Jan 6, 2023 | 3PL Warehouse Management, Best Practices, Blog
Are you feeling overwhelmed as your eCommerce business grows? Can’t quite keep up with the demand but don’t have the capital to invest in a massive supply chain infrastructure of your own? You don’t need to. With a 3PL (third party logistics), you can access sophisticated systems, warehouses, and transportation networks that provide unmatched customer service and cost savings. In this blog post, we’ll explore how tapping into 3PL infrastructure may be just what’s needed for growing eCommerce businesses to weather even the stormiest market.
When Do Businesses Need a 3PL provider?
If you’ve never seen the impact of third-party logistics providers, you may be under the impression that it’s an expense you can do without. But trust us when we say that it pays off a lot more than doing all your fulfillment in-house! 3PL companies can help merchants – from small businesses to eCommerce empires – with their scalability needs. When faced with unforeseen order growth or a spike in customer demand, working with a third party warehouse and its services can save you time and money in the long run. After all, nothing’s worse for your brand than breaking promises to customers, especially in an era when 60% of global consumers expect same-day or two-day delivery.
How 3PLs Bring Technology to Infrastructure
3PLs have come a long way since the days of organizing physical products in dusty warehouses – they’ve brought technology to infrastructure! Online merchants are all too aware that keeping up with the big retailers means implementing advanced 3PL tech, such as their warehouse management system (WMS). A WMS allows 3PLs to connect data from various sources, enabling end-to-end visibility into every single order. Wherever you send it, you can track it! So what exactly does this mean? In short, online merchants can more easily compete with larger retailers by turning to technology-enabled 3PLs for services.
- Automating the 3PL Automating the 3PL process isn’t just for robots, it’s for people too! By automating processes, businesses can save precious time and effort. Ordering and tracking become an effortless breeze. With real-time updates in your online store, warehouse staff is updated on orders as soon as they’re placed. Furthermore, various parameters allow you to quickly search and find exactly what you need. And that’s not all – fulfillment software also ensures optimal inventory management, so reordering is quick and efficient. Automation leads to reduced delivery times so customers can receive their packages faster.
- Data Moves Freight Whether it’s to shave off delivery time or reduce inventory costs, data can help get freight moving in the right direction. Fulfillment software can use past data to ensure you’re sending your products to the best possible locations. No more guesswork! With built-in metrics focusing on peak times, revenue, by channel, and quantity orders by USPS zone, you’ll have unbeatable insight to optimize your supply chain. Plus, data logs only get more accurate as time goes on and you gather increasing amounts of order history – it’s a win-win!
- Reduce Errors 3PL technology is here to make our lives easier, especially when reducing errors in order fulfillment. By automating the shipping process with connected technologies, 3PL infrastructures eliminate duplicated work and human error that can cost customers time, money, and an overall bad experience. What’s more, 3PL technology offers insight into the 3PLs performance with complex data like accuracy levels and delivery timelines that demonstrate how orders are being handled every step of the way.
- Meet Customer Expectations Customers today expect lightning-fast delivery within the same day or two days, which can only be achieved if the right technology is in place. That’s where a tech-enabled 3PL comes in; they can help you optimize your storage and shipping to meet customer expectations. With their system, your inventory will be distributed to warehouses closest to your customers. Each time an order is placed, algorithms select the courier providing an efficient, cost-effective solution.
How to Tap into 3PL Infrastructure
Partnering with 3PL services can help give you a leg-up in today’s competitive world, but it’s essential to be sure the 3PL infrastructure can keep up with your business growth. Before signing on, evaluate the 3PL’s existing logistics operations—are they set up to store, pack, and efficiently pick orders while accommodating a rise in inventory? Additionally, ask about the cost and if any steep start-up fees come into play. While upfront costs may seem high, future savings may be unlocked when you consider what is included in the quote – from less overhead to lower labor costs down the line. Ask your 3PL vendor what reporting capabilities they offer; this allows you to track areas such as order accuracy and timeliness of deliveries, along with any potential risks or liabilities associated with broken or lost items. You’ll also want to confirm that 3PL integrates well with your existing inventory, order management, and warehouse management software for a smooth transition into 3PL services. Are you looking for warehouse software that works for 3PLs? ShipHero’s warehouse management system comes with integrations plus real-time reporting, the perfect combo for staying ahead of the future of your business!
Third Party Logistics Advantages and Disadvantages
The 3PL infrastructure, which is tailor-made for the e-commerce industry, makes it easy for small to medium-sized businesses to launch their products worldwide and scale up their operations on demand. However, 3PL isn’t entirely sunshine and rainbows – there can be hiccups ranging from extra fees to lags in shipping standards. As always, it’s important to weigh the advantages and disadvantages of 3PL in your decision-making process before investing time and energy into outsourcing logistics.
Advantages
1. Better Shipping Rates
When many brands join forces and leverage the volume of their orders, they can negotiate better rates from carriers. That’s why 3PL providers are so great: You may be small in number alone, but together you’ll get heard loud and clear for discounted prices that lead to greater profits per order.
2. Decreased Shipping Time
So how do you compete with Amazon Prime to get packages to customers? Building tons of warehouses across the country might be expensive, but you can hit that two-day mark without breaking the bank by using a 3PL.
3. Real-time Transparency
Real-time transparency gives brands the advantage of being in direct control: accurately stocked shelves and order status updates that come lightning fast. With paperless warehouse operations and Tier 1 WMS data at your fingertips, you can keep a refreshed eye on every detail – from macro to micro!
4. Strategic Partnership Networks
Instead of relying on a go-it-alone approach, tap into 3PLs strategic partnership networks to get your hands on solutions specifically made for you. From integrated tools and offers to highly customized experiences—you can make it happen with these trusted partners!
Disadvantages
1. Upfront Investment
It’s clear that when it comes to 3PL providers, there’s no free ride – you’ll have to pay the piper for setup costs such as software integration, SKU uploads, and account access.
2. Hours or Workflow
Instead of packing your orders, wouldn’t it be nice to have a third party do the job for you? But beware – working with 3PLs means relying on their hours and workflow. It’s best to plan ahead when engaging such services, as any disruption could lead to hiccups in delivering your goods.
3. Finding a 3PL You Can Trust
Choosing the right 3PL partner isn’t just about getting a good deal – although that doesn’t hurt. You’ll have to put in some homework and carefully vet reviews, size, reach, and service offerings before you can confidently shake hands with your ideal 3PL provider!
ShipHero is a Shopify Third Party Logistics Partner!
ShipHero, with 3PL infrastructure and software that seamlessly integrate with Shopify and Returnly (to name a few), is undoubtedly a 3PL partner you’ll want to know about. With ShipHero’s one-stop shop for 3PL services, you can rest easy knowing that your inventory will always be on track. And saving money? That’s a no-brainer! Thanks to real-time ship rate shopping and built-in reporting features that cover COGS, picker/packer efficiency, replenishment, and more… we might be the best 3PL for Shopify you have ever tried!
3PLs: The Backbone of Supply Chain Management
3PLs are often the unsung heroes of a shipper’s operations, providing an invaluable infrastructure to help them track inventory, orders, and logistics with greater precision and certainty. Their solutions offer robust analytics, machine learning capabilities, and automated toolings for pricing, booking, and documentation, allowing shippers to make better decisions backed by fact-based data quickly. Despite the apparent advantages 3PLs present to businesses of all sizes, many fail to take advantage of 3PL tech solutions. As 3PLs have become essential in managing supply chains, it is time for shippers to reevaluate 3PL advantages and disadvantages and prioritize using their 3PL business relationships more effectively to stay one step ahead of their competition. 3PLs are the future of eCommerce. By tapping into their infrastructure, you can level up your customer service while saving money on warehousing and transportation.
Dec 30, 2022 | Blog
What is 3PL Warehouse Automation?
Warehouse automation refers to the use of technology and automation to improve the efficiency and productivity of warehouse operations. This can include the use of mobile robots and other automated equipment and softwares to handle tasks such as picking, packing, moving and tracking inventory, and shipment tracking. Warehouse automation can help reduce the need for manual labor and improve accuracy and speed in the fulfillment of orders. While automation in warehouses is still a fairly new concept, there are already a wide range of solutions available and several warehouses have begun adopting as much automation as possible. Especially within the recent COVID years where supply chain and logistics companies were expected to double (and sometimes more) their workloads.
What are 3PL Warehouse Automation Solutions?
Warehouse automation solutions are technologies and systems that are used to automate various tasks and processes in a warehouse. These solutions can include things like automated storage and retrieval systems, robotic pickers and packers, and advanced warehouse management software. The goal of these solutions is to increase efficiency, reduce errors, and improve the overall operation of a warehouse. Some common benefits of warehouse automation solutions include reduced labor costs, faster fulfillment times, and improved accuracy and tracking of inventory.
Warehouse Management Systems
Warehouse management systems are a type of software used to manage and optimize the operations of a warehouse. This can include tasks such as tracking inventory levels, managing orders and shipments, and coordinating the movement of goods within the warehouse. Warehouse management systems often include features such as real-time inventory tracking, order management, and data analysis tools which can help businesses improve their warehouse operations. Some warehouse management systems also include integration with other business systems, such as accounting, inventory management, and CFM software, to provide a comprehensive view of a company’s operations.
How Does it Work?
The specific functionality of a warehouse automation software system can vary depending on the specific needs of the warehouse and the type of software being used. However, most systems will use a combination of sensors, barcode scanners, and other technologies to track the movement of goods within the warehouse. This data is then used by the software to generate reports and provide real-time updates on inventory levels, order status, and other important information.
Advantages of Warehouse Automation
Several advantages are available when it comes to warehouse automation. However the two that stand out above the rest are the ability to complete more on-time delivered with better data, and improved order processing speeds. Let’s take a closer look at each.
Better Data Equals More On-Time Deliveries
Better warehouse data can lead to more on-time deliveries because it allows warehouses to more accurately track and manage their operations. For example, if a warehouse has accurate data on its inventory levels, it can quickly identify when it needs to restock and avoid running out of popular items. This can help warehouses fulfill orders more quickly and prevent delays in the delivery process. Additionally, accurate data can help warehouses track the status of orders and shipments, allowing them to identify potential bottlenecks and take steps to resolve them. This can help warehouses improve their planning and coordination, leading to more on-time deliveries.
3PL Speed Improves with Automation
Third-party logistics (3PL) providers often use automation to improve the speed of their operations. This is because automation can help warehouses operate more efficiently by reducing the need for manual labor and increasing the speed at which tasks are completed. For example, automated storage and retrieval systems can quickly and accurately retrieve items from a warehouse, and robotic pickers and packers can quickly and accurately pick and pack items for shipment. This can help 3PL providers fulfill orders more quickly and improve overall productivity, leading to faster delivery times for their clients. Additionally, automation can help third-party logistics providers reduce labor costs, which can also help improve their bottom line and make their services more competitive.
How Warehouse Automation Saves Space and Improves Your Supply Chain
Automated warehouses store more goods in less space by using technologies such as automated storage and retrieval systems. These systems use advanced algorithms and robotics to efficiently store and retrieve items, allowing warehouses to use their space more efficiently.
Automation also helps reduce the need for manual labor and increases the speed at which tasks are completed which can lead to faster delivery times for clients and build client loyalty. Because manual labor is reduced, accuracy improves because of a reduction for the potential in human error. This can be especially important for businesses that operate in industries with strict quality and safety requirements, such as the pharmaceutical or food and beverage industries.
What Automation Solutions Should You Consider for Your 3PL?
If you are a third-party logistics provider looking to improve your operations through automation, there are several solutions you should consider. These solutions can include:
Automated Storage and Retrieval Systems
These systems use advanced algorithms and robotics to efficiently store and retrieve items in a warehouse, allowing you to use your space more efficiently and improve the speed and accuracy of your operations.
Robotic Pickers and Packers
These systems use robotics to quickly and accurately pick and pack items for shipment, reducing the need for manual labor and improving the speed of your operations. They are often utilized with a human at a picking station, and a robot moves to them, telling them the items needed for an order, the human then puts the items in the robots basket and scans the items in to confirm so workers no longer need to walk to different pick stations to build an order.
Warehouse Management Software
Also known as a WMS, this type of software can help you track and manage your inventory, orders, and shipments, by providing real-time updates on the status of your operations and helping you make more informed decisions.
Integration With Other Business Systems
Consider integrating your warehouse automation solutions with other business systems, such as accounting and inventory management software, to provide a comprehensive view of your operations and improve overall efficiency. If you don’t know how to do this yourself, there are partners like ShipHero who can help you get started.
The right automation for your logistics will depend on your specific needs and goals. It may be helpful to consult with an expert to determine the best solutions for your business.
Finding the Right Solution
To find the right warehouse automation solution for your business, there are a few steps you should take:
#1 Identify Your Specific Needs And Goals
Before you start looking for a warehouse automation solution, it is important to have a clear understanding of what you want to achieve and what specific challenges you are looking to solve. For example, are you looking to improve the speed and accuracy of your operations, reduce labor costs, or better manage your inventory? Identifying your needs and goals will help you narrow down your options and find a solution that is right for you.
#2 Research Available Solutions
Once you have a clear understanding of your needs and goals, you can start researching the different warehouse automation solutions that are available. This may include reading reviews, attending industry events, and consulting with experts in warehouse automation. It is also a good idea to visit other warehouses that are using automation to see how the solutions are working in practice.
#3 Evaluate Potential Solutions
Once you have identified a few potential solutions, it is important to carefully evaluate each one to determine which is the best fit for your business. This may include conducting pilot tests or demonstrations, comparing the features and capabilities of different solutions, and considering the potential cost and benefits of each solution.
#4 Choose the Right Solution For You and Implement
After evaluating your options, it is time to choose a warehouse automation solution and implement it in your warehouse. This may involve training your staff, integrating the solution with other business systems, and making any necessary changes to your warehouse operations. It is important to carefully plan and manage the implementation process to ensure a smooth transition and maximize the benefits of the solution. The provider you choose for your solution should have processes to help you implement the new warehouse automation software.
By carefully considering your needs and goals, researching your options, and implementing the right solution, you can improve the efficiency and effectiveness of your warehouse operations.
Key Takeaways
Warehouse automation can help you reach new speeds and accuracies within your warehouse operations. Whether you are looking for a warehouse provider to handle the entire order process for you, or have a warehouse which you need automation solutions for, Shiphero can help.
ShipHero offers both fully outsourced warehousing and a warehouse automation platform which helps businesses automate and optimize their warehouse. The platform includes a range of tools and features including tools for tracking, managing inventory levels in real-time, customizing order processing rules, shipment tracking, and integrating with other business systems and e-commerce platforms (such as Shopify, Amazon, and Magento). Which means by using ShipHero, you can save time, reduce labor costs, and better manage your inventory to improve your bottom line.
3PL Warehouse Automation FAQs
What Does 3PL Mean in Warehousing?
3PL stands for third-party logistics. In the context of warehousing, 3PL refers to a company that provides outsourced logistics services, such as warehousing and fulfillment, to other businesses. Generally, they offer a range of services, including storage, order fulfillment, and transportation, to help businesses manage and optimize their supply chain operations and often use automation to provide value to their clients.
What Are the Four Types of 3PL?
The four types of 3PL providers include a standard 3PL provider, a 3PL service provider, a 3PL customer adapter, and a 3PL customer developer. Below is a definition of each:
- Standard 3PL Provider: A standard 3PL provider is a company that offers a range of logistics services, including warehousing, transportation, and distribution solutions. These services are typically provided on a contract basis, with the 3PL provider managing the logistics operations for the business.
- 3PL Service Developer: This is a 3PL provider who offers IT infrastructure. In addition to other 3PL related services they can help you get shipment tracking and verify compliance management.
- 3PL Customer Adapter: Meaning your logistic provider handles all activities for their client, this includes everything through the shipping process and includes negotiated rates with carriers. And clients get visibility by using the 3PL’s software.
- 3PL Customer Developer: This provider usually only has a few clients, but they are very large companies. They completely manage the company logistics and are considered the clients very own logistics department as if they were a part of the company themselves. This type of provider often comes at a higher cost than other 3PL providers.
What Automation is Used in Warehouses?
Automation is widely used in warehouses to improve efficiency and productivity. Some examples of automation in warehouses include the use of automated guided vehicles (AGVs) to move goods around the warehouse, automated sorting systems to sort packages and items, and automated storage and retrieval systems (ASRS) to store and retrieve items from their designated locations. Automation can also be used in other aspects of warehouse operations, such as inventory management and order fulfillment.
Dec 30, 2022 | Blog
What is IoT?
The Internet of Things (IoT) refers to the interconnectedness of everyday objects, such as appliances, vehicles, and other items, that are equipped with internet connectivity and sensors. This allows them to collect and exchange data, enabling them to be controlled and monitored remotely. The goal of the IoT is to make our lives easier and more efficient by allowing us to access information and control a wide range of devices from anywhere, at any time.
The Role of IoT in Warehouse Management
IoT technology can be used in warehouse management to improve efficiency and productivity. For example, IoT sensors can be used to track the location and condition of inventory in real time, allowing warehouse managers to quickly and accurately assess the availability of items. This can help to reduce the time and labor required for inventory management tasks, such as stock-taking and reordering. Additionally, IoT sensors can be used to monitor the condition of the warehouse environment, including temperature and humidity levels, to ensure that inventory is stored in optimal conditions. This can help to prevent damage and spoilage of goods, improving overall warehouse efficiency.
How Does IoT Warehousing Work?
In the context of warehousing, IoT technology can be used to improve various aspects of the operation, such as inventory management, asset tracking, and temperature control.
For example, sensors can be placed on warehouse shelves to track the inventory levels of individual items. This information can then be sent to a central system, allowing managers to have real-time visibility into the status of their inventory. Additionally, RFID tags can be attached to assets, such as pallets or containers, to automatically track their location within the warehouse. This can help improve the efficiency of operations, as workers can quickly and easily locate the items they need.
Components of IoT Warehouse Automation
IoT Devices
These types of devices usually utilize smart sensors and gather data so it can be processed by any IoT-based systems. These devices can help monitor the warehouse and can track placement of assets and items left in a warehouse.
Gateway
This connects the IoT devices to your warehouse management system. These connections can happen through the WiFi network, a bluetooth connection, an ethernet connection, or even a cellular network.
Server
The server should be a dedicated computer which receives the raw IoT data. This data will be processed into insights or saved for future use. And it largely helps in automation of warehouse processes because a server sends commands to smart devices with developed algorithms. You can use two types of servers for your IoT warehouse automation, the first is a cloud-based server which means the shared server is maintained by a third-party company. And the second is an on-premises server which is a server physically installed in your warehouse that creates a local IoT device network.
Application
This is what is installed on your desktop so the user can interact with the data collected from IoT devices and also allows the user to send commands to IoT devices from their computer to help and maintain the warehouse management inventory tracking system.
Edge Computing
If you are a larger warehouse with a high amount of IoT systems, you are likely to use edge computing. This layer sits between the gateway and data storage and allows extra edge nodes to review data from the smart IoT devices and send direct commands without the information needing to be reviewed by the central server or an application user.
Benefits of IoT Warehouse Automation
The use of IoT (Internet of Things) technology in warehouse automation can bring numerous benefits to businesses. Some of these benefits include the following:
Real-Time Tracking
One of the main advantages of using IoT in warehouse automation is the ability to track and monitor inventory in real-time. This can help businesses reduce the amount of time and effort spent on manual inventory checks and improve the accuracy of their inventory records. In addition, IoT technology can be used to automate many warehouse tasks, such as picking and sorting items, which can help increase productivity and reduce the need for manual labor.
Reduced Operating Costs
When using an automated warehouse you often require less space and staff. Plus because of the IoT programing you will likely experience a reduction of costs because these processes prioritize and reduce congestion, improve sustainability efforts, and optimize processes.
Increased Performance
Because IoT optimizes your warehouse, you’ll find your ability to pick and pack orders as well as onload and sort inventory has increased both in speed and efficiency. The IoT sensors offer data on how to optimize working areas and allow you to reduce the use of manual labor and occurring errors.
Improved Inventory Management
With IoT devices you’ll have continual visibility into your inventory because the RFID tags within these devices will provide the information needed. You can track the status of materials (raw, work-in-progress, finished goods) as well as the type of materials. Plus you’ll always have an accurate inventory count.
Automated Maintenance
IoT devices use predictive maintenance which means you can schedule maintenance and inspection routines systematically so your business and your clients can avoid experiencing the frustrations of unplanned downtime.
Enhanced Forecasts Accuracy
Because of the consistency in understanding inventory counts and order volumes, with IoT devices your forecast accuracy will skyrocket. Which means you will have a stronger understanding of what to purchase more of and what is just sitting on your shelf.
Reduced Risks
IoT technology can help improve the safety of warehouse workers by enabling the use of automated equipment and robotics. This can help reduce the risk of accidents and injuries on the job, improving overall workplace safety.
Detailed Analytics
Another benefit of IoT-powered warehouse automation is the ability to collect and analyze data on warehouse operations. This data can be used to identify areas for improvement and optimize warehouse processes, leading to increased efficiency and cost savings. For example, data analysis can help businesses determine the most efficient routes for picking and packing orders, reducing the amount of time and effort spent on these tasks.
Devices for IoT Warehouse Management
RFID Tags
RFID stands for radio-frequency identification. An RFID tag is a small device which uses radio waves to transmit information wirelessly. It typically consists of a small chip and an antenna, and are commonly used in a variety of applications, including inventory tracking, access control, and contactless payments. In the context of warehousing, RFID tags can be attached to pallets, containers, and other assets to automatically track their location within the warehouse. This can help improve the efficiency of operations, as workers can quickly and easily locate the items they need.
Smart Sensors
Warehouse smart sensors are sensors used to monitor and track various aspects of a warehouse, such as inventory levels, temperature and humidity, and the movement of goods. These sensors are typically connected to the internet, allowing them to transmit data to a central system where it can be accessed and analyzed. They can also be used to track the inventory levels of individual items, providing real-time visibility into the status of the warehouse’s inventory. This can help managers ensure they have the right products on hand to meet client demand, and can help prevent stock-outs and overstocking.
Beacons
An IoT beacon is a device which uses Bluetooth technology to transmit a signal to nearby devices, such as smartphones or other sensors. Beacons are often used in location-based applications, such as retail stores or museums, to provide information or services to nearby clients or visitors. In warehousing, IoT beacons can be used to track the location of assets and inventory within the warehouse. A beacon attached to a pallet of goods can transmit its location to a central system, allowing managers to track the movement of goods within the warehouse in real-time.
AI Cameras
AI cameras are cameras which are equipped with artificial intelligence (AI) technology, allowing them to analyze and interpret the visual data they capture. This can enable them to perform tasks such as object recognition, facial recognition, and motion detection. Using AI cameras in a warehouse allows employees to track the movement of goods within the warehouse, providing real-time visibility into the location of inventory and assets. AI cameras can also be used for security purposes, such as monitoring access points and identifying unauthorized individuals.
GPS Trackers
Warehouse GPS trackers are devices that use the Global Positioning System (GPS) to track the location of assets and inventory within a warehouse. These devices typically consist of a GPS receiver and a transmitter, which are attached to the assets being tracked. Warehouse GPS trackers can help workers quickly and easily locate the items they need, reducing the time and effort required to find and retrieve items. Additionally, GPS tracking can help prevent loss or theft of assets, as managers can monitor the movement of goods within the warehouse and identify any unauthorized activities.
Smart HVAC Systems
Smart HVAC systems, or smart heating, ventilation, and air conditioning systems, are HVAC systems equipped with sensors and connected to the internet, allowing them to be controlled and monitored remotely. The use of smart technology in HVAC systems allows for greater control and efficiency. For example, sensors can be used to monitor the temperature and humidity of a space, and the system can be automatically adjusted to maintain optimal conditions.
Latest IoT Warehousing Trends
Automated Guided Vehicles
Warehouse automated guided vehicles (AGVs) are robotic vehicles used in warehouses to move goods and materials from one location to another. These vehicles are equipped with sensors and other technology that allows them to navigate autonomously within the warehouse, following predetermined paths or instructions. AGVs can be used for a variety of tasks in a warehouse, such as moving goods from one location to another, loading and unloading trucks, or transporting materials to and from production areas. They can operate 24 hours a day, seven days a week, providing a reliable and efficient means of handling goods within the warehouse.
Blockchain Item Tracking
Blockchain item tracking refers to the use of blockchain technology to track and manage the movement of goods and assets within a supply chain. Blockchain is a distributed database technology that allows multiple parties to securely record and verify transactions without the need for a central authority. While item tracking a blockchain can be used to create a shared and immutable record of the movement of goods and assets within a supply chain. Each transaction, such as the transfer of ownership or the movement of goods from one location to another, can be recorded on the blockchain, providing a transparent and verifiable record of the item’s history.
AR Glasses
AR glasses, or augmented reality glasses, are wearable devices which can superimpose digital information onto the real world. In a warehouse setting, AR glasses can be used to provide workers with real-time information and guidance, helping them to perform their tasks more efficiently. By simply looking at a particular shelf or location, workers can see the items stored there, along with any relevant information, such as quantity or expiration date. This can help workers quickly and easily locate the items they need, reducing the time and effort required to find and retrieve items.
Drones
Drones, or unmanned aerial vehicles (UAVs), can be used in warehousing for a variety of tasks, such as inventory management, asset tracking, and security. For example, drones equipped with sensors and cameras can be used to scan warehouse shelves and automatically count and track the inventory levels of individual items. This can provide real-time visibility into the status of the warehouse’s inventory, allowing managers to quickly and easily identify any shortages or overstocks.
Key Takeaways
Overall, using IoT to automate your warehouse is a good way to boost your efficiency and bring your warehousing operations into the future. If you’d like to talk to an expert on how to automate your warehouse, check out ShipHero!
IoT in Warehouse Automation FAQs
What is Warehousing Automation?
Warehouse automation encompasses anything which automates and improves the efficiency of warehouse tasks. This can include software, hardware, people, and robotics which can be integrated in every part of warehouse operations including unloading and sorting inventory, picking and packing items, capturing warehouse data, automated retrieval of items, and automated shipping processes.
What is IoT Automation?
IoT automation refers to the use of IoT (Internet of Things) technology to automate various processes and tasks. IoT automation involves the connection of physical devices, such as sensors and actuators, to the internet, allowing them to send and receive data. In a warehouse setting, IoT automation can be used to improve various aspects of operations, such as inventory management, asset tracking, and temperature control.
How IoT Improves Warehouse Operations?
While IoT is a new trend in the logistics industry, it is one way in which many warehouses have found the answer to every warehouse’s question: How do I ship faster and more accurately? With IoT, many warehouse processes can be automated in order to reduce operation costs, boost performance, reduce human error, and lower risks.
Dec 30, 2022 | Blog
Advanced Warehouse Automation Technologies You Should Know About
Following the rise of the Industry 4.0 technology boom during the COVID-19 crisis, the logistics and shipping industry continues to depend on warehouse automation. Novel solutions like warehouse management software make modern processes more efficient than ever, leaving the days of human error and slow delivery behind.
If you haven’t incorporated warehouse automation solutions into your operations, this introduction to new technologies will highlight why you need them.
What Is Warehouse Automation?
Warehouse automation is the process of computerizing inventory management and increasing efficiency for repetitive tasks, such as physical work or data entry. This software eliminates the need for human intervention through artificial intelligence.
What Is Digital Automation?
Digital automation uses software to process real-time data and manage inventory tracking. Some of these processes might include:
- Radiofrequency identification (RFID)
- Mobile barcode scanning
- Live supply chain updates
- Resource planning
These digital processes provide multiple benefits, such as:
- Increased inventory accuracy
- Faster shipping times
- Reduced operational costs
- Enhanced security
- Improved customer service
With that in mind, digital automation technology is costly. Upfront costs include the software, necessary hardware, employee training programs and maintenance costs.
In addition, going digital can potentially increase cybersecurity risks. However, data encryption can typically mitigate these dangers.
What Is Physical Automation in the Warehouse?
Physical automation in the warehouse involves using robots and machines to increase workflow efficiency and perform manual tasks. These responsibilities might include robotic picking, automatic sorting and advanced retrieval systems.
Using mobile robots can provide many benefits, such as:
- Enhanced reliability
- Scalable systems
- Improved and more accurate performance
However, like digital automation, physical automation is expensive, given that few people have experience handling robots. In addition, robotic solutions demand intense planning that most low-volume warehouses cannot afford.
How Does Warehouse Automation Work?
Warehouse automation works by using software and autonomous robots to automate repetitive or administrative tasks. Basic automation can be achieved through warehouse management systems (WMS) that streamline daily warehouse operations such as:
- Inventory tracking
- Order shipment and fulfillment
- Coordination with shipping partners
- Data analysis
Depending on inventory volume, some warehouses may use robotic retrieval systems to move cargo from point A to point B. However, most warehouse automation systems for smaller businesses simplify repetitive tasks by automating them.
There are four primary types of warehouse automation, including the following:
- Basic warehouse automation: Simple technology that automates repetitive tasks (e.g., a conveyor belt that moves inventory from one point to another)
- Warehouse system automation: Machine-learning-based technology that automates specific tasks (e.g., a system that picks the appropriate inventory items to fulfill upcoming orders)
- Mechanized warehouse automation: Robotic automation that assists in specific procedures (e.g., autonomous robots that deliver items to human pickers)
- Advanced warehouse automation: Mechanized warehouse robotics that replaces labor-intensive tasks (e.g., robotic forklift systems)
Why Should You Automate Your Warehouse?
You should automate your warehouse to reduce human error in manual processes, prevent inventory loss, meet customer expectations and many other reasons. Below are the benefits of warehouse automation:
- Increased task speed: Software solutions with inventory control can tell you where each item is located and what you need to fulfill a particular order. Employees receive notifications and updates on their mobile devices, increasing productivity and efficiency.
- Improved safety: Advanced automation moves products around on its own, so it limits the need for manual equipment across the facility and reduces the chances of an accident.
- Maximized space: Automated storage and retrieval systems with material-carrying vehicles decrease required warehouse space, enabling warehouses to stock more inventory.
- Reduced errors: Modern warehouses with inventory control can notify warehouse owners of low stock with incredible accuracy, limiting shipping errors and keeping fulfillment on track.
- Reduced labor costs: Because automated warehouses demand less manual labor, warehouse owners can spend less on recruitment, training, and full-time employment.
Types of Advanced Warehouse Automation Technology
Different systems could benefit you depending on your specific warehouse processes. Consider the following product solutions.
Goods-to-Person (GTP)
GTP systems utilize vertical lift systems, conveyor belts and carousels to increase warehouse picking speed and overall efficiency.
Automatic Guided Vehicles (AGV)
This mechanized automation system uses magnetic strips and sensors to navigate throughout your warehouse and facilitate item picking. They are ideal for smaller warehouses with minimal human traffic.
Autonomous Mobile Robots (AMR)
AMRs are similar to AGVs with the addition of a GPS. Users can create AMR routes using laser guidance systems to avoid blockages and obstacles. Compared to AGVs, AMRs can navigate more complex layouts.
Automated Storage And Retrieval Systems (AS/RS)
This fulfillment technology employs material-carrying vehicles, loaders and shuttles that store and retrieve orders. AS/RS systems are best for high-volume storage locations with limited space.
Voice Picking and Tasking
Pick-by-voice systems enable users to curate optimized pick paths for picking or putting away an item. With this system, workers don’t need scanners to find inventory.
How to Automate Your Warehouse
Automating your warehouse processes requires ample planning with stakeholders and managers. You can quickly get started with these simple steps:
- Develop a support committee: Appoint automation experts who can audit your existing warehouse operations and determine where implementing WMS can be most useful. Consider tapping third-party experts and software engineers with experience in supply chain automation.
- Collect the appropriate data: Evaluate your current data collection processes. Ask questions like: how quickly can you retrieve information regarding your inventory? Is this information accurate? The answers to these questions will determine how best to implement new strategies.
- Review your inventory control systems: Consider your standard operating procedures (SOP) for managing inventory. Define each process, including shipping, fulfillment and customer satisfaction. Do these existing processes satisfy your key performance indicators? If necessary, consider what changes you need to make to improve these SOPs.
- Choose the appropriate WMS: What WMS you choose ultimately depends on your overarching business goals. Do you want to reduce human error? Is your fulfillment process slow? Where you need the most improvement will tell you what automation system will work best.
- Implement your new system: Most WMS platforms are intuitive, but others require intensive work and training. You’ll need to learn how to use the new equipment, especially if your new system requires physical machines.
Benefits of Advanced Warehouse Automation
A robust warehouse management system can help modern warehouses by offering the following benefits:
- Streamlined resource distribution and utilization
- Reduced storage and operational costs
- Increased productivity and overall efficiency
- Improved employee and customer satisfaction
- Fewer workplace accidents
- Optimized warehouse space
- Limited manual labor
- Few to no shipping errors
Latest Trends in Warehouse Automation Technologies
Warehousing industry trends change over time, and it’s important to keep up to stay competitive. Below are a few popular warehousing trends to keep an eye on:
Big Data and Predictive Analytics
AI-powered and machine-learning tools are an excellent way to improve forecast accuracy. Through predictive analysis, managers can upgrade warehouse equipment on time, identify performance issues and prevent delays. Advanced systems with these capabilities can also shut equipment down before it fails, saving thousands in repair costs.
IoT Data Collection
You can liken IoT data collection to optimizing a smart home in warehouse settings, where sensors collect data to improve warehouse environments.
For instance, smart lighting systems can turn warehouse lights on and off depending on the time of day and who is present on site. Alternatively, smart HVAC systems can adjust warehouse temperatures according to new inventory or present employees.
Autonomous Warehouse Robotics
Autonomous warehouse robotics provide impressive cost savings because they require minimal human interaction. Warehouse robots can pick orders, conduct inventory checks and move items depending on your needs – all on their own.
Blockchain for Warehouse Automation and Traceability
Blockchains act like digital ledgers in warehouse settings, making real-time updates accessible and shareable amongst managers and stakeholders. They can notify order recipients when to expect deliveries and managers when to refresh stocks.
The blockchain’s traceability is especially advantageous to food and beverage businesses with time-sensitive stocks.
Remote Warehouse Management
Work-from-home positions became increasingly popular following the pandemic, so it’s no surprise that remote warehouse management within distribution centers is now more common than ever. Remote management simplifies diagnostics – owners can identify functionality problems off-site and plan repairs the following morning.
Key Takeaways
As technology advances, the opportunities warehouse automation presents are virtually endless. Consider these takeaways if you want to strengthen your supply chain through warehouse automation.
- Warehouse automation can be digital or physical. Digital automation involves anything from data collection to real-time inventory updates, while physical automation dispatches robots and machines that can move items.
- There are many reasons to use automation tools. They can increase efficiency and productivity, guarantee safety in the workplace, lower warehouse costs, reduce human error and maximize space.
- Creating an automation strategy involves developing an implementation team, reviewing your existing processes and choosing the appropriate solution.
- Keeping up with warehouse automation trends can keep operations efficient and competitive. Consider trends like the blockchain, predictive analysis, remote management, IoT data collection and other cutting-edge technologies.
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Advanced Warehouse Automation Technology FAQs
What are the latest technologies used in warehouses?
The latest technologies used in warehouses include AI-powered predictive analysis, warehouse robotics, smart setups, improved traceability through the blockchain and remote management.
What technology is used in the WMS?
WMS typically employs technology like data collection software or autonomous robots. What technology you should use depends on your warehouse’s specific requirements.
What are the types of automation technology?
The current technologies warehouse owners use for automation include:
- Automatic guided vehicles and robots for navigating warehouse aisles
- Voice picking for hands-off inventory tracking
- AS/RS systems to transport goods within the warehouse
Dec 30, 2022 | Blog
From conveyor belts to aerial drones, warehouse automation has been around for decades. But as the COVID-19 pandemic triggered a massive eCommerce boom and reshaped supply chains, warehouse robotics is proving to be not only beneficial to logistics and supply chain management but also essential for any business that wants to thrive in the years to come.
Whether you’re a business owner or third-party logistics provider, familiarizing yourself with warehouse robotics technology can help you gain a competitive edge and future-proof your business.
What is Warehouse Robotics?
Warehouse robotics is the use of automated systems and machines (or robots) to assist in essential warehouse tasks. That said, it refers not only to the machines but also to the software used to control each one.
Warehouse robotics is part of a larger system called warehouse automation.
A Brief History of Robots in the Warehouse
Warehouse robotics has evolved over the years from simple AGVs that carry heavy materials across warehouse floors to collaborative bots or “cobots”, mobile robots that can be programmed to follow workers around and perform a range of tasks.
The origin of automation technology in the warehouse can be traced back to 1913 when Henry Ford first implemented the moving assembly line, a system of conveyor belts that allowed Ford to produce automobiles at record speed. This revolutionized the manufacturing industry and ushered in a new era of utilizing technology to produce and deliver goods more efficiently. In the following years, warehouses would adopt the use of forklifts and hand trucks to shuttle large quantities around.
By the 1950s, the first AGVs were introduced. These driverless vehicles could move heavy loads along a predetermined route guided by magnetic sensors.
American inventor George Charles Devol, also known as the father of robotics, invented the first robotic arm, Unimate in 1954. Its use became popular in industrial applications by the 1960s, when other innovations such as the first automated storage and retrieval system (AS/RS) took off as well. Today’s AS/RSs store and retrieve items for workers, allowing humans to remain at their stations and out of danger.
The ‘80s and ‘90s saw the rise of integrating hardware and software to create a unified system. By the 2000s, warehouse automation involved the Internet of Things (IoT), interconnected “smart” devices that could interact over a wireless network.
Artificial intelligence-powered robots, aerial drones and computer vision systems are among the latest technologies that are changing our approach to automation in the warehouse.
Use Cases: What Kinds of Tasks Can Warehouse Robots Help With?
Warehouse robots can aid in a myriad of warehouse tasks, including:
Picking
Picking refers to the process of locating and retrieving products to fulfill an order. Industrial robots can be used to either pick out products themselves and transport them to the next location or assist workers with things like identification and verification.
Sorting
Sorting is a complex task that is often prone to error. Using cameras, sensors and conveyor systems, robots can speed the sorting process up and reduce errors at the same time.
Transportation
Moving massive amounts of inventory across large areas is labor-intensive, time-consuming and even potentially dangerous. Things like automated guided vehicles (AGVs), which can transport goods along set routes without any human guidance, take away the stress of mobilizing products from one part of the warehouse to another – giving workers more time to perform other tasks.
Replenishment
Warehouse automation systems can keep track of inventory levels and notify workers when stocks are low. Advanced robots like aerial drones can also scan inventory and count items, then update the warehouse management system.
Packaging
Pick-and-place robots can quickly pick products up and place them into boxes or bags along conveyor belts. Using computer vision systems, some robots can also calculate the ideal box size for different types of products.
Benefits of Warehouse Robotics
Here are some of the benefits of implementing robotic technology in warehouses and fulfillment centers:
Automate Tedious, Repetitive Tasks
By automating routine and menial tasks around the warehouse, robots can free human employees up to tackle more complex challenges that require careful judgment and higher levels of skill.
One major fear that people tend to have around robots is whether they will replace human workers. Experts say that this isn’t likely to happen soon. Instead, humans will be “crew chiefs” and have more managerial roles over their robot teams. The aim is to improve the quality of experience for warehouse workers, who face burnout from doing repetitive tasks day in and day out.
Reduce Physical Strain on Warehouse Workers
They don’t call manual labor back-breaking work for no reason. Repetitive warehouse work can lead to overexertion and overuse injuries like nerve injuries, muscle strain, rotator cuff injuries, neck and spine injuries, tendonitis and carpal tunnel syndrome. The work’s repetitive and monotonous nature can also lead to increased stress, low morale and burnout.
With the help of robots, which can perform a bulk of the strenuous and repetitive tasks involved in running a warehouse, businesses can keep their employees healthier and happier for longer.
Strengthen Warehouse Safety
Aside from being physically and mentally taxing, warehouse work can be dangerous as well. A survey by the US Bureau of Labor Statistics ranked transportation and warehousing among the private sectors with the highest rates of nonfatal occupational illnesses and injuries.
Some of the top causes of warehouse accidents include slips, falls and trips, manual handling injuries, forklift injuries and injuries caused by falling objects. But all these can be avoided with the help of warehouse robotics. Built-in sensors and LiDAR scanners can keep AMRs from bumping into people and objects in their way, mobile robots and AS/RS can replace manual forklifts and aerial drones can keep workers from manually counting tall stacks of inventory – reducing their risk of falling from dangerous heights.
Lower the Likelihood of Errors
Human error can compromise the workplace in a variety of ways, including damaging expensive machinery, affecting the quality of products, causing accidents and injuries and impacting a business’ overall profitability.
Warehouse automation and robotics can reduce the incidences of errors caused by human workers by improving accuracy and efficiency in warehouse operations. Complicated processes are relegated to robots that can multitask far better than any human worker, and physically demanding tasks are performed by machines that can handle much larger loads.
Make More Accurate Predictions
Given that robots can perform warehouse tasks day in and day out without tiring, needing breaks or getting distracted by other tasks, it’s easier for warehouses to predict how much time it takes to process orders and get them to customers.
With artificial intelligence, warehouses can also make more accurate predictions when it comes to demand surges, inventory stockouts, machine maintenance, etc.
Create a More Adaptable Workforce
Aside from predicting demand surges, warehouse robotics can also help your warehouse adapt to busy seasons. Instead of hiring and training new employees, which can take several weeks and cost your business money, you can rely on your robotics to shoulder the load.
Boost Customer Satisfaction
With a faster, more efficient and less error-laden fulfillment process, it’s easier to keep customers happy with your service. And with more helping hands (albeit non-human ones) on the warehouse floor and a centralized hub for all customer, order and supplier information via your warehouse management system, you can provide more seamless and accurate customer service.
Bolster Your Brand Image
When customers notice the consistency of your service, you create a brand image that is synonymous with quality, efficiency and innovation. Soon enough, you’ll establish yourself as a brand that can keep up with (and potentially even outpace) the leaders in your industry.
Types of Warehouse Robotics
There are many different kinds of warehouse robots. These are some of the most popular ones in use today:
Automated Storage and Retrieval Systems (AS/RS)
AS/RS are software-controlled systems that can place and retrieve goods automatically. These systems comprise several components that work together to speed up order fulfillment.
These are just a few examples of components that fall under AS/RS:
- Unit loads or machines store large loads of over 1000 pounds. These handle goods that are stored vertically on stacked pallets reaching heights of up to 100 feet.
- Vertical lift modules use an automatic inserter/extractor that stores and retrieves items that are stacked vertically on a column of trays.
- Horizontal carousels are made up of a series of rotating bins and are used to store small parts and pieces.
Automated Guided Vehicles (AGVs)
AGVs are independently operated, self-propelled vehicles guided along defined pathways. These robots can navigate warehouse floors. Instead, they use magnetic strips, floor sensors or wire-guided navigation to get around.
Modern AGVs utilize cameras and/or laser-guided systems to move around, eliminating the need for external tracks or tapes on the floor.
Autonomous Mobile Robots (AMRs)
An autonomous mobile robot or AMR is like an AGV in the sense that it can move around a warehouse without human guidance or assistance. However, unlike AGVs, AMRs don’t need tracks or routes.
Using sensors and GPS systems, autonomous robots can move independently, create their own routes, reroute when faced with obstacles and perform a variety of tasks such as:
- Transporting goods from station to station
- Accompanying workers through various stages of fulfillment
- Processing information on packages
“Cobots” or Collaborative Robots
Cobots are robots that work hand-in-hand with human workers. Cobots can be programmed to perform a variety of tasks across different workstations, typically repetitive activities like picking, placing and packing goods.
Unlike traditional robots, which are typically isolated for safety reasons, cobots can work side-by-side with human staff. They’re equipped with sensors and other safety technologies that pause their movements when they run into people.
Aerial Drones
In the warehousing industry, aerial drones are mainly used for inventory management. Using cameras and sensors, drones can take on the task of inventory scanning from several feet in the air, eliminating the need for workers and pickers for manual inventory counting.
Should You Bring Robots Into Your Warehouses?
Robotics brings all kinds of benefits to a warehouse, including improved efficiency, lower error rates and a happier workforce.
And although there are sizable upfront costs to warehouse automation, they pay off eventually. Studies show that increased use of robotics can lead to a 25 to 30% reduction in average labor and manufacturing costs.
Key Takeaways
As eCommerce grows, so does the demand for faster and more accurate fulfillment. And with the way warehouse automation and robotics have advanced in the past decade, it’s become clear that robots are becoming more of a necessity in the warehouse.
If you want to stay ahead of the game and keep your employees happy, then perhaps it’s time to look into robotics for your warehouse.
Warehouse Robotics Technology FAQs
What types of robots are used in the Amazon warehouse?
Amazon uses a combination of different kinds of robots in their warehouses, including automated guided vehicles by Kiva Systems, a fully autonomous mobile robot called Proteus and a robotic work cell that picks, segregates and places packages into a GoCart called Cardinal.
What company makes warehouse robots?
Some of the top robotics companies that make warehouse robots include ABB, Kuka, Yaskawa, Fetch Robotics, Locus Robotics, 6 River Systems, Omron and Daifuku.
How are robotics used in warehouses?
Robotics are used in warehouses to automate tedious and repetitive tasks, improve worker safety and efficiency and boost overall productivity and profitability.
