4 Warehouse Automation Trends Shaping Fulfillment
Insights That Move Your Fulfillment Onward
BY ONWARD ROBOTICS | APRIL 16, 2024
Labor shortages, ongoing economic challenges, and the impact of AI are just a few of the issues every fulfillment leader must navigate as they lead their warehouse today and build strategies for operational success in the future. The impact of these external factors can be significant, prompting leaders within the supply chain to look for ways to build a resilient, proactive strategy to mitigate risk, strengthen operations, and deliver results. Many warehousing, distribution, and e-commerce fulfillment leaders are looking to automation to overcome these challenges.
Trend #1: Early Adopters Have Learned from Initial Deployments
Ongoing labor and economic challenges, combined with increased customer expectations, have fast-tracked robotics and automation technology within fulfillment. Gartner recently predicted that 50% of large enterprises will have adopted some form of intralogistics smart robots (ISR) in their warehouse or manufacturing operations by 2028. With a little over 36% of respondents in a recent survey confirming they are currently deploying warehouse automation technology, more companies are transitioning from “try” to “buy”.
As companies gain more experience with automation technology (including how it works in their facility and, importantly, how it works with their workforce), fulfillment leaders are applying what they have learned from initial deployments to refine their search for the “right fit” automation for their operations. They’re analyzing what went well, what didn’t, and what improvements are needed for future solutions. These insights are filtering into more specific requirements and shaping their definition of automation success.
Previous experience with automation, paired with greater scrutiny of costs and budgets, has led fulfillment leaders to become more discerning about the projects and partners they take on. According to IOT World Today, demonstrating true value and short-term impact to the business is becoming more of a requirement for leaders to justify investment, and the opportunity for failure is limited. Choosing the right partner, technology, and solution for your business has never been more crucial to achieving the rewards that fulfillment warehouse automation offers.
Trend #2: Organizations are Maximizing the Value of Existing Infrastructure and Labor
The high cost of capital has led more businesses to focus on optimizing the value of existing fulfillment space and talent, as supply chain thought leader and industry analyst Luther Webb recently highlighted. Analysis of warehouse construction also shows a 25% slowdown in the number of new warehouses being built in the US and Europe in 2023 compared with 2022, according to Interact Analysis, as companies reinvest in existing space rather than building new facilities.
Although investment in new warehouse construction has slowed, demand for mobile robots continues to grow. Implementing automation in an existing facility and operational workflow doesn’t come without its challenges: investing in automating brownfield fulfillment facilities demands that technology must adapt to and boost an operation’s existing capabilities.
Optimizing existing infrastructure, systems, and labor is key in today’s economic climate. Using lean methods, including identifying and reducing waste in the fulfillment workflow and collaborating with employees to identify areas for opportunity, will streamline throughput and increase collaboration as new robotic technology integrates into existing operations.
Trend #3: Optimizing Human and Robot Travel Independently Leads to Increased Efficiency
Reducing waste in order picking focuses on wasted motion, talent, and time: ultimately leading to decreased productivity and throughput and increased cost. In older models of person-to-goods (P2G) order fulfillment, traditional workflow orchestration has required pickers to find or follow the autonomous mobile robot (AMR), with human workers dependent on the robot to initiate and complete their next pick.
In the swarm or “find me” AMR model, pickers must find and select a robot with available work, typically indicated by a flashing light or color on the tablet attached to the robot. This older model increases the robots-to-people ratio to compensate for fulfillment process inefficiencies but doesn’t add any intelligence or optimization to the process.In a fast-paced, busy, and already congested warehouse this influx of swarming robots can cause confusion, increase traffic, and add time to end-to-end order completion.
Onward Robotics’ unique Meet Me model offers a different approach: technology decouples and directs the work of pickers and robots, treating each as an independent agent of the overall system. Proprietary technology optimizes the travel paths of each, allowing for increased capacity and flexibility to move more, more efficiently, without having to purchase hundreds of robots to surround employees.
Trend #4: Robots Should Make Your People’s Lives Easier
To be successful, all mobile automation projects in warehousing, distribution, and fulfillment must empower and enable the humans it works alongside. With a turnover rate of over 46% in the warehousing industry, according to the US Bureau of Labor Statistics, technology needs to be simple and intuitive not only for existing employees, but for new and future employees as well.
It takes approximately 12 weeks for a new warehouse employee to reach full productivity levels, according to Zippia. Automation technology should enable and speed up the onboarding process, not add to it. Technology such as the put-to-light shelving on Onward Robotics’ Lumabot AMRs provides a familiar process for experienced pickers and an easy-to-learn-and-use method for those just joining the team. Augmenting the human workforce with easy-to-use mobile robotic automation can not only save valuable training time but also reduce uptake time to reach optimal productivity.
From “Key Trends” to Your Game Plan
Introducing or expanding automation in fulfillment warehouses provides operational leaders with the labor support and productivity boost they need to compete. As leaders gain more experience with implementation and use in their fulfillment warehouses, mobile robotic automation continues to prove itself as a strategic lever to offset the challenges fulfillment warehouses face today and tomorrow. Selecting the right partner and technology to get the right fit for your business’s operational needs is pivotal to realizing your operational goals and ROI.
Warehouse Automation Trends: Your Top Questions Answered
1. What are the top warehouse automation trends shaping fulfillment today?
Current warehouse automation trends are driven by labor shortages, rising demand, and advancements in artificial intelligence and machine learning. Companies across North America are investing in warehouse robotics, mobile robots, and integrated automation systems to improve operational efficiency, increase throughput, and future-proof supply chain operations.
2. How do warehouse automation systems integrate with existing operations?
A modern warehouse automation system integrates with tools like a warehouse management system and warehouse execution system to streamline warehouse operations. These systems connect inventory management, picking, and order fulfillment workflows, enabling better visibility into inventory levels and improving coordination across the entire warehouse operation.
3. What role do autonomous mobile robots (AMRs) play in warehouse efficiency?
An autonomous mobile robot is a key component of many automated warehouse environments. Unlike traditional automated guided vehicles, AMRs use machine learning and real-time data to navigate dynamically. These mobile robots reduce travel time, support human workers, and handle repetitive tasks, allowing each warehouse worker to focus on higher-value activities and boosting overall efficiency.
4. How can automation help address labor shortages in warehouses?
With ongoing labor shortage challenges, businesses are turning to automation solutions and collaborative robots to reduce reliance on manual labor. By automating repetitive and physically demanding tasks, companies can lower turnover, support warehouse managers, and maintain productivity despite labor shortages, all while improving working conditions for employees.
5. What technologies are included in a warehouse automation solution?
A comprehensive warehouse automation solution may include automated storage and retrieval systems, conveyor systems, automated systems, and advanced automation software. Many solutions also incorporate predictive maintenance capabilities and physical automation tools to ensure uptime, accuracy, and scalability across complex fulfillment environments.
