Why Warehouse Automation Is the Next Big Shift in Global Supply Chains?

We all know that warehousing is a process of the movement of inventory into, within, and out of warehouses to customers. It’s a process that requires a number of people to handle all the processes and stages of work. Since it involves the human touch, it is quite normal to have some mistakes, like misplacing an order or mishandling the inventory, miscalculations in inventory needs, and so on.

Now imagine robots swiftly picking up products, AI predicting inventory needs, and smart systems cutting down errors. Now, if we compare this to the traditional situation, robots are moving faster, smoother, and more efficiently. The big companies aim at it since it reduces costs, increases efficiency, promotes rapid and accurate deliveries, etc.—things with respect to minimizing the human touch for more complex and important tasks. Let’s have a look at what automation brings to the table. And while on this journey of exploration, let’s get to know the top warehouse automation market companies that are implementing these strategies on a bigger scale.

What is Automation in Warehousing?

Automation in warehousing refers to conducting warehousing practices with less human assistance. As part of an automation project, a business can remove labor-intensive duties that involve repeated physical work and manual entry of data and analysis. Space organization, inventory control, and efficient order fulfillment have always been components of good warehouse management. Nowadays, AI and technology are making it simpler to complete these tasks efficiently, replacing inconsistencies and complicated processes with security and speed. Teams now have the data and tools they need to maintain efficiency in the warehouse.

Here's a look at the key warehouse automation market stats. Our analysis reveals that the market for warehouse automation stood at USD 16,154.16 million in 2023. It is expected to account for a CAGR of 19.4% during the projection period. The shortage of skilled workers and increased awareness about the benefits of warehouse automation are driving market demand.

What Are the Categories of Warehouse Automation?

Warehouse automation varies from a quite simple form to a more complex form. Basic automation uses machinery and vehicles to perform repetitive tasks, while the advanced system takes the benefits of AI to make futuristic decisions or predictions.

Basic Warehouse Automation: This type of automation includes those that assist people/workers with tasks that may require more manual and human labor. For instance, moving some inventory from place A to place B.

Warehouse System Automation: This type involves the use of machine learning, software, and or robotics to automate procedures or tasks. Say, robotic picking and packing. Here, the robots equipped with sensors and AI algorithms can quickly identify, pick, and pack the items or products and proceed for delivery.

Mechanized Warehouse Automation: In this type, there is the use of robotic equipment or tools to ease the burden on humans with warehouse work and tasks. For example, the use of conveyor belts for the transportation of goods within the warehouse.

Advanced Warehouse Automation: This type of automation uses mechanized warehouse automation as well as automation systems, which can replace labor-intensive human workflow. An example is Automated Mobile Robots for inventory management. These robots can navigate the warehouse, autonomously optimize routes, and avoid obstacles, all while working alongside human staff.

What Are the Benefits of Warehouse Automation?

Increased Output: Automation helps to make operations in warehouses much more precise, smoother, and more accurate, which aids in the company’s success with competitors.

Cost-Effective: By automating tasks, companies can reduce the costs of handling, labor, and operations, and also reduce waste. This helps in stabilizing supply chains, as ensured by the supply chain management market.

Fewer Mistakes: Automation generally renders work with many fewer mistakes compared to traditional systems.

Improved inventory Management: With precise and accurate management qualities, one can have a better view of the inventory, reducing the risk of having stock either over or under the required amount.

What Are Challenges in Warehouse Automation?

Despite having numerous benefits, warehouse automation does possess some challenges, viz.

• Equipment can malfunction or break down, often at the time when it’s needed the most, resulting in repair/maintenance costs.
• It requires a decent amount of capital to get up and get started by automating a warehouse at full capacity.
• It also requires skilled employees and expertise to design and maintain a system that might be difficult to obtain.
• You have to set up maintenance schedules to minimize errors and ensure efficient work, for which, in most cases, you have to consider a third-party vendor who can provide skilled maintenance work.

Who Provides Global Warehouse Automation Services?

Recently, companies have implemented automated warehouses to enhance the efficiency and accuracy of their logistics operations. The warehouse automation services have a number of established players. Here’s a look at the top warehouse automation market companies providing warehouse automation services around the globe.

DEMATIC: It was one of the world’s largest warehouse automation providers in the world. KION secured Dematic and Egemin Automation in 2016, creating KION Supply Chain Solutions, which is operating under the Dematic brand.

KNAPP: KNAPP is the world’s third-largest warehouse automation provider. KNAPP offers integrated warehouse systems and logistics software solutions.

DAIFUKU: Founded in 1937 in Osaka, Japan, Daifuku Co., Ltd. is a Japanese material handling company. Daifuku offers material handling equipment to warehouse environments and environments external to warehousing.

Honeywell Inc.: It is an American publicly traded, multinational conglomerate corporation specializing in building automation, performance materials, and technologies (PMT).

Armstrong Ltd: Armstrong Ltd is a leading provider of warehouse and intralogistics automation solutions. It makes use of artificial intelligence, machine learning, and robotics for the automation of inbound, outbound, storage, and sorting processes.

What Are Major Warehouse Automation Trends?

Here’s a look at the key trends that are shaping the landscape of the warehouse automation market:

Automated Storage And Retrieval Systems (AS/RS): Companies like DAIFUKU make AS/RS, which helps in storing and retrieving cargo in specific locations within the warehouse.

Collaborative Robots (COBOTS): COBOTS from the collaborative robot market are designed to work side by side with humans. The main purpose of their design is to minimize mistakes/errors, increase operating efficiency and speed, and save time for some other tasks.

Automated Guided Vehicles: Automated guided vehicles (AGVs) are self-guided vehicles designed to move across your entire automated warehouse with an onboard operator. Companies like Bastian Solutions lead in this category.

Autonomous Mobile Robots: Unlike AGVs, autonomous mobile robots (AMRs) are designed to move automatically without needing an operator onboard; this is done by sensors that interpret and understand their environment.

AI Integration: The integration of AI is being done in warehouse automation to improve efficiency. Key applications include robot control, real-time data forecasting, and sustainable energy management.

Conclusion

The warehouse automation market is a rapidly evolving and growing field. There are a number of different automation techniques and tools available in the market nowadays. It can also help businesses in a lot of ways, such as improving results, services, efficiency, and precision while also reducing costs and improving customer satisfaction. Thus, resulting in a better service and business for both customers and businessmen, respectively.