There’s been a trend among businesses seeking more efficient means of managing warehouses and inventory. The reasons range from something as simple and straightforward as saving money to wanting a leaner, meaner, and greener warehouse space. At the core of businesses wanting to become more efficient in handling inventory and warehousing is growth.
As businesses grow, warehouse and inventory ultimately expands but the systems in place to monitor and keep track of things do not keep up with that growth. Antiquated systems have a way of going undetected until the hidden costs become so large or inconvenient it is staring you right in the face and you are forced to do something about it. That is where automated systems come into play.
Automated warehouse systems offer many benefits, though here are three very specific ones.
Less Space Needed
A warehouse with an automated system in place has been proven to use up to 40 percent less space than a conventional warehouse would, all to store the same number of products. This isn’t just useful in order to get the most out of your space by storing more product, it’s also useful when looking at expanding your facility and knowing how much land space you’ll actually need. Not having to invest so heavily in larger spaces means you’ll have additional funds leftover to invest in products, marketing or advertising efforts, labor, and especially customer focused service.
Reduced Cost and Maintenance
While requiring less space to efficiently store more product saves a certain amount of money in and of itself, a company is also able to reduce costs associated with energy consumption, leasing costs, labor costs since automated facilities require fewer workers, and overall maintenance. Costs associated with battery charging stations and replacement, cleaning costs, and even lift truck and damage repair are lowered across the board.
Less Product Waste
Automated facilities are able to reduce product waste substantially by reducing product damage in general. That is because pallets are handled more smoothly, providing less opportunity for human error to get involved, and stretch wrapping and other materials required to secure the pallets when moving don’t require as much generous application. Also, because automated order picking has proven to be more accurate returns are reduced, as is the associated fuel and operating costs.
Organizations wanting to fully optimize their operations should consider investing in a warehouse automation system. Contact NSA today to find how you can benefit from warehouse automation and what the transition process is like.