Think you’re ready for automation? Think again….
David Bille, Extolla’s Director of DC Design & Automation, reveals why robotics alone won’t save your supply chain
Imagine investing millions into state-of-the-art automation only to find that supply chain efficiency hasn’t improved – it is worse. What’s gone wrong?
It is not the technology at fault. It is the approach.
The hard truth is that many businesses are not implementing automation effectively. Automation’s real value depends not just on the use of robotics and technology but also on how it fits into the wider supply chain strategy. This involves understanding what you actually need and creating a solution around this need, ensuring that your implemented technology genuinely addresses your specific – and unique – challenges.
So, stop, step back, and think: Are you truly ready for automation? Let’s look at some of the common issues many businesses experience and the critical questions you must ask before you dive in.
The Ineffective Way to Approach Automation
Most supply chain leaders and warehouse managers are aware of the basics and benefits of automation. But there is a significant difference between knowing what automation is and using it effectively in your business. You might know how a car works, but knowing how to drive it safely and get to where you’re going is entirely different.
And so – in the rush to automate and the belief they ‘know’ automation – many businesses fall into the fragmentation trap and select and implement automation solutions independently. This piecemeal approach often results in a supply chain that does not integrate effectively, resulting in:
- Incompatible systems: Suboptimal systems that do not work well together – if at all
- Infrastructure failures: Warehouses unable to cope with the new technology – floors not equipped to handle robotics, poor facility design, lack of adequate fire protection and generally poor planning
- Human machine interface safety risks: Human safety not being adequately accounted for, leading to potential risk in work environments
- Flexibility & scalability issues: Technologies and systems that are unable to scale as the business grows – leading to significant additional costs down the line
- Misspending: Over-investment in technologies that do not deliver optimal performance, ROI and are also not scalable, leading to inefficient operations
- Lack of future-proofing: Systems incompatible with evolving and future advancements in supply chain technology
Sounds familiar? Now, let’s look at how to avoid these issues when investing in automation.
The Effective Way to Approach Automation
Successful automation starts with a professional – and critical – assessment of your entire supply chain strategy. Rather than seeing automation as a collection of tools and technologies, it is crucial to view it holistically so that every element works seamlessly together.
To ensure you implement automation successfully, conduct a self-assessment and consider these three key points:
The current situation: Are you confident that your current automation strategy aligns with your long-term business goals? Are your processes efficient? What and where are the pain points? Could your supply chain benefit from an expert analysis to uncover hidden inefficiencies and opportunities?
The future: How do you anticipate the business growing? Do you have the necessary skills, staff resources, and capability within your organisation to select an automation solution compatible with your existing systems that offers scalability and optimal ROI and performance to meet future requirements?
The fit: Does your current technology and warehouse infrastructure support automation?
If these questions are too challenging or you lack in-house skills or resources, consider engaging supply chain consultants. It is not about promoting a particular product – supply chain consultants help you understand your current and future business requirements and the most appropriate, and flexible automation solution.
A good consultant:
- Provides a comprehensive analysis and holistic perspective of your supply chain and business – considering operational, financial, and strategic factors
- Identifies areas where automation can have the most impact and benefit
- Gives unbiased recommendations tailored to your specific needs, operational requirements, and growth plans
- Ensures seamless implementation of selected solutions to minimise business disruption, and mitigate critical downtime
- Provides ongoing support to keep your automated solution functioning effectively and responsive to business fluctuations such as peaks and troughs, whilst ensuring cost efficiency and meeting demand
Leveraging a consultant’s expertise and experience can be invaluable – and the difference between supply chain automation success and failure.
The Big Question of Space
One of the most common questions we are asked at Extolla is this: “How can I increase space utilisation in my warehouse?” We all know that facility costs have increased significantly, but in automation, solutions are tailored to suit the warehouse size and budget.
The key is to find the balance between space and demand requirements.
Advancements in automation, means we can maximise vertical space above the footprint to gain high storage density. New storage cube technologies can offer storage and operational densities that are real game changers.
What if Automation isn’t the Answer?
And if your self-assessment – or the supply chain consultant you call in – reveals that automation isn’t the answer? It is not unusual for us to find on analysis that some facilities would do better without automation. It may not weigh up financially or the facility may have a sub-optimal environment.
Instead, a different way of working is the way to improve.
With automation, it’s important to remember that the right solution isn’t necessarily the most advanced or expensive. It is the one that best aligns with your business goals and specific needs – even if it is not what you expected or wanted to hear.
Find out if automation is your supply chain game-changer
Contact the team at Extolla