In this episode host Kevin Lawton is joined by Ninaad Acharya and Dan Coll of Fulfillment IQ to discuss their journey in the fulfillment world and how they are now solving the fulfillment world’s problems. They dive deep into some of the most common problems they are seeing and what they think is exciting about the future of fulfillment.
Be sure to check out their podcast as well called eCom Logistics Podcast.
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In this episode host Kevin Lawton is joined by Tony Ingham of Fulfilld to discuss their warehouse management orchestration system. They discuss how it is utilizing machine learning, the variability of that machine learning and their new handheld devices which utilizes digital twin technology to take your warehouse operation to the next level.
Get on demand labor from Veryable with zero fees for the first month by signing up here: https://veryable.grsm.io/znj79m4huqsb
To most people, the idea of automated labor seems like something out of the realm of sci-fi. With visions of Rosie the Robot dancing in our heads, it’s hard to believe we’re living in the future that so long seemed restricted to the realm of fiction.
And yet, these days, automated labor has become more common, and more practical, than ever before—and nowhere is this truer than within the distribution and fulfillment industries. Automation investment can make sure that your distribution center is prepared for the challenges of operating at peak profitability in the current market landscape.
As employers face issues of employee unreliability, high turnover, and increasing labor shortages through the distribution space, automation is more than just a future fantasy. It’s quickly becoming vital to commercial success in the here and now.
A closer look at labor scarcity
According to a recent report published by The Washington Post, over 43 million Americans quit their jobs over the course of 2021. Commonly called the “great resignation,” this wave of employee departures shows no sign of slowing. In fact, some employers report that resignation is currently at an all-time high.
So what’s the future of the great resignation? Expert predictions vary, with some stating that the trend will continue into 2023 and beyond. Other experts predict that more Americans are getting back to work—but that the attitude towards labor and willingness to walk away from a job that no longer feels rewarding will likely stay the same.
As demand for online shopping surges and e-commerce sales continue to become a preferred retail method for Americans throughout the United States, employees face increased hours and higher stress levels as they try to keep up with the growing demand.
The result? An increasingly unstable labor market that shows no signs of self-correcting, leaving employers facing higher costs and worse results. In fact, according to one study, as many as 73% of warehouse operators struggled to find adequate labor.
We need to face the facts: what was once a trend is quickly becoming a labor market norm, one that disproportionately impacts operators of distribution centers, warehouses, and other third-party logistics professionals, where staffing shortages are worsened by increasingly high turnover rates.
Automation: the wave of the future Automation may once have seemed like a sci-fi solution to the sector’s labor woes, but these technologies have increasingly become a critical aspect of the manufacturing and logistics world’s real-world operations. In fact, a study published in the Harvard Business Review indicated that within the next four years, the global warehouse automation market can be expected to double in value, with supply chain leaders describing warehouse automation as, …” One of their top three priorities for digital investment.” Workers cited by the study also expressed optimism, with many sharing their excitement for the potential of automation technologies to improve safety, increase speed and efficiency, and allow them to produce higher-quality work. The advantages of automating processes that were once performed by human labor is clear to employers who have struggled to maintain adequate staffing within their warehouses. Automation cuts down on your need to hire, making it easier to increase order accuracy, and productivity, and focus on reducing workplace injury for warehouse employees. Not only does automation reduce the need for labor, but it also makes work less demanding, reducing the turnover rate and leading to lower stress levels and a more positive work environment that encourages employees to stick around. These days, there are many forms of warehouse automation in common use. Companies use warehouse management systems to automate manual processes, inventory control, and data capture, supporting data analysis. Using this software in conjunction with technology such as sensors and robotics helps minimize the need for human labor, increasing efficiency and reducing costs. Making automation practical It’s no secret that warehouses and the fulfillment industry as a whole continue to be major drivers of change within the American economy. Around 1.5 million American workers are employed in the warehouse and storage sector, many of whom are ambivalent about the impact that the coming automation revolution may have on their careers. However, when approached correctly, automation can actually be a critical asset in supporting the fulfillment sector for both workers and employers alike. The key to making automation an asset? Communication and training at every step of the way. Automation can do a lot, but it still requires human intelligence and discernment to perform at its most effective level. Instead of framing automation as a threat to employees, employers should share the way that automation can make their lives better, and their jobs easier. Done correctly, automation takes the pressure off, handling all the most dangerous, difficult, and repetitively dull tasks, leaving workers free to think more creatively and focus on building their skill sets on a higher operational level. This need for training is apparent even to workers who are otherwise enthusiastic about the potential automation brings to their workspaces. As 35% of the warehouse workers interviewed in the Harvard study reported, workers fear that inadequate training resources will make it difficult for employees used to the old way of doing things to succeed in the new digitized, automated workspaces of the future. “I think the more the warehouse is automated, the better we’ll all perform,” said one warehouse supervisor cited by the study. “Robots will greatly diminish our workloads, reduce risks, and increase productivity. But if we don’t know how to handle them, they’re hardly going to do any good.” To assuage these fears, employers in the distribution and fulfillment space need to place a priority on training, communication, and open conversations with employees as they move forward into the coming automation revolution. Emphasizing the potential career growth possibilities moving towards automation offers will allow workers to envision their longer term prospects working within the fulfillment sector, helping get them on board to perform the tasks necessary for accessing the full potential of automation technology. As warehouse work continues to be a mainstay of the global economy, automation technologies can make a major positive impact. When human capital combines with the power of automation, anything is possible.
When it comes to supply chain, every business has its own way of doing things. Old habits – like completing inventory counts, picking, packing, and doing things manually – die hard. As businesses struggle to keep up with companies like Amazon, they may be wondering how supply chain automation – the process of replacing repetitive tasks with automated systems – is affecting an industry that is changing before its eyes. At ABCO Systems, we want to share our knowledge on how supply chain automation is affecting the warehouse, distribution, and fulfillment center industry.
Lowering costs and increasing productivity
For those who work in the warehouse arena, automation is what’s on everyone’s minds. With the current labor shortages, automation is a way to subvert those challenges and meet them head-on. Currently, over 80% of warehouses have no automation at all[1]. That doesn’t mean everything is by hand, it just means that while 15% of warehouses are being mechanized, only 5% use sophisticated automation equipment.
As labor shortages continue, warehouse operators are looking for ways to use automation technology to increase efficiency and reduce the human labor needed to keep a warehouse running smoothly. According to a study, a warehouse spends around 50% to 70% of its warehousing budget on labor. By moving from human labor to automation, experts expect over the next three years to see an increase in productivity by between 25% and 70% and a reduction in logistics costs between 20% and 40%[2].
As warehouses decide to adopt automation systems, they can rest easy knowing that many of these systems are already proven. ABCO Systems believes in the use of conveyors to facilitate most of the operations associated with manufacturing, distribution, and warehousing facilities. Learn more about our Automation systems here.
2. Eliminating safety risks
Keeping warehouse employees safe is an important task for any company. The US Bureau of Labor Statistics reported an average of 16 fatalities every year and a reported injury and illness rate of 5 out of every 100 warehouse and storage workers[3]. Additionally, worker injuries cost businesses billions of dollars every year.
With the labor shortages, workers can find themselves in even more dangerous situations since teams have to work harder to make up for the job vacancies. Automation can help reduce safety hazards including lifting injuries, falls, and fatigue. The longer a worker is on duty, the larger their risk of injury[4]. Implementing automation techniques that allow workers to take longer breaks or work shorter hours will also help to reduce the number of injuries.
Having machinery do the heavier lifting keeps workers away from some of the more dangerous tasks and also away from the more repetitive tasks that can lead to chronic back or shoulder problems. According to OSHA and the US Bureau of Labor Statistics, in 2019 tools and equipment caused 186,100 injuries that required workers to take days off to recover[5]. Implementing proper systems and technology helps achieve safety goals while also increasing efficiency.
3. Higher customer satisfaction
In the end, companies want happy customers. Achieving that goal means getting the correct products out the door as quickly as possible and to the correct person.
Improved productivity with fewer errors helps keep warehouses competitive. An automated warehouse is more efficient and productive. According to a study by Deloitte which surveyed more than 400 executives in manufacturing, “79 percent of organizations with superior supply chain capabilities achieve revenue growth that is significantly above average”. Implementing automation can help drive down costs and reduce processing times giving businesses an edge against their competitors by delivering faster, more accurate service.
Contact us to see how ABCO Systems can help you increase efficiency in your space and processes with warehouse automation solutions.
ABCO Systems offers design engineering expertise to provide custom solutions for material handling and distribution system design for their customers. This requires a team of professionals who understand the intricacies of the modern-day distribution center, and the right strategic partners to meet and exceed the goals of our customers.
We are excited to highlight our partnership with Fetch Robotics, a pioneer of on-demand automation. Intelligent automation can be the workforce multiplier needed to accelerate throughput and productivity. Automation reduces congestion in aisles, limiting interactions between workers and potentially hazardous heavy loads and equipment, enhancing safety as well as performance and productivity.
Being able to incorporate Fetch Robotics into our design engineering allows us to provide both innovation and resilience to personalize each design to the unique needs of the customer. To learn more about ABCO Systems Solutions with Fetch Robotics, contact us at 201-429-0580 or at [email protected]. We look forward to providing you with your custom design solution with a unique blend of efficiency and resilience.
ABCO Systems – Solutions engineered for today’s challenges and tomorrow’s opportunities.
Warehousing as we know it evolved from the granaries of early civilization that were built to store surplus food for future consumption. This process was further evolved by the Romans who built the Horrea Galbae which was the precursor to the modern-day warehouse where goods are stored for import, export, and distribution.
Horrea Galbae
The Horrea Galbae itself was located on the Tiber River and contained over 140rooms within its 225,000 square feet of space. The structure housed the public’s grain as well as other imported goods. These structures were strategically located near seaports to make it easier for imported goods to be transferred from ships to the structure for housing and distribution. In later years, these warehouses would similarly be located near rail depots as railways became more popular for moving goods from one place to another.
The term “warehouse” was first coined in Britain in the 1300s, its meaning being “a structure or room for the storage of merchandise or commodities.” So, your “wares” were stored in this “house”. At this time in history, Britain was focused on expanding its territories across the sea and these “warehouses” were constructed in port cities all over the world, expanding global trade routes for import and export across the globe.
It was during the industrial revolution that the word “warehouse” was changed to a verb as goods were now “warehoused” for sale and distribution and the purpose of the warehouse shifted from static storage to the movement of goods. As mass production in factories grew, the need for more storage and efficient movement of goods became a vital aspect of trading.
the rise of the railroad for transportation led to more warehouses being built at these transportation hubs; allowing manufacturers to move their goods faster and farther than ever before. This expansion created new markets a swell as transformed small towns into bustling cities.
The Second Industrial Revolution took place in the late 1800s and was powered by electricity which further expanded the reach of manufacturing and distribution. It was during this time that
The Sears & Roebuck Chicago distribution complex
Sears, Roebuck & Co., became the “Amazon” of its time. The Sears catalog brought thousands of items into the hands of people across the country. From clothing and toys to appliances, medical supplies and so much more. This merchandise was housed in the huge Sears distribution complex in Chicago which covered 3 million square feet. Handwritten orders were received all year long; these were fulfilled by workers who searched endless aisles for the right product, size, color, etc. The need for automation was there, but the solution would not come fast enough for the weary warehouse workers.
The 1900s brought machine-driven factories that offered mass production of goods and new forms of transportation that gave manufacturers an even farther reach. Goods were now moved by land, sea, and air to reach more consumers and wherever these goods were shipped there was a warehouse to store and distribute them.
Assembly Line Mass Production
Larger items were now easily mass-produced on assembly lines. Cars, appliances, and other items now required the use of hand trucks or motorized carts and forklifts to move the heavy parts from one place to another during the manufacturing process.
It was in the 1950s that the first automated guided vehicle (AGV) was introduced to carry heavy loads in factories ad warehouses. The AGV was akin to a tow truck that did not require a driver or rail system. It was navigated with a track of wires embedded in the floor that generated a magnetic field. The AGV became an integral part of the manufacturing process as it moved heavy materials along a defined route and removed repetitive and dangerous tasks previously performed by workers and allowed the workers to focus more on other tasks.
