Here’s how automation is transforming warehouses in 2021

Apart from the accelerated adoption of technology in present times, a confluence of various factors is driving warehouse automation in 2021 and beyond.  The increasing e-commerce penetration, and the consumer demand for cheaper and faster delivery options has led to an increased investment in warehouse automation: Automation would allow retailers to not only cope with the complex network of distribution channels but also bring down order delivery times.

There is an overarching quest for a greater degree of efficiency and efficacy across industries today and this too has impelled the adoption of automation in warehousing.  A report by LogisticsIQ highlights that the Warehouse Automation Market is expected to be worth more than USD 30 billion by 2026.  The market has been growing at a CAGR of 14% for the 8 year forecast period from 2019.  Based on insights, let’s take a quick look at some of the automation solutions deployed in warehouses today.

Automated Storage and Retrieval Systems (AS/RS)

Automated Storage and Retrieval Systems are a type of computer-controlled system for automatically storing and retrieving goods from specific storage locations in a warehouse with precision, accuracy, and speed. These systems are used to automate a variety of warehouse processes, including order picking, storage, kitting, consolidation, assembly, replenishment, and so on.

According to Omdia, the sales of warehouse automation technology (robotics, logistics, etc.) is expected to reach $22.4 billion by the end of 2021 from a mere $ 1.9 billion that it was 5 years ago.

Pick-to-Light Systems

A form of low automation technology, The Pick-to-Light System uses light signals to assist warehouse pickers. A light system that is installed on shelves, racks, and workstations is used to direct employees to the proper product positions and quantities needed to complete the order. When all of the lights go out, it means the picker has completed the current order and is free to move forward.

Real-time feedback is provided on operator productivity and order picking by Pick-to-Light System. This form of reporting helps highlight picking issues and also monitors productivity increases. Each operator is expected to make over 450 picks per hour by companies using pick to light systems.  These systems are usually easy to integrate with existing enterprise resource planning systems. These systems offer a precise and efficient method of picking, sorting, and assembling products without the use of paper.

Autonomous Mobile Robots (AMRs)

By being able to sense their surroundings, Autonomous Mobile Robots (AMRs) can move around the warehouse autonomously. AMRs can operate without direct human supervision, unlike traditional AGVs, and perform myriad tasks that range from transporting materials and goods to facilitating an existing pick strategy.

AMRs are especially useful in warehouses with high-volume and high-labour requirements as they typically perform well in such scenarios and reduce travel times. However, AMRs may not be a good fit for warehouses that handle materials deemed to be extremely heavy.

An article highlights that computer vision capabilities are a recent advancement in the latest AMRs. Outfitted with a slew of complex sensors these AMRs can detect objects in their environment.  These recent advances have made AMRs extremely valuable in the ever-changing industrial landscape.

The road ahead

Without a doubt, automation will soon become the new normal in warehouse operations.  Automation advancements, such as lower costs and increased scalability, are factors that have further impelled its adoption as order fulfilment requirements be customers become more demanding. Furthermore, increasing a company’s warehouse’s efficiency and productivity can help secure its future: Automation can improve space optimization and increase throughput, resulting in a shorter customer delivery time.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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