Automated Material Handling Top 10 Trends

Automated material handling is addressing a substantial portion of the megatrends impacting material handling businesses. It is changing the movement, storage, sorting, labor usage, and control of goods in warehouses and distribution centers. These top 10 trends, and the megatrends driving them, are why automated material handling is seeing larger adoption rates.

Automated Material Handling Megatrends  

Megatrends are impacting warehousing and distribution as well as driving the transition away from labor-intensive manual systems to automation. These megatrends are –

• Labor Shortages – staffing warehouses and distribution centers continues to be challenging. Direct labor rates are exceeding $20/hr. in metropolitan areas to attract workers. Staffing for peak periods remains difficult for the foreseeable future.
• Labor Retention – the average turnover rate for warehouse associates is 37% annually. Attracting warehouse associates can be difficult and retaining warehouse associates is challenging.
  
• Lower Cost Automation – automation technology has become lower in cost making it accessible to more businesses. Automated material handling technologies are agile and scalable, allowing operation executives the flexibility they need to reduce the risk associated with older static automation systems.
• Omnichannel – many warehouses are no longer only relegated to servicing one client segment. Serving multiple segments creates very different order profiles. Significant added complexity occurs when combining same-day, next-day, small orders with large wholesale orders.
• Digital Transformation – supply chain digitization is the domain of enterprise resource planning (ERP) systems. The transition to automated material handling increases the ability for warehouses to access more digital data.

These top 10 trends are driving the increased adoption of automated material handling systems.

1. AMRs for Conveyance, Order Fulfillment, Sortation & More  Automated  Material  Handling

Autonomous Mobile Robots (AMRs) are increasing in usage for order fulfillment, sortation and material transport tasks or conveyance. Their popularity is due to their agility, scalability, lower costs, and quick implementation. AMRs are increasing in many applications that have been traditionally tasked with other forms of automated material handling systems. AMR technologies dynamically navigate changing warehouse environments and handle a variety of goods and sizes.

2. Integration of Islands of Automation

As organizations scramble to implement high-impact automated systems, they are creating “black box,” zones, otherwise known as islands of automation. Each new technology is performing its objectives but missing out on even higher KPI improvement.

Back in the 90’s, islands of automation were created due to very few material handling technologies using software and they rarely communicated to each other. Over time, Warehouse Management Systems (WMS) became the link that allowed each of the islands to communicate inventory levels and positions. However, WMS lacked a focus on warehouse performance in areas such as zone balancing.

Today, warehouses are using warehouse execution systems (WES) software to integrate these islands of automation into a single digital and cohesive system. By breaking down silos with WES integration, warehouses achieve greater visibility, control, and efficiency. The WES focuses on orchestrating both equipment and labor to create a smooth flow of inventory and activities from zone to zone and shipping.

Got questions about modifying the flexibility of your warehouse system with automation?
Speak with a member of the Conveyco team.

3. Real-time Visibility and Decision Making

Automated material handling systems create greater digitization depth within a warehouse. Systems such as barcoding, RFID technology, AMRs, storage and retrieval, and sortation systems all help in digitizing processes. Greater visibility is obtained using tablets, phones, dashboards, and analytics. These are enabled with the use of warehouse software systems such as a Warehouse Management System (WMS) and Warehouse Execution System (WES).

Real-time visibility and decision-making are now enabled based on this data. This trend enables warehouses to run with more agility and visibility to optimize efficiency. Warehouse managers can now optimize a wider range of resources to meet their KPIs and rigorous customer demands.

4. Artificial Intelligence (AI) and Machine Learning (ML)

Once digitization occurs in a warehouse, data and feedback loops are available. Artificial intelligence and machine learning use this data to automate decision-making and perfect processes to improve warehouse performance. A popular area for AI and ML is the dynamic routing of AMRs to optimize throughput. Other areas for AI are the organization and release of orders to the warehouse using optimized strategies for picking, based on shipping priority, SKU affinity, cycle times, transport time, and labor resources.

5. Flexible and Scalable Solutions

Flexible and scalable solutions capable of handling peak periods without being overbuilt are increasingly sought after in automated material handling. This trend involves the development of modular, customizable, and adaptable automation technologies. By adopting adaptable solutions, warehouses can create agility, resilience, and competitiveness in an increasingly dynamic business environment. Most importantly, this allows organizations to strategically apply CAPEX and OPEX based on their organization’s preferences.

6. AMR Integration & Fleet Management

The introduction and coordination of various OEM models and styles of AMRs into warehouse operations represents a significant trend. This involves integrating different AMR models, manufacturers, and functionalities to create a cohesive and efficient automated material handling system. By using the strengths of various AMRs, warehouses can optimize moving material, picking, and sorting tasks. This enhances overall productivity and cost savings.

7. Human-Robot Collaboration Safety

Ensuring safety in human-robot collaboration is imperative in automated material handling environments. This trend involves conducting risk assessments, providing safety training, implementing ergonomic design principles, and defining collaborative robot behavior guidelines. By setting up and adhering to safety standards, warehouses can create a safer working environment, an environment where humans and robot systems can collaborate effectively and safely.

8. Warehouse Digitization  for  Automated  Material  Handling

Warehouse digitization involves a fluid exchange of data generated by Automated Material Handling Systems. This trend enables warehouses to digitize, automate, and optimize processes and workflows, leading to increased efficiency and agility. Digital twin technology and emulation can be used to create virtual representations of physical warehouses and test their performance. Warehouse digitalization helps assess new methods for improving efficiency using this data.

9. Warehouse Execution Systems (WES)

Warehouse Execution System software dynamically distributes resources, prioritizes tasks, and optimizes workflows in warehouses. They orchestrate automation technologies and interfaces with the ERP or WMS. It eliminates the need for a lower-performing warehouse control system (WCS) and can perform some traditional WMS functions. This advanced software system communicates to every zone to orchestrate a warehouse’s automated systems and labor.

A WES enables advanced analytics, tracking, and optimization algorithms to enhance operational efficiency and responsiveness. A WES, such as Horizon, allows warehouses to achieve higher volume throughput, shorter lead times, improved order accuracy, and customer satisfaction.

10. Automated Material Handling System Integrators

System integrators play a crucial role in the adoption and implementation of innovative and high performing technologies in automated material handling. This trend involves using the expertise of system integrators to design, integrate, and deploy optimized automation solutions based on its customer’s unique business model.

By partnering with system integrators, such as Conveyco with its RightFIT methodology, operations managers can access specialized knowledge and resources. Technologies such as automated storage and retrieval systems (ASRS), AMRs, sortation systems, and WES software can be cohesively combined. Conveyco’s proven tailored solutions enable warehouse managers to optimize their material handling processes, exceed their KPIs, and stay competitive and profitable. its methodology, operations managers can access specialized knowledge and resources. Technologies such as automated storage and retrieval systems (ASRS), AMRs, sortation systems, and WES software can be cohesively combined. Conveyco’s proven tailored solutions enable warehouse managers to optimize their material handling processes, exceed their KPIs, and stay competitive and profitable.