Warehouse Automation System: Everything You Need To Know

How many of you agree with the fact that warehouse automation systems are increasingly becoming an attractive option for many companies operating in e-commerce, logistics, manufacturing, and more industries?

In the ever-evolving world of e-commerce and global trade, the demand for efficient, hassle-free, and streamlined operations has been rapidly increasing in the market. That’s where “Supply Chain Robots and Warehouse Automation Systems” took place and gained momentum!

Well, whether you are aligned with the fact or not, the real picture is that the global warehouse automation market is projected to reach $57.6 billion by 2031 and is expected to grow at a CAGR of 15.3% from 2022 to 2031. 

Warehouse Automation System: Understanding the Concept and Market Overview

Wondering why warehouse automation systems are catching the hype in the market? Well with the emerging technologies boldly paving their way into warehouse management solutions, the demand for automation has emerged as the prominent answer to the many industries.

But the real reason is, that it promises to help organizations handle and automate complex supply chain problems like addressing labor costs, tracking inventory movement, improving order fulfillment, maximizing space utilization, and streamlining the overall process. 

To overcome such pressing supply chain problems, organizations are now looking for a wide range of mature, advanced, and capable solutions to match their complex needs like high-density storage, goods-to-robot persons, collaborative robots, and more. 

“Are you also struggling with the same challenges? Our Warehouse and Inventory Management Solution is here to automate your operations.”

When we are talking about these warehouse management solutions, we are referring to the systems that are integrated with all the latest technologies and able to meet different demanding scenarios.

For example:

• Autonomous Mobile Robot (AMR) systems excel in piece-pick and full-pallet operations, while shuttle systems boost density and productivity in case and unit picking.

• Emerging solutions, like cobots on AMRs, are repurposing legacy infrastructure with enhanced technology for more adaptable warehouse automation.

• Warehouse robots leverage advances in computer vision, machine learning, and AI, enabling autonomous navigation in complex environments with the ability to plan optimal routes and picking sequences.

The robotics market is evolving dynamically. Before you kickstart your search for the best warehouse management services, Hidden Brains is already featuring established automation solutions for enterprises and Saas-Based WMS for bootstrappers with specialized or highly flexible general-purpose functionalities.

If you are still doubting the fact that why using the warehouse automation solution has become important you need to understand this market overview…

Market Overview of Warehouse Automation Systems and Their Usage

If you still prefer sticking to the traditional warehouse management methods, then here are a few stats and facts about warehouse automation that you need to check:

• According to Deloitte, 79% of companies with superior supply chain capabilities have witnessed a surge in their revenue. 
• As per reports, for any warehouse, labor cost eats up to 50 to 70% of the company’s warehousing budget. Switching to warehouse automation can save up to 40% of the operational cost. 
• If you are in the ecommerce industry, then it is expected that online sales in the ecommerce sector will be expected to surpass $6.3 trillion by 2024 which will increase the demand for warehouse automation. 

Let’s watch the quick video to know “Warehouse Automation System: Everything You Need To Know”

Warehouse Automation System: Everything You Need To Know

What Are the Common Challenges of Warehouse Management?

Though implementing the warehouse automation system has become an urgent need of the hour when to automate your warehouse? How will you get to know about the alarming situations to implement the warehouse management solutions?

To help you decide when is the best time to implement automation, here we have listed a few major challenges of Warehouse that organizations usually come across. 

So, when to automate your warehouse?

• Inventory Precision: Maintaining optimal stock levels amid fluctuating demand and supply chain disruptions can be intricate.
• Efficient Order Fulfillment: Manual order picking is time-consuming. Streamlining pick routes and integrating technology are perpetual challenges.
• Workforce Stability: Recruiting and retaining skilled workers pose challenges, with high turnover rates leading to operational disruptions.
• Tech Integration: Implementing warehouse technologies faces resistance and potential disruptions, requiring strategic planning.
• Space Optimization: Efficient warehouse space utilization is crucial. Poor layout design and storage solutions result in wasted space.
• Supply Chain Hurdles: External factors like disasters or global events can disrupt the supply chain, affecting timely goods arrival.
• Data Security: As digital systems become integral, securing sensitive data related to inventory and transactions is paramount.
• E-commerce Dynamics: Meeting omnichannel demands, and integrating online and offline sales channels seamlessly, requires advanced inventory visibility.
• Regulatory Adherence: Compliance with safety, environmental standards, and labor laws necessitates vigilant attention to evolving regulations.
• Customer Expectations: Fulfilling customer expectations for rapid and precise deliveries poses ongoing challenges in a competitive landscape.

Though developing the warehouse automation system is an expensive investment, therefore, before you hire mobile app developer to customize the solution for your warehouse, it makes sense to understand how exactly warehouse management software works.

How Do Warehouse Automation Systems Work?

Automation has become a common thing in warehouses, but knowing how these systems work will make you better understand what things you can automate using the Warehouse management systems.

Let’s get started!

1. Centralized Data Management

When automating the warehousing process, starts with centralizing the entire data by collecting it from all resources. 

For this Warehouse Management Systems act as the standard platform of the operation, bringing all data together.

Warehouse owners can get a real-time overview of inventory levels, order statuses, and other crucial information which further helps in making informed decisions.

2. Barcode and RFID Integration

Source: Insightson

Now is to define the identification of the products and for this barcodes have been used. Items are labeled with barcodes or RFID tags which ultimately ensure quick and accurate identification in Warehouse’s automation system. 

Unlike manual product sorting, automated scanners integrated into WMS can read these codes, ensuring precise tracking and management of items throughout the warehouse.

3. Automated Storage and Retrieval Systems (AS/RS)

While managing the supply chain of products, storage spacing sprung up as a major challenge for businesses. That’s where Automated Storage and Retrieval systems come into place. 

AS/RS systems utilize the full height of your warehouse by storing items vertically. Then robotic cranes or systems retrieve items on-demand from designated storage locations, minimizing the need for manual intervention and eliminating the risk of costly blunders.

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4. Conveyor Systems for Products Movement 

Conveyor systems refer to material transporters that efficiently move goods within the warehouse, eliminating the need for manual handling and expediting the flow of materials. 

Then these smart transporters can intelligently sort and route items to specific locations based on predefined criteria, optimizing the entire process.

5. Robotics

Robotics are responsible to handle tasks such as picking and packing, reducing the burden on manual labor and improving overall efficiency. 

The automated guided vehicles can navigate autonomously using sensors and advanced navigation technology, avoiding flaws and ensuring a smooth workflow.

Read More: A Complete Guide To Warehouse Inventory Management Solution

6. Pick-to-Light and Put-to-Light Systems

Pick-to-Light systems guide warehouse workers to the locate exact location of items through illuminated indicators and reduce errors in the picking process. 

Next, Put-to-Light systems assist in efficiently sorting and organizing items for shipping, enhancing accuracy and speed. 

Overall, with this automated functionality, workers won’t have to go through the hassle of finding the products in the whole warehouse.

7. Machine Learning and AI Integration

Using ML/AL algorithms helps in analyzing the historical warehouse data to predict future demand patterns, facilitating proactive inventory management and reducing the risk of stockouts or overstock situations. 

Modern warehouse automation systems are integrated with AI algorithms that dynamically optimize warehouse processes, adapting to changing conditions and demand patterns, and ensuring efficiency and responsiveness.

8. Human-Machine Collaboration

Collaborative robots work alongside human staff in tasks requiring human interference and decision-making, enhancing both efficiency and safety on the warehouse floor.

9. Continuous Monitoring and Reporting

With constant monitoring of key performance metrics such as order fulfillment speed, accuracy, and system downtimes, managers can get a better overview of their warehouse operations. 

Also, with WMS they will receive real-time reports which help in quick decision-making to address any challenges or bottlenecks promptly.

Knowing the functionality of this warehouse automation system, some would get straight to hire app developers. You must be curious to get the best one installed in your warehouse as well, but what type of warehouse management software do you need to install? Let’s learn about it!

What Type of Warehouse Automation Do You Need To Look For?

When it comes to installing the warehouse automation software, you need to decide whether you want to automate the digital process or physical workflow of your warehouse. Depending upon the same, here we have categorized the two major types of warehouse automation systems:

1. Physical Automation

Physical automation of warehouses refers to the implementation of robots, mechanical equipment such as conveyor belts, and other automated tools to reduce manual labor and improve efficiency. 

This can be beneficial for various reasons, such as increasing productivity and reducing costs while providing increased safety benefits. 

By automating tasks, such as picking and packing, businesses can increase their output while reducing the need for labor, resulting in improved operational efficiency. Additionally, physical automation in warehouses can help streamline operational processes and enable businesses to take advantage of new technologies.

2. Process Automation

Automation has come a long way in recent years, and there are now a variety of digital solutions available that can help businesses improve their operations. 

One of the most common forms of automation is process automation, which refers to implementing tools that digitize manual processes, such as handling data regarding inventory and orders. 

By automating these tasks, businesses can increase their efficiency and reduce the need for human input. This can be beneficial for various reasons, such as increased productivity and reduced costs.

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Features of Warehouse Automation System That Make It a Winning Solution

Whether you are looking for Saas-based warehouse management solutions, ready-to-use warehouse automation systems, or planning to build it from scratch, make sure you have a list of important features that you need to check or implement into the system.

However, any top mobile app development agency can help you get the features in a solution that are listed below:

• Real-Time Inventory Tracking: Helps in tracking inventory levels, locations, and movements of products for instant insights.
• Barcode/RFID Integration: Streamline item tracking, sorting, and placing with barcode and RFID scanning technology.
• Order Fulfillment Automation: Automate order processing from picking to shipping without any flaws.
• Order Status Updates: the warehouse automation system is integrated with features that provide real-time notifications on order processing stages for transparency.
• 3D Warehouse Visualization: Optimize space with a visual representation of the warehouse layout.
• Automated Slotting: Place items strategically based on demand and picking frequency.
• Integration with AS/RS: Seamlessly integrate with robotic systems for efficient storage and retrieval.
• Conveyor Control: Manage automated conveyor systems for smooth material transport.
• Sorting Logic: Implement intelligent sorting for efficient item distribution.
• Robotics Coordination: Coordinate robotic systems for tasks like picking and packing.
• AGV Navigation: Develop autonomous navigation algorithms for AGVs.
• Pick-to-Light Integration: Guide workers using visual indicators for accurate picking.
• Put-to-Light Support: Assist in sorting and organizing items visually for shipping.
• Demand Forecasting: Predict inventory demands based on historical data and trends.
• Dynamic Process Optimization: Use AI for real-time warehouse process optimization.
• Co-bot Integration: Facilitate collaboration between robots and human workers and automate product movements in the warehouse.
• User-Friendly Interface: Ensure an intuitive interface for easy access and simple functionalities.
• Performance Metrics Dashboard: Managers and owners can get access to key performance indicators for quick decision-making or future stock planning.
• Alerts and Notifications: The WMS is integrated with a feature that automatically sends alerts for potential issues such as overstocking, stock running out, storage spacing, and more.
• Integration with External Systems: Connect with ERP, CRM, suppliers, and distributors seamlessly.
• Data Security Measures: Implement robust security protocols for sensitive data protection.
• Regulatory Compliance Tools: Assist in adhering to industry regulations and standards.
• Modular Architecture: Design a modular system for scalability and future additions.
• Customization Options: Provide flexibility for users to tailor the software to their needs.
• Custom Reports: Enable users to generate reports based on specific criteria.
• Data Analytics Tools: Incorporate advanced analytics tools for deeper insights.

With these features, warehouse owners can automate the process, so we recommend going with mobile app solutions that help you get your hands on the entire data on the go!

How To Automate The Process of Your Warehouse Management?

When it comes to automating the warehouse system, emerging technologies like Robotics and sensors help you synchronize almost every step in the warehousing process. This provides a level of predictability and efficiency that was not possible before. 

By automating tasks, such as picking and packing, businesses can increase their output while reducing the need for labor, resulting in improved operational efficiency. Additionally, physical automation in warehouses can help streamline operational processes and enable businesses to take advantage of new technologies.

Best Practices For Warehouse Automation

Here are a few steps to automate your warehouse workflow:

Step 1: Establishing an Implementation Team

By involving stakeholders from different departments and leveraging their expertise, the committee can identify opportunities to leverage warehouse automation and create a plan to implement the technology effectively.

Step 2: Gathering and Analyzing Data

This data can help inform decisions about which processes to automate and how to best leverage automation to achieve the desired outcome.

Step 3: Assessing Inventory Controls

By taking the time to review and refine existing inventory control procedures, businesses can ensure that their warehouse automation solution is well integrated with established SOPs and processes.

Step 4: WMS Integration

Using WMS platforms, businesses can improve visibility into inventory, optimize warehouse operations, and reduce costs associated with manual processes. Additionally, WMS platforms can help businesses streamline and automate order fulfillment, enabling them to quickly and accurately deliver products to customers.

Step 5: Seamless Automation Process Workflow

Businesses must consider the type of automation that will best meet their needs and the customer’s expectations. By taking these factors into account, businesses can ensure that their warehouse automation solution is tailored to the needs of their organization and customers.

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How Does Hidden Brains Help You With Warehouse Automation System?

Hidden Brains’ Warehouse Management System (WMS) revolutionizes warehouse operations by centralizing task management and automating key processes. Our mindful WMS optimizes inventory, order fulfillment, and shipment tracking, boosting business efficiency and productivity while cutting labor costs.

With careful market research and analysis of warehouse challenges, we tailor the solutions to individual business needs. Our WMS enables seamless integration of new technologies, streamlining operations for maximum performance. And for this reason, we have been trusted by global clients.

One of our esteemed clients has chosen Hidden Brains to hire web app developers to build warehouse automation solutions with the name “Delivery Any”

“Hidden Brains successfully addressed DeliverAny’s logistics challenges by creating an online platform connecting cargo owners, logistics companies, and drivers. The business problem of finding a trusted logistics partner for large consignments was mitigated by implementing a unique verification process for all users. 

Our solution has provided a feature-rich platform that integrates features like Easy Payments, Order Management, Recharge Wallet, Asset Management, Integrated Insurance, Bid Management, and Live Tracking. 

Despite challenges such as coordinating with third-party Flutterwave, ensuring accurate geographical data, and dealing with variable internet availability, the results were substantial. 

Over 50 logistics companies registered, a strategic partnership with Nigeria’s Dangote Industries, and more than 30 verification partners joined, earning up to 90,000 Naira in potential additional revenue. The success is evident in the satisfaction of companies, drivers, and cargo owners.”

To learn more about our warehouse automation solution, you can visit our solutions and check case studies.

How Much Does It Cost To Build a Warehouse Automation Solution?

As businesses grow, their operation becomes more complex, requiring a larger and more sophisticated solution. This solution typically involves more equipment and a more complex WMS system which requires more significant financial investments. 

There are multiple solutions available in the market that may cost you $15,000* to $18,000*+, but before you get excited about it and directly tap on it, make sure it won’t be a marketing trap!

For any business, whether it’s a startup logistics company or a leading enterprise working with multiple warehouse management, investing in warehouse automation systems can be a costly deal if you are not hiring the right people. 

So if it comes to estimating the average cost to build a warehouse management system, then it may range between $20,000* to $25,000*+ for the basic app version and can go up to $50,000*+ with advanced functionalities.

But Hidden Brains provides the flexibility to enterprises to either customize the solution as per their needs and budget, pick our ready-to-deliver solutions, or use Saas based solution which is ideal for startups!

No matter what option you choose, keep in mind that there is no standard solution for all businesses and, therefore no fixed cost for the solutions. To make any decision it is worth booking the free consultation slot with our experts!

Conclusion

With this blog guide, you have gained an idea of how warehouse automation is rapidly taking the central stage in the market. While it helps in automating the most tedious tasks, streaming operating, ensuring 24/7 inventory tracking, automating repetitive tasks, and reducing cost, it is time to embrace this solution in your business. 

If you are still managing warehouse operations with all those manual procedures, then hire a software development company to get a tailor-made solution for your warehouse.

Hidden Brains is one leading warehouse management solutions providing company that offers the flexibility to get the solution as per your requirements and budget.

For more information and software details, you can Contact us!

Frequently Asked Questions

Here we have a frequently asked question section where we have covered all the important questions that our clients usually ask while looking for a warehouse automation solution for their logistics.