• Is Your Warehouse Ready For Fulfillment Automation? Key Indicators To Watch

    Is Your Warehouse Ready For Fulfillment Automation? Key Indicators To Watch

    Scaling fulfillment volume in a warehouse almost always means having to automate at least some tasks. But automating doesn’t have to be an “all or nothing” proposition. There are often a number of small, easy ways to begin automating fulfillment that provide an ROI faster and allow your operation to scale.

    The first step, of course, is to recognize that your operations are in fact due for a change. The cost and scope of automation systems mean that they should be implemented purposefully, for the right reasons, and in the right places. Here we look at what signals that a warehouse is ready, and offer some practical advice about where to start.

    Busting Some Automation Myths: Is Your Warehouse Ready For Fulfillment Automation

    The hesitancy to automate often stems from assumptions that are outdated or taken out of context. Take, for example, the idea that an increase in automation means a corresponding decrease in jobs. Nowadays, it’s widely accepted that automation can create jobs. It may, however, realign manual and physical tasks to those requiring planning, critical thinking, and problem-solving skills.

    Other myths about automation include:

    Myth 1: “Automation is Too Expensive for Our Business” It’s a common belief that automation requires a significant upfront investment, making it inaccessible for smaller businesses. However, automation doesn’t always mean high costs. With scalable solutions like the Sprinter™ offers a low entry point, taking the burden off pack/ship staff and allowing them to focus on higher-value tasks. The return on investment (ROI) often outweighs the initial costs, especially when automation reduces labor costs, improves efficiency, and eliminates human error. Plus, the Sprinter™ is an affordable entry-level system that sets the bar for fulfillment speed, achieving up to 15 CPM (7,200 parcels) in an 8-hour shift. Many automation solutions, including the Sprinter™, are designed to fit a wide range of budgets, making automation more accessible for businesses of all sizes.

    “Adding the sprinter has allowed us to increase productivity and accuracy while reducing the amount of labor required per package.” – Andrew Mulder, Warehouse Manager, Holland Bulb Farms

    Myth 2: “Automation is Too Complicated to Implement” Some businesses worry that automation is too complex or requires a complete overhaul of their current operations. In reality, automation can be customized to fit a business’s specific needs without the need for a full transformation. At StreamTech, we take the guesswork out of the process with our Applications Engineering service. We scope out each element of your operations, studying your data, analyzing operational challenges, and assessing your package profiles. Our team does the heavy lifting by designing, drawing, and providing a workable solution tailored to your business. You don’t have to worry about understanding the complexities of material handling automation—we do that for you, ensuring you get a seamless and effective automation solution that evolves as your business grows.

    Myth 3: “We Don’t Have the IT Infrastructure for Automation” Many small businesses worry that they lack the IT infrastructure needed to support automation. However, automation today is often designed to be simple to implement, even without advanced IT systems. StreamTech has a team of software engineers who work closely with your IT team to scope out the software interface connection, using standard protocols such as API connections, database or directory sharing, or simply a daily data import. We do the heavy lifting to simplify this complexity, ensuring a smooth integration. While cloud-based solutions and plus-and-play systems make automation more accessible, it’s important to note that your IT team plays a crucial role in this process. We collaborate with them to make the integration as seamless as possible, providing the support needed to implement these tools and ensure they work efficiently within your existing infrastructure.

    Myth 4: “What if the Automation System Breaks Down?” Some businesses fear that automation systems will break down, leading to costly downtime and operational disruptions. While there’s always a risk of technical issues, automation systems are generally reliable, and modern systems are designed with redundancy and backup solutions to minimize downtime. All devices in these systems communicate with our Warehouse Control Software (WCS), which is installed on a PC within the system. The WCS tracks the status of each device and reports this information to the PLC in the control panel. In the event of a fault, our system can alert your operators to the precise location of the problem, enabling quick resolution. Additionally, we can perform remote troubleshooting over the phone to solve issues promptly. To further ensure smooth operations, we also train one of your operators as a “system expert,” so they have a solid understanding of the basics needed to troubleshoot the system. Regular maintenance and a clear support system in place can significantly reduce the chances of major disruptions, and it’s important to note that manual processes also carry risks of error and inefficiency—automation helps reduce those risks over time.

    Signs Your Warehouse Is Ready For Automation

    Once you’re open to the concept of adding automation, the next step is deciding whether or not your operation is ready. Here are seven telltale signs that your manual methods are no longer cutting it and are likely holding your business back.

    1. Your Product Offering Has Grown

    As your product offerings grow, your picking will become more complex. Your pack process will also become more complex for your warehouse staff as they decide which box for each order. Picking automation as well as end of line SLAM shipping automation will aid in this transition, so the operators don’t select the wrong box, and so that the items are picked quickly and accurately as the SKUs grow.

    2. Lack Of Space For Manual Processes

    Often, we receive requests from growing warehouse operations looking to ‘add more pack tables so our team can pack orders faster during peak seasons.’ A savvy material handling applications engineer will take a step further and ask a series of follow-up questions: What tasks are your pack operators performing? If the answer includes handling box selection, taping, entering weights and dimensions, and manually printing shipping labels, there’s an opportunity for automation to take some of these tasks off their plate. Instead of simply adding more pack stations, we might suggest automating the packing process itself—such as performing the picking directly into the carton, adding in-line taping, gathering dimensions and weights, and applying the shipping label all along the conveyor in real time. By automating these tasks, we might even be able to reduce the number of pack stations needed, saving valuable space while increasing efficiency.

    3. Errors Are Affecting Your Bottom Line

    Even small mistakes in picking, packing, or labeling can add up and affect customer satisfaction and your bottom line. Automation significantly reduces human error, ensuring higher accuracy and fewer costly mistakes in your operations. Mistakes cost money and make customers unhappy. One of the biggest advantages of any automation is that it removes human error. Mis-keying an address, picking the wrong item, or choosing the wrong box size is greatly reduced.

    4. Too Many Human Touches Per Order

    When orders require multiple manual steps-sorting, labeling, packing, etc. – it can lead to inefficiencies and delays. Manual processes and operational bottlenecks increase the chances that the team won’t meet their daily or weekly fulfillment goals. Automation helps reduce the number of manual touches per order, speeding up fulfillment and ensuring that your team meets daily and weekly goals more effectively.

    5. Carrier Chargebacks

    Incorrect package weights, dimensions, or labeling can result in costly chargebacks from carriers. By automating the measuring and labeling process, you can ensure that packages are correctly weighed and dimensioned, helping you avoid extra fees and reducing shipping costs—and can rate shop for the best price too.

    6. Running at Maximum Capacity

    If your warehouse is operating at or near full capacity, it may be not easy to accommodate more orders or clients. Automation can help you optimize processes and increase efficiency, giving you the flexibility to grow and take on more business without sacrificing performance. How well would your warehouse be able to accommodate a new client? If signing on a new account is a source of anxiety rather than celebration, it’s time to look at automating. Every business needs room to grow, and if you’re already running at nearly 100%, the best option is to optimize efficiency by saying goodbye to manual operations that aren’t absolutely necessary.

    Simple Automation Solutions For Big Results

    Automation doesn’t have to be intimidating or overwhelming. In many cases, simple automated solutions can provide significant benefits:

    • Maximizing Efficiency with End-of-Line Shipping Automation: Packaging automation that either builds a unique box sized for each order or merely forms and seals them automatically can be a huge step in the right direction. Paired with StreamTech’s conveyor, weigh, dimension, labeling, and sortation systems, this type of solution can bring a revolutionary change to the way orders are shipped. This combination not only optimizes packaging but also ensures efficient use of shipping space, reduces unnecessary packaging, and streamlines the entire process. For example, when integrated with the Sprinter, our end-of-line shipping solution, this system calculates dimensions, weight, and applies the correct shipping label at an impressive rate of 15 cartons per minute. For even greater speed, in-motion systems offer enhanced throughput, making it the #1 solution for growing fulfillment companies looking to meet increasing demands with ease.
    • Boosting Accuracy and Efficiency with Pick-to-Light Technology: Pick-too-light technology enhances order fulfillment by guiding workers to the correct items with visual cues, improving speed and accuracy. Whether using StreamTech’s VelocityPick software combine with either Smart Carts or Conveyorized pick modules, or put-to-light solutions, whether you need 10 pick locations or 1000, this adaptable system can be tailored to your specific needs, reducing training time and minimizing errors. With faster, more accurate picking, your team can handle higher volumes and meet growing demand while ensuring top-notch customer satisfaction. Pick-to-light streamlines operations and supports business growth by increasing efficiency at every stage of the process.

    Real-World Examples Of Automation In Action

    Custom Gift Company Implements First Fulfillment Automation, Sees 60% Improvement in Labor Efficiency

    Pic the Gift, specializing in personalized products like blankets and mugs, faced inefficiencies with their manual fulfillment process, especially during peak seasons. Their labor-intensive process required constant role rotation and extensive training, which impacted their ability to meet growing demand.

    Solution: StreamTech’s Automated Fulfillment System

    StreamTech implemented a customized automation solution to streamline Pic the Gift’s process. After printing, blankets are folded, shrink-wrapped with order tickets inside, and tracked through the system. The items are then weighed, dimensioned, and packaged automatically, with quality control checks, label verification, and sorting by carrier—all without manual intervention.

    Results: Increased Efficiency And Reduced Labor Costs

    In just three months, automation handled over 40% of their fulfillment tasks, significantly easing the burden on staff. During their first holiday season with automation, Pic the Gift fulfilled the same number of orders with 60% less labor, eliminating the need for 24-hour shifts and reducing worker fatigue.

    Chris Cormack, Director of Operations, noted, Automation really showed us what we’re capable of! We were able to get through peak season with the same amount of manpower, less fatigue, and without 24 hour shifts for the first time.

    Looking Ahead

    As the company grows, Pic the Gift plans to expand automation to improve efficiency further. Ryan Schneider, Process Improvement Engineer, highlighted, “Being able to automate the shipping process has allowed our workers a lot less strain on their bodies. It’s a lot easier for them to do their jobs, which is really important to us. It’s all about making their day to day easy, they’re happy when they come in, when they’re happy, they pay more attention, the job gets done better. We want to continue to provide a safe workplace that allows our people to succeed, and as we continue going that way, the more automation we can get the better.”

    A Mindful Approach To Fulfillment Automation

    There are rare cases where it’s smart to keep the human touch of manual processes in the warehouse. But most of the time, including automated systems will improve efficiency and enable future growth.

    At StreamTech, we believe in a targeted, calculated approach to automation, rather than automating for automation’s sake. We can start by taking a look at your entire throughput process, and then find solutions that make sense for your company and goals.

    Ready for Automation? If you’re looking to improve efficiency and reduce labor costs, contact StreamTech to discuss how we can tailor a solution for your business.

  • The Warehouse Metrics You’ll Need for Your Peak Season Post-mortem

    The Warehouse Metrics You’ll Need for Your Peak Season Post-mortem

    The end of the year, called O-N-D (October, November, and December) in some industries, is the busiest time for fulfillment-dependent businesses (especially eCommerce). If your company does the bulk of its business at that time of year, you’re likely breathing a sigh of relief that it’s over right now. But there’s still important work to be done before you’re too far into the new year. Now is the time to evaluate your peak season, study your warehouse metrics, and make a plan for next time.

    Ideally, you’re tracking key performance indicators (KPIs) all year long. Comparing peak season warehouse metrics to both slower times and the previous year can help you identify bottlenecks and where to streamline processes.

    When is Your Peak Season?

    For many companies, peak season is synonymous with the holidays when demand for gifts and decorations is highest. But peak season can be driven by the type of product too. Demand for plenty of items—think pool toys and swimwear—peaks at other times of the year. 

    The point is, peak season is less about a particular time of year and more about how well your system can perform under pressure. How well can you keep up when orders come in at double or triple the average rate? And more importantly for those in the C-suite, what are the costs of failing to keep up?

    No matter the month, the challenges of increased demand are the same with the possibility of:

    • Order volume that overwhelms fulfillment efforts
    • Higher labor and overtime costs
    • Insufficient staffing
    • Increased returns

    A review of various warehouse metrics can help managers see exactly where their workflow needs to improve. Doing such a post-mortem soon after the end of peak season will allow enough time to budget for, implement, and train staff on the changes that will ensure things go smoother next time.

    Warehouse Metrics to Track and What They Mean

    Warehouse managers are well aware of the hiccups and glitches that made the last peak season stressful, and perhaps what they’d like to do to prevent the same problems in the future. But recommending and justifying fixes to the powers that be—whether an investment in a new piece of equipment, a revised process, or more staff—will require more than anecdotes about what went wrong.

    Various KPIs can provide reliable data points that pinpoint exactly where to adjust or focus new resources. Here are some of the most meaningful warehouse metrics for peak season:

    Inventory Turnover

    How frequently did you need to replenish inventory? This will tell you which SKUs are selling fast and which aren’t. This is important for a few reasons. First, you can plan to order big sellers more often and slow down reorders of less popular items so you’re not stuck with excess stock. Leftovers will need to be discounted or disposed of at the season’s end. Also, you may want to rearrange storage next year so high-velocity products are closer at hand.

    Order Lead Time

    Order lead time is the total time it takes to pick and pack and order. Some companies might measure their labor cost per package instead, but this metric does not take into account the lower wages for temps or entry-level staff. Order lead time gives a clearer picture of fulfillment productivity.

    There are numerous ways to increase order fulfillment rates, including creating a more efficient layout or implementing automation. Solutions like pick-to-light systems or goods-to-person robots are just two examples that can improve picking speed and accuracy.

    Downtime/System Outages

    Any equipment downtime during peak season is a problem. How much time (and money) did your team lose waiting for things to get up and running again? If machinery or software fails, it’s time to look at repairs or replacements before peak season rolls around again. Finding a partner like StreamTech with a lifetime service policy that truly has your back is essential.

    Shipping Costs

    When sales increase, shipping costs will of course follow. But peak season can see carrier costs skyrocket. Inaccurate DIM weight measurements can results in a lot of carrier chargebacks. And overweight packages can end up costing more in extra handling surcharges. The right shipping automation systems can improve the entire process, and help you rate shop in real-time.

    Accuracy in weighing and measuring is essential, as is having the right size packaging and appropriate packing material on hand. Tracking and replenishment of these supplies can be just as important as the inventory you sell.

    Backorders/Stockouts

    Did you run out of any SKUs during peak season? Sometimes unforeseen circumstances ramp up demand. Like selling out of sleds after a surprise snowstorm or a product becoming trendy out of the blue (remember when everyone would run out to get “Oprah’s Favorite Things”?) More often, backorders and stockouts are a sign of poor forecasting or a warehouse problem.

    Inadequate inventory management or order management processes and software can make it impossible to keep up. There could also be a supply chain issue. Perhaps those responsible for supply orders didn’t take into account the vendor’s lead time. Or, maybe it’s time to look for a more reliable supplier.

    Returns

    Peak season is likely to see an increase in product returns. Tracking the number is important, but so is noting the reason why people send things back. Sure, sometimes an item doesn’t fit or the recipient simply doesn’t like it, especially when it comes to holiday gift-giving. But other reasons can signal flaws in picking, packing, or shipping—and additional metrics to explore.

    For example: Customers receiving the wrong item could mean issues in the picking process. Check metrics for picking accuracy.

    Did products arrive damaged? Assuming things aren’t arriving broken from vendors and shelved anyway, there could be a lack of quality control during picking, or careless packing. Perhaps everything looked good when it left the warehouse but the package was damaged in transit, indicating a problem with the carrier—which means that it is time to find a more reliable one.

    Getting packages to the recipient on time is never more important than around the holidays. Tracking the percentage of on-time deliveries as well as returns of things that didn’t make it on time becomes important. Failures require a deeper dive into the metrics to see if delays stemmed from internal or external sources.

    Prep Now for your Next Peak Season

    E-commerce never stops, but the end of peak season is the closest you’ll get to downtime. This is the best time to review what worked and what didn’t so you can schedule and budget for any necessary changes.

    What slowed down operations and caused the most headaches in the peak season that just wrapped up? Warehouse metrics will help identify the problem areas and help point out possible solutions. Next year, it might be necessary to:

    • Increase staff, hire temporary workers, or add a second shift
    • Examine the warehouse layout and reorganize to optimize efficiency
    • Consider your supply chain management and possibly revisit existing contracts
    • Get repairs as well as preventive maintenance done before it gets busy again
    • Shop for automation solutions now while there’s plenty of time to install, test, and train staff on new equipment
    • Partner with StreamTech for automation solutions based on designs tailor-made for your warehouse flow—instead of throwing money into random machinery and hoping for the best

    Peak seasons will always be a challenge for fulfillment-heavy companies. No one can predict exactly what customers will want or what problems might arise. But the more data you can gather with warehouse metrics, the better you’ll be able to anticipate what’s likely to happen. Armed with this knowledge you’ll be able to pivot quickly and keep on track through the busiest part of your year.

    Interested in learning how automation can help you through peak season and all year long? Fill out the form below.

  • Goods To Person (G2P) Robots Are Just One Piece Of An Integrated, Intelligent Warehouse

    Goods To Person (G2P) Robots Are Just One Piece Of An Integrated, Intelligent Warehouse

    Over the past few years, goods-to-person (G2P) robotics have revolutionized warehouse fulfillment by significantly enhancing picking speed, accuracy, and efficiency. These advanced robots have transformed traditional workflows, reducing the need for manual labor and minimizing human error.

    Related Links

    1. 3PL Fulfillment Automation: Transforming Processes for Operational Efficiency
    2. 3PL Fulfillment Automation

    However, these technologies are not standalone solutions to the entire warehouse fulfillment process, and are not intended to replace traditional warehouse automation systems. Rather, in order to realize the full potential of automated warehouse operations, G2P robots must be seamlessly integrated with conventional technologies such as conveyors, end of line print and apply labeling systems, and in some cases, automated packaging equipment. This comprehensive integration ensures a streamlined, end-to-end fulfillment process that maximizes efficiency, reduces costs, and improves overall service quality.

    Material Flow In An Integrated Warehouse

    The material flow in a modern warehouse equipped with Goods-to-Person (G2P) robots and integrated technologies is a seamless and highly efficient process. Here’s a breakdown of each step involved, highlighting how different technologies contribute to a streamlined operation.

    Gods-to-Person Geek+ PopPick System. Goods To Person (G2P) Robots.

    Picking Process

    G2P robots efficiently bring items to designated picking stations where human workers or automated systems can quickly access the products needed for each order. This minimizes walking distances and waiting times, significantly speeding up the picking process.

    Transportation To Packing Stations

    Once items are picked, conveyors play a crucial role in transporting these items to the next stage — packing. Conveyors are configured to handle various types of goods delicately and efficiently, ensuring a continuous flow from picking to packing without manual intervention, thereby reducing bottlenecks and errors.

    Packaging

    At the packing stations, automated packaging equipment takes over by creating the appropriate box or bag tailored to each specific order. This machinery adjusts to the size and fragility of items, optimizing material usage and ensuring that products are securely packaged for transit.

    Scanning, Weighing, And Dimensioning

    After packaging, the next step involves scanning, weighing, and measuring the dimensions of each package. These details are crucial for inventory tracking and quality control. The collected data (package ID, weight, dimensions) is then sent to Transportation Management System (TMS) software, which manifests the correct shipping label based on the package’s destination, weight, and shipping requirements.

    Labeling

    These systems automatically print and apply shipping labels to the packages as they move along the conveyor. This automation ensures that the labeling process is not only fast but also accurate, reducing the chances of human error and ensuring that each package is ready for dispatch without delays.

    Sortation

    The final step in the material flow process involves sortation. This system sorts the labeled packages according to customer rules, which may include product type, shipping destination, carrier, or service level. Sophisticated parcel sortation systems can handle high volumes of packages and sort them accurately at high speeds, ensuring that packages are routed correctly to their final destinations.

    Integration Examples With G2P Robots

    In modern warehouse operations, Goods-to-Person (G2P) robots play a crucial role in enhancing efficiency and streamlining processes. This section explores practical examples of G2P robots integrated with other technologies within different warehouse stages. Through these real-world scenarios, we’ll see how G2P robots effectively reduce manual labor and improve operational workflows from receiving to shipping.

    Example 1: eCommerce Order Fulfillment

    Imagine a bustling online retail company that specializes in a wide range of consumer electronics—from the latest smartphones to high-end laptops. To manage their massive inventory and fulfill orders quickly and accurately, they turned to an advanced warehouse automation solution.

    1. Picking: The first step in the order fulfillment process involves state-of-the-art Goods-to-Person (G2P) robots. These robots navigate through storage racking, picking up racks as necessary and bringing them to the picking stations. Each time a rack is presented to an operator, multiple pick operations take place. This eliminates the time spent walking and searching for specific products, allowing operators to focus more on accuracy and speed, and less on the physical retrieval of items.
    2. Conveyance: Once items are picked, they can be placed in a plastic tote which represents the order, and transported on takeaway conveyor. This tote will convey to the packaging equipment, or a packout station, to be placed in the final parcel.
    3. Packing: Once the items are picked, they are swiftly conveyed to the packing stations. Here, automated packaging equipment takes over. This machinery is meticulously designed to handle a variety of product sizes and types, from delicate electronic components to bulky home appliances. Each item is securely packaged according to its specifications, ensuring that it is well-protected during transit and arrives in perfect condition to the customer.
    4. Weighing, Dimensioning, and Labeling: As the packed items move along the conveyor, they enter a critical stage where they are weighed, and their dimensions are recorded. Specialized scales and dimensioning tools collect all necessary data to comply with shipping standards and help optimize space in delivery vehicles. Immediately afterward, print and apply systems efficiently add shipping labels to each package. These labels contain all essential tracking information and delivery details, ensuring smooth and traceable transit.
    5. Sorting And Shipping: In the final step, the labeled packages are conveyed to sorting areas. Here, they are organized meticulously based on various criteria such as the destination, carrier, or service level required. This sorting process is crucial for managing the logistics of shipping vast numbers of orders daily. Once sorted, the packages are moved to the shipping areas, where they are ready for dispatch to eagerly waiting customers.
    eCommerce Order Fulfillment

    Example 2: Receiving Systems For Store Replenishment

    Let’s envision a sports equipment retailer that specializes in everything from soccer balls and tennis rackets to high-end bicycles and fitness gear. Given the diverse range of products and the potential for wear and damage during transit or use, handling returns efficiently is crucial for maintaining customer trust and operational efficiency. Here’s how they could leverage StreamTech’s automated warehouse technologies to manage inventory effectively:

    1. Receiving Goods: As soon as items arrive at the warehouse, they are placed on receiving conveyors. This initial step segregates returned goods from new inventory right from the start. This separation simplifies the processing workflow, ensuring that returned items are quickly moved to dedicated inspection stations without interfering with the flow of new stock.
    2. Labeling: Inventory items are scanned and labeled based on their designated store locations before sortation. Upon arrival, each item is scanned to capture relevant information such as SKU, quantity, and destination store. This data is used to generate labels indicating the specific store each item belongs to. The labeled items are then fed into the sortation system, which directs them to the appropriate location for distribution to their respective store. This process ensures accurate sorting and efficient handling of inventory across multiple store locations
    3. Sorting By Store: As items arrive at the dock door, they are placed on the conveyor system, which moves them through various checkpoints where they are scanned and identified. The sortation system then directs each item to the appropriate sort location based on the retail store it belongs with. This is done through communication with the WMS (Warehouse Management System), where inventory levels are kept. This automated process ensures that inventory is quickly and accurately sorted, reducing manual handling and expediting stocking and restocking tasks, ultimately enhancing operational efficiency and inventory management.
    4. Robotic Put Away To Picking: In the 3D render shown above, the sorted items are headed to pallet positions, to be loaded and shipped directly to store. But if these items are being sorted for fulfillment, they could be picked up by robots and distributed into the G2P system to be picked again later if necessary.

    Additional Technological Integration

    Sensors: Tracking And Monitoring

    In a modern automated warehouse, sensors track and monitor the movement of goods, robots, conveyors, and packaging equipment in real time. This continuous monitoring helps maintain the flow of operations and ensures that all components of the warehouse system are functioning correctly.

    Quality Control

    These devices scrutinize each package as it moves through the system, detecting any issues—such as misalignments or damage—that require correction, thus maintaining high standards throughout the process.

    Conveyor, Labeling, And Sortation

    • Integration With Warehouse Management Systems (WMS): This integration ensures that shipping labels are printed with the correct order information and destination details. This helps maintain order accuracy and streamlines the dispatch process.
    • Conveyor Integration: Labeling systems are strategically positioned along the conveyors. As packages move through, labels are applied seamlessly, which optimizes the workflow and reduces bottlenecks.
    • Error Handling: The integrated systems are also equipped to detect and handle errors in labeling. This capability is essential for maintaining accuracy, minimizing the need for rework, and keeping the operation running smoothly.
    • Automated Sorters: Once labeled, packages are handed off to automated sorters that organize them based on their destination. This sorting process is key to improving shipping efficiency and ensuring timely deliveries.

    Automated Packaging Equipment

    • Custom Packaging: The automated packaging equipment adjusts the size and type of packaging based on the item dimensions and specific order requirements. This customization not only ensures the safety of the items during transit but also optimizes material use.
    • Integration With Conveyors: As items arrive via conveyors, they are immediately packaged and then moved to labeling stations. This seamless movement is crucial for maintaining a steady flow through the packaging phase.

    Benefits Of Comprehensive Integration

    The integration of automated systems in warehouse operations offers a range of compelling benefits that streamline processes and enhance overall performance. Here’s how these integrations can transform the landscape of logistics and fulfillment:

    Increased Efficiency

    Automated systems such as Goods-to-Person (G2P) robots, automated packaging, and advanced sorting mechanisms significantly streamline critical warehouse operations including picking, packing, labeling, and shipping. By reducing the need for manual intervention, these systems allow operations to flow more smoothly and rapidly, drastically cutting down on cycle times and enhancing throughput.

    Enhanced Accuracy

    One of the standout benefits of automation is its impact on accuracy. Automated systems minimize human errors in order fulfillment processes, from the initial picking of items to the final shipping stages. This precision is crucial in ensuring that every package is correctly and securely prepared for shipment, significantly reducing the incidence of customer complaints related to incorrect or damaged goods.

    Scalability And Flexibility

    Automation provides the scalability needed to adjust operations based on fluctuating demand. Automated systems can be programmed to handle different volumes of work, making it easier to ramp up operations during peak times and scale down when necessary. Additionally, these systems offer the flexibility needed to adapt to various warehouse layouts and manage a diverse range of product types, allowing companies to expand their product offerings without compromising operational efficiency.

    Cost Reduction

    Integrating automated systems can lead to substantial cost savings. By reducing the reliance on manual labor, companies can lower their labor costs. Furthermore, the increase in accuracy and efficiency helps minimize costly errors and reduce waste, saving additional time and resources. Over time, these savings can contribute significantly to overall profitability.

    Improved Customer Satisfaction

    Faster and more accurate order fulfillment directly contributes to higher customer satisfaction. When customers receive their orders quickly and without issues, their overall satisfaction increases, which is likely to lead to repeat business and positive word-of-mouth. In competitive markets, the ability to consistently meet customer expectations with reliable and efficient service can be a significant differentiator.

    Unlocking The Full Potential Of G2P Robotics Through Comprehensive Integration

    In conclusion, while G2P robotics have significantly advanced warehouse fulfillment, their true potential is unlocked when integrated with traditional technologies such as conveyors, print and apply labeling systems, and automated packaging equipment. This holistic approach ensures a seamless, efficient, and accurate end-to-end fulfillment process.

    To achieve this level of integration, it is crucial to work with a material handling integrator who can expertly bring together all these components, including the necessary software and controls. Such an integrator ensures that the entire system operates cohesively, maximizing efficiency and minimizing disruptions, ultimately delivering superior performance and customer satisfaction.

    To explore how StreamTech can help your organization achieve an integrated, intelligent warehouse, contact us today. Our team of experts is ready to provide tailored solutions that meet your specific needs and help you navigate the complexities of modern warehouse automation.

  • 4 Strategies to Reduce Warehouse Labor Costs

    4 Strategies to Reduce Warehouse Labor Costs

    In today’s competitive environment, it’s important to evaluate operating costs and find new and innovative ways to optimize operating expenses without sacrificing productivity. Some of the leading expenses for warehouses include the cost of manual labor, consumables/packaging, and carrier shipping charges. Of these three, manual labor is the leading ROI driver for operators who are considering automation equipment.  Coincidentally, automation can also help optimize the other areas as well (packaging, consumables, and carrier costs) when done thoughtfully. We’ll save those topics for another article, but for now, let’s focus on labor.

    According to the U.S. Bureau of Labor Statistics, the cost of labor has increased 4.9% while the availability of workers has decreased by about 50% since 2017. This shortage of workers can be attributed in part to demographic changes, as the current generation of workers is generally smaller, more educated, and commands higher wages. Additionally, many workers are now seeking more value-added tasks and are less interested in manual labor that involves repetitive, low-skill tasks that can be automated.

    In this post, we’ll explore four effective strategies that businesses can implement to reduce warehouse labor costs while maintaining or even improving productivity. These strategies will help you figure out how to work within the constraints of the labor you have, or re-allocate labor to more productive areas of the warehouse.

    1) Implement Lean Principles

    Adopting lean manufacturing principles such as just-in-time inventory and continuous improvement, can help warehouses reduce labor costs by improving efficiency and eliminating waste.

    Just-in-time Inventory Management

    “Just-in-time” (JIT) is a principle where materials and goods are procured and stocked only as they are needed in the production process, rather than being stocked in inventory. This means that items are delivered to the production line just in time for use, minimizing the need for storage.

    The JIT principle has become increasingly popular in manufacturing industries where products have a short shelf life, such as food, electronics and fashion. It’s important to note, however, that JIT requires a high level of planning and coordination to be successful. This means that businesses must be prepared to invest in the necessary technology and infrastructure to support this approach. 

    One way this principle has been used to its fullest in warehouses is through the use of Cross-Docking. Cross-docking is a fulfillment model that involves bringing finished goods directly from the manufacturer and transferring them straight to the final customer without internal storage. This approach takes things a step further by eliminating the need for long-term storage of goods, making it the ultimate just-in-time fulfillment strategy.

    With cross-docking, there is no time or space wasted between inbound and outbound shipments. By using this approach, companies can increase efficiency by significantly reducing or even eliminating inventory space. Additionally, cross-docking can improve their ability to meet customer demand by allowing them to fulfill orders faster.

    Continuous Improvement

    The continuous improvement principle is based on the idea that there is always room for improvement, and that small changes can add up to significant growth over time. This approach encourages businesses to identify areas for improvement and implement small changes quickly, rather than waiting for major overhauls.

    2) Invest in Automation

    Warehouse automation technology is one of the most effective ways to improve productivity and reduce warehouse labor costs. Robots, automated guided vehicles (AGVs), and conveyor systems are some of the most common types of automation that are being leveraged over the past few years.

    Robots and AGVs are commonly used in warehouse automation for tasks such as picking and transporting goods. They can navigate through the warehouse and pick up and transport items quickly and efficiently, without the need for human intervention. Conveyor systems are another form of automation used for transporting goods from one location to another. The added benefit of conveyance is the ability to perform multiple tasks during transit, such as package identification scanning, dimensioning, check-weighing, print and apply labeling, as well as sortation.

    Utilizing automation to streamline multiple tasks into one organized flow allows for scalability for growth, elimination of redundant manual stations, and more cost-effective, faster operation.

    Automation can take on routine tasks such as pickingpacking, and shipping, freeing up human workers to focus on more complex tasks that require critical thinking and problem-solving skills. This not only reduces the physical strain on workers but also helps to minimize human errors, which can be costly for businesses. Automation can then lead to much more meaningful work for people.

    Adapt or Get Left Behind

    Businesses that are slow to adopt automation technologies risk being left behind by competitors who have embraced them, offering faster and more cost-effective services. This is particularly true in industries where there is a high demand for speed and efficiency, such as e-commerce and logistics.

    To stay competitive, businesses must be willing to invest in automation technologies, retrain their workforce, and continuously adapt operations to stay ahead of the curve. By doing so, they can reap the benefits of increased efficiency, improved customer satisfaction, and a stronger bottom line.

    3) Utilize Workforce Planning

    Analyzing workforce data can be an essential tool for optimizing production. By examining data related to employee scheduling, performance metrics, and turnover rates, warehouses can identify inefficiencies in their operations and optimize staffing levels accordingly.

    For instance, analyzing employee scheduling data can help warehouses determine the most efficient staffing levels for each shift, based on factors such as order volume, order frequency, and the types of products being handled. This can help ensure that the right number of workers are available at the right time, reducing the likelihood of understaffing or overstaffing.

    Leverage Enterprise Software

    There are a wide range of high level enterprise software tools that are helpful in optimizing labor, managing your warehouse, and ensuring necessary data is accessible for reporting and making decisions.  Some of these include a Labor Management System (LMS) and Warehouse Management System (WMS).

    Labor Management System (LMS) is a software system designed to help organizations streamline their labor operations by automating tasks such as scheduling, time and attendance tracking, employee performance management, and labor cost analysis.

    Warehouse Management System (WMS) is a software application designed to manage and optimize the operations of a warehouse or distribution center. It helps organizations to efficiently manage their inventory, storage, and movement of goods within the warehouse.

    WMS provides a range of features, including inventory tracking, order management, receiving and shipping management, picking and packing optimization, time tracking, and reporting/analytics. These features help warehouse managers to keep track of inventory levels, monitor stock movements, and ensure timely and accurate order fulfillment. The WMS is what your automation will interface with, using its own software system.

    With the help of a WMS, organizations can improve efficiency, reduce warehouse labor costs, and enhance customer satisfaction by ensuring timely and accurate delivery of products.

    4) Create a Safe & Supportive Work Environment

    Offering a safe and supportive work environment can help reduce warehouse labor costs in several ways. First and foremost, a safe work environment can reduce the likelihood of workplace accidents and injuries, which can result in costly workers’ compensation claims, lost workdays, and increased insurance premiums. By investing in safety measures, companies can lower the risk of injuries and create a culture of safety that promotes employee well-being and productivity.

    Additionally, a supportive work environment can lead to increased employee engagement and job satisfaction, which can improve retention rates and reduce turnover costs. When employees feel valued and respected, they are more likely to remain loyal to their employer and work hard to achieve the company’s goals. This can result in lower recruitment and training costs, as well as increased productivity and efficiency.

    Offer Employee Incentives

    Offering employee incentives can help reduce labor costs by increasing employee motivation and engagement, which can lead to higher quality work and faster completion times. When employees are incentivized to perform at their best, they are more likely to take ownership of their work and strive to achieve their goals.

    Incentives can take many forms, such as bonuses, profit-sharing, performance-based pay, or non-monetary rewards such as recognition or additional vacation time. When properly implemented, these incentives can create a healthy sense of competition, camaraderie and  overall job satisfaction.

    Provide Training Programs

    Training programs can help employees develop important skills to perform their jobs more effectively, which can lead to improved productivity and fewer errors. They can also help reduce turnover rates by providing employees with opportunities for career development and advancement within the company. 

    When employees feel like they have room to grow and advance their careers, they are more likely to remain loyal to their employer and stay with the company longer. This can help reduce recruitment and training costs associated with high turnover rates.

    It’s also worth noting that employee training programs (or retraining programs) are a necessary tool when implementing automated systems. While warehouse automation can bring significant benefits to a company, it can also have an impact on the workforce. By investing in employee retraining programs, companies can either reallocate the skills of their existing workforce or provide them with the skills necessary to work effectively alongside automated systems.

    Conclusion

    When it comes to optimizing production and cutting warehouse labor costs, we realize that change doesn’t happen overnight. Adopting the strategies mentioned above requires careful planning and implementation. 

    We also want to note that there is no “one-size-fit-all” solution. Each company is different depending on their industry, internal processes and production needs. We specialize in creating custom solutions to help businesses adapt to the ever-changing landscape of innovation.

    Schedule a consultation today and we’ll help you create a plan for 2023.

  • Reduce Warehouse Labor Costs With These 4 Business Strategies

    Reduce Warehouse Labor Costs With These 4 Business Strategies

    In today’s competitive environment, it’s important to evaluate operating costs and find new and innovative ways to optimize operating expenses without sacrificing productivity. Some of the leading expenses for warehouses include the cost of manual labor, consumables/packaging, and carrier shipping charges. Of these three, manual labor is the leading ROI driver for operators who are considering automation equipment. Coincidentally, automation can also help optimize the other areas as well (packaging, consumables, and carrier costs) when done thoughtfully. We’ll save those topics for another article, for now, let’s focus on labor.

    According to the U.S. Bureau of Labor Statistics, the cost of labor has increased 4.9% while the availability of workers has decreased by about 50% since 2017. This shortage of workers can be attributed in part to demographic changes, as the current generation of workers is generally smaller, more educated, and commands higher wages. Additionally, many of the next generation of workers are now seeking more value-added tasks and are less interested in manual labor that involves repetitive, low-skill tasks that do not give them a sense of purpose.

    In this post, we’ll explore four effective strategies that businesses can implement in 2023 to reduce warehouse labor costs while maintaining or even improving productivity. These strategies will help you figure out how to work within the constraints of the labor you have, or re-allocate labor to more productive areas of the warehouse.

    Here Are Four Strategies To Reduce Warehouse Labor Costs

    1) Implement Lean Principles

    Adopting lean manufacturing principles such as just-in-time inventory and continuous improvement can help warehouses reduce labor costs without cutting headcount by improving efficiency and eliminating waste.

    Just-In-Time Inventory Management

    “Just-in-time” (JIT) is a principle where materials and goods are procured and stocked only as needed in the production process, rather than being stocked in inventory. This means that items are delivered to the production line just in time for use, minimizing the need for storage.

    The JIT principle has become increasingly popular in manufacturing industries where products have a short shelf life, such as food, electronics, and fashion. It’s important to note, however, that JIT requires a high level of warehouse labor planning and coordination to be successful. This means that businesses must be prepared to invest in the necessary technology and infrastructure to support this approach.

    One way this principle has been used to its fullest in warehouses is through the use of Cross-Docking. Cross-docking is a fulfillment model that involves bringing finished goods directly from the manufacturer and transferring them straight to the final customer without internal storage. This approach takes things a step further by eliminating the need for long-term storage of goods, making it the ultimate just-in-time fulfillment strategy.

    With cross-docking, there is no time or space wasted between inbound and outbound shipments. By using this approach, companies can increase efficiency by significantly reducing or even eliminating inventory space. Additionally, cross-docking can improve their ability to meet customer demand by allowing them to fulfill orders faster.

    Continuous Improvement

    The continuous improvement principle is based on the idea that there is always room for improvement, and that small changes can add up to significant growth over time. This approach encourages businesses to identify areas for improvement and implement small changes quickly, rather than waiting for major overhauls.

    2) Invest In Automation

    Warehouse automation technology is one of the most effective ways to improve productivity while reducing labor costs. Robots, automated guided vehicles (AGVs), and conveyor systems are some of the most common types of automation that are being leveraged over the past few years.

    Robots and AGVs are commonly used in warehouse automation for tasks such as picking and transporting goods. They can navigate through the warehouse and pick up and transport items quickly and efficiently, without the need for human intervention. Conveyor systems are another form of automation used for transporting goods from one location to another. The added benefit of conveyance is the ability to perform multiple tasks during transit, such as package identification scanning, dimensioning, checkweighing, print and apply labeling, as well as sortation, all while on the conveyor.

    In the above photo example(s), orders are picked, packed and shipped, with the automation doing the bulk of the work here. For this client, accuracy was the chief driver for the automation, but the productivity gains are still notable. With as few as 4 workers, they can process about 3,000 orders/day.

    Utilizing automation to streamline multiple tasks into one organized flow allows for scalability for growth, elimination of redundant manual stations, and more cost-effective, faster operation.

    Automation can take on routine tasks such as pickingpacking, and shipping , freeing up human workers to focus on more complex tasks that require critical thinking and problem-solving skills. This not only reduces the physical strain on workers but also helps to minimize human errors, which can be costly for businesses. Automation can then lead to much more meaningful work for people.

    Adapt Or Get Left Behind

    Businesses that are slow to adopt automation technologies risk being left behind by competitors who have embraced them, offering faster and more cost-effective services. This is particularly true in industries where there is a high demand for speed and efficiency, such as eCommerce and logistics.

    To stay competitive, businesses must be willing to invest in automation technologies, retrain their workforce, and continuously adapt operations to stay ahead of the curve. By doing so, they can reap the benefits of increased efficiency, improved customer satisfaction, and a stronger bottom line.

    3) Utilize Workforce Planning

    Analyzing workforce data can be an essential tool for optimizing production. By examining data related to employee scheduling, performance metrics, and turnover rates, warehouses can identify inefficiencies in their operations and optimize staffing levels accordingly.

    For instance, analyzing employee scheduling data can help warehouses determine the most efficient staffing levels for each shift, based on factors such as order volumeorder frequency, and the types of products being handled. This can help ensure that the right number of workers are available at the right time, reducing the likelihood of understaffing or overstaffing.

    Leverage Enterprise Software

    There is a wide range of high-level enterprise software tools that are helpful in optimizing labor, managing your warehouse, and ensuring necessary data is accessible for reporting and making decisions. Some of these include a Labor Management System (LMS) and Warehouse Management System (WMS).

    Labor Management System (LMS) is a software system designed to help organizations streamline their labor operations by automating tasks such as scheduling, time and attendance tracking, employee performance management, and labor cost analysis.

    A Warehouse Management System (WMS) is a software application designed to manage and optimize the operations of a warehouse or distribution center. It helps organizations to efficiently manage their inventory, storage, and movement of goods within the warehouse and interfaces with the Warehouse Control System (WCS) software.

    A WMS provides a range of features, including inventory tracking, order management, receiving and shipping management, picking and packing optimization, time tracking, and reporting/analytics. These features help warehouse managers to keep track of inventory levels, monitor stock movements, and ensure timely and accurate order fulfillment. The WMS is what your automation will interface with, using its own software system.

    With the help of a WMS, organizations can improve efficiency, reduce warehouse labor costs, and enhance customer satisfaction by ensuring the timely and accurate delivery of products.

    4) Create A Safe and Supportive Work Environment

    Offering a safe and supportive work environment can help reduce warehouse labor costs in several ways. First and foremost, a safe work environment can reduce the likelihood of workplace accidents and injuries, which can result in costly workers’ compensation claims, lost workdays, and increased insurance premiums. By investing in safety measures, and dedicated technologies, like panic button systems and indoor air quality monitors for commercial buildings, companies can lower the risk of injuries and create a culture of safety that promotes employee well-being and productivity. In addition to these strategies, companies can benefit from services like those offered by pro process servers, which provide efficient and reliable process serving solutions. By outsourcing these tasks, companies can ensure that their legal documents are handled professionally and promptly, allowing them to focus more on core operations and improving overall efficiency.

    Additionally, a supportive work environment can lead to increased employee engagement and job satisfaction, which can improve retention rates and reduce turnover costs. When employees feel valued and respected, they are more likely to remain loyal to their employer and work hard to achieve the company’s goals. This can result in lower recruitment and training costs, as well as increased productivity and efficiency.

    Offer Employee Incentives

    Offering employee incentives can help reduce labor costs by increasing employee motivation and engagement, which can lead to higher quality work and faster completion times. When employees are incentivized to perform at their best, they are more likely to take ownership of their work and strive to achieve their goals.

    Incentives can take many forms, such as bonuses, profit-sharing, performance-based pay, or non-monetary rewards such as recognition or additional vacation time. When properly implemented, these incentives can create a healthy sense of competition, camaraderie, and overall job satisfaction.

    Provide Training Programs

    Training programs can help employees develop important skills to perform their jobs more effectively, which can lead to improved productivity and fewer errors. They can also help reduce turnover rates by providing employees with opportunities for career development and advancement within the company.

    When employees feel like they have room to grow and advance their careers, they are more likely to remain loyal to their employer and stay with the company longer. This can help reduce recruitment and training costs associated with high turnover rates.

    It’s also worth noting that employee training programs (or retraining programs) are a necessary tool when implementing automated systems. While warehouse automation can bring significant benefits to a company, it can also have an impact on the workforce. By investing in employee retraining programs, companies can either reallocate the skills of their existing workforce or provide them with the skills necessary to work effectively alongside automated systems.

    Conclusion

    When it comes to optimizing production and cutting warehouse labor costs, we realize that change doesn’t happen overnight. Adopting the strategies mentioned above requires careful warehouse labor planning and implementation.
    We also want to note that there is no “one-size-fits-all” solution. Each company is different depending on its industry, internal processes, and production needs. We specialize in creating custom solutions to help businesses adapt to the ever-changing landscape of innovation.

    We hope these four strategies to reduce warehouse labor costs have helped you. Be sure to schedule a consultation today and we’ll help you create a plan for 2023.

  • Fulfill Daily Order Volume With Automation

    Fulfill Daily Order Volume With Automation

    The Problem:

    An eyeglass fulfillment operation faced significant challenges in delivering its daily orders to over 500+ stores across the United States and Canada within designated timeframes. Despite employing several full-time workers dedicated to order fulfillment, the operation encountered difficulties in keeping up with the workload, leading to a high frequency of manual errors.

    The issue was further compounded by a typical backlog that extended a staggering 80 feet back into the packing area, severely impacting the company’s operational efficiency.

    Our Solution:

    StreamTech provided a complete bolt-on addition to the customer’s UPS Worldship application. Instead of a unique order ID or license plate, each carton had a label that simply represented a store. We also included customized end-of-day reporting. Overall the system helped the customer gain the following benefits:

    • Removing non-value added manifesting labor
    • Eliminating manual weighing and dimensioning errors
    • Clearing up backlog
    • Reclaiming floor space from many manual workstations
    • Allowing the customer supervisors to leave on-time and get home to their families.

    The local conveyor integrator noted how easily the Sprinter™ was able to control adjacent conveyors for seamless automation. Another system is on order for a second facility!