The market for robotics to overhaul warehouses and improve efficiencies could be worth billions, yet many companies are stumbling and failing to meet their goals. A leading reason is that they’re not adhering to three key concepts that still rely on employees.
Warehouse automation holds great promise, and it could accelerate how orders are placed, processed, and fulfilled. Robots and advanced software can also improve stock inventories, identify areas for further improvement, and provide myriad other advantages over outdated strategies.
However, it’s clear that, across industries, automation efforts won’t succeed without a new way of thinking.
Warehouse automation faces barriers to launch
Stories of the so-called failure to launch automated warehouse plans are everywhere. One report noted that software and workflow problems are among the key hurdles.
And these aren’t small-budget barriers. Consulting firm McKinsey & Co. highlighted one unnamed consumer goods business that launched a $150 million-plus pilot project for warehouse automation that fell far short of its goals. Instead, the robots sit mostly unused, in part because of tunnel vision by executives and a lack of involvement of all workers.
But these problems are not insurmountable. And these failures also do not mean there isn’t an appetite for scaling up automation at a significant rate – far from it, as LogisticsIQ as predicted that investments in warehouse transformation may be worth $41 billion by 2027.
How to bet on successful transformation
So how can companies proceed and not gamble such huge amounts of money?
The answer is that they need to embrace and adhere to several core elements when developing any strategy that transfers human-led work in the warehouse to one relying on robotics and automation. Only by following these concepts can the pattern of failure finally be broken.
- Involve everybody
Warehouse operators can be fearful that robotics will put their careers at risk, and middle managers won’t back a plan they weren’t fully part of developing. Too many C-suite executives fail to involve these and other employees in planning automation projects, creating workforce resentment that has already been shown to hinder such efforts. - Fully commit
Warehouse automation’s failure to succeed is often due to executives’ over-reliance by on tepid, incremental pilot projects to test the waters of this new approach. Fully committing to automation will create confidence across a business about the digital transformation, which in turn dramatically bolsters the chance for success.
- Partner carefully
Companies should take time to find a robotics and automation supplier that has a proven track record so they’re not risking their investment. Leaders in the industry use AI and can show how projects can be realized with the right technology. Hiring a warehouse automation consultant such as Auto-FC is a simple solution to find the right partner.
All three of the above strategic elements are important, and none should outweigh the others. What they have in common is the need to think about the entire organization, from staff and processes to supply chain partners to guarantee success.