HOW AUTOMATION HELPS IN INCREASING WAREHOUSING EFFICIENCY

HOW AUTOMATION HELPS IN INCREASING WAREHOUSING EFFICIENCY

What is Warehousing?

Warehousing refers to the act of storing goods that will be sold or distributed later and used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.

Why Warehousing is Imperative?

In this fast pace world of globalization and cutthroat competition time is money, bulk orders are placed in seconds and customer would always prefer the vendor who can deliver in time the best quality of products. They want quick and more complex deliveries, and as technology advances at lightning speeds and becomes more cost-effective, warehouses simply cannot rely solely on manual processes to keep up with demand.

To become more productive, profitable, cost effective and smarter, the warehouses of large companies are beginning to automate their processes using specialized technologies and software.

When does the need for Warehouse Automation arises?

The necessary expense of warehousing automation is imperative to save you from the loss of products, money and opportunities that occur when not opting for the same. But we need to understand when does your organization is in need to install warehousing automation. It’s time to invest in a good warehouse automation system when any of the following need arises:

Ø     When your organization is big and the volume and transfer of goods are high.

Ø     When you receive frequent orders in bulk.

Ø     When you deal in a huge variety of goods.

Ø     When you require product classification and sorting.

Ø     When you need to keep tighter control over inventory and supply of products.

Benefits of implementing Warehouse Automation

1. Optimum Utilization of Available space: Today space availability is a constraint for everybody. With increased production, the need arises to store more and more produced goods safely and securely. And here comes warehouse automation at your rescue where space savings are achieved primarily through storing SKUs higher and denser, which can stack and store the goods in vertical order up to the maximum heights which is a bit difficult and risky for the humans to do. Some research suggests that automated warehouses use up about 40% less floor space than traditional warehouses.
2. Increased Efficiency: Involvement of fewer human resource leads to greater efficiency and reduction in the productive time of the organization. And since most of the complex tasks are done by the automated machines, human resource of the Company can be put to better utilization, which ultimately enhances the efficiency of the organization.
3. Accuracy and fewer human errors: Speed is helpful, optimization of resources is welcomed, but accuracy in the warehousing business is paramount. Mistakes and trouble-shooting can often lead to considerable wasted time and money in identifying and fixing errors. Using good warehouse automation reduces error rate significantly and the end result is a much stronger relationship because it can provide up to 99.99% accuracy which always gives your company an edge over your competitors.
4. Improved flow of goods and check over inventory: Warehouse automation enables a smooth flow of goods, the concept of “real-time” inventory tracking and complete control is one of the biggest benefits of Automation. Since you already know the estimates you can plan your production, ordering of raw materials and other things and hence you can take the much-informed decisions and act proactively.

Conclusion with Return on Investment

While the prospect of warehouse automation is an exciting one, it’s important to be considered in your approach and think in the long term.

Let us understand that if investing in a good warehouse software is worth your hard-earned money and what would be the return on investment?

1. Warehouse automation can cut your high warehouse rents by up to 40%. (Eg. If you are paying rent of Rs.100,000/- so now you will be paying only Rs. 60,000/-).
2. It can reduce your increasing staff cost by up to 65%. (Eg. If you are spending Rs.100,000/- on your staffing, so now you will be paying 65% less i.e. 35,000 which cuts your cost hugely)
3. It can provide up to 99.99% accuracy in order fulfillment thereby making customer relationships stronger and giving you at least 20% more business.

Also the automated market is growing at a rate of 7.5% (2016-2022) which increases the growth rate of your business too. So definitely, investing in a good automation software would only be beneficial to you and your business and would yield good returns over time. Moreover, you can utilize your various resources in further research and development of your products and take your company to new heights.

If you want to learn more about the latest in warehouse automation, please visit our website www.saificonveyor.com.

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