Top 10 Benefits of Warehouse Automation
warehouse management
Automation in any industry has always helped simplify business processes and reduce manual errors to minimal levels. It minimizes the need for constant human intervention to get the job done and, in turn, also saves a lot of time and resources for business owners. The same has been observed for the eCommerce industry. It has witnessed phenomenal growth over the past decade as more people have become accustomed to buying goods online.
Given the number of increasing transactions and customers, manually managing eCommerce operations can get very challenging, especially when it comes to efficient warehouse management. This is where Warehouse automation comes in. If done right, it can be a game-changer for eCommerce players looking to grow their business.
Let’s take a look at it in detail:
Understanding Warehouse Automation
Any business that sells a physical product to a customer needs to transport the goods from the place of manufacturing to the customer’s home. This process is carried out in parts, and storage is required to help an uninterrupted flow. Warehouse automation can be explained as the process of automating the movement of inventory to and from the warehouse to the customer’s location with little manual intervention.
All activities that involve repetitive labour work can be automated. The entire warehouse automation system is divided into two parts: Digital automation and Physical automation.
The digital automation system is focused on using data and software to reduce manual workflows and improve productivity. This process leverages technology like automatic identification and data capture technology.
Physical automation in the warehouse is all about using technology to reduce dependence on human labour for labour-intensive tasks. Physical automation leverages technology to minimize employee movement to build efficient workflows. Using robots to carry goods from one location to another inside the warehouse is an example of physical automation in the warehouse.
There are numerous benefits of using physical automation technology, including warehouse capacity, improved performance, high productivity, etc. However, there might be some substantial upfront investments required to implement physical automation in warehouses.
But, with cloud-based platforms, digital automation can be the best way forward for eCommerce actors.
Warehouse Automation for eCommerce Businesses
Worldwide e-retail sales are expected to grow to 5.4 trillion USD in the near future. The eCommerce industry is growing rapidly, and to strengthen the logistics network, warehouse automation software is essential for eCommerce businesses that don’t want to compromise on customer experience.
Since it helps to smoothen the workflow and streamline the process, it increases productivity and a better work experience. As more people indulge in the online purchase of goods, the demand for warehouse storage and efficient order processing is on the rise.
Here are some key points to consider when discussing warehouse automation software:
- Seamless flows for picking and packing
One of the most important reasons warehouse automation is crucial for eCommerce business is because of multiple SKUs. Most eCommerce stores offer numerous products to their customers, and many a time, customers order various products in one go. This creates complications for online store owners who have to pack multiple line items in a single order. A warehouse automation software can help establish seamless flows to ensure correct picking and packing for eCommerce orders.
Often, manual processing can lead to complications, which can lead to a bad customer experience that is not at all good for a business. Automation software can help process such eCommerce orders without any errors. This helps minimize reverse logistics, which is one of the key factors that help to boost profit for eCommerce businesses.
- Orders from marketplaces flowing directly to warehouses
Warehouse automation can help simplify the complicated processes involved in storing goods and order processing. It can streamline the operations by channelizing the order flow directly from marketplaces to the designated warehouses. It will limit the dependency on a mediator to process the order details and then share them with the warehouse team.
- Complete control and visibility over operations
Warehouse automation solutions can help to ease the work by providing complete control and transparency over all the warehouse operations. This can help in managing the warehouse staff in a better way, have visibility over processes, and get detailed insights into the warehouse operations. A dynamic warehouse automation software can offer a bird’ eye view of all the processes in one place.
Benefits of Warehouse Automation for eCommerce Businesses
Automation in the warehouse has immensely helped the eCommerce industry. Let’s take a deep dive into how a warehouse automation system is beneficial for eCommerce businesses.
- Reduced labour cost
Order fulfilment in warehouse facilities requires a large workforce to execute operations seamlessly. When automation software is used, it helps simplify operations and allows complex processes to be executed in just a few clicks. This can help to reassign human resources to more productive use. An automated system will reduce the dependence on labours and, in turn, reduce the total labour cost.
- Faster order fulfillment
Automated eCommerce warehouse spaces optimize human resources to process orders faster. The right software will help easily identify the locations of a given item, help fulfill orders for perishable goods with features like batch and expiry management, and ease out the picking and packing processes.
- Improved accuracy
Reducing the return rate is one of the most important factors that help to improve profitability for eCommerce businesses. Manual errors in order processing can often lead to delivering different items from what the customer has ordered. This situation can be eliminated using automated systems that have minimal to no error rates. It makes the order processing task more accurate. It also helps to keep the inventory count more accurate.
- Maximum SLA compliance
Service Level Agreements (SLAs) can be explained as a contract between a service provider and its customers (both internal or external) that sets the terms and conditions of the service being offered by the provider. SLA compliance is important to run an eCommerce operation smoothly. Warehouse automation software ensures SLA guidelines compliance.
- Better customer experience
An automated warehouse system can help avoid any errors or delays in delivering the right order to the customers. This helps to fasten the delivery process and adds positively to the customer experience quotient. It helps to drastically improve the customer experience, and since the delivery time is shortened, it also aids in improving the cash flow for businesses.
- Improved productivity
Warehouse automation solutions can help to boost the warehouse staff’s productivity by providing them with the required information at the right time. They can easily access all the details they need to process and fulfill orders in one place. This will reduce the time they need to process each order.
- Minimized returns and cancellations
A reliable warehouse automation solution can contribute to minimizing the returns and cancellations from customers. Many times, customers have to return orders when they have received the wrong products. This can be eliminated using reliable warehouse automation software. Also, since it reduces the order processing time, orders are fulfilled faster, and the delivery time is reduced, which helps to minimize cancellation.
What is a Warehouse Management System?
Warehouse Management System (WMS) takes a comprehensive approach to control and administer all warehouse operations effectively, keeping a check over all the processes that help to move goods in, around, and outside the warehouse. The warehouse management system comprises software solutions and carefully designed processes that help to streamline workflows.
The main objective of a warehouse management system is to ensure that goods and raw materials are moved around the warehouse efficiently and cost-effectively. Let’s take a quick look into how WMS can help deliver better automation for eCommerce warehouses.
Low setup infrastructure cost
Installing the right WMS doesn’t require a huge infrastructure cost and can be done within a set budget.
Better space utilization
An effective WMS solution will help utilize limited warehouse space in the most productive manner.
Increased warehouse productivity
Warehouse management systems help automate repetitive tasks easily without compromising on the quality of output. This helps to put limited human labour to more productive uses.
A scalable solution
It is very easy to scale and manage eCommerce operations using a reliable warehouse management solution.
In a Nutshell
A warehouse management system is essential to grow and scale an eCommerce business without compromising on the customer experience quotient. It helps to easily process orders without errors and utilize limited warehouse space in the most effective way possible.
