icon17 Apr, 2023

How are Robotics Changing Warehousing?

More Warehouses are Employing Robotics and Other Automation

The warehouse robotics market is growing, which is a good indication that more and more companies are opting to add robotic elements to their warehouses. Amazon, one of the largest retailers in the world, has led the charge in robotics investments, accounting for 38% of the robotics market in 2021. A 2021 survey conducted by Material Handling Institute (MHI) showed that 49% of supply chain leaders reported increased technology spending in their warehousing operations.

 

Much of the impetus behind the push toward robotics investments and development may stem from the increase in ecommerce spending. Sending orders directly to customers from warehouses is often more labor-intensive, slower on a per-case basis, and, in consequence, more expensive than fulfilling retail orders. This leads companies to seek ways to make the process more cost-effective and expedient.

As Robotics Technology Improves, Uses Cases are Broader

Warehouse robotics have been around for a long time, but they didn’t work well in most operations. Their abilities were fairly cut and dried back in the 1960s when robotics were invented where flexibility is imperative in most warehousing operations.

 

Today’s warehouse robots have evolved. They’re more versatile, capable of working safely alongside humans, and more dexterous. They’re capable of handling a wider variety of tasks and adjusting on the fly as freight types and volumes change.

The Benefits of Warehouse Robotics

Several benefits come along with employing robots in warehousing, including the following.

Warehouse Robotics Can Make Warehouse Work Less Labor-Intensive

In recent years, the rise in ecommerce popularity has created large numbers of warehousing jobs. The problem? Filling those jobs. Warehousing work can be very labor-intensive, and it makes it difficult to get and keep associates. One workplace safety survey showed that the warehousing and transportation industries spend $84 million per week on serious, non-fatal injuries.

 

When robots take over some of the more labor-intensive warehouse tasks, or even just help make tasks less labor-intensive for workers, it can improve workers’ health and their ability to continue doing their job.

They’re Faster Than People on Their Own

By one automation company’s estimate, AS/RS systems can reduce the time workers spend walking to pick orders by up to 40%, giving them more time to fill more orders and improving overall productivity. A report released by Harvard Business Review showed that warehouse automation has increased worker productivity by up to .37% year over year. While that number seems very small, the overall increase in productivity over the years adds up to a 16% increase in worker productivity over the course of the review.

 

Even less dramatic automation systems can have a huge impact on productivity. Pick-to-light systems, which aren’t even all that technical, can improve productivity by 30%-50%.

Robotics are Cost Effective

Warehouse robots aren’t cheap, but neither are labor costs. Labor accounts for 50%-70% of the average warehouse operating budget. When the labor market is tight, that percentage oftentimes goes up in individual warehouses as companies scramble to offer more competitive wages to get their share of the available labor pool.

 

Thanks to increased productivity, reduced labor costs, and reduced expenses due to injuries on the job, warehouse robotics can be very cost-effective when the right system is put into place.

 

It can cost, on average, $7,000 to replace an hourly warehouse worker. By reducing turnover thanks to better working conditions, robotics can also help companies save money on recruitment and onboarding costs.

Robots are More Accurate

To err is human, but not so much robot. While it can certainly happen, warehouse robotics are far less likely to make mistakes than people. The software and AI that drive warehouse robots have systems in place to ensure items are placed correctly, orders are filled accurately, and inventory is kept in direct accordance with items that come in and go out of the warehouse.

 

AS/RS systems, for example, can increase order accuracy to up to 99.99%. Many types of warehouse automation can also help warehouse laborers perform their duties more accurately.

Beyond Robotics: Other Tech Making Waves in Warehousing

Warehouse robotics that manage physical tasks aren’t the only technologies transforming the warehousing industry. Some other technologies that are changing the way warehouses operate include:

 

• Upgraded software systems like WMS and ERP
• Mobile scanning devices
• Digital barcodes and RFID tracking
• Internet of Things (IoT) sensors
• Navigation systems to reduce warehouse congestion
• Wireless telemetry

Will Robots Replace People in Warehouses?

While there are certainly visionaries out there aiming for fully automated warehouses, we’re not quite living in a Jetson’s world just yet. It’s not very realistic in most operations at this point. In most operations that utilize robotics, robots work alongside humans to help make their jobs less labor-intensive, faster, and help workers to be more accurate.

 

For now (and for the foreseeable future), robots won’t be taking over human warehouse jobs entirely. In fact, the number of warehouse jobs has increased over the last several years despite the rise in the use of robotics.

 

Does your company need effective and efficient warehousing that utilizes advanced technology to save both time and money? Reach out to the team at NEWL. We have warehouses in Canada and the US, plus logistics partners across the globe to help you meet your warehousing needs. Contact us here.