, leading to better order fulfillment rates.

6. Who Selected a Certain Order?

Lack of proper accountability in the warehouse leads to increased irresponsibility. Your people will become demotivated, and their productivity will begin to decline. A functional warehouse needs visibility and accountability.

It calls for you to have a way to know who picked what order and at what time.
An ideal warehouse management system can help you set up detailed workflows. The workflows allow you to track the progress of each order. Using it, you can communicate with your people, monitor their performance, and send notifications whenever necessary.

Besides communication and alert notifications, such a system also increases order traceability. If a problem occurs with the order, you can use the system to track its progress to try and determine when the issue may have happened and take measures to prevent a recurrence.

Conclusion

Warehouse management is among the most essential processes that typically occur in a warehouse. Given its importance, this is not something that you can afford to implement incorrectly.
Considering that most processes in the warehouse are linked in a way, a problem in one phase can lead to costly mistakes in the subsequent phases. All the six problems mentioned above provide a clue about what can go wrong in a warehouse at any time.

Fortunately, you can prevent this by educating yourself and your people on the warehouse challenges you will likely face and how to deal with each. In the long run, you can implement a warehouse management system to reduce the damage they may cause or prevent them from happening.

Author Bio

Sean Richardson is the owner of Complete Plumbing Solutions, a full service plumber in Cork.

ROI 3PL distribution chargers made4net “largely making compromises between the way a warehouse wants to work and the way the system allows the warehouse to work,” logistics gather business
Global Logistics, Global Trade Daily, Warehousing

What Small Business Owners Need to Know Before Choosing a Warehouse Management Software

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Many small business owners think they can manage inventory, shipping, and order fulfillment just fine with spreadsheets – until suddenly, they’re faced with too much demand and not enough organization. 

This can happen when you get your first wholesale order, or if you suddenly experience an uptick in customer inquiries about order statuses and shipping updates. Where once a simple Excel sheet did the job, you find you’re overwhelmed and struggling to fulfill orders on time or keep up with customer questions.

Warehouse management software can help small companies grow as painlessly as possible by automating inventory tracking, streamlining order processing, and integrating with shipping carriers to provide real-time updates. The right warehouse management software (WMS) can make or break a small business, so choosing the right one is a big decision. Choose the wrong system, and you have incorrect inventory levels, incorrect shipments, or delays in packing orders. Selecting the right WMS can save you time, money, and a lot of headaches down the road.

Why does WMS matter?

You may think that picking the right WMS is critical for every business, and you’d be right. But it’s especially important for a small business owner. The reason is high customer expectations. Your customers will expect Amazon-level service and reliability from you, even though you don’t have Amazon’s resources. Regardless of the size of the business they’re dealing with, over 60 percent of consumers expect free shipping on their orders, and they expect orders to arrive within three days. That’s quite a lot to live up to. 

There’s also the matter of your reputation. Enormous companies like Amazon or Walmart can get away with the odd negative review or experiences due to the sheer volume of transactions. But for a small business, it only takes one or two negative reviews before it starts seriously affecting your revenue. 

Finally, the necessity of picking the right WMS also comes down to your margins. Small business owners need a WMS that is going to save time and money down the line. A well-suited WMS can streamline warehouse operations, automating key processes such as inventory management, order fulfillment, and shipping. By reducing manual tasks and optimizing workflows, business owners can significantly save time and improve operational efficiency. Time saved translates into increased productivity and the ability to handle higher order volumes – without the need for additional labor costs.

What to factor into your decision

This should go without saying, but don’t get swayed by the latest and greatest WMS system just because everyone is talking about it. You want something that has features that work for your business. For example, imagine your business specializes in ecommerce and dropshipping. You should look for a WMS that offers simple integration with popular ecommerce platforms like Shopify or WooCommerce. This will let you automate order imports, and inventory synchronization, and get real-time tracking updates.

Conversely, your hypothetical ecommerce business probably doesn’t need advanced automation features like robotic picking or conveyor systems. Those would be more suitable for large-scale operations with high order volumes and extensive inventory management needs. 

You may also want to look for advanced reporting and analytics with demand forecasting, integration with your existing accounting or ERP systems, and seamless integration with popular shipping carriers such as UPS, FedEx, or DHL.

Your WMS also needs to provide you with room to grow. You may be a small business now, but hopefully that won’t always be true. You want to invest in a WMS that works for your business today while having the capacity to scale up with you. 

For example, look into whether the WMS can handle increased order volumes, warehouse locations, and product lines without sacrificing performance or racking up significant additional costs. This will save you the hassle and expense of having to switch to a new system as your business grows. Alternatively, if you’re not planning on expanding your small business, you can find more cost-effective systems, like a basic WMS package with limited features.

You also need to look at ease of use. Small business owners typically don’t have time to learn new, complex systems. That’s why user-friendliness is a great factor to take into consideration. Do you want something as close to plug-and-play as possible? Do you want a WMS that comes with a ton of user support? When you investigate potential options, check out how easy the analytics dashboards are to interpret, or how intuitive you find the user interface. Ultimately, you want a WMS that will seamlessly slide into your business with a minimum of fuss. 

Lastly, it’s crucial to look at affordability. While cost should not be the only determining factor, you do need to look for a WMS that sits inside your budget and provides a solid return on investment.

WMS options are typically one of two pricing models: perpetual licensing and monthly subscription models. Your choice will significantly affect both your initial and annual budgets. Perpetual licensing models are more expensive upfront since you’re effectively buying the software outright. Entry-level WMS options for this pricing model typically cost around $2,500 per warehouse. 

Recurring service costs are typically significantly lower. You pay month-by-month and many providers include some support and upgrade options in the monthly price. The subscription model uses cloud infrastructure for data storage and processing, offering flexibility and scalability.

Aside from pricing models, you should also calculate any potential additional charges for installation, customization, or support. Balance the costs against the potential benefits and efficiency gains the WMS can bring to your operations. 

For example, imagine you choose a subscription-based WMS that costs $100 per month per user plus a $1,000 installation cost. If you have five users, that means one year of your WMS will cost at least $7,000. Your WMS should ideally result in over $7,000 of additional sales that year, or recouped employee time. 

When gauging the cost-effectiveness of your WMS options, don’t be shy about asking for multiple demos, getting at least three quotes, and asking what services are included in the cost. These vendors will be more than happy to make sure they’re the right fit for your business.

Choosing the right WMS

The process of selecting the best WMS for your business is an important one. The right WMS will help you keep up with customer expectations, manage your reputation, and even grow your business later on. The wrong WMS could be an expensive waste of time that results in frustration and loss of revenue.

By keeping business fit, scalability, user-friendliness, and cost in mind, you should be able to figure out which WMS is right for your business.

Author Bio

Carl has led Smart Warehousing since 2001 and spent his entire career in the logistics, warehousing, and fulfillment space, from working the warehouse floor to CEO and founder. He is a logistics management and operations veteran, actively leading the business to its next phase of growth.