Dec 1, 2022 | Blog
Are you a DTC founder or eCommerce pro looking for insights on leveling your game? Then look no further than the inaugural episode of PalletSide Chat! In this episode, Co-Founder of Black Wolf Nation and One23 Fulfillment, Alex Lewkowict, takes us on his rollercoaster journey as a high-touch 3PL and DTC founder. He discusses everything from launching (and failing) his first product line to leveraging customer feedback for growth. Whether you’re just starting or have years of experience under your belt, this episode is chock-full of actionable advice that will take your brand to the next level.
Launching, Failing and Re-Launching His First Product Line
Who knew that reselling baseball caps in high school could be the start of a successful entrepreneurship journey? But that’s precisely how it went for Alex and his brother Sam. Their credit card allowed them to provide a valuable service to their classmates and they quickly learned the satisfaction of solving other people’s problems. That business acumen only grew when they were presented with the opportunity to sell razor bump creams. Instead of looking at it as just another product, they saw the potential to solve a problem for their customers.
The old saying “If at first, you don’t succeed, try, try again” really rings true for Alex and his brother. They realized their inferior razor bump cream just wasn’t selling. Despite trying to rebrand and enlist a designer’s help, the associate they were selling for didn’t share in their vision. So, they ditched it all and decided to start their own skincare line.
After launching their initial product to crickets, these brothers didn’t let a lack of initial success stop them from following their dreams and creating a successful grooming brand. Undeterred, they made it their mission to become more than just a “one-hit wonder” and diversified their offerings by developing new products and streamlining their systems.
After finally teaching himself how to navigate Facebook ads, Alex launched ten separate ads for Black Wolf Nation. While nine may not have performed as well as hoped, all it took was one successful ad to bring in those sales. This experience taught them the importance of analytics, testing, and setting small goals to reach big successes.
“We don’t need to change men’s grooming forever. We don’t need to revolutionize anything. Let’s get one sale every single day.” – Sam Lewkowict.
Expanding Revenue Streams by Launching a 3PL
Alex and Sam hit another roadblock – shipping and fulfillment. While BlackWolf Nation’s needs were tricky, they required a provider capable of handling their growing volume. Rather than settling for an inadequate third-party logistics company, they launched One23 Fulfillment.
It’s always a gamble when starting a new business, but for Alex, the risk paid off big time. When he convinced his hesitant brother to rent a small warehouse for their 3PL company, One23 Fulfillment, he had no way of knowing how quickly they would outgrow it. But thanks to his passion for logistics, Alex could find creative solutions and make them work – even during the challenges of COVID.
When the perfect opportunity came in the form of a 35,000 sq ft warehouse, he didn’t hesitate to snatch it up. The result was a significant boost in their shipping capabilities, going from 20,000 orders to almost 300,000 in eight months. It may be scary, but it’s clear that following his passion has led to success for Alex and One23 Fulfillment.
“35,000 square feet, we took a big risk. [It was] very scary, but the best decision I ever made.” – Alex Lewkowict
Leveraging Customer Feedback as a Growth Accelerator
Forget the adage about the customer always being right – their customers are essential when it comes to BlackWolf Nation. The personal care company credits its growth and product innovation to customer feedback. Imagine emailing that a particular face wash is drying, only for the company to promptly create a dry skin formula – now that’s impressive customer service!
And by continuously monitoring what products are flying off the shelves, BlackWolf Nation can consistently improve and expand its offerings. This close relationship with customers allows them room to grow and make mistakes, making every purchaser feel like they’re on this journey alongside the company.
“I think a big part of the success of Black Wolf Nation was how close we were to our customers.” – Alex Lewkowict.
Learn From the Best in eCommerce Fulfillment
It’s been a wild ride for Alex Lewkowict, Co-Founder of Black Wolf Nation and One23 Fulfillment. In the inaugural episode of PalletSide Chat, we’ve unpacked his journey as a high-touch 3PL and DTC founder. If you’re curious about what it takes to make it in the world of eCommerce or just want a good laugh, check out the full episode here.
Stay tuned for future episodes where we’ll bring other founders and people from within ShipHero to share their stories. And if there’s anything you want us to cover or if you have questions for Alex, feel free to reach out to us at podcast@shiphero.com. We’d love to hear your feedback!
—
Listen to PalletSide Chat HERE
About the Hosts:
As VP of marketing, Dan Van Meer is always on the go. From overseeing project management and data analytics, he has his hands in a little bit of everything. Most importantly, he ensures that all creative work – from graphic design to digital marketing – is high quality and on-brand. Co-host Alex Lewkowict is quite the renaissance man. He’s been an adolescent entrepreneur, successful CEO, and Founder of a men’s skincare line, and he created One23 Fulfillment. Did we mention he made the Forbes 30 under 30 list?
Dec 1, 2022 | Blog
Warehouse automation is the use of technology to improve and optimize the handling of goods in a warehouse. It can refer to the use of robotics and conveyor belts, improved picking and packing, or installing applications that can predict the most efficient routes and delivery schedules for each package.
The goal of warehouse automation is to improve accuracy, speed and efficiency in the warehouse and cut down on operational costs in the process. Read on for an overview of the different types of automation, the benefits they offer, and some best practices to keep in mind.
What is Warehouse Automation?
Warehouse automation involves finding labor-intensive and repetitive tasks related to receiving, storing and moving inventory in a warehouse and creating systems that reduce the need for manual labor and data entry.
Some examples of warehouse automation include conveyors and sortation systems and shuttle systems that utilize mobile robots to retrieve and deliver products across different levels. However, modern warehouse automation is not limited to robotics. One of the most popular and practical ways to employ automation in the warehouse is with a warehouse management system (WMS), a software that allows warehouse managers to monitor things like inventory levels, workers’ schedules, productivity, the order fulfillment process, and delivery schedules in real-time from one central dashboard.
How Does Warehouse Automation Work?
Warehouse automation works by combining warehouse automation software systems, robotic systems and artificial intelligence to simplify complex tasks and improve speed and efficiency on the warehouse floor. The goal, ultimately, is to meet customer demand and achieve customer satisfaction and retention. After all, in this fast-paced world where people expect to receive their packages in a matter of days, the businesses that can prepare and deliver their products the fastest retain more customers.
Most businesses start with warehouse management systems first. Eventually, they integrate their chosen systems with other tools so they can manage a wide range of tasks. There are several different categories of warehouse automation, including:
- Basic warehouse automation: These are simple tools that assist workers with manual tasks, such as conveyor belts or carousels that take packages from one point to another.
- Warehouse system automation: This includes WMS programs, data analytics, and machine learning tools that collect and organize data, as well as allow managers to create more efficient systems for storage and order fulfillment.
- Mechanized warehouse automation: These are robotic equipment that helps warehouse workers with tasks and processes that may be too time-consuming or labor-intensive to perform alone. For example, shelf loader bots can lift entire racks of items and bring them to a sorting station.
- Advanced warehouse automation: This makes use of both basic tools and robotics with automation systems. In most modern warehouses, automation equipment and systems are not standalone tools but rather integrated parts of a larger system for improving efficiency in the warehouse.
What Warehouse Processes Can Be Automated?
The following warehouse processes can be improved by automation:
- Receiving
- Returns
- Putaway
- Picking
- Sorting
- Replenishing
- Packaging
- Shipping
Types of Warehouse Automation Technology
There are many different types of warehouse automation technology, each with unique benefits, including:
- Goods-to-Person (GTP) solutions: This utilizes machines that pick up materials and take them to workers in the warehouse. The workers are then in charge of assembling and packing the products. GTP includes solutions like conveyors, vertical lift systems, and Automated Storage and Retrieval Systems (AR/RS). The latter is a type of fulfillment technology that makes use of material-carrying vehicles like shuttles to retrieve and store items for production.
- Pick-to-Light and Put-to-Light Systems: These types of systems use mobile barcode scanners to guide warehouse pickers on where to pick up and put down certain items. The scanners are synced with digital displays that light up and reduce the amount of time spent walking and searching for items. This is especially useful for high-volume warehouses.
- Voice Picking and Tasking: Using speech recognition software and wireless headsets, warehouse workers can “pick-by-voice” and eliminate their reliance on handheld scanners.
- Sortation Systems: This involves automatically identifying items on a conveyer and sending them to the right location using sensors and scanners. This helps speed up processes involved in order fulfillment, including receiving packages, packing them, and shipping them off to their respective buyers.
- Auto-Guided Vehicles (AGVs): Using magnetic strips, sensors, or wires, these vehicles travel through the warehouse on a fixed path, taking loads from point A to point B without the need for human guidance. AGVs work best in large, open warehouses with minimal foot traffic.
- Autonomous Mobile Robots (AMRs): Like AGVs, these travel around the warehouse carrying items from one area to another. However, unlike AGVs, these make use of GPS systems to navigate their environment and avoid obstacles.
When to Automate Your Warehouse?
You should automate your warehouse when you find yourself struggling with the following:
- You experience order delays due to limited warehouse employees
- Your day-to-day warehouse operations are labor-intensive and take up too much time and energy to fulfill
- You find that you can no longer keep up with the number of work orders that come in every day
- You can no longer keep track of your inventory
- Finding important information causes delays
- Your customer satisfaction and retention numbers start to dwindle
Benefits of Warehouse Automation
The aforementioned issues in your warehouse performance can all be traced back to manual processing. Though you may feel that you should get by with tried and tested methods, oftentimes, outdated processes can no longer keep up with the demands of the modern world. In turn, you experience delays and errors that don’t just hassle your workers but tarnish your reputation as a reliable business or service provider.
If you need more reasons to make the switch to warehouse automation systems, consider the following benefits:
Reduces Operating Costs
Automation is a game-changing technology that will help you reduce operational costs and make your business more efficient. This is done by eliminating human error and giving workers more time to focus on more important tasks.
Boosts Productivity
Even amid a labor shortage, you can maintain a lean team of warehouse workers by equipping them with tools and processes to make their jobs easier. When tasks require less time and effort to complete, workers can do more in a day. On top of this, warehouse automation can reduce safety risks associated with workers rushing, and, as a result, keep workers healthy and happy.
Enhances Inventory Management
When you can monitor your products’ every movement, you can reduce the risk of losing and misplacing items as well as relay accurate information to your customers. This helps to improve customer service and satisfaction as well.
Maximizes Warehouse Space
A lot of warehouse space goes underutilized. By implementing autonomous vehicles and conveyor systems, you can improve the flow of operations in your warehouse and allocate more space for new products, workstations, and the like.
Improves Sustainability
When you can create more efficient workflows, you end up using less energy to keep your facilities up and running. You also minimize wastage, take up less space to run your operations, and lower your operating costs.
The Drawbacks of Warehouse Automation
As helpful as warehouse automation systems are in streamlining operations, they also come with some considerable implementation costs. You’ll have to be prepared to cover the upfront costs of installing machines and software applications, as well as onboarding all your staff. Maintenance and repairs of your robotics and other equipment may also put a dent in your budget, stall your operations for a few hours and cause delays in processing orders.
How to Automate Your Warehouse
To prepare yourself for a warehouse automation solution, follow these steps:
Determine Your Objectives
What do you want to get out of implementing automation? Make a timeline of milestones you want to reach, KPIs to measure, and business goals you want to accomplish by adopting automation for your business.
Put Together an Implementation Committee
Get in touch with all relevant stakeholders, including your operations managers and engineers. You’ll want to know what your warehouse’s capabilities are, what challenges you face and what areas can be improved by introducing new technology. This step will help you identify what kinds of systems will work best for you.
Review Your Inventory Control Systems
Inventory control is a crucial and necessary component of warehouse operations. Before introducing automation into your business, make sure to review and rectify all standard operating procedures related to inventory management, including purchasing materials from vendors, receiving shipments and measuring customer satisfaction.
Implement a Warehouse Management System
A warehouse management system is a software used for monitoring and managing inventory levels, warehouse team productivity, order fulfillment progress and shipping progress. These systems provide managers with real-time updates on the warehouse and their employees’ work performance, as well as important data that can aid them in making more informed business decisions!
Find the Right Warehouse Automation for You
Now, it’s time to put all the information you’ve gathered and figure out the best warehouse solutions for you. Make sure the automation systems you choose align with your customers’ demands and your business goals.
Warehouse Automation Best Practices
To make the most out of your warehouse automation systems, make sure to keep the following warehouse automation trends and best practices in mind:
- Don’t skimp on workforce training. You’ll want to make sure your staff knows how to use your new automation systems, otherwise, what’s the point? Spend a considerable amount of time training them to understand how each system works and how they can make their tasks easier.
- Prioritize finding the right WMS. Don’t underestimate the power of a good, user-friendly, and easy-to-integrate WMS. A good system doesn’t just streamline workflows and centralize data, it also integrates with third-party apps and systems for a more seamless workflow.
- Optimize your warehouse with the Internet of Things. The IoT is a network that connects multiple smart devices within your facility, including sensors, RFID tags, trackers, and the like. By utilizing IoT, you can more easily collect data from your systems and improve your inventory control. Doing so also gives you a constant, real-time view of all operations in your warehouse.
- Take advantage of voice assistants. Help your employees do more by keeping their hands free as they move around your facility. Voice assistants and wireless headpieces make it easier for staff to navigate your warehouse and find everything they need to do their job.
- Consider replacing conveyors with mobile robots. Conveyors are a staple in any warehouse. But new technology is looking to replace or supplement this age-old automation technique. Today, there are mobile robots that can transport goods faster and more efficiently than conveyors, especially since they have more mobility across the entire warehouse floor.
How Much Does It Cost to Automate Your Warehouse?
The cost of automating a warehouse depends on the size and complexity of the project. Generally, though, warehouse automation can cost anywhere between several thousand to millions of dollars.
Key Takeaways
Warehouse automation technology is a great way to improve your warehouse operations. By automating tasks such as order picking, packing, and shipping, you can save time and money while improving your accuracy and efficiency. We’ve outlined the different types of warehouse automation technology and how to automate your warehouse in this post.
Warehouse Automation FAQs
How do I start warehouse automation?
You can start automating your warehouse by implementing a warehouse management system.
What technology do warehouses use?
Warehouses utilize a wide variety of technologies to automate and streamline tasks, including conveyors, shuttles, voice recognition software, autonomous robots, drones, and smart devices.
Will warehouses ever be fully automated?
There is no telling when all warehouses will become fully automated. While the world’s first fully-automated warehouse was introduced in China in 2021, a report showed that over 80 percent of warehouses today do not use any kind of automation at all.
Dec 1, 2022 | Blog
With today’s customers demanding fast fulfillment times and one or two-day shipping, manual warehouse operations just won’t cut it anymore. These days, you need to automate warehouse operations if you want to satisfy customers and grow your eCommerce business.
What is warehouse automation and what do you need to implement it in your business? Read on to learn more.
What is Warehouse Automation?
Warehouse automation is the process of automating your daily warehouse processes with minimal human involvement. Businesses generally implement warehouse automation to eliminate labor-intensive work that requires a lot of time and effort. It also minimizes the number of manual tasks required, reducing the chance of human error.
When you hear “automation,” you may think of workers loading products into robots and drones. However, warehouse automation doesn’t necessarily need robots or other physical hardware. Sometimes, warehouse automation starts with implementing a warehouse management system or similar software.
What is Warehouse Automation Software?
Warehouse automation software is a tool used to automate modern warehouse operations. These tools reduce the manual tasks necessary in daily warehouse operations, increasing efficiency and reducing human error.
Warehouse automation software and tools include, but aren’t limited to:
- Automated data entry software
- Warehouse management systems
- Inventory management software
- Robotic solutions
- Warehouse management mobile apps
How Does Warehouse Automation Work?
Warehouse automation works differently depending on which software or tool you implement. Here’s a quick look at some example warehouse automation tools and how they work:
Warehouse Management System
A warehouse management system (WMS) provides tools to help you manage all aspects of day-to-day warehouse operations. It especially assists in the main warehousing flow of:
- Stock receiving
- Stock arranging
- Picking and packing products
- Shipping products to customers
- Tracking shipping progress
- Handling product returns
Warehouse management software also provides regular reports on your warehouse’s key metrics. This helps you identify improvement areas and make informed decisions on what to do next.
Automated Data Entry Software
Manual data entry is one of the most common work processes to automate because they’re often highly repetitive tasks.
Employees will enter information into the spreadsheet, highlight another cell, enter more information and repeat the process until everything is filled. It’s boring work and distracted workers often lose focus and enter the wrong thing in the wrong spots.
Automated data entry software helps you reduce the workload by automatically extracting data from documents and digitizing paperwork. In addition to preventing human error and saving time, you can assign your warehouse team to work on other important tasks that need a human touch.
Inventory Management Software
Inventory management software gives you real-time visibility into your entire stock, meaning you don’t have to do physical inventory checks as often. It also monitors your stock levels to notify you when you’re running out of a certain product, keeping your products from running out of stock.
In more advanced cases, inventory management software can forecast consumer demand based on historical sales and notify you to order more products in preparation for high-demand seasons.
Benefits of Using Warehouse Automation Software
When implemented right, warehouse automation software can improve your warehousing operations in many ways. Here are several examples of warehouse automation software’s benefits:
Reduce Human Error
There’s always the potential for human error in manual processes. Depending on the significance of the mistake, human error can lead to costly item replacement or significant shipping delays that reduce customer satisfaction.
Automated warehouse solutions reduce the chances of human error by automating certain warehousing tasks. For instance, pallet dimensioning systems help your warehouse crew accurately measure a pallet’s dimensions without using manual methods like tape measures.
Drive Operational Costs Down
Warehouse automation systems aren’t cheap but usually have a fast return on investment. Warehouse automation reduces your operational costs by minimizing:
- Manual labor costs
- Inventory and stocking errors
- The risk of product mishandling
- The cost of product handling
Increase Productivity and Lighten Workload
In addition to reducing human error, automated warehouse solutions reduce the time necessary to do key warehousing tasks. Using the pallet dimensioning system example above, warehouse workers can measure the dimension of a pallet and plug it into the system in minutes or even seconds instead of spending time measuring the pallet manually.
Automating warehousing tasks also reduces your employees’ workload, allowing them to skip over parts of the job they may find boring or frustrating. This improves staff satisfaction and can even increase retention rates.
Improve Safety
Warehousing operations are often high-risk because there are lots of people moving lots of goods from here to there at any given time. If an accident happens, people may get injured and hundreds of dollars worth of merchandise may be damaged.
Warehouse automation through automatic guided vehicles (AGVs) or autonomous mobile robots (AMRs) helps your staff move products safely. These autonomous vehicles and robots reduce human traffic throughout your warehouses, reducing the chance of accidents and ensuring your workers are safe.
Optimize Warehouse Space
Warehouse space isn’t cheap and you need to use every cubic foot of it to get your money’s worth. However, you can only stack products so tight and high before it becomes dangerous for people to grab them.
This is where warehouse automation comes in. Automated storage and retrieval systems (AS/RS) and drones take care of the picking process for your team, so they don’t even have to leave the ground – no matter how high and tightly packed your products are.
Using every cubic foot of your warehouse available also means you won’t have to purchase or lease extra storage space as often.
Increase Customer Experience and Satisfaction
Customer satisfaction is the goal of every business, and yours is no exception. Warehousing might not have a direct link to customers, but they can feel it when your warehouse operations are subpar. If your staff are slow to process products, customers won’t receive their goods on time, leading to lost sales and complaints.
The main goal of warehouse automation is to ensure products are fulfilled and shipped on time, increasing your daily operation’s efficiency. When you deliver everything punctually, your business reputation and customer retention will improve, giving you an edge over the competition.
Why Should You Automate Your Warehouse?
You should automate your warehouse to ensure your business can keep up with customer expectations while keeping costs down. Here are some reasons why you should automate warehousing operations:
Customizable Solutions
There’s no one-size-fits-all warehouse automation solution. Every solution is customized to your warehousing operations, meaning everything you implement is created to address your issues and requirements.
Cost-Effectiveness
Implementing warehouse automation is usually a large financial commitment, but you’ll immediately feel the effects. With warehouse automation solutions, you can save a lot of money on labor, equipment and maintenance costs.
Demand Forecasting
You don’t want to run out of your most popular product in high-demand seasons because that means giving up lots of sales.
Inventory management software helps you predict customer demand based on past sales so you can order more of a product. This ensures you won’t run out before the high-demand season rolls around.
Product Safety
Human error can result in damaged products or inventory loss, hurting your bottom line. Automating key warehouse processes means:
- Reducing human contact with your goods
- Lowering the likelihood of accidents that cause damaged products and inventory loss
Order Fulfillment Optimization
Warehouse automation tools show you the best way to fulfill customer orders. This means you can promise accurate fulfillment and fast delivery times to customers and deliver on it. You’ll build brand loyalty and gain an edge over your competitors by combining great products and punctual delivery.
When to Automate Your Warehouse
You should automate your warehouse after a thorough study of your warehouse operations. Implementing these tools is costly, so blindly following warehouse automation trends and current technologies without knowing what you really need will just waste your money.
If you can’t determine what aspects of your warehouse operations you should automate, hire a consultant to examine your business and identify what areas can be improved.
Types of Warehouse Automation Tools
There’s a wide variety of warehouse automation tools available for businesses to implement. Here’s an overview of the four most popular options in the warehouse automation market:
Inventory Management Software
Inventory management software is a tool that grants real-time visibility of your entire warehouse stock. This means you can stock enough goods to keep selling without holding too much of a certain product type.
This warehouse automation tool gives you greater inventory control and notifies you whenever something is about to run out, ensuring you’re always well-stocked.
Warehouse Robotic Solutions
Warehouse robotic solutions like AMRs and AGVs do various tasks around the warehouse. For instance, AGVs replace manual forklifts, collaborative robots (cobots) follow workers around as mobile storage bins and AS/RS systems pick items from high shelves.
In addition to increasing efficiency and reducing human error, warehouse robots reduce workplace accidents by removing the human element from often dangerous tasks.
Warehouse Management System
A warehouse management system is a holistic solution that offers inventory visibility and control over the entire supply chain fulfillment operations. A WMS helps you through the entire warehousing process, from when products enter the warehouse until they arrive at the customer’s doorstep.
Your WMS also lets you handle returns, generate performance reports and make informed warehousing decisions.
Warehouse Management Mobile Apps
Warehouse management mobile apps are like tiny warehouse management systems you can carry around. These apps help you through most of the warehousing workflow, from scanning products to labeling goods for shipment. Some of these tools are standalone, but others may require a WMS subscription.
How to Choose the Best Warehouse Automation Software
Implementing warehouse automation isn’t cheap, so you must ensure you implement the perfect solution for your company’s warehousing issues. Here’s a guide to choosing the best warehouse automation technology:
- Analyze your current warehousing situation to determine if you need to implement automation.
- Identify what you need out of the warehouse automation software.
- Examine your current business and determine whether you must connect other software or tools to your automation software.
- Define a budget and ideal ROI.
- Shop around for vendors that fulfill your business requirements.
- Negotiate for the best deal.
- Implement the automation software.
- Review and identify areas of improvement after implementation.
Key Takeaways
Warehouse automation software can be costly, but it’s a great way to improve your warehousing operations and meet increasing customer demands. Different warehouse automation solutions (e.g., WMS, inventory management systems and robotics solutions) fulfill different needs.
Before implementing warehouse automation software, you should identify your warehousing needs and find the automation tool or software that fulfills your needs at a reasonable cost.
Warehouse Automation Software FAQs
How is automation used in warehouses?
Automation is used in warehouses to reduce human error and prevent costly mistakes. Some examples of automation in a warehouse are using mobile robots to pick and pack goods, measuring pallet sizes automatically and forecasting customer demand.
What is a fully automated warehouse?
A fully automated warehouse is a logistic facility that primarily uses automatic cranes and other handling equipment in its day-to-day operations. A fully automated warehouse typically doesn’t use standard forklifts and has a minimal human presence.
What is smart warehousing?
Smart warehousing is the pinnacle of warehouse automation, where most of its operations are done automatically through robots and automated cranes. The main benefit of smart warehousing is that it prevents human error that may cause costly accidents.
Dec 1, 2022 | Blog
With the fast-moving nature of today’s eCommerce landscape, it’s challenging to balance inventory stocks to match customer demand. Both overstocking and understocking are detrimental to your business in different ways.
Fortunately, inventory management can help keep your stock at the right levels and provide real-time updates on your inventory situation. What do inventory control and warehouse automation entail? Read on to find out.
What is Warehouse Inventory Management?
Warehouse inventory management is the entire process of handling inventory items from arrival to shipping. It replaces manual processes across aspects like inventory tracking, staff management and storage space to ensure orders are promptly fulfilled and shipped.
While warehouse inventory management seems “invisible” to customers, it directly impacts their satisfaction. Subpar inventory management leads to shipping errors and delays, which lead to dissatisfied customers.
What is Automated Inventory Management?
Automated inventory management is a system that allows you to monitor and manage inventory in real time. Automated inventory management works with your order management software to ensure every single item received or sold is recorded as soon as possible.
Real-time data visibility means you don’t have to do physical inventory counts as often. Instead, you can just check your dashboard and get a good idea of your current inventory situation. Automated inventory management also notifies you to order more products if you’re about to run out of stock.
How Does an Automated Inventory Management System Work?
An automated inventory management system works by tracking and managing your inventory in real-time and providing you with the information to make informed decisions regarding your business.
Here’s how an automated inventory management system helps your business:
- Records incoming products quickly with mobile barcode scanners
- Sends notifications when you’re running low on stock for certain products
- Works with your order management or point-of-sale software to monitor current inventory levels in real-time
- Gauges product performance to see which ones are popular and which ones aren’t
- Forecasts customer demand and predicts the next high season based on past sales data
- Creates reports on inventory levels, profit margins and other important metrics to assist in decision-making
Why Invest in an Automated Inventory Management System?
You should invest in an automated inventory management system to ensure your warehouse or fulfillment center is well-managed and you can ship products to customers on time. Here are some additional reasons to implement an automated inventory management system:
Save Time Wasted on Manual Inventory Management Processes
Manual stock updates on spreadsheets often take hours, especially if you have a lot of products. Automated inventory management systems will update your inventory records as items enter and leave the warehouse or fulfillment center, so you don’t have to do manual stock checks as often.
Get Complete Inventory Visibility in Real-Time
Real-time stock tracking is indispensable when it comes to monitoring stock levels. With complete inventory visibility, you’ll know when to order more products before you run out of stock. Some advanced inventory management systems even remind you to put orders in when stock is about to run out.
Prevent Stock Miscalculations and Inventory Loss
Stock miscalculations can lead to lost sales and reduced customer satisfaction because the items they wanted aren’t there. Unfortunately, stock miscalculations and inventory loss are often common when you do manual stock checks. Inventory management systems ensure all stock is accounted for, which means your records will match what’s in the warehouse or distribution center.
Spot Problems Earlier
Issues like stock theft and product damage can hurt your bottom line if left unaddressed for too long. Instead of checking for theft or damage in monthly or annual inventory checks, automated inventory systems can detect stock discrepancies as they happen, allowing you to solve the issue before they become bigger problems in the future.
Scale Your Business Easily
Scaling your business often leads to increased warehouse space and more inventory transactions. If your inventory system is still fully manual, you need to hire many more people to keep up with the increased demand.
However, inventory management systems make scaling easier because you don’t need to increase your workforce. You can upgrade to a better inventory software package to handle the increased transactions.
Why is Warehouse Inventory Management Important to Your Business?
Warehouse inventory management is important to your business because it directly influences labor costs and supply chain efficiency. However, there’s more to it than just efficiency and cost savings.
Excellent inventory management automation directly influences customer satisfaction, despite customers never interacting with your warehouse staff in any way. This is because a well-managed warehouse or distribution center ships its goods quickly and accurately, ensuring customers get the product they want on time.
Benefits of Inventory Control and Warehouse Automation
What can you get from inventory management automation? Here are several benefits you can get by implementing inventory management systems:
Improved Order Fulfillment Accuracy
Poor warehouse management and disorganized inventory often result in customers receiving the wrong products. Naturally, this increases complaints and decreases customer satisfaction, so you want to avoid sending the wrong items.
Inventory management automation improves the accuracy of your picking process by organizing your shelves and guiding warehouse workers to the right items, increasing inventory accuracy and reducing human error.
Smarter Coordination
The job of an inventory coordinator is to ensure your company has all the products, materials and supplies needed to operate according to predetermined standards. Inventory automation software helps the coordinator accomplish their job by providing real-time visibility and updates on everything happening in the warehouse.
Instead of spending time inspecting inventory conditions and addressing bottlenecks in person, coordinators can work with the warehouse team remotely to solve issues in your supply chain and warehousing.
Faster Shipping and Deliveries
Thanks to the Amazon effect, today’s customers demand one or two-day shipping for almost all eCommerce products. Good warehousing practices can fulfill that expectation by improving the speed of product processing and order fulfillment.
However, you may have difficulty promising nationwide one or two-day shipping from only one warehouse. You can consider working with third-party logistics (3PL) companies to distribute your stock across multiple warehouses nationwide to expand your reach and deliver faster.
Boosted Warehouse Productivity
Automating manual tasks in warehouse operations like inventory storage and record-keeping can save you a lot of time. Moreover, taking focus away from these repetitive, time-consuming tasks frees your staff up for more strategic tasks like inventory growth planning and developing new shipping strategies.
Additionally, automating warehouse operations helps it scale easier. Instead of hiring more people to manually store and record inventory, you can upgrade your system to handle the added demand of running larger storage spaces.
Increased Customer Satisfaction
Excellent warehouse inventory management is a direct positive influence on customer satisfaction and happiness. You can promise faster shipping, accurate order fulfillment and even reduced shipping rates by improving your inventory management. Combine these factors with high-quality products, and you’re almost guaranteed to secure customer loyalty.
Good warehouse inventory management can make things right even when things go wrong. Great return handling means the customer gets the item they need quickly, preventing prolonged complaints.
How to Choose an Automated Inventory Management System
There are many choices for inventory management systems today, each with different features and benefits. An inventory management system must suit your business needs, so you get your money’s worth. Start your search by analyzing your business processes and requirements to ensure you have a good picture of what kind of automated inventory management software you need.
Once you’ve identified your business needs, consider these four things when choosing an inventory management system:
Features
An inventory management system’s features are one of its most important aspects. Check your list of requirements and determine whether the features of your prospective inventory management system can fulfill those needs.
Software Integrations
You may have pre-existing software like eCommerce platforms, warehouse management systems and point-of-sale software. Check whether your prospective inventory management system can integrate with them without any conflicts.
Learnability
There’s always a learning curve for new inventory management solutions. You need software that’s easy to learn if you want your staff to use them effectively as soon as it’s implemented.
Client Support
Implementing warehouse automation systems is a long-term deal, so you need to ensure the software development company is always there to help. Ask about their client support options and check online to see how well they’ve treated past clients.
Warehouse Inventory Management Best Practices
Good inventory management practices complement automated systems to help you deliver the best output. Here are several best practices used by modern warehouses worldwide to improve your warehousing operations:
Minimize Manual Input
Whether it’s handwritten or typed, manual inputs are prone to mistakes. Implement barcode and RFID (radio frequency identification) tags on your inventory items to minimize manual labor and human error.
Additionally, scanning a barcode or RFID tag on handheld devices only takes split seconds compared to writing or typing product records.
Standardize Picking Procedures
Your inventory-picking process should have standard operating procedures to save time. One useful picking best practice is to pick items in batches or waves instead of going to the floor every time an order comes in.
Reduce Human Contact With Products
Even if advanced warehouse automation isn’t viable, reducing human contact with your products is a good way to lower occurrences of product damage. Only allow your staff to touch products if absolutely necessary.
Put Popular Products Near Packing Stations
Inventory management systems can analyze which products are most popular based on sales and other factors. Put your most popular products nearest to packing stations to ensure you can ship them quickly without retrieving them from across the warehouse.
Get Feedback From Everyone
The best warehousing solutions don’t always come from managers or supervisors. Hold regular 360-degree feedback sessions where everyone from floor workers to upper management can speak their piece and discuss what can be done to improve warehousing operations.
Iterate Warehousing Improvements
You’ll never create the perfect warehousing operation on day one. Instead of sweeping changes at once, iterate on your warehousing improvement efforts. Apply changes in batches and evaluate whether they work before introducing more improvements.
Key Takeaways
Warehouse inventory management monitors your entire warehousing operation to increase efficiency, order fulfillment accuracy and delivery speeds. Good warehouse management is essential to securing consumer satisfaction and loyalty despite not interacting with customers directly.
It’s not enough to implement an inventory management system. You must choose one that fits your business needs, integrates with other tools like your warehouse management system and follows industry best practices to ensure you get the most out of your software.
Inventory Control and Warehouse Automation FAQs
How much does it cost to automate your warehouse?
The cost of automating your warehouse depends on the building size and what automations you want to implement. Simple systems that improve your picking process can start from $500,000, while full-fledged warehouse automation costs millions of dollars.
How do you organize inventory in a warehouse?
Different companies organize warehouse inventory differently. However, the general best practices are:
- Label products clearly.
- Store products frequently bought together near each other.
- Store popular stock items near packing stations.
- Stack inventory higher to use the vertical space.
What is physical automation in the warehouse?
Physical automation in the warehouse uses robots, drones and robotic systems in warehouse operations. These robotic solutions can scan arriving packages, pick items from shelves and even pack products for shipping.
Dec 1, 2022 | Blog
Many businesses these days already implement warehouse automation in various forms to keep up with customer demands and expectations. Warehouse automation tools help them deliver products faster, maximize warehouse space and reduce costs, among other benefits.
But what comes next after the current wave of warehouse automation? If you’re curious about what’s on the horizon for warehouse managers, read on to learn more.
What is Warehouse Automation Technology?
Warehouse automation technology encompasses all the tools and software used to automate warehouse operations. Companies often use warehouse automation technology to reduce labor-intensive work, reducing the occurrence of human error and avoiding costly mistakes. Automation also reduces total labor expenses, resulting in cost savings.
Warehouse automation doesn’t necessarily mean using robots or drones in your warehouse. It can be as simple as implementing a warehouse management system or automatic data capturing to assist in daily operations.
Some common examples of warehouse automation technology include:
- Warehouse management systems
- Robotic warehousing solutions
- Inventory management software
- Automatic data entry software
What are the Benefits of Warehouse Automation?
Some of the most important benefits of warehouse automation include cost savings, human error prevention and improved safety. Here’s a look at the benefits of warehouse automation:
Increase Warehouse Productivity
Warehouse automation software and tools take over manual tasks from human workers, meaning they can accomplish more work in less time. An example of how warehouse automation can improve productivity is when you implement goods-to-person (GTP) solutions.
GTP solutions typically use robots or machines to bring goods to warehouse workers for packing. These robots pick goods from shelves for your warehouse workers, so they don’t have to walk or ride forklifts from one end of the warehouse to another, saving them a lot of time.
Reduce Operational Costs
Implementing warehouse automation is often a major financial commitment, but the long-term cost savings can be considerable. Automating warehouse processes means you can reduce labor costs because you won’t need as many warehouse workers. Additionally, you’re less likely to suffer product damage or inventory loss due to human error when automating picking and packing processes.
Prevent Human Error
Manual processes are often prone to human error. While small mistakes won’t hurt your company much, big mistakes can cause significant shipping delays or major product damage, hurting your credibility and customer satisfaction.
Automating warehouse processes reduces human error by minimizing the role of warehouse workers in manual and repetitive tasks. For instance, automatic picking processes ensure your workers receive the right items to prepare for shipping.
Improve Workplace Safety
Warehouse operations are risky because workers often carry large items in high-traffic environments. An accident might mean people getting injured and hundreds of dollars in damaged goods.
Warehouse automation tools like GTP solutions reduce the risk of accidents by bringing the goods to the workers instead of the other way around. This way, there’s less foot traffic, reducing the likelihood of accidents.
Use More Warehouse Space
Your warehouse space is typically limited, so you need to use every bit of space to save on leasing or operational costs. Unfortunately, you can only stack your goods so high because your workers can’t pick products up safely when your shelves reach the ceiling.
Warehouse automation solutions like automated storage and retrieval systems (AS/RS) help you by providing a safe way to pick products from high shelves without having your workers leave the warehouse floor. This means you can stack your goods as high as you like and use every single bit of space without endangering your human staff.
Boost Customer Satisfaction
Warehousing isn’t directly linked to customers, but good warehouse operations ensure their satisfaction. Your staff needs to process goods quickly so you can ship them punctually. If your warehouse crew is slow in fulfilling orders, customers will receive their products behind schedule, leading to complaints.
Warehouse automation tools improve your warehousing efficiency and ensure everything is shipped on time. By building a reputation for punctual deliveries, you’ll get happier customers and secure their loyalty.
Types of Warehouse Automation Technology
Different warehouse automation tools do different things to improve your daily warehousing operations. Here are three common warehouse automation systems you can look into:
Warehouse Management Systems
Warehouse management systems (WMS) are complete software bundles that help you monitor and manage the entire warehousing process. They cover all aspects of your warehousing operations, which include inventory receiving, storing, picking, packing, shipping and return handling. Warehouse management systems also give you automatically generated reports to help in decision-making.
You can consider implementing a WMS if you’re looking to improve your overall warehousing operations.
Inventory Management Solutions
Inventory management solutions give real-time updates on your supply chain and warehouse’s product stock to ensure you can meet customer demands without overstocking. Inventory management solutions also help you fulfill customer expectations by forecasting high-demand seasons and reminding you to order more stock before you run out.
Warehouse Robotics Solutions
Warehouse robotics solutions come in forms such as automatic guided vehicles (AGVs), autonomous mobile robots (AMRs), collaborative robots (cobots) and more. The main objectives of implementing robotic solutions are reducing human error, increasing warehouse efficiency and preventing accidents by minimizing the human element in the warehouse.
Some examples of warehouse robotics implementation include:
- Cobots that follow workers around the warehouse as mobile storage bins.
- AGVs that replace manual forklifts to move products.
- Automated storage and retrieval system (AS/RS) cranes that store goods in high shelves unreachable by human workers.
Top Warehouse Automation Technology Trends in 2022
All the technology we’ve mentioned in the article is just the tip of the iceberg. There are so many technological breakthroughs on the horizon, and each one has the potential to change the warehouse industry as we know it.
To help you prepare, we’ve compiled ten upcoming trends in warehouse automation you should keep an eye on:
1. Big Data and Predictive Analytics
Big data refers to large volumes of hard-to-manage data taken from sources like social media, transaction records and smart devices. These data volumes are often unstructured and tough to read, but they can provide so many insights that help your business identify upcoming trends and spot potential opportunities.
Big data goes hand-in-hand with predictive analytics. As the name implies, predictive analytics forecast upcoming events and situations by studying past data. For an eCommerce business, this might mean knowing which products will be popular and when they’ll be in demand.
2. Remote Warehouse Management
These days, you don’t even have to be on-site to manage a warehouse. Remote warehouse management gives you a real-time look into your daily warehousing operations and lets you make business decisions on the fly, no matter where you are. This is especially useful if your company runs multiple warehouses or distribution centers, meaning you don’t have to bounce around several locations just to ensure everything works.
3. Cloud-Based Warehouse Management Systems (WMS)
In the past, WMS providers installed warehouse management systems on cumbersome servers that take up space in your warehouse. Moreover, you had to arrange a vendor visit to get upgrades or fix problems.
Cloud-based WMS makes things much easier for modern warehouses and distribution centers. Instead of physical installations, you can access the WMS through the Internet. Your WMS vendor can also install updates and fix issues remotely without arranging a visit.
4. Machine Learning (ML) in Warehouse Labor Planning Systems
Machine learning is a field of artificial intelligence (AI) where computers can “learn” things through experience, much like humans. Labor planning in the warehouse is often complicated because there are many moving parts like worker availability, schedules, work zones and other elements.
Implementing machine learning in your labor planning systems allows it to learn by doing. As time passes, your autonomous planning system will know what to do and what not to do. Given enough time to learn, your warehouse labor planning system will be fully autonomous and save you a lot of effort because worker schedules are now AI-generated.
5. Mobile Robots Displacing Conveyors
Conveyor belts are one of the oldest warehouse automation tricks in the book. While they’re still viable today, they’re slowly being replaced by mobile robots because they can go places that conveyor belts can’t.
However, robots can still work together with conveyor belts. Some robots are designed to move items between conveyor belts, minimizing the role of human employees in transporting items across the warehouse. Reducing human interaction with the product decreases the likelihood of workplace accidents that cause injuries and product damage.
6. Blockchain Technology
Blockchains are permanent, irreversible ledgers that everyone can see. Implementing blockchain technology for recording warehousing transactions gives you the transparency necessary to avoid fraud and leaves an audit trail to ensure your warehouse complies with all local regulations.
7. Warehouse Drones
Unlike their robotic counterparts, warehouse drones aren’t big or strong enough to move products reliably. However, they’re great at capturing data by scanning barcodes on crates or boxes. A skilled operator can maneuver drones to high shelves and narrow aisles, ensuring every package in every nook and cranny of the warehouse is scanned
8. Internet of Things (IoT)
The core concept of IoT is a network consisting of multiple smart devices. In warehousing, IoT devices like sensors, RFID (radio frequency identification) tags and trackers monitor the movement of products to give you a constant real-time view of what’s happening in the warehouse.
By implementing IoT, you don’t have to do a physical check whenever you need information on a package or product in the warehouse.
9. Voice Assistants
Voice assistants in warehousing help employees navigate the warehouse to find the products they need. With voice navigation, the employee doesn’t have to constantly hold a device, so both hands are free and can focus on their picking job.
Additionally, voice assistants require the employee to listen closely to the directions, minimizing distracting conversations among coworkers.
10. Wearable Augmented Reality (AR)
Augmented reality in warehousing improves picking efficiency by showing employees how to navigate to the product and which box to take for packing. You can install AR technology on tablets, smartphones, or even wearable technology like AR smart glasses.
When the employee doesn’t know where to go, they can just pull their device up and get routed to the requested item for pickup.
Key Takeaways
Warehouse automation technologies improve day-to-day warehousing operations by increasing efficiency, reducing mistakes and minimizing the human element. You can fulfill more orders and ship quicker to secure customer loyalty by improving your warehouse operations.
Many warehouse automation options are available today, and even more technological advancements are coming. Following warehouse automation trends like big data, cloud-based WMS and robotics can help you stay ahead of the curve and learn which ones to implement in your company.
Warehouse Automation Technology FAQs
What are the new technologies in warehousing?
There’s a wide range of new technologies in warehousing. Some of the most prominent warehousing technology trends include, but are not limited to:
- Augmented reality picking
- Internet of Things integration
- Warehouse robots and drones
- Big data and predictive demand forecasting
- Cloud-based warehouse management systems
Will warehouses be fully automated?
These days, warehousing technology trends toward fully-automated warehouses and fulfillment centers. If the trends keep up, warehouses can be self-sufficient without human floor workers.
What are the types of warehouse automation?
The most common types of warehouse automation are warehouse management systems, inventory management software and warehouse robotics solutions.
