The intention here is not to give an in-depth analysis of whether to automate or not , there are experts out there who have written libraries on the subject , rather the idea of this article is to help companies understand , in a simple way , the pros and cons of automation . With rising labour costs as well as labour disruptions it is not uncommon for the thought of automating one ’ s operations to cross one ’ s mind .
The hard knock of the initial capital layout to simply automate everything starts becoming a sweeter thought when weighed up against the headache of strikes and labour uncertainty . For years one has heard , “[ R ] obots don ’ t strike ”.
We will be briefly exploring the possibility of automating warehouse operations , and if it is really worth the while to do so . Automation does have its place , but it is up to the strategy , vision and resources of a company to decide whether to automate or not .
Automation can be absent , partial , or full ( à la industry 4.0 ). In this article we will be considering the advantages ( and disadvantages ) of automating a warehouse .
THE ADVANTAGES
• Lower operational costs : Other than providing a sense of security to operations , there is no doubt that automation decreases operational costs . Lower labour costs , fewer costly mistakes and more efficient tasks are some of the cost-saving advantages of an automated system .
• Increased volume or storage space : Increasing the amount of stock that can be stored in your warehouse is
|
especially viable . Systems such as the radio shuttle or mobile racking can create warehouses where the packing density can reach up to 90 % as opposed to the 40 % of traditional warehouses – clearly an advantage when considering the rising costs of cooling per m 3 in cold room situations .
• Better management and control : Automated systems that are interactive with one ’ s warehouse management system give a higher degree of control to management and inventory becomes easier to control .
• Accuracy : As already alluded to , the cost of mistakes is greatly reduced with a correctly planned and implemented automated system . Automated systems have the ability to ensure close to 100 % accuracy , which is a clear advantage , but badly planned automated systems can be an expensive and disastrous to clients .
• Security : Securing one ’ s stock has always been a problem for warehouses , and with automated warehouses pilfering becomes more difficult as these systems have processes in place that give management power and control .
• Flexibility : Once seen as a difficulty for automation ; technology and correct planning have no longer made this an obstacle . Automated systems can be modified according to the changing business strategy which many businesses are no strangers to . A word of warning , planning is key , without a good plan , the whole operation can go South in no time .
|
It is clear that automating your warehouse has some very clear advantages , so why is it that not everyone is going for it ?
SOME OF THE DISADVANTAGES
• Higher capital outlay : the higher capital outlay required for an automated warehouse is not an indifferent sum . Automated warehouses can cost three , four or five times the price required to kit out a warehouse with traditional racking systems such as pallet racking , drive-in or other racking systems . It isn ’ t always clear that the high cost of automation can benefit the business in all cases , and proper financial planning and operational simulation should be done to understand if it is worth your while .
• Uncertainty of System : There is a constant evolution of new technology , and the hesitancy of implementing a system which doesn ’ t have a long track record can be daunting .
• Downtime : Automated systems can have lengthy downtimes , which will stop operations and eat into your bottom line . Downtime can be a real concern – especially in South Africa , where electricity supply is a reality .
• Bad Planning : Incorrect planning can be disastrous as has been stated . If a system is not correctly planned and systems incorrectly defined , there can be a clear loss of capital , which can do some serious damage to the organisation . Worse still , it could make operational costs increase as the required targets aren ’ t met . A longer time spent planning by professionals
|
Increasing the amount of stock that can be stored in your warehouse is especially viable .
and experts can better ensure that you have a successful automated solution .
Summarising the pros and cons , the question of automating your warehouse , at least from a financial perspective , comes down to a few key ideas :
• Do you have the capital to automate ?
• Do you have the right personnel to analyse your needs ? design a solution ? select the correct systems ? implement the project ?
• Finally do you have the correct support and training ? CLA
|