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Is automation the right move for your operation?
Considering Warehouse Automation?
Almost everyone we work with raises the topic of automation at some stage when assessing their supply chain and logistics capabilities. The pressure to future-proof is two-fold:
- Internal: driven by the need to reduce operational expenditure (OPEX)
- External: competitors and vendors are extremely proud to showcase their new and innovative solutions
Operations Directors are relied upon to balance the stability of current processes with the needs of the future and naturally feel the pressure to make the right call. “Standing still is moving backwards”, runs the old mantra, whilst forward progress brings upfront cost and risk.
Jack Graham, consultant at Hatmill explains how to build a reasonable case for or against automating an operation.
The 5 key questions you should ask when considering automation?
1. Where are the opportunities?
- Hours spent moving pallet, case or item quantities manually
- Squeezed storage on your current footprint
- Pick, count or despatch errors
Look at every operational process and understand the total expenditure. Know the error rate. Simple tasks can often be automated using a trusted off-the-shelf solution. Automating high value-add activities (e.g. packing) can be more costly but eliminate significant labour reliance.
2. Where are we going?
- What will our volumes look like 5 and 10 years from now?
- What will our customer proposition be?
An operation must be aligned with the overall business strategy. This could include an increased emphasis on the e-commerce offering, same-day despatch, B2B prioritisation or zero defects. A Goods-to-Person (GTP) system may seem like the silver bullet, but perhaps the greater storage density of an automated storage and retrieval system (ASRS) gives you another 10 years on the same footprint.
3. What is my technological gap?
If you’re already running a capable Warehouse Management System (WMS) on robust IT infrastructure, linking to a Warehouse Control System (WCS) to manage automated systems may be a short step. If greater IT overhaul is required then cost, risk and complexity come into sharper focus. Consider also the skills present in your current IT teams, and the degree to which recruitment will play a critical role.
4. How will I deliver the change?
Large, complex change projects require strong governance and project management processes. The business case provides the rationale behind the change while the Functional Design Specification defines the end product. In addition, the contract to supply defines the criteria for acceptance and handover.
The scale of the programme and your organisation’s capability for change will have an enormous impact on the likelihood of success. You need to take into account how ready your organisation is to make this change, how change-capable it is and how it will land with the teams affected. People need to be aligned on the vision, key people identified and included in the decision making process and individuals at each level taking appropriate ownership of the change. At operational level, roles, processes, the operating clock and team structures may all change. Managing the change effectively and avoiding the disruptive effects of change resistance requires a robust change strategy and clear leadership.
5. What are my contemporaries doing?
As opposed to “competitors”, as it’s not just about keeping up with the Joneses. It’s important to know what has worked well at the place down the road, but lessons learned from others’ mistakes are also extremely valuable.
At Hatmill we are frequently made aware of cautionary tales of firms who ran a substandard tender process and subsequently spent years trying to make a poor solution work. More recently, at a vendor’s presentation, a nearly-new second-hand solution was offered to a new buyer; the current owner had realised they would rather have the floor space back.
How can Hatmill help you automate your business?
The range of off-the-shelf solutions is large and growing. In the past few years, Hatmill have managed turn-key projects including the delivery of:
- Automated Storage and Retrieval (ASRS)
- Goods-to-person (GTP)
- Autonomous Mobile Robots (AMR)
- Automated Guided Vehicles (AGV)
- Sorters of all kinds (pocket, shoe, crossbelt, bombay and more)
- Automated putwalls
We also regularly speak with end users across all sectors, but most importantly we:
- Remain supplier-agnostic
- Provide expert advice through ex-industry professionals at all stages of the feasibility assessment and procurement process
Please contact us to discuss the options for automation in your business.
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