As the peak season approaches, enterprise businesses can expect to start seeing the beginnings of the annual order surge. A growing trend within ecommerce is that peak season tends to start sooner and last longer, thanks to the disruptive qualities of Prime Day. While holiday sales are expected to see flatlining growth from last year, they’re still marginally on the rise (a projected 3.2% increase year-over-year.)
Rather than being overwhelmed by the holiday demand, some companies are opting to get ahead by automating processes within their logistics operations. A critical part of this is warehouses, acting as the lynchpin to inbound and outbound operations. Warehouse automation solutions offer incredible benefits, especially when trying to avoid being crushed by the peak season demand spike. These solutions can help streamline shipping processes and improve operational efficiency.
Additionally, warehouse automation technology enhances productivity and safety by minimizing manual tasks and improving order fulfillment and inventory management. This article looks at the benefits of automating warehouse operations and how Metapack seamlessly integrates with these solutions to streamline shipping processes.
A Breakdown of Warehouse Automation Software
Most people think automation means an army of robots taking over the entire warehousing operation. While robots sometimes play a role in automation, that’s not always the case. Simply put, warehouse automation refers to using technology to streamline operations. Automated warehouse systems can help reduce the need for manual labor as well as fulfillment errors, creating a more efficient system. As ecommerce continues to grow, automated warehouse systems will be increasingly integral to adaptive and flexible logistics.
Currently, there are four main categories of automation being used in modern warehouses — basic, system automation, mechanized, and advanced.
- Basic: Basic automation is the foundation of the modern warehouse and includes tools like barcode scanners and inventory management software to keep track of products and reduce input errors.
- System Automation: System automation refers to warehouse management systems (WMS), which handle more complex warehouse operations such as inventory management, order processing, and data collection.
- Mechanized: Mechanized automation solutions involve infrastructure tools like conveyor belts and automated guided vehicles (AGVs), which help speed up the movement of goods through the warehouse. Automated sortation systems use conveyors and sensors to quickly sort and divert products within warehouses, minimizing manual labor and optimizing processes from receiving to shipping. Automated storage and retrieval systems (AS/RS) are designed to automate the storage and retrieval of cargo within a warehouse. These systems follow predefined routes to store and retrieve materials, eliminating the need for manual intervention.
- Advanced: Advanced warehouse automation is the integration of robotics, AI, and other higher-order technology. This type of automation allows for incredible speed and accuracy for order picking and sorting, while AI-driven analytics optimize order forecasting and inventory management. Autonomous mobile robots (AMRs) utilize artificial intelligence and sensors to navigate and operate without human intervention, enhancing efficiency and safety in warehouse operations.
Automation strategies may include one, some, or even all of these categories, depending on the size (and budget) of the company. Simply put, the more processes that can be automated, the more efficient the warehouse operations, especially during peak season.
Unpacking the Warehouse Automation Benefits
Ecommerce continues to grow, and there is a need for more efficient warehouses as packages result in the need for more inventory space than bulk orders do when they move to retail stores. Warehouse automation benefits companies through increased efficiency, better order accuracy, reduced operating costs, and overall smoother processing of orders and returns. For SMEs, these improvements can be game-changing. Automation solutions can enhance warehouse efficiency and productivity by strategically implementing scalable and flexible systems.
Peak Season Spikes: Order spikes, especially those seen around the holidays, can quickly overwhelm analog warehouse processes. With ecommerce holiday season sales expected to grow 9.5% from last year ($271.58 billion), automated warehouse systems can help businesses increase their overall order capacity without sacrificing speed or accuracy.
Improve Accuracy: Accuracy is essential for a successful business. Incorrect orders cost more than time and money; they can cost a company its reputation. The industry standard for order accuracy is between 95 to 98%. That said, even a 2% error rate can add up quickly. Warehouse automation software simply removes human error from the equation, resulting in more accurate orders, lower costs, and happier customers.
Tighten Delivery Windows: Delivery speed is one of the most important factors for customers and they aren’t particularly concerned if it’s peak season or not. For ecommerce businesses, the name of the game is speed, which is another benefit of working with an automated warehouse. Productivity can rise upwards of 85% with an automated warehouse process — meaning faster throughput and shorter, more reliable, delivery times to customers.
Easier Returns: Even with 100% order accuracy, returns are inevitable. Customers want a quick and painless return system, meaning that a company’s reverse logistics process needs to be incredibly efficient. Warehouse automation software designed to process returns takes the complication out of returned goods for customers and retailers alike.
Optimizes Warehouse Space and Inventory: Automated systems can free up a chunk of existing warehouse space by efficiently organizing and storing stock. Additionally, these systems provide accurate and real-time inventory data, which simplifies inventory management and improves control and visibility. This leads to reduced instances of stockouts and overstocking, ultimately increasing warehouse throughput. Beyond these operational benefits, warehouse automation also helps reduce labor costs, enhance employee safety, and improve customer satisfaction by ensuring timely and accurate order fulfillment.
Make Peak Season Easy to Manage with Metapack
Peak season is easily one of the most stressful times for businesses, but it can also be one of the most profitable with the right preparation. In all the chaos, it can be easy to forget that, at the end of the day, the customer is the most important element of any business. Warehouse automation systems improve operational speed and accuracy, helping to improve the customer experience and turning abandoned carts into deliverable sales.
Metapack helps streamline the shipping process, making your logistics faster and more agile than ever. Warehouse automation helps to improve order-picking accuracy and speed, improving throughput and delivery windows. Metapack helps you go drive the extra mile for customer service with personalized delivery options and an easy reverse logistics system.
Designed to scale with your operations, Metapack provides the solutions you need both at home and abroad, whether you’re shipping cross-border or simply looking for the best carrier rates.
Connect with us today to learn more about Metapack’s warehouse automation systems and other services.
