Analyzing the Pros and Cons of Automated Storage & Retrieval Systems

Warehouse automation has picked up rapid pace over the past decade, mainly because of numerous technological advancements that have had an effect on warehouse management systems. One of the most important advancement is the introduction of automated storage & retrieval system that virtually eliminates the margin of error that may occur in case of a manual storage and retrieval system.

However, the technology requires a major installation process, and along with cost benefit analysis, many other factors need to be considered before a warehouse manager decides to install automated storage & retrieval systems in the warehouse. We shall be looking at the pros and cons of automated storage & retrieval systems to help managers make an informed decision about whether to go for the same or skip it.

Benefits of Automated Storage & Retrieval System

1. Better Safety

Safety is a primary area of concern for many warehouses, especially those warehouses that deal in storage and retrieval of heavy duty machinery parts. Accidents at workplaces are a major headache for the company involved who will have to shell out heavy medical bills and potential legal bills. Automated storage & retrieval systems help negate the risks by handling the essential tasks of storing an item and retrieving it, leaving the worker to only transport them across the warehouse, which has minimal risk of accident.

2. Reduction of Labor Costs

Companies are always looking for methods to cut down operating costs in the most efficient manner, and automated storage & retrieval systems are a great way to do so. They practically eliminate the labor costs that would have to be employed for manual storage & retrieval of items, which may lead to more money being spent on salaries which can get expensive for the company in the long run. Automated storage & retrieval systems basically require maintenance charges and electricity charges which, more often than not, cost far more less to the company as compared to human labor.

3. Highly Efficient and Productive

Installing an automated storage & retrieval system not only eliminates the need for labor in that area, but also makes the entire process highly efficient and productive. Machines can operate for 20-24 hours a day without breaks, and people can use their time for doing other productive tasks. Studies show that automated storage & retrieval systems can boost efficiency and productivity levels to almost twice their original level.

4. Minimal to No Errors in Operation

A major benefit of an automated storage & retrieval system is that they rarely make any kind of errors. The margin is very thin and often negligible, and this particular aspect is very important for high volume warehouses that store and shop thousands of packages in a single day. Working with so much volume means the scope of error has to be as low as possible, and automated storage & retrieval systems take care of that.

Cons Associated with Automated Storage & Retrieval System

1. High Initial Cost

Installing an automated storage & retrieval system requires high initial cost, which may not be feasible for many companies with low budget. However, this cost is later justified in the long run as the cost savings are much higher in future.

2. Technical Expertise Required

Operating an automated storage & retrieval system requires some level of technical skills, so the company will have to spend money on training existing employees on how to use them or hire experienced workers who can operate them and look after them.

3. Can Do Limited Tasks

Automated storage & retrieval systems don’t have a wide variety of tasks that they can do; they are capable of only generic storage and retrieval jobs with some degree of customization, so they cannot be put to use in environments that have a dynamic shift in operations on a daily basis.

Benefits of Forklift Training for Your Staff

Operating a forklift without certification is a safety risk in motion. And while this remains the case, forklift training is neglected and results in injured associates, damaged products, and equipment downtime. Sending your staff to forklift training is not just about improving safety and increasing efficiency but also a requirement. Since warehouses and distribution centers are busy-even chaotic, your chances of avoiding such hardships increases when you make the initial and annual investment in training.

And on top of it, operating a forklift requires steady nerves and even steady focus on safety which is very important in the distribution or transportation to handle materials and customers alike.

 Here are some of the clear benefits to make sure the operators of forklift are trained:

 ●  Improved productivity and efficiency of operations

If you have a forklift in your premises it means that large loads can be loaded and unloaded or transported quickly and efficiently from one area to another, the faster the operators can do it the better. Forklift operating program training teaches and guides the operators through the process so that they can use a forklift on their worksite in a much more efficient way and the way they use forklift itself for the loading and unloading improves their productivity. Ultimately, this is also beneficial for your business to grow and make the best use of your company time and maximize profits.

 ●   Cost reduction in business operations

When a trained forklift operator handles the goods properly, a reduction can be seen in the inventory loss with productivity improvement. Moreover, with adequate and appropriate training, the insurance premiums businesses have to pay could be dramatically reduced. If the operators are not trained well or their training is neglected, the injuries can come at a higher price. For businesses, some costs may directly arise from the injuries while others are incurred due to conditions resulting from the injury like repair or replacement of damaged equipment, staff changes due to the employee absence, or direct costs for the medical expenses or legal costs if necessary.

Likewise, with a good training program, your business can steer clear of such costs and save on extensive, preventive maintenance costs.

 ●   Compliance with the OSHA

Forklift program for operators is not a choice, businesses can not hire someone without proper experience as it can be dangerous. Even if you hire someone without a proper license, you will need to train them according to the legal requirements and they must undergo complete training to become a certified employer before being allowed to operate the forklift. To comply with the law, all the individuals handling heavy machines that could cause serious injuries must obtain certification, that is the operator must be evaluated by their employer and found to be competent for this work.

 ●   Better working conditions

Workplace safety is an essential component when the manager analyzes the overall performance of the organization. For this reason, it is crucial to reduce forklift accidents to enhance production. The health and safety of operators or staff may be frustrating at times but ultimately it is important to save lives and better understand the equipment they will be working with and their daily tasks. With the training programs, the businesses can ensure a safe and professional working environment, which will result in fewer worries about accidents and more confident working in forklift environments. Ultimately this will make your worksite or place of operations a safer and happier place to work with low stress which results in better working conditions that lead to higher productivity.

Safe driving tips, material handling, proper awareness of risk, and assessments all are a part of the training program.

Make Your Warehouse More Efficient

Whether you are a small business or a network with major distribution centers, arranging your warehouse and using the right equipment is the foundation. When you start to begin your search first or see all the possible options for gravity conveyors, you are likely to be inundated with all the technical information that can seem more than a little overwhelming and the importance of warehouse organizing should never be underestimated. In fact, adding the right conveyor systems and racking in your warehouse can help you align the space and organize the products efficiently while also allowing easy access for streamlined picking and most importantly, saving you a lot of money!

For overall efficiency, fortunately, gravity conveyor systems are extremely simple in terms of their function. But that is just one piece of the puzzle, a good module racking system enables warehouses to maximize their use of space and organize products efficiently, such as according to the layout of the facility, depending on the demand of the product, the width of the aisle, to ensure that there is safe and efficient use of established racking system.

Okay so, what is all about gravity conveyors and their relation with the racking system?

A conveyor system is used throughout industries, whether you are setting up a business that deals in storage, supplies, manufacturing or distribution. These systems help in setting up your warehouse and you can rely entirely on them in order to transport material along with shelving units. You can either take hold of it by setting up the conveyor system at a slight decline or having manual labor push the product down the line manually, thus allowing the material to move over the system and helps businesses establish to succeed and be profitable.

What are the factors to consider when selecting the right Racking System?

To start off, it is important to know that each warehouse has its own set of requirements. While the picking process, note that, the right warehousing system including conveyor and racks should be able to increase your space utilization without hampering your operations.

Here is the list of a few factors, that will help you in choosing the racking system that will be appropriate for your warehouse:

●    First and foremost, while adding anything valuable to your business is the budget. This factor is essential to consider while making sure that the system fulfills all your needs.

●   How much of the space will be utilized by the racking system? The system should be able to easen up your task and not give you pain when it comes to utilizing the space, it should be able to maximize the warehouse floor space.

●   Apart from space utilization, storage utilization is also an important factor. Always consider the amount of space you will need and that amount will obviously depend on the quantity, size and the weight of your shipments or cargo moving out or in.

●   Your racking system should be able to accommodate well with your conveyor systems or gravity conveyor, so that all the tasks can be performed well.

●   The idea behind choosing a modular racking system is getting optimum flow of efficiency which is only possible if the loads are moving correctly and there is a perfect order of inventory retrieval.

The right warehousing process will help you optimize the receiving process, that is you can optimize your material handling process efficiently, correctly and avoid the accumulation at the receiving points. Moreover, you can take help of software such as labor management systems and cargo schedule to keep a check on inventory, that will allow you to properly allocate the right amount of personnel by accurately anticipating the shipments in the warehouse, upcoming products and outgoing load.

How warehouse automation can improve your business operations?

In the retail climate where businesses are constantly striving for instant gratification, efficiency is crucial when it comes to warehouses and supply chains. Warehouse management is one of the important aspects which requires redesigning of functionality for a warehouse to deliver the desired results and sustain in the industry. Along with workforce safety, distribution and logistics companies are still relying on outdated technology such as preparing manual bills, paper inventories and manual counts. But with the changing times and technology businesses are recognizing the importance of warehouse automation and use of management software systems.

The warehouse managers and executives have to keep a close eye on all the details even if the department executives are handling the processes surrounding inventory, shipping, returns and security. Automation can help with a variety of processes, while also reducing human errors that can cause hazards, maximize efficiency and productivity and have a positive impact on the business overall.

But the most frequently asked question when it comes to automation is: How can implementing warehouse automation or management systems help your business operation and become more efficient while cutting costs as well? In this context, a well-defined ERP solution or a warehouse management solution plays an important role in a variety of ways. 

Let’s get an insight into how a warehouse management system solution can benefit business performance and its operations:

Proper inventory management: How would you define a well-organized warehouse? It is where inventory is managed correctly   and saves a lot of space along with it ensures accurate stocking of inventory.
With the help of a warehouse management system, you can get complete insight into slotting and pulling of orders, offering you with a clear understanding of how many items are actually needed. This can drastically reduce the lead times by restricting the inventory movements as well as enhancing the reliability of inventory records. In a nutshell, you will be updated all about the stocks you have and can reduce the chance of overstock or under stock hence resulting in proper utilization of space and also the goal of the working capital management.
The software solution will provide real-time data on your inventory through barcoding or serial numbers.

 
Real-time reporting and depletion of paperwork:
For any business, reporting is one of the vital aspects when it comes to finding an approach to efficiently handle the requirements at each stage of the workflow. Everything should be taken into notice from the variables such as the size of your warehouse facility and your material handling requirements, real-time reporting can be a boosting factor. All the information that was traditionally maintained as hard copies earlier can now be maintained digitally- if not outright allocated- the tasks can be subdivided into parts in the most logical and efficient way possible.
This execution via the software solution can greatly minimize the paperwork associated with the business operations and also makes sure that all the tasks are timely delivered and in the perfect flow of inventory and information.
Warehouse managers are competent to see and monitor a lot with this portal and make informed decisions about how they can manage the workflow more effectively.
 

Improved customer relationships:
If you have not introduced a warehouse management system into your inventory facility, now is the right time to do so. Once you implement this, you can avoid any last minute panic to complete orders or fulfill the plagues of manufacturing and production businesses. You will be able to run your business efficiently, while reducing delivery lead times and order accuracy errors. That means you will be able to cultivate healthy and long lasting supplier relationships who are satisfied with their orders, which in turn means more sales.

Improve Your Business Process with The Right Conveyor System

As a manufacturing business, your primary focus might include packaging your products. And it goes without saying packaging affects many aspects of your product line, everything from the materials used to the shipping and payment dates can make a change in the way your finished goods look, cost per piece and how they are distributed and eventually affect your business growth. When it comes to your packaging processes efficiency is the key, which can make or break your products success and operation as a whole. In this case, a conveyor system can help to add that oomph or a tremendous boost of productivity you are looking for.

So, what exactly is a conveyor system?

A conveyor system is an equipment that is used to transport materials from one point to another. Moreover, from handling goods from one place to another within the organization, they can also help to feed items from one spot to another while saving your business time and money. For this reason, many organizations choose this to make their manufacturing and transportation processes easier, faster and convenient to accomplish. You can install conveyors according to the size and depending on the heavy workloads and also movements of items in various directions.

A packaging automation system allows for a faster and safer transportation of goods from one location to another that are being tailored to the layout of your facility and processes.

Still working without conveyors? Here are how automated systems can improve your business process:

Today, businesses can make use of these automated systems to streamline practically every aspect of packaging. Apart from the movement of parts and products, the conveyor can help to sort, weigh and monitor loads to make the flow management of the packaging smoother and ensure quality of packaging along with it. Without conveyors, you will have to implement manual labor which can raise the cost of labor and also result in creating several human resource complications. When compared to machines, human labor will lead to less productivity, less efficiency, more errors and more expenses resulting from risk of damage to goods, wastage of resources in the long run. Moreover, the business owner will have to cater to their leaves, payroll, medical expenses and other options. All in all, for this reason businesses improve their processes by automation which results in higher returns and drives their business ahead of the competition.

Interestingly, these automated systems have been used across various industries like food, pharmaceuticals, courier and carriage, manufacturing and many more. These can bring improvement to the following areas:

1. Convenient and faster movement of products:

By automating the function of moving parts and products, you can find an immediate increase in the throughput since everything is operated by the conveyors. From conveniently moving products from one point to another to reducing time, cost and labor involved in manual operation. All this can lead to increased productivity even for the companies with smaller bandwidth and workforce. These can also cater to heavy industrial use, for instance to transport heavy material like sheets and plastic parts as these have the tendency to withstand extreme conditions unlike manpower.

2. Increases safety and reduces chances of accidents:

Manual movement of parts and products increases the risk for injury or strains from repetitive motions. When workplace safety is the priority of most businesses, these machines can help decrease the need for forklifts, by reducing exposure to machinery and making employees happier and reducing the overall risk for workplace accidents.

3. Reduces manhandling

When it comes to moving products with the help of labor, the main concern in many manufacturing facilities is the damages and return. By automating it can drastically decrease the packaging errors and create stable loads throughout the whole process.