Finding the Right Warehouse Automation Tools for Your Business

December 4, 2024 - 11 minutes read

The invisible thread between conveyors, barcodes, and lights-out operation.

©vanitjan via Canva.com

The first application of steam-powered machinery to reduce the burden on human workers and improve efficiency marked the beginning of the Industrial Revolution over 200 years ago. With the addition of computer technology, robotics, and wireless communication, the warehouse and factory automation we see today bears little resemblance to this first incarnation, but the goal remains unchanged. As E-Commerce, globalization, and product diversity push the limits of inventory management and warehouse practices, automation is helping businesses overcome the unprecedented growth to ensure customer satisfaction. 

The available warehouse automation options can be classified according to their level of technology and computer-based decision-making, but applying these tools in a practical way still requires old-fashioned human understanding and common-sense. 

“The way you deal with automation is by upgrading people’s skills so they can get the jobs of the future.” – John Delaney

What is warehouse automation?

Warehouse automation encompasses the processes, tools, and systems that automate the movement of parts into, out of, or within a warehouse to reduce the number of labor-intensive and repetitive tasks completed by human workers. Along with robotics, autonomous transport vehicles, and remote sensing devices, warehouse automation solutions also include warehouse management software and other software tools used to automate record keeping, data entry, and reporting processes. The many benefits of warehouse automation include:

• Cost savings from reduced part handling manual transport
• Accurate real-time tracking of inventory levels
• Safer work environments with less human exposure to hazards
• More efficient use of warehouse floor space and racking

The world’s largest retailers and distributors would find it difficult to keep up with demand without implementing advanced automation practices, and smaller businesses are also recognizing the operational benefits. By 2027, over 75% of all companies will have implemented some form of automation within their warehouse operations.

A brief history of warehouse automation

Automation first found practical applications in factories and farms around the world during the Industrial Revolution, but it would be at least another century before warehouse operations began to reap the benefits of mechanical assistance. Conveyor belts, motorized carts, and forklifts were among the earliest examples of machines improving warehouse efficiency while eliminating back-breaking inventory management tasks. 

Automated guided vehicles (AGVs), requiring no human drivers to transport parts, and automated storage and retrieval systems (AS/RS) ushered in a new level of warehouse automation in the mid-20th century. While these innovations allowed machines to take over the most dangerous and repetitive warehouse tasks, the complex systems were often cost prohibitive for all but the largest warehouse operations.

The dawn of the internet age in the 1990s gave us the dot.com boom (and subsequent bust) that planted the seeds for Amazon.com and many other E-Commerce success stories. Online shopping became a catalyst for complex warehouse operations and ratcheting demand for fast and error-free order fulfillment. Thankfully, the computer technology that led to this revolution also made advanced inventory management software and warehouse automation solutions possible.

The layers of warehouse automation

Based on the current tools and trends, warehouse automation can be divided into at least four discrete levels or layers. However, warehouse automation is not an all or nothing proposition, so each business can implement the tools and practices that best suit their culture, products, and budget. This means selectively choosing components of each layer without necessarily committing to major investments.

1. Basic automation

Warehouse automation is a convergence between physical process automation to locate, move, and sort items, and digital process automation to capture and analyze warehouse data while establishing a nerve center for physical solutions. Digital tools like warehouse management software and mobile barcode scanners are indicative of basic Layer 1 warehouse automation. Labor saving physical tools and electronic devices that are operated with human guidance, such as conveyors, labeling machines, and forklifts, are also included on the list of Layer 1 automation tools.

2. Autonomous physical processing

Tentative steps toward autonomous warehouse processing might include the deployment of automated sorting equipment, inspection stations, and AGVs that no longer rely on human input when making important distinctions between parts that impact order quality and customer satisfaction. Unlike the earliest AGVs used to minimize safety hazards and reduce manual labor, today’s models utilize pattern recognition, machine learning, and advanced sensor technology to navigate complex environments independently and make warehouse operations more efficient.

3. Robotic tools and systems 

Modern factories and assembly lines have made robotics synonymous with automation, but robots in the warehouse are not yet a familiar sight. Working in conjunction with Layer 1 and 2 systems like AGVs and warehouse management software, robotics can significantly boost quality and efficiency. Systems that are already being deployed to support warehouse automation include:

• Warehouse drones to collect important information from a bird’s eye view
• Autonomous mobile robots (AMRs) to support order picking and part stocking tasks
• Goods-to-person (GTP) systems to reduce warehouse traffic by bringing parts to workers
• Collaborative robots (cobots) that work alongside human workers to improve productivity

Despite the obvious benefits of warehouse robotics, cost can be a deciding factor for smaller businesses, since a major robot deployment can cost as much as $1 million. These costs should continue to drop as the technology improves and adoption increases. 

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4. Full automation

The highest attainable level of warehouse automation (also known as lights-out warehousing) minimizes or eliminates human involvement by utilizing robotics for everything from order picking and packing to the loading and unloading of trucks. Sensors and internet of things (IoT) devices are vital elements of fully automated warehouses, since equipment problems and other issues must be detected quickly to maintain an uninterrupted flow of work. 

Artificial intelligence (AI) and machine learning (ML) are also part of fully automated warehouse operations, since humans are not always available to resolve problems. While this extreme level of automation leads to concerns over human obsolescence, autonomous warehouses also support sustainable inventory management practices by optimizing floor space utilization, increasing efficiency, and reducing fossil fuel consumption from HVAC and commuting.

“Automation does not need to be our enemy. I think machines can make life easier for men, if men do not let the machines dominate them.” – John F. Kennedy

Inventory management software integration 

No matter what layer of automation is deployed, inventory management software and warehouse management apps must be part of the solution to ensure real-time visibility and accurate inventory status is available to support automated systems. Versatile and scalable software solutions form a foundation for all layers of automation by integrating with barcode scanners and labeling equipment or collecting and analyzing data from fully automated inspection, sorting, and order fulfillment stations. 

Finding the right layer of automation

The price of physical process automation tools continues to drop, but the high cost of full warehouse automation makes it more practical for businesses to selectively integrate tools like barcode scanners and readers, sensors, RFID tags, and AGVs based on specific high-volume requirements or worker safety concerns. Additional considerations that help businesses settle on appropriate layer(s) of automation include:

• Customer demand for accurate, error-free order fulfillment
• Labor shortages or high labor costs in their area
• Warehouse size, complexity and physical layout
• Available capital for warehouse automation upgrades
• Compatibility with existing inventory management and ERP systems.

Warehouse automation: Final thoughts 

Automotive, consumer electronics, and food processing plants are now intrinsically linked with the automated systems built into these facilities. Warehouses built to feed the manufacturing engine, along with the fast-growing E-Commerce marketplace, may be the next frontier for intelligent and efficient autonomous systems. Centralized software and real-time data availability will continue to evolve along with the advanced physical automation tools.

Cloud-based Agiliron software supports a fully integrated, intelligent approach to warehouse management with modular, integrated solutions that seamlessly connect the dots between warehouse operations and real-time inventory and sales data. Customer relationship management (CRM) and mobile point of sale (POS) solutions round out this versatile platform by allowing you to sell in more places while managing from one.

Warehouse automation options continue to multiply, making it difficult to decide on the layer of automation that makes sense for your business. Advanced inventory management software can be the foundation that underpins this game-changing decision. Contact us today and let our solution experts help you sort through the layers of automation to develop a winning strategy.