Identifying What to Automate in the Warehouse

Automation doesn’t replace jobs. Instead, it allows companies to increase job satisfaction and productivity among their existing workforces. Here, experts share how to identify the optimal tasks for automation and the ideal solutions for the job.

BY CAROL MILLER, CHIEF MARKETING OFFICER, MHI

As supply chain workforce shortages persist, operations are relying less on recruitment and retention incentives to cope with insufficient headcount. Instead, according to a Descartes survey of 1,000 supply chain and logistics leaders released last year, 54% are applying automation in warehouse applications.

Contrary to what the public—and even workers themselves—may believe, the motivation for automation deployments is not job elimination. Rather, the Descartes report found that executives are identifying and applying automation to the repetitive, non‑productive work that employees dislike the most. That’s backed up by research from the McKinsey Global Institute, which found that automating low‑skill, mundane, repetitive—and ultimately high‑turnover—tasks can increase job satisfaction and productivity among current employees.

The McKinsey team noted that for every one job automated, two to three new ones are created. Further, the researchers found that operations utilizing automated solutions have an easier time with recruiting and retention. Associates appreciate the higher pay, additional opportunities for advancement and improved working environment—not to mention the myriad ways automation supports an operation’s ability to meet customer service level agreements (SLAs) and achieve business growth goals.

Regardless of the degree of negative impact inadequate labor resources have on an operation, it’s the rare company that has the means to automate every manual process. Therefore, it’s essential to determine which conventional warehousing tasks are optimal candidates for automation and prioritize the investments that offer the greatest potential benefit.

For guidance, MHI Solutions turned to the experts at four MHI member companies:

• Ahmed Arif, senior director of U.S. regional offices at Bastian Solutions
• Matt Bush, vice president of technology, innovation and research at KPI Solutions
• Brian Keiger, chief commercial officer at Conveyco
• Mike Prince, project director of consulting services at Waller & Associates, a subsidiary of Designed Conveyor Systems

The following summarizes their insights about how to identify the optimal tasks for automation and select the ideal solutions.

Identifying Tasks That Could Be Automated

The ideal tasks for automation are those that are time‑consuming and add little value to the overall operation. That is, they detract from the time workers spend doing the actual job. For most operations, that includes efforts associated with picking and packing orders; receiving and storing inventory; labeling and tracking items; and material movement, such as lifting or carrying loads. Keiger advised evaluating the frequency and importance of each task.

“Focus on high‑priority work that’s performed frequently or has significant impacts on productivity,” he said. “Place the highest emphasis on tasks associated with excessive manual labor costs, are time‑consuming or are hazardous, high‑risk activities.”

Once identified, walk through the operation to observe and document those manual tasks—a fundamental tenet of industrial engineering, noted Prince.

“You’re performing a work analysis. Follow an associate around, document what they do, understand why they’re doing it and capture the amount of time spent on each portion of the task,” he said. “For example, someone picking orders: how much time do they spend walking between pick faces? How much time is spent looking at a paper pick list or searching the shelves? How much time do they spend actually picking the items?”

The information helps identify the non‑productive work with the greatest potential for replacement with an automated solution, Prince continued. “To continue the picking example, the findings frequently provide the justification for a goods‑to‑person automated solution. The automation eliminates non‑productive travel and searching by bringing the needed items directly to the associate. As a result, picking productivity can increase from 40 to 50 lines per hour to more than 300 lines per hour.”

To avoid missing any prospective opportunities for automation—as well as to gain a better understanding of how one workflow impacts others—Arif recommended starting with an overview approach.

“Map the processes that flow through your warehouse,” he said. “Take inventory, for instance. Document how you receive inventory, how it’s added into the warehouse management system (WMS) and what triggers in the software to move that inventory to reserve storage versus a forward pick location.”

Even a simplified map can help identify potential bottlenecks that could be made worse by applying automation, said Arif. He noted that some companies, particularly those deploying automated solutions for the first time, mistakenly focus on a single process without considering the others that surround it.

“There’s tremendous value in seeing the big picture and making sure all operations are balanced. Don’t try to automate one thing and go from zero to 100, because then everything else either becomes a constraint or a limiting factor,” he cautioned. “You won’t be able to get the full benefit of the automation because you can’t feed it fast enough.”

Key Indicators That a Task is Ideal for Automation

Once manual activities are pinpointed as potential candidates for automation, take a deeper dive into each one to identify key indicators that further justify the investment.

Keiger noted that tasks that are physically demanding, hazardous or have a high injury risk are good candidates for automation.

“That includes a job that requires manual lifting, carrying or moving heavy loads, or one that calls for performing physical actions that cause fatigue or strain,” he explained. He added that automating tasks performed in hazardous conditions—such as working at heights or those with potential exposure to chemicals—can reduce both risks and labor costs.

“Also, look for jobs that require an associate to constantly repeat the same sequence of actions multiple times per shift or week, such as scanning or labeling,” said Keiger. “Likewise, look for instances where an employee has to perform similar tasks over and over across large quantities of items. Both of these are hugely inefficient, meaning that automation can significantly improve productivity.”

Arif agreed. “Humans are great for decision‑making. But they’re not necessarily good at mundane, repetitive processes that don’t require any skill. They eventually get bored and begin making mistakes,” he said. “Therefore, anywhere a lot of errors happen is also going to be a task to consider automating.”

Low‑complexity processes that don’t require dexterity are also ideal for automation. “Humans are excellent at manipulating or twisting things and at performing tasks that would be tricky for a machine to do without a significant investment,” Arif added.

High‑volume tasks that require a lot of personnel to deliver the level of service customers expect are other indicators of automation suitability. Congested aisles clogged with associates bumping into each other are also a clear sign that a process should be automated, said Bush. He added that verification can be found in a systematic analysis of operational data.

“There are common datasets that all operations have that help verify that automation is appropriate,” he said. “These include the item master, the order master and the inventory master.”

The item master defines the units being handled, such as pallets, cases or individual items known as eaches. It also contains information about each unit’s dimensions, weight, packaging type and more. The order master shows the shipping demands on a facility, both day‑to‑day and seasonally. It also includes details about the order frequency of each stock keeping unit (SKU). Finally, the inventory master details how much inventory is held within the operation, which can help determine the scale of the automated solution, explained Bush.

“Data is typically the hardest thing to get on the front end, but is absolutely essential from an automation design standpoint,” he added, noting that the better the data, the higher the chances of a successful deployment.

“Good input equals good output. In this case, ‘good output’ is the ability to clearly understand the baseline of current operations,” Bush continued. “With the application of growth projections, the output can be used to paint a clear picture of the appropriate type—or types—of automation to support the business.”

Most Frequently Automated Warehousing Tasks

Often, the biggest cost center within a conventional warehouse, order picking and packing activities are usually the first to be automated. These tasks frequently represent up to 60% of an operation’s total labor costs, noted Bush.

“Picking tasks are often already standardized, governed and coordinated by a WMS or other software platform—even in manual warehouses—that’s tracking inventory,” he said. “That’s often a good jumping‑off point for integrating automation into that activity.”

Keiger agreed, noting that order picking and packing are high‑volume activities that require both precision and speed. “Automating order picking and packing can reduce labor costs, improve accuracy and increase throughput. By adding automation, an operation can enhance its efficiency to meet tight delivery deadline demands.”

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