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.
