One powerful solution for warehouses to improve efficiency and remain competitive is automation. But, you may be wondering: How do I know if my warehouse is ready for automation? Below, we share a comprehensive checklist to help you evaluate your operations and determine when warehouse automation is right for your business.

What is Warehouse Automation?

Warehouse automation is the implementation of technology that automates tasks and processes within the warehouse. These systems can include robotics, automated conveyor belts, inventory management software, and more.

Automated warehouse processes reduce human involvement in tasks like receiving, sorting, packing, and shipping, which results in higher accuracy, speed, and productivity. Many different warehouses can benefit from automation, but there are a few questions to ask before beginning this implementation.

How to Determine If Warehouse Automation is Right for Your Business

Evaluate Your Current Operations With a Process Analysis

One of the first steps to determine if your warehouse is ready for automation is evaluating your current processes and how each one is performing. If your warehouse handles a high volume of orders, especially if they are processed through picking, packing, and shipping workflows, it may be the right time to consider automation. Manual systems can only handle so much before errors begin accumulating.

Determining which areas would benefit most from automation is essential in this process, as this will bring the most growth. Consider all processes with substantial impact across operations to determine where automation would best fit to create objectives for this process.

Consider if your business regularly faces stockouts, overstock situations, or inventory discrepancies. Automation can help with these issues by tracking inventory in real time and replenishing as needed. If you’re facing challenges with finding labor or increased labor costs, technology like Autonomous Mobile Robots (AMRs) can help replace or re-allocate your labor effectively.

Target Growth and Expansion Needs

Warehouses may be struggling to keep up with increased demand, especially during periods of growth. Automated systems are highly scalable, with flexible designs to meet fluctuating order volumes throughout the year. This can also help with businesses planning to expand even further in the future. Using automation, warehouses can significantly increase throughput, allowing warehouses to process more orders in less time.

If your warehouse is struggling with current or seasonal demand, or looking to expand soon, automation may be a good solution. Keeping up with this demand through automation can help you meet customer expectations and build customer trust to maintain a good reputation.

Examine Infrastructure and Technology Readiness

Not all warehouses are physically designed with automation in mind. Before investing in automation, the current layout must be considered to determine if it can accommodate larger systems like Automated Storage and Retrieval Systems (AS/RS) or AMRs. Since this type of automation usually requires specific spatial configurations, you may need to adjust the warehouse layout to maximize the benefits of automation.

Additionally, it is critical that you have a warehouse management system (WMS) that can integrate with robotic systems. These robotic systems rely on real-time data from your WMS. If your WMS is outdated, incompatible, or non-existent, you may need to employ or upgrade to a new WMS before proceeding with robotic automation.

If you’re not sure how to maximize your warehouse’s layout or existing systems for automation, consider speaking with a warehouse automation expert for a full workflow and warehouse assessment.

Determine ROI and Budget

Since warehouse automation is a significant investment, it’s essential to calculate ROI before making a final decision. Consider all the costs, including the cost of equipment, software, installation, ongoing maintenance, and employee training. Though the initial costs might seem steep, many operators who install automated systems see an ROI as soon as 18 months.

To ensure you’ve allocated the appropriate budget for automation, consider starting with a pilot program to test automation in a smaller part of the warehouse. This allows warehouse employees to work with automation before making a larger investment in new technologies.

Testing the Workforce and Change Management

Finally, consider the needs of your workforce. Automation isn’t about replacing workers, it’s about optimizing worker efforts. Automating repetitive or demanding tasks frees workers for more valuable and fulfilling work in the warehouse, with greater critical thinking and problem-solving.

For automation to succeed, workers must be properly trained. Consider the readiness of your team to embrace new training and technologies. Clear communication and strong leadership are essential at this stage for employee adoption. Employee involvement during the transition process will also reduce resistance and foster collaboration within the workplace.

If you anticipate challenges with employee buy-in, a pilot test can help ease employees into this change. A reliable automation provider will also assist with training staff and preparing employees to embrace new technologies.

Final Checklist for Automation Readiness

Once you’ve analyzed your operations based on the above factors, use this final checklist to help you determine whether or not your warehouse is ready to automate:

– Do you handle high volumes of complex orders?
– Are labor shortages or costs impacting your productivity?
– Is maintaining accurate inventory levels a challenge?
– Does your warehouse have the physical space and infrastructure needed for automation?
– Can your current WMS integrate with new automation technologies?
– Have you calculated the ROI for automation and determined whether this is a smart financial decision?
– Is your workforce prepared for the transition through proper training and change management?

If you answered “yes” to several of these questions, your warehouse is likely ready!

Final Thoughts

Warehouse automation has the potential to transform operations for greater efficiency and accuracy. To determine if a warehouse is ready to embrace automation, organizations must evaluate their operations based on current processes, growth needs, infrastructure, and workforce climate. The above checklist can help you determine if your warehouse is ready for automation.

Reach out today to schedule your workflow assessment.