Nov 09, 2023

There are a lot of buzzwords in the supply chain world, but dedicated attention should be given to the “Smart Warehouse”. Different circles will characterize the term as merely the presence of digitized data exchange while others say robotics are the hallmark of a truly smart warehouse. Nevertheless, supply chain researchers estimate smart warehousing technologies may generate as much as $25 billion by 2026, with projections growing exponentially in the subsequent years. Demand for intelligent manufacturing and distribution is only expected to keep increasing, especially since over half of companies plan to shift inventory management strategies within the coming three years. Persistent challenges and shortages require decision-makers to act swiftly and efficiently to prevent costly disruptions. As a result, it is highly encouraged that companies gain a concrete understanding of what makes a warehouse “smart”.

Taking into consideration new and recurring studies, Smart Warehousing, at its core, involves the automation of persistent tasks to accelerate material movement down the supply chain with less labor. This can be accomplished through one or more automation solutions, all connected digitally to amplify operational visibility and control.

How do I know if I have a Smart Warehouse?

Although unique businesses may experience varied results, it is generally accepted that a smart warehouse will exhibit the following signs:

• Lower error rates – Outdated systems complicate data sharing and future auditing. On the other hand, when data is digitally captured and uploaded to a shared WMS, legibility errors are less likely, establishing dependable accuracy rates from the moment stock arrives at the facility.
• Accurate stock counting – When data is shared digitally, there is less wait time for updated cycle counts. Future-forward systems such as RFID take this a step further by enabling label scanning without requiring a line of sight, expediting the counting process.
• Increase in throughput rate – By spending less time tracking and noting SKUs, teams can assemble orders faster coming through their mobile devices. Handheld computers with integrated scanners help validate orders and notify teams of shortages and misplaced stock to maximize uptime.
• Increased worker safety – Lastly, a smart warehouse is noted by its decrease in accidents and collisions. For example, facilities employing robotics with infrared sensors report fewer collisions in high-traffic areas while also alleviating teams from heavy lifting.

This is by no means an exhaustive list of benefits. However, these signs demonstrate the typical characteristics of a smart warehouse. Agility, accuracy, and safety are upheld by automated systems that connect workers and data for better decision-making.

7 Technologies Upholding the Modern Warehouse

To improve their efficiency and productivity, warehouse leaders are leveraging a combination of technologies to automate data sharing and storage. Below are a few of the more popular systems gaining traction in the modern supply chain.

1. RFID and Real-Time Location Tracking

RFID-enabled systems have earned their spotlight in the Digital Age. Unlike traditional barcoding systems, RFID enabled real-time inventory tracking, meaning teams can pinpoint the precise location of an SKU even while in motion. While they may seem costly upfront, RFID systems have been shown to boost inventory accuracy rates up to 99.99% since they can capture multiple codes at once. Furthermore, when paired with predictive analytics, RFID systems assist in creating proactive response plans by recording fluctuation rates within the purchased stock, giving administrators a fair assessment of how much time is needed for replenishment.

2. Autonomous Mobile Robots (AMRs)

Designed to empower the human workforce instead of replacing it, AMRs can be programmed to perform a variety of tasks, such as picking and packing items. This frees up the human team to perform more critical tasks while keeping them from having to move heavy pallets. AMRs may also be coupled with sensors and cameras to navigate the warehouse and interact with other machines and humans. AMRs are ideal for small to medium-sized warehouses where flexibility is essential as they can be easily reprogrammed to perform different tasks.

3. Automated Storage and Retrieval Systems (AS/RS)

AS/RS is a system that uses machines to store and retrieve items from a warehouse. The system consists of a series of racks and shelves that are connected to machines that can move up and down to access different levels. AS/RS can be used to store and retrieve items quickly and efficiently, reducing the need for manual labor. They are especially useful in warehouses that handle a large volume of items.

4. Warehouse Management Systems (WMS)

WMS is a software application that manages the day-to-day operations of a warehouse. It can be used to automate inventory management, order processing, and shipping. WMS can also be used to optimize warehouse layout and improve the flow of goods through the warehouse. Moreover, a versatile system can be integrated with other smart technologies such as handheld computers, tablets, and hands-free scanners to immediately transmit data to the user without delays. This requires warehouses to establish a dependable connectivity system since devices will need a reliable signal to communicate with the WMS.

5. Internet of Things (IoT) Sensors

IoT sensors can be used to monitor the condition of goods in a warehouse. They can track temperature, humidity, and other environmental factors that might affect the quality of goods. IoT sensors can also be used to track the location of goods in a warehouse, making it easier to locate items when they are needed. IoT sensors can be integrated with WMS to provide real-time data on the condition and location of goods in the warehouse.

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

AI and ML can be used to optimize warehouse operations by analyzing data from various sources such as IoT sensors, WMS, and other smart technologies. They can be used to predict demand for goods, optimize inventory levels, and improve warehouse layout. AI and ML can also be used to optimize the performance of AMRs by analyzing their movements and identifying areas for improvement as well as common pick routes.

Related: Does Artificial Intelligence belong in your warehouse? Read our article to find out.

7. Voice Picking Technologies

To extend the efficiency of traditional picking, voice-based systems integrate a hands-free element that prioritizes worker safety and accelerated fulfillment. Moreover, advanced systems are able to accommodate language barriers while leveraging natural muscle movement to simplify user adoption. Storage and picking instructions are relayed audibly, protecting putaway accuracy and decreasing walking distances.

Smart technologies are revolutionizing the warehouse industry by improving efficiency, reducing manual labor, and increasing productivity, but before implementing them, consider outlining your automation objectives alongside your team and a solution provider. As these technologies continue to evolve, we can expect to see even more innovative solutions that will streamline operations for a truly intelligent system.