THE DEFINITIVE GUIDE TO
WAREHOUSE
AUTOMATION
The Fourth Industrial Revolution — also called Industry 4.0 — has arrived. While the first
Industrial Revolution enabled mechanized production, the second empowered mass production,
and the third allowed automation, Forbes notes that Industry 4.0 bridges the gap between digital
and physical systems, "with the intent of taking the automation process to an entirely new level."
For warehouses, this next generation of automation offers multiple benefits, including
streamlined production and picking processes that both reduce error rates and improve
operational outcomes. According to Supply and Demand Chain Executive, evolving industry
demand is also driving automation adoption: 91 percent of companies now experience
challenges finding and hiring warehouse workers with the right skills. Plus, physical risks to staff
are on the rise as warehouses expand both outward and upward to accommodate larger
inventories and on-demand shipping solutions.
It's one thing for warehouse operators to recognize the impact of Industry 4.0 — it's another to
effectively implement automation technologies in real life. In our Definitive Guide to Warehouse
Automation, we'll break down the basics of this new revolution, dig into key benefits and
potential drawbacks, examine emerging technologies, and offer a best practice checklist to help
companies find their best-fit automation solution.
LET'S GET STARTED.
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WHAT IS WAREHOUSE AUTOMATION?
Before diving into the specifics, it's worth
breaking down the basics: What, exactly, is
warehouse automation? How does it work,
and where is it commonly applied across
warehouse operations?
In short, warehouse automation is the
adoption of any technologies that help bridge
the physical/digital divide to reduce the need
for manual labor and increase overall
efficiency. In some cases, this means the
deployment of physical devices such as
advanced machinery or autonomous robotics.
In other instances, it is the implementation of
next-generation warehouse management
software capable of identifying and correcting
productivity pitfalls.
As a result, there's no one "right" way to create
an automated warehouse environment. While
larger warehouses with expanding physical
footprints may be best served by emerging
robotics solutions, smaller firms or those with
increasingly complex order and picking
processes may start with agile software
systems capable of meeting demands of both
scope and scale. Other firms may implement
both options simultaneously and rebuild
processes from the ground up to improve
accuracy and efficiency.
Ultimately, it's not form that matters, but
function — no matter what framework firms
choose, warehouse automation
implementations are successful if they reduce
overall costs, improve current outcomes, and
help companies identify the next steps for
ongoing efficiency gains.
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WHAT ARE THE BENEFITS OF
WAREHOUSE AUTOMATION?
Recent survey data found that 95 percent of warehouse companies are now looking to lower
costs across their organization. It makes sense; as both consumer and corporate expectations
around speed and service evolve, warehouses need ways to enhance efficiency without breaking
the bank.
Warehouse automation offers a way to streamline current processes and improve existing
platforms to meet these emerging demands, but there's no one-size-fits-all solution here. What
works for one company may not benefit another. The tools and technologies that drive efficiency
in one case may, in fact, frustrate efforts somewhere else. Asa result, effective warehouse
automation efforts start by identifying operational use cases and then mapping the following
advantages to existing business processes.
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While individual applications will vary across operational verticals,
warehouse automation offers value across six key areas:
EFFORT OPTIMIZATION EXCEPTIONAL ORDER
As noted by DC Velocity, the rapid uptick of e- ACCURACY
commerce sales, "shines a light on the need for Order accuracy helps reduce redundant processes.
fully automated, robotic fulfillment centers." It
If orders are picked, packed, and shipped the right
makes sense: While manual effort makes it
way the first time, then costly product returns are
possible to meet current demand curves, the
drastically reduced. Here, automation can help
increasing need for right-now order receiving,
picking, packaging, and delivery means that companies overcome the natural tendency of
manual labor simply isn't efficient enough to keep human beings to make errors when they're
up with rapidly evolving expectations. Combined completing repetitive, data-intensive tasks. Despite
with the ongoing challenges of finding, hiring, and best efforts, humans simply can't compete with
retaining skilled labor for warehouse operations, digital processes when it comes to order accuracy.
it's now critical to optimize effort wherever By deploying automated software tools capable of
possible with warehouse automation. From self-checking and confirming order details,
robotic order-picking processes to adaptive warehouses can reduce the risk of unexpected
mapping tools and label scanning solutions, order errors.
reducing manual labor is an important driver to
increasing operational output.
IMPROVED CUSTOMER
EFFICIENCY IMPROVEMENTS SATISFACTION
The shorter the time between order acceptance With consumer choice expanding, it's more critical
and fulfillment, the better the warehouse than ever for warehouse companies to ensure
profitability. If orders take longer than expected — they're not the weak link in the product chain.
due to operational delays or data errors — the Customers now expect the ability to trace products
results range from damaged partner relationships from initial order to eventual arrival, and this
to lost revenue. Automated tools can help reduce includes their journey through warehouse
turnaround times while increasing order accuracy, operations and even returns. Automated software
in turn boosting efficiency while significantly tools can help collect key product origin and arrival
limiting the potential for human error. details along with describing the journey of items
through warehouse operations, in turn providing
customers with the comprehensive traceability
ENHANCED INVENTORY they now demand.
MANAGEMENT
Effective inventory management matters more
than ever as companies shift to just-in-time stock END-TO-END VISIBILITY
and supply modeling. While many warehouses are Data-driven automation solutions can also provide
now increasing physical footprints to meet complete process visibility in real-time – from the
emerging demand, there's an industry-wide moment products arrive on-site to the second
understanding that keeping more stock on hand they're shipped out the door. Not only does this
isn't ideal for operations. In the warehousing provide the critical customer transparency noted
business, after all, space is money. That’s why above, but allows organizations to assess every
companies need just enough inventory to meet aspect of their process to identify potential pitfalls.
demand while maximizing both shelf space and With end-to-end visibility, warehouses can discover
speed. Advanced automation solutions that deliver which processes are working as intended, which
real-time stock levels allow warehouses to gain require adjustment, and which need to be rebuilt
granular control over inventory and ensure they from the ground up to ensure operational success.
always have what they need, when they need it.
5
HOW DOES WAREHOUSE
AUTOMATION HELP ADDRESS
THE CHALLENGES OF MODERN
WAREHOUSING?
The biggest challenge faced by modern warehouses? Complexity. This starts with existing
processes, many of which were never designed to work with always-connected, on-demand
solutions. Continually-evolving expectations around order times, accuracy, and just-in-time
inventory access, meanwhile, conspire to create a host of issues that frustrate the efforts of
warehouse staff to eliminate redundant efforts and improve operational outcomes.
As a result, we’ve identified five key challenges for companies to identify and address that — if
left unchecked — can significantly increase complexity.
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LEGACY SOLUTIONS
Legacy tools typically fall under the category of "if it's not broken, don't fix it". While this approach allows
companies to ensure consistent operations over time, it doesn't account for emerging expectations
around always-on connectivity and real-time visibility. For example, while many legacy warehouse
processes are "good enough" to complete specific tasks, they aren't designed to interact with emerging
cloud-based or mobile solutions, leaving companies with two less-than-ideal choices: Attempt to bridge
the gap with third-party applications and services or keep key processes separate, in turn reducing overall
efficiency.
LIMITED DATA VISIBILITY
Real-time, accurate data is paramount to success in warehouse operations. Knowing how much time it
takes to complete specific tasks, understanding how new shipments impact stock levels, and addressing
workforce requirements based on current and forecast demand can help ensure that companies have
the agility they need to respond on demand as customer and partner needs evolve. The challenge? Many
companies don't have reliable access to this information, let alone a framework that allows the
widespread collection and evaluation of this data. The result is a missed opportunity — operationally
relevant information that could improve process performance.
LABOR-INTENSIVE OPERATIONS
Manual processes have long been accepted as par for the course for warehouse operations — but are
starting to be recognized for causing significant efficiency issues. Consider pallet measurement and
weighing. For example, if staff make a mistake when evaluating and recording this data, extra time and
effort are required to find the problematic pallet and reassess its measurements to ensure accuracy. Best
case scenario? Workers must complete the same task twice, wasting time. Worst case? Incorrect data
negatively impacts shipping and delivery outcomes leading to chargebacks and complaints, reducing
overall revenue and customer satisfaction.
SILOED SYSTEMS
Standalone warehouse management systems that run parallel to other operations across the
organization fail to deliver a full picture of the truth. While this segmentation may help increase the
accuracy of self-contained processes, it also creates a silo effect that limits overall efficacy and
collaboration.
LARGE-SCALE COMPETITION
Consumer expectations around warehouse processes are changing. The largest driver of this change
stems from the so-called "Amazon Effect" — the difficulty that companies across industries face when
competing with the online retail giant. For warehouses, the Amazon Effect comes down to transparency
and cost: customers now expect fast, free delivery that allows them to track shipments from initial order
confirmation to product arrival at their door. Existing warehouse processes simply don't provide the
visibility and accuracy required for companies to keep pace with on-demand order expectations.
7
WHAT KIND OF WAREHOUSE
AUTOMATION TOOLS EXIST TODAY?
There are two broad categories of warehouse automation tools: digital and physical.
Digital tools are typically standalone software or more complete platform solutions that address
the need for improved data gathering, analysis, and action. These digital offerings are designed
to integrate with existing enterprise resource planning (ERP) systems to shorten the distance
between data collection and actionable insight by combining multiple datasets.
Physical solutions, meanwhile, include any type of robotic or automated technology that reduces
the need for manual, repetitive processes. For example, automated "picking" solutions can
identify the location of specific inventory items in a warehouse, retrieve them, and then prepare
them for staff to package.
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Some of the most common warehouse automation technologies now
deployed to meet the requirements of Industry 4.0 include:
PERSON-TO-PERSON AUTOMATED PACKAGE
COMMUNICATION SYSTEMS DIMENSIONING
Increasing warehouse square footage makes it Pallet, cargo, and package measuring and weighing
harder and harder for staff to communicate is a critical step to ensure accurate, on-demand
effectively. The challenge? Person-to-person inventory data and efficient movement of stock.
interaction remains a critical component of But the sheer number of pallets handled by staff
efficient warehouse processes. As a result, it's now each day introduces the problem of human error:
critical for companies to deploy digital voice if staff accidentally transpose weight and height
communication tools that empower staff to quickly dimensions or make a mistake when recording key
connect — no matter their physical distance — in data points, productivity suffers and costs ensue.
turn helping them avoid redundant efforts when it Automated tools — such as the Dimensioner by
comes to locating or processing orders. Magaya— allow warehouses to accurately measure
and weigh pallets and significantly reduce the risk
of human error.
AUGMENTED ROBOTIC
ASSISTANCE
As robotics technology becomes more advanced SOFTWARE-DRIVEN BACKEND
and less costly, more warehouses can now benefit INTEGRATIONS
from the targeted adoption of robot assistance. Data in isolation doesn't drive actionable results.
This could be as simple as a grabbing arm capable Automated backend data collection tools help
of safely picking specific products from large ensure that inventory, shipping, and staffing data
shelving units to more complex packaging are integrated across the warehouse to eliminate
machines with the ability to prepare products of data silos and ensure that both floor managers
any size and shape for shipment. and C-suite executives are equipped to make data-
driven decisions.
CONNECTED STORAGE AND
RETRIEVAL SOLUTIONS MATERIALS HANDLING
As the physical scale of warehouses expands, it MACHINERY
becomes more difficult for staff to quickly store Conveyor belts are nothing new in warehouse
and retrieve products. Here, tools such as operations. But, by augmenting these mainstay
automated storage and automated retrieval material handling tools with real-time data around
(AS/AR) solutions can help streamline the process. existing stock levels and current demand, it's
By using a combination of intelligent vehicles, lifts, possible to greatly improve overall warehouse
and cranes equipped with real-time warehouse efficiency. The old meets the new, and together,
data, it's possible to reduce the time required to they work wonders!.
pick, pack, and ship product orders.
PICKING PRODUCTIVITY TOOLS
Despite the uptick of robotic tools and technologies, staff remain the primary "pickers" of warehouse
products. But increasing order volumes and inventory diversification create a new challenge for workers:
Locating and retrieving specific items as quickly as possible. With warehouse configurations constantly
evolving to meet emerging demands, product locations may change day-to-day and week-to-week,
frustrating staff efforts to quickly find what they're looking for. Barcode-based technologies that leverage
mobile device infrastructure can help give staff the edge they need to find exactly what they need, when
they need it.
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BEST PRACTICES FOR IMPLEMENTING
WAREHOUSE AUTOMATION
TECHNOLOGIES
The implementation of warehouse automation technologies doesn't happen in a vacuum. Fully-
operational warehouses cannot afford the downtime of a full shutdown to deploy new solutions.
Companies must also address the human impact of technology adoption — how will new
systems change everyday staff operations? How will workers effectively interact with new
technologies?
Start with our best practice checklist to ensure automation adoption delivers the intended
results.
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1. BEGIN WITH NEEDS, NOT WANTS
While the proliferation of advanced, automated warehouse technologies makes it tempting for
companies to rapidly adopt new solutions across the organization, this approach to improving outcomes
and streamlining processes can actually have the opposite effect. Here, it's critical to deploy warehouse
automation solutions that address key needs - and contribute to priority KPIs - rather than anticipating
potential wants. Consider a small-footprint warehouse with generally efficient door-to-door goods flow
but struggling with chargebacks due to inaccurate pallet dimensioning. Here, deploying automated pallet
measurement makes sense because it addresses a key shortfall. Implementing new picking solutions,
however, may cause more harm than good if staff are forced to abandon familiar processes for new
frameworks. Put simply? Prioritize key operational issues to get the biggest benefit from warehouse
automation.
2. ACCOUNT FOR THE HUMAN CONDITION
As noted by Gartner, the industrial automation market is now worth more than $213 billion as companies
look to automated key processes and streamline operations. But this focus on digital-first solutions can
cause pushback from existing employees who worry that they're in jeopardy of being replaced by more
efficient electronic alternatives. As a result, efforts to implement automation often run afoul of the
human condition if staff are actively opposed to digital deployments. To combat this concern, it's critical
to account for the human condition by including staff in the automation process. Collect their opinions on
what needs to be changed, what steps are necessary, and then build excitement by showcasing the
potential benefits of specific solutions to help empower, not eliminate, human efforts.
3. ADOPT A STEP-BY-STEP APPROACH
Slow and steady wins the race. As many companies discovered with rapid-fire cloud computing adoption,
too much too fast can be just as problematic as falling behind the pack. Instead of deploying and
managing multiple technologies at once, companies are better served implementing solutions step-by-
step. By allowing staff time to familiarize themselves with new technologies, warehouses gain the
advantage of increased operational speed and useful data — where are these solutions living up to
expectations, and where do they need work? How can outcomes be improved?
4. MEASURE, MEASURE, MEASURE
Metrics can make or break automation implementation. While new picking, packing, and productivity
solutions come with a host of potential benefits, warehouses will only recognize the full impact of these
initiatives by identifying and tracking metrics that matter. Consider automated picking solutions. If
current processes require an average of 10 minutes for staff to find, pick, and return products for
shipping, new solutions must shorten that time to deliver improved performance. Warehouses are best
served by identifying key metric markers and continually measuring outcomes to determine overall
efficacy.
5. BUILD ON THE BASICS
As noted above, complexity remains the biggest challenge for warehouses. Automation offers the
potential to reduce total complexity, but can also create a complexity conundrum if the drive to
implement new solutions takes precedence over measurable output. By starting with the basics —
reduced error rates, shorter picking times, and fewer manual processes — warehouses can build out
operational frameworks that are fundamentally built on simplicity.
11
HOW TO CHOOSE THE RIGHT
WAREHOUSE AUTOMATION TOOLS
FOR YOUR BUSINESS
When it comes to choosing the right warehouse automation tools for your business, it's easy to
get overwhelmed. Even for companies committed to following the best practice checklist, the
sheer number of options now available can create more problems than they solve — especially
when the goal is to reduce complexity.
To identify the right solution, start by asking the right questions.
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1. WHAT PROCESSES ARE IN PLACE TO SUPPORT THIS
TECHNOLOGY?
This includes an examination of current technologies, training, and techniques that can help facilitate the
adoption of new solutions. For example, warehouses with robust network infrastructure are in a better
position to adopt data-driven solutions that require significant information throughput.
2. WHAT'S THE END-TO-END IMPACT?
Processes don't exist in isolation. To find the best-fit automation option, companies must consider not
only how front-line staff will interact with new solutions but also how these technologies will deliver
downstream data and impact other processes in the delivery and supply chain.
3. WHERE WILL THESE TOOLS SAVE TIME?
It's one thing to onboard new technologies that come with the promise of improved performance — it's
another to recognize the broad gains they deliver. As a result, it's critical for companies to connect the
dots between potential impacts and practical enhancements to deliver operational success.
4. HOW MUCH DO TOOLS REALLY COST?
To ensure new solutions deliver reliable ROI over time, companies must consider both up-front costs and
the total cost of ownership (TCO). This includes evaluations of the initial purchase price combined with
potential maintenance costs in the case of physical systems, and the ongoing costs of software licensing
and support for software-as-a-service tools.
5. WHERE DOES DATA LIVE?
Data collected by automation tools must be immediately accessible to deliver actionable outcomes — but
must also be stored securely. As a result, it's critical for companies to understand how data will be
handled, where it will be stored, and what measures are in place to help protect production data.
6. IS THERE ROOM FOR PRE-OPTIMIZATION?
Before deploying new automation tools, it's worth considering the potential for pre-optimization. This
could take the form of creating physical space for new warehouse floor tools, or eliminating legacy
software solutions that don't play well with new technologies.
7. HOW DOES THE SOLUTION SCALE?
Warehouse requirements aren't static — both inventory levels and customer demand fluctuate over time.
This is especially critical as pandemic pressures reshape the nature of purchasing and package delivery;
as a result, companies must prioritize solutions capable of scaling with key processes as demands evolve.
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8. WHO'S IN CHARGE OF THE DEPLOYMENT PROCESS?
Human interaction remains the defining characteristic of effective warehouse automation. To ensure
solutions deliver on performance potential, it's critical for companies to assign specific individuals who
are in charge of deployment. Typically, this includes a C-suite champion to provide executive support and
budgetary assistance, along with a front-line manager who can help tailor deployments to specific
warehouse needs.
9. HOW WILL IMPACT BE ASSESSED OVER TIME?
To ensure potential and performance alignment, companies must determine key metrics and regularly
assess automation impacts. This means measuring initial performance against historic operations, then
regularly evaluating performance to determine if initial benefits remain steady over time.
10. WHAT'S THE DIRECT IMPACT ON STAKEHOLDERS AND
CONSUMERS?
Automation is only effective if it delivers measurable benefits to both stakeholders and consumers. As a
result, it's important to ensure new processes around packaging, picking, and shipping can be articulated
to both groups in relevant, relatable ways. For executives, this means a focus on line-of-business benefits
such as profitability and TCO, while customers require transparent processes that make it possible to
track packages and products from their origin point to their eventual destination without interruption.
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FORGING THE FUTURE OF
WAREHOUSE AUTOMATION
Despite rapid uptake in recent
years, Industry 4.0 remains
largely in its infancy as new
technologies emerge, standards
evolve, and potential efficiency
gains increase. Given the
potential impact of warehouse
automation on both existing
processes and evolving
expectations, however,
companies can't afford to ignore
the impact of these tools —
effective implementation is now
critical to leverage the benefits
of big data, bolster staff
efficiency, and bridge the gap
between digital and physical
processes.
It's not enough for companies to
simply deploy new tools and
technologies across existing
frameworks. To ensure
automated alternatives deliver
on operational potential, firms
must assess their current needs,
identify existing challenges,
assess best practice processes,
and ask the right questions to
find best-fit automation options.
15
MAGAYA WAREHOUSE AUTOMATION
SOLUTIONS
DIMENSIONER BY MAGAYA
Recording pallet, parcel, and cargo dimensions manually, taking photos, downloading the
photos, and making sure they’re attached to the right record in the system, is an error-prone
process and a productivity killer.
Being off by even an inch in each direction adds up quickly when cubed. Our customers recoup
$40 of lost revenue and save 3 minutes on average per pallet by recording maximum
dimensions automatically - and instantly - with Dimensioner.
If you’re looking to grow, this is one task that must be automated. Dimensioner turbocharges
your warehouse with cutting-edge warehouse automation to save time and money, so you get
accurate pallet measurements, the first time and every time.
Dimensioner by Magaya is a physical hardware device that automates the slow, manual, error-
prone warehouse process of gathering weights and measures for pallets, parcels, and cargo.
Dimensioner scans parcels and packages in mere seconds, drastically increasing efficiency. Plus,
it automates and complements existing warehouse workflows, increasing revenue by recording
maximum dimensions accurately, and preventing chargebacks and other fees related to
measurement errors. In this industry, being off by even a quarter of an inch per pallet can
quickly add up to hundreds and thousands of dollars in lost revenue.
Dimensioner can be used with Magaya Supply Chain or the WMS of your choice. You can use the
tool with any system of record you have with our open API. Plus, Magaya’s Device as a Service
(DaaS) model eliminates the high upfront cost of traditional dimensioning tools, making the
Magaya Dimensioner the most cost-effective dimensioning device on the market today.
Dimensioner is easy to install: our expert team will set up the hardware in your warehouse,
allowing you to get started quickly. The support doesn’t end there: Magaya is here for you to
guide you through best practices and answer any questions that arise along the way, ensuring
you gain the most value from your device.
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BINDER BY MAGAYA
Binder saves you time and money with a mobile app that lets you use your phone or tablet to
capture and instantly upload photos of your parcels, pallets, cargo, and more. You can record
snapshots from anywhere in your warehouse, even inside cargo containers to speed up the
loading or unloading process.
Eliminating the need for cameras, cables, or memory cards, you can attach photos, barcode
labels, documents, PDFs, checks, and more directly to your Magaya system in seconds.
Whether you’re processing a warehouse receipt or shipment, you can keep accurate records by
attaching photos to the transaction with Binder, giving you and your customers full visibility via
LiveTrack, our mobile tracking and visibility app.
MAGAYA WMS AND FLOW WMS
Awarded as a leader in Warehouse Management by G2 year after year,
the integrated WMS capabilities in Magaya Supply Chain give users the
powerful, modern tools needed to stay organized and efficient.
With a single platform to record the arrival and location of cargo, SKUs,
serial numbers, lot numbers, and across multiple warehouses, users
can manage their workday more efficiently with centralized insights on
real-time inventory, orders, and more.
Make your warehouse smarter with directed operations, a series of intelligent workflows and
sequences that optimize warehouse space and employee time. Boosting your revenues and
profit margins, Magaya is not only used for receiving, storing, and shipping cargo but also
replenishing orders, and has directed (i.e., guided) put away and picking sequences. These
processes all work together to optimize how items are put away so it will be easier to pick them
later - to fulfill orders faster.
Magaya's intelligent WMS workflows between warehousing and shipping allow you to load cargo
directly onto outbound shipments. The solution allows you to easily send tracking numbers and
inventory updates to the recipient, consignee, or agent - the moment you ship the order.
What’s more, the Flow WMS mobile app designed for Android™ and iOS™ will give you full
control of every item in your inventory without having to log extra steps to a fixed workstation.
Get the real-time visibility and functionality you need for efficient warehouse operations,
including fast receiving, picking, and loading. With flexible, customizable workflows and complete
control of your warehouse tasks, Flow WMS goes beyond basic warehouse inventory control,
giving you true productivity in the warehouse.
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ABOUT MAGAYA
Magaya delivers a Digital Freight Platform that accelerates growth
with flexible, interoperable, and modular cloud-based solutions
designed to optimize and digitize end-to-end logistics operations
and customer experience. Whether used together as an integrated
digital freight platform or independently, Magaya solutions enable
businesses of all sizes to streamline complex and redundant
processes, enhance the customer experience, optimize
productivity, reduce costs, and grow revenue. At Magaya, we are
passionately devoted to ensuring our customers’ success through
our innovative technology and comprehensive array of related
professional services. We take great pride in our people, experts in
the field of logistics automation, who are always willing to go the
extra mile for our customers. There are no limits to your growth
with Magaya. Visit [Link] to learn more.
