If you are considering automating your supply chain, you should know a few facts. This article will give you some important information about automated logistics, including how it is transforming the supply chain, how it will impact warehouses and e-commerce companies, and how it will affect the supply chain. For more information, continue reading. And remember that you don’t have to be an expert to understand how this new technology will affect your supply chain.
Labor-Intensive Supply Chain
In the U.S., more than half of the labor time in order fulfillment is spent picking and packing items. This involves searching shelves, choosing items, and recording the information in reports. Automation solutions can help improve picking operations and reduce the time needed for employees. These solutions also improve the visibility of operations and lower labor costs. However, some challenges are associated with using automated logistics in labor-intensive supply chains.
The most expensive warehouse activity is manual order picking, which takes up to 50% of a worker’s time. Sorting inventory by hand is time-consuming and can confuse. Automated sortation can reduce costs, improve efficiency, and increase customer satisfaction.
Cost Of Automation
There are several reasons to invest in automated logistics. These include increasing employee productivity and reducing employee absences. In addition, increasing e-commerce sales are driving more business and increasing the need for fast shipping. Today, customers expect their purchases to be delivered on the same day. They also expect free shipping. A company that cannot meet these expectations will lose business. By implementing automated logistics, a retailer can increase efficiency and visibility. However, the initial costs of automated logistics can be high.
Using automation to pick and pack products can reduce human error. The process of manual order picking can consume up to 50 percent of a warehouse’s working time. Automated pick-and-place robots can increase the speed at which inventory is moved. Additionally, automated sortation improves inventory accuracy and quality control. This means fewer employees must move inventory from one warehouse to another. Automation can also lower transportation costs by improving worker productivity and efficiency.
Impact On E-Commerce Companies
With the growing volume of online sales, the demand for automated logistics is becoming increasingly critical. Unfortunately, many B2B networks struggle to keep up with demand, which puts pressure on logistics companies. Automated logistics seem to be the answer to this dilemma. However, there are several challenges to consider when adopting automated logistics.
Impact On Warehouses
The impact of automated logistics on warehouses may be more than just a change in how people work. Automation could help improve the safety and productivity of warehouses. With fewer people needed to perform specific tasks, automation could help improve productivity, especially for less experienced operators and seasonal operations. However, it might also pose health risks to employees and de-skill some jobs.
Automation can significantly reduce labor costs, representing fifty to seventy percent of warehouse operating costs. Additionally, it can reduce the risk of order errors by eliminating manual labor and allowing for higher throughput and shorter order delivery cycles. It can also help boost profit margins by relieving workers of routine tasks and allowing them to focus on operations that add value. In addition, automated systems can reduce turnover and help businesses capitalize on training existing employees.