Why a Phased Approach to Warehouse Automation Is Best
Discover how to transform the warehouse with AMRs for efficiency and safety.
Automation technologies such as AMRs can transform warehouse operations. However, getting the most out of automation requires a carefully designed implementation strategy, says Craig Malloy, CEO of Vecna Robotics.
Automation has become indispensable for the material handling industry as it faces a raft of potentially crippling factors ranging from labor shortages to supply chain disruptions. But the key to successfully adopting automation is in how organizations automate, investing in the right robotic tools and employing a strategy that meets the needs of the company and its employees while delivering a suitable return on investment (ROI).
An emerging type of automation technology capable of greatly increasing the efficiency of warehouse logistics takes the form of Autonomous Mobile Robots (AMRs), which are capable of moving independently. AMR robots not only move goods throughout the warehouse, but their sensors and integrated safety protocols allow them to navigate narrow paths and avoid obstacles, ensuring safe collaboration with human workers.
Some AMRs are connected to the cloud, which enables seamless software updates and immediate performance improvements, while allowing them to provide warehouse operators with valuable insights via real-time analysis of performance metrics. Automated material handling equipment such as AMRs and co-bots (the new term for collaborative robots) brings significant benefits to smaller workforces, increasing efficiency by up to 85%.
But operators shouldn’t simply throw the technology at problems as with any technological advancement. They need an efficient approach that addresses their needs and deploys automation at an effective pace.
The Benefits of a Phased Approach
Supply chains have an urgent need for automation, but that doesn’t mean a solution should be rushed into place.
Warehouses are dealing with ongoing labor shortages of between 10% and 35% that are most acute among material handlers (a 34% shortage) and forklift drivers (31%), according to research by Vecna Robotics. Meanwhile, rising e-commerce demands for faster, more convenient deliveries coupled with supply chain disruptions dating back to the pandemic have put more pressure on warehouses to improve efficiency.
Supply chain professionals recognize the benefits of automation, including improved efficiency and inventory management and the ability of data analytics to identify areas for improvement. Automation also has clear benefits for human workers, with 70% of supply chain professionals surveyed by Vecna Robotics saying automation helps with upskilling and retaining employees. Eighty-five percent said they have plans to implement some form of automation over the next year.
AMRs are part of the solution, along with other warehouse robots ranging from robotic arms and co-bots to picking and gentry robots. But despite the immediate need, implementing AMRs or other technologies is often best accomplished with a phased approach.
This approach involves planning the deployment by breaking it into stages, applying each stage to a particular need, and measuring the response. A phased approach helps an organization avoid early mistakes and contain any errors that do occur, preventing them from having an impact on later stages. Each stage also adds to your institutional knowledge, providing insights that might otherwise be lost in a rushed, large-scale deployment.
An incremental deployment also allows the business to see the financial benefits of the deployments sooner, more quickly generating a return on investment (ROI).
A critical step in avoiding early mistakes is to simulate the deployment. Replicating the workflows, processes and production configurations can allow an organization to see how well a solution will work and whether it will meet its estimated ROI and deliver on key performance indicators (KPIs). Simulations will help you avert actual failures when the solution is deployed, which can lend confidence in the transition to automation as it proceeds.
A word of caution here to avoid the automation “proof of concept” trap. While this approach can indeed test technology efficacy in an isolated environment under optimal conditions for a single robot, it often doesn’t reveal much in the way of usable insights as a connected system. It’s best that you stick to a phased approach to deployment that tests the automation system within your environment to give your team the time and support required to adapt and your chosen vendor time to tune the system for optimal performance. Ensure your vendor has a detailed deployment program (don’t fall for the “drop, map, and go” snake oil), establish clear KPIs for program success, and determine if your vendor offers other performance incentives to hedge any downside risks.
See More: AI’s Role in Warehouse Robotics May Not Be What You Think
Robots and Humans Working Together
Automated systems can perform a lot of the work in a warehouse, but their long-term success depends on workers and how well they adapt to interacting with robots. The introduction of automation can draw initial resistance from workers concerned about the changes that come with technology. But systems such as AMRs can help workers by improving safety, particularly in high-risk environments. By taking over dangerous tasks, for instance, they reduce injury risk. And their efficiency at handling routine, repetitive jobs frees employees to focus on more complex, rewarding activities.
Organizations that are transparent about the use of technology and promote learning can help employees engage with the new technology and recognize how it can benefit themselves and the company.
It’s also important to remember that implementation doesn’t end when the robots get to the floor. When implementations fail to meet expectations, it’s often because of a lack of post-deployment support. An organization must be sure that its chosen vendor has a solid support program that includes remote assistance, can proactively monitor robots for problems, and that can also promptly resolve any issues that arise.
What to Consider When Choosing a Warehouse Automation Partner
Before partnering with an automation vendor, companies should carefully analyze several important factors.
- Network analysis: First, you need to understand the structure of the supply chain network, from suppliers and manufacturing plants to the end customer. Identifying facilities that are key to your business is crucial for strategic planning. You can align automation initiatives with the overall supply chain objectives by thoroughly understanding macro flows, opportunities, goals and the potential impacts of automation.
- Understanding inventory: Organizations need to have a firm grasp of the inventory nature when implementing automated solutions, which are categorized by work type and payload capacity. Knowing the items that are moved, their range and the methods of transportation used can help you select target areas for automation. It helps you build operational profiles.
- Labor profiles: Because automation is intended to augment short-staffed workforces and allow staff to work on more valuable tasks, you need to assess your labor profiles. A successful automation strategy depends on factors such as identifying areas of high labor intensity and resources that would be hard to replace while also considering turnover and fluctuation.
- Process analysis: The final stage of analysis examines an implementation with regard to how it fulfills automation’s goals of removing non-value-added tasks, guiding employees, and expediting processes. At this stage, focusing analysis on critical integrations, exceptions and potential bottlenecks and maintaining flexibility for process changes can help deliver the best solution.
- Selecting a pilot site: When choosing the right site for an automation pilot, keep in mind factors such as multiple-shift availability and the material handling concept of distance equals dollars. Larger buildings with longer travel distances are optimal, especially when piloting AMRs or Automated Guided Vehicles (AGVs). The best bet to accomplish a seamless integration with a Warehouse Management System (WMS) is to pick a modern site with a reliable network, a clean environment and clear travel aisles.
The need for warehouse automation is clear, but implementing automated solutions is not simple, nor is there a uniform solution for all organizations. It requires thorough analysis and a strategic approach of phased implementations, preceded by pre-deployment simulations. A strategy should include ways to engage employees, and an automation vendor must be able to ensure ongoing support. Working with an automation vendor should also include thorough network structure analysis, inventory nature, labor profiles, and process intricacies.
This approach can result in a tailored automation solution that aligns with the organization’s objectives while enabling ongoing improvements. It will also enable companies to make optimal use of automation’s highly impressive and transformative qualities.
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