5 Benefits of Warehouse Automation
Contents:
How Gather AI Can Help
Increase inventory accuracy up to 99% with Gather AI inventory intelligence
Technology is changing the warehousing landscape, with operators integrating cutting-edge equipment, systems, and solutions. Warehouse automation technologies such as goods-to-person, automatic guided vehicles, warehouse drones, and sortation systems enable operators to streamline processes, operate more efficiently, improve safety, and more.
Automation is one of the leading trends in the industry. Recent figures show that the global warehouse automation market will be worth $51 billion by 2030, with the worldwide pandemic turning warehouse automation technology from a “good to have” to a “must have.” Furthermore, a 2021 McKinsey survey found that 80% of respondents plan to increase automation spending in the next two to three years.
1. Optimize labor utilization
The U.S. labor market has proven resilient in recent years, resulting in rising wages and few layoffs, and labor shortages have been compounded by the fallout from COVID-19. Warehouses and distribution centers are hiring hundreds of employees at job fairs knowing more than half won’t show up on their first day.
In warehousing, staff is thin on the ground, and can be expensive. Automating everyday warehouse tasks like inventory tracking or order picking allows you to allocate human resources to other more valuable or important tasks.
2. Increased efficiency
Efficiency is finding a way to make things easier. The most efficient operations are those with the most up-to-date and accurate information. Automation can eliminate the problems associated with inaccurate reporting, allowing warehouse operators to carry out vital tasks such as order fulfillment and inventory management confidently and efficiently.
3. Improved safety
One of the best benefits of warehouse automation is improved worker safety. Automated technologies perform physically demanding and often dangerous tasks, reducing the risk of injuries and repetitive strain issues.
4. Optimize space utilization
Saving space is essential for warehouse inventory management. Automated warehouses can use up to 40% less floor space compared to traditional warehouses because technologies such as robotics and drones can operate in smaller areas.
5. Lower equipment costs
The cost of warehouse automation is often seen as a barrier, but investing in automation can lower equipment costs and provide fast ROI. Automated technology has the potential to replace manual equipment in several areas, requiring significantly less human oversight.