What Is Warehouse Automation? How To Streamline Your Facility (2024)

The image of a warehouse can conjure up a high-tech facility with autonomous robots, advanced conveyor systems, and intelligent warehouse management systems controlling every operation.

In reality, many businesses’ warehouses are more manual, with workers walking the aisles, picking orders, and managing inventory with paper-based systems or basic software. For some companies, a simple pen-and-paper system works fine. For others, it can be costly and error-prone.

Warehouse automation can transform an inefficient facility into a streamlined, tech-driven operation. Here’s more on the benefits of warehouse automation, the types of warehouse automation technology on the market, and advice for automating your facility.

What is warehouse automation?

Warehouse automation is the use of technology—like robotics, conveyor systems, and software—to automate processes within a warehouse. These tools streamline operations by automatically storing, retrieving, and moving inventory, managing data, and directing workers.

The goal of warehouse automation is to increase efficiency, accuracy, and productivity compared to manual processes, reducing costs and improving customer satisfaction.

Types of warehouse automation technology

Warehouse automation encompasses a range of tools for streamlining and optimizing warehouse processes. From robotic systems to software solutions, here are some common types of warehouse automation technology:

Goods-to-person (GTP) technologies

Goods-to-person (GTP) technologies automate item retrieval, using robotic shuttles or carousels to retrieve items from storage and deliver them to workstations or designated storage locations where humans do the rest of the inventory management.

Automated storage and retrieval solutions (AS/RS)

Automated storage and retrieval solutions (AS/RS) are computer-controlled systems that comprises various types of equipment. This includes vertical lift modules, horizontal carousels, and mini-load AS/RS, which are designed to store and retrieve smaller items without human involvement.

Automatic guided vehicles (AGVs)

Automatic guided vehicles (AGVs) are driverless, computer-controlled vehicles that follow predefined paths to transport goods within a warehouse. AGVs can move pallets, rolling carts, and individual items and are often integrated with other automation systems to create a seamless material handling process.

Autonomous mobile robots (AMRs)

Autonomous mobile robots (AMRs) are more advanced than AGVs, as they can navigate warehouse environments without fixed paths or infrastructure. AMRs use sensors, cameras, and artificial intelligence (AI) to perceive surroundings, avoid obstacles, and plan routes for tasks like picking, transporting, and sorting items.

Pick-to-light and put-to-light systems

Pick-to-light and put-to-light systems use lights and displays to guide workers to the correct locations for picking or storing items. These systems can improve accuracy and efficiency by providing visual cues, reducing the need for workers to search for items or consult paper-based instructions.

Voice picking and voice tasking

Voice picking and voice tasking technologies use speech recognition and voice commands to guide workers through various warehouse tasks. Workers wear headsets that provide verbal instructions and let them confirm actions, enabling hands-free operation and reducing errors associated with manual data entry or paper-based processes.

Automated sortation systems

Automated sortation systems sort and route items to their designated locations within a warehouse using cross-belt sorters, tilt-tray sorters, and sliding shoe sorters, which identify, orient, and direct items to the appropriate destinations.

Drones

Drones are emerging as a promising technology for warehouse automation. These aerial robots monitor inventory, track assets, and pick small items in hard-to-reach areas within a warehouse.

Benefits of warehouse automation

Warehouse automation can improve your performance and profitability. Here are the key benefits:

Increase productivity and efficiency

Automation technologies enable faster, more accurate picking, packing, and shipping. Warehouse automation systems like robotic picking arms, automated storage and retrieval systems (AS/RS), and conveyor belts work around the clock, minimizing human error and maximizing output.

Integrating these automated systems with warehouse management software (WMS) allows for real-time inventory tracking, optimized item placement, and efficient order routing, further boosting productivity and efficiency.

Reduce labor costs

Automating warehouse operations reduces the need for manual labor, a major cost in running a warehouse. Basic warehouse automation solutions, such as conveyor systems and barcode scanners, minimize manual processes. At the same time, more advanced technologies like autonomous mobile robots (AMRs) handle tasks like picking, transporting, and sorting items with minimal human intervention.

This can allow you to operate your warehouses with a smaller workforce, leading to substantial savings on labor costs, benefits, and training expenses while mitigating the impact of labor shortages and high employee turnover.

Improve inventory accuracy and control

When integrated with automated technology, awarehouse management system can provide real-time visibility into stock levels, locations, and movements, enabling warehouse operators to maintain accurate stock counts and minimize discrepancies.

Automated data capture technologies, such as barcode scanners and radio-frequency identification (RFID) readers, ensure that every item is accurately tracked and recorded as it moves through the warehouse, reducing the risk of human error in manual data entry.

An AS/RS locates and retrieves items, eliminating manual searches and reducing the risk of misplaced inventory. This enhances inventory control and streamlines order fulfillment.

Scalability and flexibility for growth

Warehouse system automation helps you adapt to changing market demands and scale your operations without significant disruptions or additional labor.

Modular and flexible automation solutions, such as AMRs and configurable conveyor systems, can be quickly deployed. They can also be reconfigured to accommodate inventory fluctuations, order volumes, or product mix, helping maintain performance during peak periods or when introducing new products.

How to automate your warehouse

1. Assess your current processes
2. Develop a strategy
3. Choose automation technologies
4. Train your team
5. Monitor your automation efforts

Every business has its own needs and particularities, so consider tailoring this general step-by-step guide to fit your specific requirements:

1. Assess your current processes 

Before adopting automation, evaluate your existing warehouse operations to identify bottlenecks, inefficiencies, and areas where automation can provide the most benefits. Analyze key metrics, such as order processing times, inventory accuracy, and labor costs, to establish a baseline for measuring automation’s impact.

Collaborate with workers across various departments to gather these insights and identify pain points that automation can resolve.

2. Develop a strategy

Based on your assessment, create a detailed automation strategy that aligns with your business goals, budget, and long-term vision. Prioritize projects based on return on investment (ROI), ease of implementation, and impact on overall warehouse performance.

Develop a phased implementation roadmap outlining steps, timelines, and resources required to successfully deploy automation solutions.

3. Choose automation technologies

Research automation technologies to determine which best fit your specific warehouse requirements.

If your company deals with high-volume, small-item picking you might opt for an AMR solution for precise navigation and efficient item selection. On the other hand, if your business handles large inventories of palletized goods, you may benefit from an AS/RS system that offers fast and accurate pallet storage and retrieval.

When selecting automation systems, prioritize scalability, flexibility, and vendor support. Schedule informational meetings with experts, attend industry conferences, and participate in webinars and workshops to gather insights on the best technologies for your warehouse.

4. Train your team

Automation often requires significant changes to existing processes and roles within your warehouse. Invest in training programs to ensure workers have the skills and knowledge to operate and maintain automation systems. Develop a change management plan that communicates the benefits of automation and fosters continuous improvement.

Consider incorporating these elements when investing in training for your warehouse automation implementation:

• Hands-on training to familiarize workers with operating, maintaining, and troubleshooting new automation systems.

• Comprehensive safety protocols and best practices for working alongside automated equipment.

• Training on software systems for controlling and monitoring automated equipment, as well as interpreting data.

5. Monitor your automation efforts

After implementing automation solutions, monitor their performance and impact on key warehouse metrics. Use data analytics and reporting tools to identify areas for further optimization and fine-tune your automation systems to maximize efficiency and productivity.

As your business expands, continually reassess and enhance your automation strategy, exploring new areas of the warehouse and integrating new technologies to maintain a competitive edge.