August 17, 2022
Warehouses in 2025 will be more difficult to run than ever before.
Operating costs are on the rise and labour is in extremely short supply. Warehouse owners and operators are desperate for solutions that work.
Technology has been improving rapidly to meet this demand. Some of the available solutions have genuinely revolutionised warehouse operations.
The problem is…
Warehouse owners and managers are often confused about where to begin. There are literally hundreds of technology options on the market. Some are over-hyped garbage, others are money-well-spent.
This warehouse technology guide outlines what every warehouse operation should consider as a matter of priority.
Warehouses have to pour thousands of dollars into labour costs every month.
Speed Commerce reports that between 45% and 57% of total operating budgets are devoted to labour expenses. That's over half of every dollar that goes into the overall operating budget.
Worse, labour is becoming impossible to come by. Annual turnover rates now regularly exceed 40%. Warehouses are constantly hiring, training, and seeing productivity plummet.
Warehouse technology has become critical for the industry because of these problems. The right tools can be used to automate manual tasks, reduce errors, and improve efficiency.
Not all solutions are created equal though. Some can be used to generate instant ROI, while others are complete money-pits.
One of the most overlooked warehouse technologies is vertical material lifts.
Vertical material lifts are used to automatically transport goods between different levels in a warehouse. These systems are essentially industrial elevators designed specifically to move materials.
Why is this important? Most warehouses simply don't utilize all of the vertical space available. Traditional storage configurations only use about 40% of the total available height. The other 60% is all effectively wasted.
KABTech vertical material lifts provide industry specific solutions to help operators transfer inventory from mezzanines, to other floors, to elevated work platforms without manual carrying. These systems significantly reduce the need for workers to haul heavy items up flights of stairs or even wait around for forklifts to come by.
Inventory gets delivered to where it is needed, worker productivity increases, and workplace injuries are dramatically reduced.
Pretty cool, right?
But vertical material lifts aren't the only technology that warehouse owners and managers should be considering.
Automation doesn't just happen in warehouses the size of Amazon. Even smaller facilities can use some of these solutions.
The following automation tools are not negotiable:
A WMS is the control system used to run modern warehouse operations. A WMS tracks inventory in real-time, optimises picking routes, and so much more.
In addition to basic inventory control and optimisation, the WMS software is usually what allows other systems to seamlessly integrate and provide complete visibility into all of the processes.
A WMS is critical for managing inventory levels and minimising waste and loss.
Without a warehouse management system, running a warehouse effectively becomes guesswork and guesswork costs money.
These automated storage solutions are changing the way that warehouses manage SKUs for smaller parts and components.
Vertical lift modules store items on trays that are then stacked vertically. When the inventory is requested, the system automatically retrieves the correct tray and brings it to the warehouse worker. No aisle-walking, no ladder-climbing, no time wasted.
Inbound Logistics says that these units can be used to reduce floor space by as much as 85% in warehouses that traditionally used shelving for these SKUs. That's a drastic reduction in real estate costs.
Vertical lift modules free up workers from having to manage tens of thousands of SKUs making picking faster, more accurate, and less time-intensive.
Conveyor systems are used to transport products throughout a warehouse without requiring manual carrying. Conveyors move inventory from one part of the warehouse to another connecting different zones.
Modern conveyor systems will automatically integrate with sorting technology to ensure packages are routed to the correct area or even bay as soon as they arrive. There is no human decision-making required at junctions.
The end result is faster throughput times and an overall reduction in bottlenecks.
Autonomous mobile robots (AMR) are vehicles that can navigate a warehouse floor without requiring a human operator.
Mobile robots transport goods between different parts of a warehouse without a driver.
These vehicles can also be used to work around the clock without breaks or vacations or even the potential of causing damage due to an accident. AMRs are becoming essential in high-volume facilities.
These aren't the only types of warehouse technology that are worth looking into.
Not every warehouse will need every single technology solution.
It is critical that operations choose the solutions that are best matched to the specific problems warehouse owners and managers are trying to solve.
This is how to think about it:
The very first thing to do when considering what tech to use is identify what is actually slowing the operation down. Picking speed? Storage capacity? Worker safety? Transporting material between levels?
Each operational problem has very specific solutions. Trying to implement everything at once tends to create more problems.
Vertical material lifts and vertical lift modules work best in facilities that have very high ceilings. If the available vertical space is limited then alternative solutions may provide a better return on investment.
Measuring the space available and understanding the limitations of the current warehouse are critical steps when choosing new tech.
Most technology vendors like to throw around big, impressive numbers. The actual question should be far more basic.
Will this solution pay for itself?
Factor in installation, training, and maintenance costs and then determine if there is a significant increase in productivity. Perform a simple analysis with the real numbers. If the tech is any good it will pay for itself. If not, it will just bleed the budget dry.
Small is best when it comes to deploying new warehouse technology.
Pick one solution. Get it in place. Train the team to use it. Learn what works and what doesn't.
Once the first technology is running at peak efficiency and generating returns then add the next solution. Trying to make an overnight revolution in operations almost never ends well.
Warehouse technology has never been more affordable or more necessary than it is today.
The rise in operating costs, coupled with shortages in skilled labour and even more demanding customer expectations means that stagnation is no longer an option.
Warehouse operations that don't adopt technology are going to be quickly outpaced by the competition.
Vertical material lifts provide an effective solution to the problem of moving goods between different levels within a warehouse. Vertical lift modules help maximise storage density. Warehouse Management Systems (WMS) allow for more visibility and control, and conveyors and robots can be used to eliminate the need for manual repetitive transport tasks.
Every solution is different, but each one provides an answer to a specific operational challenge.
Taken together, all of these solutions have the potential to transform a warehouse operation.
The smart play is to figure out what problem needs to be addressed the most and then start with that. Solve the biggest problem, then fix the next.
Technology is not magic, but with the right tools in place warehouses can be made faster, safer, and more profitable.
The real question is not if warehouse owners and operators will invest in technology, but which solutions are most effective and deliver the best ROI for each specific facility.
Fortunately, there is now a roadmap for answering that question.
Warehouse technology is more important than ever because operating costs are increasing, and it's getting harder to find enough skilled labour. Investing in the right tech helps you automate tasks, reduce errors, and improve efficiency, keeping your business competitive.
Vertical material lifts are like industrial elevators for goods, moving items between different levels in your warehouse. They help you make better use of vertical space, which is often underutilised, and reduce the need for workers to manually carry heavy items, boosting productivity and safety.
Absolutely! Even smaller facilities can gain a lot from automation. Tools like Warehouse Management Systems (WMS) provide essential control, and Vertical Lift Modules can drastically reduce the floor space needed for smaller parts, making operations more efficient regardless of your warehouse size.
You should start by identifying your biggest operational pain points, such as slow picking or limited storage. Then, consider your available space and calculate the real return on investment, including all costs, to ensure the technology will genuinely benefit your business. Robin Waite Limited suggests starting small, implementing one solution at a time.
Autonomous Mobile Robots (AMRs) are vehicles that can navigate your warehouse floor and transport goods without a human driver. They can work continuously, reducing the need for manual transport tasks and are becoming essential for high-volume facilities looking to improve throughput and reduce potential accidents.
