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Automation in the Warehouse: Asset or Obstacle?

Advice from true warehouse experts

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PathGuide Technologies ● 22745 29 th Drive SE, Suite #150, Bothell, WA 98021 ● www.pathguide.com ● clientservices@pathguide.com so that his or her movements in the warehouse can be minimized. For that reason, many of these solutions are called goods-to-person, or GTP systems. Some of the most popular ones include carousels, vertical lifts, automated storage and retrieval systems (AS/RS), mini-loads, and automated material- carrying vehicles. There is also a separate category of automation that includes conveyors that move and direct pick material to the next appropriate operation. Physical automation can provide a good return on investment provided there is a sufficient volume of activity to justify the high up-front costs and the ongoing need for maintenance. When considering physical automation in a warehouse, it shouldn't be forgotten that human labor is more flexible when it comes to adapting to changing business conditions. For example, the picking rate from a carousel pod is limited to what a single operator can accomplish, and that may be insufficient to support the rush of orders late in a day. If the same inventory was in fixed shelving or on a flow rack, it could be accessed by multiple workers during busy periods, negating any speed or efficiency advantages of a single carousel. On the positive side, there are examples of automation greatly benefiting warehouse operations. One company that comes to mind is a big farm and home store located in Illinois. The company was already using a WMS solution, so when we learned of its plans to implement a conveyor system, we worked directly with the automation provider to ensure a successful integration. Our collaboration allowed the WMS to work seamlessly with various automated features controlled by the warehouse control system, including the conveyor, label formatting and content, automatic label application, fixed overhead scanning, and a process that diverted cases to one of 12 staging areas for outbound shipping. However, it is critically important to remember that automation does not provide a one-size-fits-all answer to every organization's needs. It's up to each company to do its due diligence to see if automation makes economic sense. One example where automation did not work out involves the owner of a mid-sized industrial distributor who made a $3 million investment in carousels linked with an active conveyor.

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