In November 2022, Amazon’s warehouse outside Boston welcomed its first robotic arm for preparing goods for shipping. The robot, dubbed Sparrow, uses computer vision and artificial intelligence to identify Amazon’s product inventory, assess whether an item is damaged, and adjust its “hand” for handling items of different shapes and sizes.

This is just one of many examples of warehouses trying to stay on top of the ever-growing demand and maximize their logistics and operations efficiency through integrating state-of-the-art technology.

Warehouses of the future will see technology penetrate warehousing tasks across the board. It is only a matter of years before robots will help in packaging and transporting goods, as well as assist in material handling through automated guided vehicles or autonomous mobile robots.

In this article, we will discuss how to choose the best warehouse storage equipment, and outline the benefits of employing this equipment in your warehouse.

How to Select the Right Warehouse Storage Equipment

The type of equipment used for transporting, picking, and monitoring items can largely impact a warehouse’s productivity. Thus, in this section, we will outline several questions to ask when opting for equipment to modernize your warehouse facilities.

Identify Where There’s Room for Improvement

Examine your warehouse’s flow of products, layout, storage systems, and picking processes. Compare your findings to industry benchmarks to identify your facility’s greatest shortcomings and focus on making data-driven purchasing investments.

It’s vital that an equipment purchase makes financial sense, and allows you to make the biggest gains.

Consider Costs and ROI

Calculate your expected profit from prospective investment by dividing the anticipated net income (both low-end and high-end projections) by the total expense of investment.

In case your plan is to replace an existing with new equipment, then include the value of those assets too.

Learn about the Training Requirements

The next step in choosing your ideal warehouse equipment is factoring in the essential details regarding onboarding the new technology.

Before committing to the new solution, ask the equipment manufacturer the following:

• does the vendor offer training services?
  • if yes, whether they would be in-person or on-site?
  • does the vendor provide all materials or do they come at an extra cost?
• does the vendor provide support?
• are there special licenses or other requirements necessary for the equipment’s operation?
• does the equipment require special IT training for operation/maintenance?
  • how long does it take to master?
  • is there a need for continuous education due to software upgrades?

Assess Potential Infrastructure Changes

The last but not least step in the process of integrating new tech solutions for your warehouse is to consider your warehouse’s present physical infrastructure.

Here are some of the questions to help you consider the effects of new warehouse equipment on your existing infrastructure:

• are there explicit safety standards required for the operation of the equipment?
  • if so, is there anything in the warehouse that currently compromises compliance?
  • are there any weight/height restrictions that could halt equipment integration?
• how adequate is the suggested equipment’s location?
  • would the equipment be easily accessible in case of cleaning, maintenance, disassembling, or repair?

 

Benefits of Smart Tech for Increasing Warehouse Productivity

Choosing the right storage equipment to address your warehouse’s main pain points yields substantial benefits – from cutting operational costs to improving workplace safety.

Streamlined Warehouse Processes

Proper warehouse organization ensures error-free finding of and quick accessibility to items. Modern warehouse tech equipment streamlines warehouse processes by:

• simplifying processes: automated equipment eases the processes of getting to the shelf, identifying the needed item, and collecting it
• record the activity of items: robots and other smart tech allows easy labeling and tracking of items across the warehouse facilities
• enhanced inventory management: automated inventory systems, regular inventory control checks, and demand forecasting are some of the ways tech solutions allow warehouses to stay on top of their inventory

Warehouse Expenditure Savings

Automation warehouse equipment, such as robots, smart machines, automated guided vehicles, or material handling equipment can reduce operational expenses in a number of ways:

• labor costs: labor costs make up over 60% of warehouse operational budgets, but employing adequate equipment to do some of the labor-intensive and costly tasks can reduce
• floor space costs: certain machines, such as forklifts, optimize floor space by leveraging horizontal storage in warehouses
• workplace absences and injuries: almost $1 billion per week is paid for warehouse workers’ compensation costs; enhanced safety and reduced workplace injuries ensure cost-efficiency
• longer runtime: machines can work continuously for long hours without the need for breaks or off days.

Improved Warehouse Safety

Moving heavy items in a warehouse sometimes leads to accidents, causing injuries to employees or damage to the items. Likewise, heavy lifting is a cause of many lifelong injuries, especially to hands and back.

Robots used in warehousing facilities can be used for handling heavy items or dealing with hazardous chemicals.

Increased Employee Motivation

Although automatization has long been regarded as taking away jobs, one of the biggest challenges in the warehouse industry is actually a labor shortage.

However, technology and laborers can work hand in hand, as implementing the right equipment solutions allows workers to focus on less repetitive and more creative tasks, and perform them faster and more efficiently.

Thus, implementing adequate warehouse equipment boosts employee satisfaction, and increases their morale.

Moreover, future warehouses will require more tech-savvy employees, meaning more competitive salaries and attractive workplaces.

Last but not least, as robots enter the industry, warehouses are set to become safer places for workers.

To Wrap Up

The importance of improving warehouse efficiency goes beyond the seamlessness of operations and maximizing cost-efficiency.

Good warehouse operations impact brand image and customer satisfaction, as receiving items that are damaged or late doesn’t make up for the best buyer experience.

There are many ways to boost warehouse efficiency, like investing in order-picking technology or employing smart equipment.

As customer needs and demands are ever, making data-driven decisions for warehouse productivity remain vital to staying competitive.