According to a recent warehouse automation market report by Interact Analysis, the industry is poised for exponential growth, with global sales expected to climb 6% by 2023, driven by a willingness to adopt automation hardware and software systems that drive automation.
While automated warehousing and processing solutions were already a significant part of the logistics industry's agenda before Covid-19, there is no doubt that the increase in automated warehouse activity can be attributed in part to the social and economic impact of the pandemic. The global health emergency and the subsequent collapse of brick-and-mortar retail forced many companies to accelerate their existing internal logistics projects or even completely change their strategies.
But it's not just companies like Amazon and Alibaba embracing automation: automation solutions for many small companies and the profile of the typical automation user are evolving.
Small and medium-sized warehouse operators and e-commerce retailers who need to reconfigure their operations to comply with new workplace social distancing rules, or who may need faster or more accurate order picking systems to ensure next-day delivery commitments, are now seeing automated processing and storage technologies as the best solution to their problems.
Key factors
Several key factors are driving the growth of the automated material handling solutions market. First, there is a shortage of skilled forklift operators; second, automated operations are generally less expensive than manually operated processes; and third, in this e-commerce era, the need for streamlined delivery is forcing logistics providers to plan and forecast their logistics processes more consistently to achieve next-day or even same-day delivery.
Furthermore, because automated guided vehicles (AGVs) travel along routes they are programmed to follow around the warehouse, unlike most operator-controlled forklifts that take potentially dangerous "rapid-cut" actions, the likelihood of AGVs damaging warehouse buildings, internal storage systems, or loaded goods is virtually zero. This built-in safety feature also means that the equipment poses a minimal risk of injury to warehouse personnel working in the same area as the automated machine.
Moreover, it's often overlooked, but in terms of environmental impact, Automated Guided Vehicles (AGVs) use less energy and can be expected to have a longer service life than manually operated forklifts. However, despite the numerous benefits of automation, it's not a panacea. Every logistics process, every warehouse setup, and every supply chain is different, and what works for one business may not work for another.
So, is automation suitable for your operations? As a starting point, consider the following questions related to your facility:
Is warehouse-driven latency a common problem?
Does your daily workflow include a large number of repetitive manual tasks?
- Is output directly affected by labor constraints?
- Are inventory counts frequently affected by inaccuracies?
Anyone who answers "yes" to any of the above must have automated solutions technology on their radar.
Is warehouse-driven delay a common problem? Without the right processes or machines, issues with inventory tracking, picking, receiving, and storage can regularly hinder the flow of goods through the warehouse. Automated vehicles can be programmed to ensure that transported goods arrive at their destination within the store on time each time.
Does your daily workflow consist of a large number of repetitive tasks that are currently performed manually? Manual, repetitive tasks consume human resources and energy, and ensuring these tasks are completed correctly wastes valuable management time. As a result, attention may be lost, and more important tasks may not receive the attention they deserve, thus harming the business.
The AGVs that come with the vehicles give warehouse managers and logistics teams peace of mind, as they know that the gradual flow of materials will continue uninterrupted, freeing them to focus on other important tasks that require their expertise.
Is output directly affected by labor constraints? Human error is a common problem, sometimes overlooked unexpectedly in broader operations. However, errors frequently cause delays and negatively impact profitability.
There is no foolproof method to guarantee that employees will not make mistakes, which is a compelling argument for introducing automation into the most error-prone or particularly costly points in warehouse processes.
Are inventory counts frequently affected by inaccuracies? Manual inventory tracking is no longer feasible. Improvements in warehouse management (such as integrated inventory management) mean that inventory can be easily viewed, reducing the number of inaccurate counts that could lead to misaligned inventory.
Predictable patterns
Importantly, automation no longer requires automating every aspect of a warehouse or distribution center; it only needs to automate the parts that will benefit most from the technology, and automating those aspects of warehousing operations that follow predictable patterns makes sense.
Toyota Material Handling has successfully delivered over 250 automation projects, including more than 800 AGVs deployed across Europe. We work with our clients to identify their specific challenges and address them step-by-step. Breaking processes down into small modules provides clients with the necessary scalability, meaning they can partially automate their processes if they wish, while retaining the option to introduce more automation as future needs change.
Thus, introducing warehouse automation becomes a multi-stage project. By applying a systems approach to identify the most common internal logistics functions and all aspects of the material flow process for customers, Toyota designs systems based on the broadest range of new technologies to meet customer needs and improve productivity, efficiency, and reduce overall supply chain costs.
