Since the incredible disruption posed by the ongoing coronavirus pandemic, there has been increasing interest in the warehouse automation and sophisticated technologies that help secure and improve the manufacturing environment. In spite of this trend however, nearly 80% of warehouses currently feature no automation at all. In fact, last year there was a decline of 6% in the warehouse automation market. However, 2021 shows an almost 40% increase in market growth with that growth continuing into $37.6 billion by the year 2030.
Automation and other digital technologies are not only important in streamlining workflows for increased efficiency, but they also help to reduce the high cost of labor. For example, in a warehouse with 100 non-supervisory employees, management will spend more than $3.7 million in labor — and that is based on 2018 figures. Applying digital technology reduces the number of non-supervisory employees necessary to keep business processes on target, thereby diverting capital that can be used for more mission-critical processes.
The Benefits of Digital Technology for the Modern Warehouse Operation
Warehouse automation addresses monotonous, repetitive tasks that typically have a high level of human error, such as data entry-oriented tasks. Not only does using automation cut down on the number of employees necessary to keep business moving, but it also allows employees to focus on tasks that require human intervention and involvement. Digital technology can benefit warehousing operations in a number of ways, including:
Accelerating Processes
Routine operations can be sped up through the application of automated processes. When artificial intelligence (AI) is applied in this situation, errors can be reduced, and processes streamlined to increase time-to-value ratios. Automation can overcome some of the issues that plague manufacturers, such as the increase of errors near shift change when a (human) workforce is tired from a long day.
Another way to speed up processes is to ensure that the tools and materials you need to complete your part of the manufacturing process reach you as quickly as possible. By automating sourcing tasks alongside invoicing and billing, you can ensure goods are delivered exactly when you need them to speed up your fulfillment process.
Increasing Transparency
Smart barcode scanners, document management software, and other automation solutions can help bring increased transparency to inventory management. Not only can these technologies help to detect and deter fraud and theft, but they can also provide a number of additional advantages such as eliminating the misplacement of stock, helping to forecast demand, planning future supply needs, automating procurement, and bringing to light important business insights.
By automating data collection of this kind, you can eliminate the type of error that is common with manual data entry and collection and maximize the outcomes of your decision-making process.
Eliminating Errors
As mentioned earlier, the application of automated processes reduces the possibility of human error so that important details don’t get overlooked. This feature becomes particularly important in the area of accounting, where a small error can cause costly and long-ranging repercussions.
Synchronizing Data in Real Time
Understanding where all inventory is at all times is a critical need for a warehousing operation. Using Internet of Things (IoT) technologies, barcode scanning, and AI-governed algorithms can help sync databases of inventory with companion systems such as billing and other financial data. Dovetailing each of these business processes with one another can increase transparency and contribute to heightened operational efficiencies at a broader level.
Blue Technologies Puts Digital Technology at Your Service
Whether you are running a manufacturing plant, a warehousing or distribution center, or even a retail establishment, keeping track of inventory, streamlining processes, and reducing data errors are critical for a profitable business.
At Blue Technologies, we have curated a suite of leading edge digital technologies that you can quickly and easily apply to your business environment to boost efficiency, optimize business processes, and reduce overall errors.