From wide-range adoption in the 80s and high capacity systems in the 90s to the ubiquity of automated robotics in the modern age, warehouse automation has taken huge strides over the past few decades.
DSD distributors, operations leaders, and founders should be making the most of warehouse automation benefits to streamline their processes, maximize ROI, and stay competitive. Below we’ll cover what you need to know about warehouse automation growth, benefits, solutions, and more.
In 1966 the first Rackbuil System was developed for a Japanese electric motor company, which helped enable storage and retrieval systems. Since then, warehouse automation has widely expanded. Warehouse automation refers to the technologies and software associated with automating the storage and movement of inventory as it enters and leaves warehouses.
It can refer to physical robot systems that move inventory for humans or the software that manages a lot of the system-related manual processes. There are a lot of benefits to warehouse automation, which we’ll look at below.
Warehouse automation benefits are about more than just saving costs. Automotive technologies help warehouses become more efficient, less prone to human error, and more profitable. Some of those benefits include:
These are just a few of the main benefits that make warehouse automation essential in the contemporary distribution era.
What do these benefits look like by the numbers? The below warehouse automation statistics will demonstrate the efficacy, benefits, and necessity of warehouse automation.
While warehouse automation does have some sizable entry costs, the long-term ROI is well worth the value.
When you can pick cases faster, safer, and more accurately, you get more shipments going in and out of your warehouse at higher rates. You can also reduce injuries on the job, which can be costly when you consider salaries of temporary workers, legal fees, unreimbursed medical payments, treatment for chronic pain, and other indirect costs.
You’ll also have an edge over your competitors. If you can fulfill split cases orders and single-unit shipments, you can open yourself to e-commerce shipments and expand your customer base.
Improvements in the customer experience, increased productivity, better data aggregation, and improvements in overall warehouse efficiency will all contribute to a significant ROI for long-term growth.
Warehouse automation, especially over just the past five years, has seen tremendous growth that doesn’t look like it’s going to slow down anytime soon. For example, more than 55,000 AMRs were sold in 2020–three times the amount from 2018.
The warehouse automation market is set to double between now and 2030, from $20 billion to more than $40-50 billion worldwide.
The question isn’t whether or not warehouse automation will become the industry standard–it’s when. And for a lot of the industry, it already is.
So what does warehouse automation actually look like? Below we’ll look at a few automation warehouse examples that are most prevalent in today’s market.
As you consider the level of automation in your warehouse, also think about how it extends into the sales and field distribution operations in your process. For DSD, route/field sales, and e-commerce, it’s going to get increasingly difficult to track your various levels of distribution. That’s where an end-to-end route accounting software, like Prism, can transform your warehouse automation strategy.
Prism can help you streamline all of your distribution with an all-in-one desktop, web, and mobile platform that your drivers and field services representatives can take with them on the road.
You can track and manage orders, enable your drivers to collect signatures and payments on the road, and increase your sales force.
Learn more about how you can manage inventory, control routes, and increase sales with Prism today.