preparing your...preparing your warehouse for robots 2 w hether you choose robotics as a service or...

Preparing your warehouse for robots

1GeekPlusRobotics.com

According to available data, the vast majority of warehouses have a relatively low level of automation. Most of the

movement of goods within these facilities is undertaken using manually-operated, or mechanical, systems.

There are no robots, not much advanced automation, and very little or no artificial intelligence – except that which is to be found in software such as warehouse management systems, for example.

But look closer at this industrious landscape and you will see that there is a growing segment of the market which is increasing its usage of robotics and automation technologies.

In this white paper, we look at the types of robotics and automation technologies available to warehouse managers and how they can prepare for the implementation of these technologies.

We can provide a brief answer right now to one of the first questions that many people ask about buying robots and increasing the level of automation in their warehouse: “Is it expensive?”

And that answer is, as ever, “It depends.”

It depends on the size your warehouse and what your level of throughput is. Simply put, the larger your operation, the more it makes sense to install robotics and automation.

For smaller operations, expensive automation technology might not have made sense in the past. But an innovative business model called “robotics-as-a-service”, or RaaS, is enabling smaller warehouses to introduce these new technologies in an incremental fashion.

Rather than have to find the funds to finance the upfront cost of robotics and automation, RaaS means that warehouse managers can start small and then scale up and adjust according to what their needs and budgets are.

In terms of preparing your warehouse for robotics and automation, RaaS may be more of an accounting issue, but this white paper will also look at other issues that readers will, hopefully, find useful if they are considering increasing the level of automation in their operations. n

Preparing your warehouse for automation

Are robots expensive? That depends on a number of things


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Whether you choose robotics as a service or decide to pay for automation technologies upfront, one thing is

generally being found to be true: investing in automation pays off in a big way.

Later on in this report, we provide some case studies which show how much of a difference automation and, in particular, robots make to a warehouse. But broadly speaking, doubling or tripling of productivity is quite common.

With such impressive returns in mind, it’s probably imperative to find the funds somehow in order to further automate your warehouse. Otherwise, you might lose the opportunity to grow with booming markets such as e-commerce and logistics.

There is an increasingly long list of technologies available to you if you are looking to automate your warehouse, but broadly speaking, they could be categorised as follows:

1. Fixed infrastructure – for example, conveyors.2. Flexible infrastructure – for example, robots.3. Software – for example, a warehousemanagement system, or WMS.

The first two could, of course, be categorised as one – “hardware”, but it’s important to make the distinction between “fixed” and “flexible” because that is considered to be the main competitive advantage robots have conveyors.

Conveyor suppliers are introducing technical innovations into their systems , especially as warehouse managers are increasingly reluctant to install what they might see as expensive “fixed” infrastructure.

Some newer conveyor systems are more “flexible” in that they can be scaled up or down at lower cost, and much faster than previously.

But while this does sound like progress for conveyor systems, generally speaking, they still require hardware to be bolted to the floor, are not mobile, and are not portable. Therefore, it is reasonable to describe them as “fixed”.

Moreover, robots are flexible in other ways, not just in that they are mobile. For example, they can be made to organise the products in a warehouse in a very precise and logical way, placing faster-moving goods closer to the picker.

This kind of organisation is calculated by the robot’s software, the artificial intelligence, some of which is onboard while other parts might be in the cloud. n

Returns on investment

Picking Systems

for order fulfillment in e-commerce and retailing industries

Moving Systems

for material handling in factory logistics

Sorting System

for parcels sortation in express

Automated Forklift

for unmanned warehouse operations

Robot Shuttle System

for bin-carrying with single rack and multi-layer mezzanine racks

Examples of warehouse robotics



These two bar charts, produced by BIS Research, show that the growth of mobile robots is projected to be strong for the

next four years at least. The main reasons for

this optimistic forecast is that labour costs are increasing while the availability decreasing; and robots are becoming more affordable and easier to implement without operational disruption. n

Source: BIS Research


The growth of automation

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Face the future with old tech

Robotics seems to be discussed as though it were a brand new technology, which it is in many ways, but as many people

will know, robotics has been around for several decades in the industrial context.

Even when you consider the generation of warehouse robots, their forerunners have been plying their trade for at least 20 years. Forereunners to today’s autonomous mobile robots are, of course, automated guided vehicles, or AGVs.

Although AGVs can do some of the jobs that AMRs do, they are significantly different,

mainly because they require the placement of magnetic strips on the floor or some other way of guiding them. AMRs, meanwhile, find their own way around their environment using a variety of sensors, mapping data, and artificial intelligence. Actually, some would argue that AMRs are fundamentally and completely different from AGVs and the two technologies should not be compared.

AGVs are getting smarter, so they are likely to be around for a long time. In fact, according the market for AGVs will grow ten-fold in the next few years, according to some analysts.

One of the technologies that will keep AGVs in the mix is warehouse management systems, which is a specific type of software, with a self-explanatory name.

WMS software can integrate a wide range of technologies, including AMRs, AGVs, and many others. This means that legacy equipment need not become obsolete too soon, and returns on the original investment can be maximised.

WMS software is often used in combination with robot operating systems, which warehouse robots need in order to operate properly.

This modular approach to software integration – where one piece of software is connected toanother, rather like Lego bricks – is increasinglymaking everything digital.

Digitalisation is a huge trend in the logistics and supply chain sectors. The terms “digital supply chain” or “e-logistics” are just two examples of current efforts to try and keep track of the changes happening in the technologies.

The internet of things is the fundamental enabling technology in the current move towards digitising everything. And the motivation for digitisation, as ever, is the goal of achieving greater productivity. n



Key concepts of the new warehouse operation

Integrating software and hardware into the WMS

Hardware SoftwareWarehouse

management system

Examples

Robots ConveyorsRouters Printers ComputersTablets Smartphones

Examples

SAP / Oracle ERP systems

Apps on handheld devices

Data management

Reporting and analysis

There are probably three key

concepts which encapsulate

the the logistics and supply

chain sectors as they are now,

and they are all underpinned

by the internet of things:

n one is the demand for data – managers and employees at all levels have far more access to far more data than ever before, enabling them to make more informed decisions all the time, with some of those decisions helped by artificial intelligence systems;

n another is automation – robotics and physical orhardware automation is ofcourse a huge part of this,but automation can also referto software, and softwareautomation could very broadlybe described as AI; and

n and last but not least, flexibility – in these days of lean and six sigma, managers are always looking to eliminate waste and streamline the product range, even while trying to satisfy a customer

base that increasingly demands a wider range of products and expects their orders to be delivered immediately, as though it was sitting in a warehouse the whole time. n

Data AutomationFlexibility

Internet of Things

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Make a list of your priorities

It’s rare that a warehouse operation does not prioritise speed of operation, but perhaps yours is different and prioritises something like quality of the packaging and product, requiring more careful handling.

Or maybe it’s important to reduce or eliminate the mistakes currently being made in the composition of the orders, or reduce the time it takes to make seasonal layout changes to the warehouse – because of busier shopping periods such as Christmas.

Whatever it is that you list, chances are that there will some subtle differences between each warehouse operation.

It’s probably best to avoid keeping things very high-level and possibly abstract because robots are capable of detailed work, such as dynamic placing of goods in locations depending on how often they are required.

Additionally, having detailed knowledge of your activities and priorities will enable you to develop customised solutions in co-operation with your robotics and automation supplier.

Much of robotics – like everything else – is about software development, or system design, which means the more detailed your knowledge, the more precise your instructions can be, which will, hopefully, translate into better code. n

Evaluate what robots can do for your operation

Once you have listed all the activities in your warehouse and prioritised them, you can identify the areas where robots can help.

In the vast majority of instances, it is probably the case that the implementation of robotics will increase productivity in the warehouse, especially if it is a medium- to large-size facility.

However, it is worth carefully evaluating exactly what robotics and automation can do for your individual business, not just in the short term, but also in the medium to long term.

Perhaps it is easier to consider the short term when you first look to identify areas that could benefit from robotics and automation. For example, if your staff are unable to meet the demands on them, it may be worth considering adding robots into the warehouse rather than hiring more staff.

The long-term benefits of such a move would be that you can scale up or down using robots whereas expanding or shrinking your staff is never going to be as straightforward.

Clearly, many accounting scenarios need to be considered, but being able to retain your most valued employees by offering them training in new skills that will enable them to work with and perhaps manage robotic equipment must be an important additional attraction. n

4 steps towards automation

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Customise your robotic solution

While it is possible to get bogged down in the details of developing a robotic solution based on your priorities, as previously mentioned, it’s important to remember that the implementation of robotics is not the ultimate goal.

Of course, smooth and effective implementation is certainly one of the goals, ultimately, robotics are a means to an end, and that end result is supposed to be to solve the problems or issues or whatever it is that you prioritised.

So, while it may be temping to keep the solution in development for longer in order to refine the solution, sometimes it’s just as effective to “learn on the job”, as it were, and put the robots into action and adjust accordingly.

Simulation software is available for a lot of scenarios, so that might be helpful, especially if it is a particularly large-scale implementation across several facilities.

However, it is almost certainly worthwhile undertaking some real-world testing, even if it’s on a small-scale, because no matter how good simulations are, there are aspects of the real-world operation that will provide you with additional and valuable insights.

In summary, it’s essential to be solution-oriented and concentrate on optimising the flow of material through the warehouse. n

Design a realistic implementation schedule

For large implementations, it is advisable that implementation is undertaken in stages. This will minimise disruption and provide insights you can learn from for subsequent stages.

Of course, it is imperative that the supplier of the robotic solution provides support through the process of implementation, and not just the technical process, but also the duration of the period which you have targeted to see a return on your investment.

Agreements on key performance indicators might be a sensible approach, and such understandings should be included in the contract with the supplier.

Communication, as always, is very important, so establishing a routine for exchanging information and evaluating performance would be advisable in order to ensure smooth implementation.

Dividing up the tasks involved in implementing robots between several staff members might seem like a good idea, and certainly if the workload is too much for one person, it would make sense.

However, some companies go so far as to appoint a “chief robotics officer”, a new role which might be a good idea to introduce, if only for the duration of the implementation. n

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Case studies tend to be useful up to a point. Certainly, you can learn things from them, but the problem is that no companies are

exactly the same.

And because we are talking about robotics, which can be very detailed in their approach, it’s important to look at case examples like broad-brush pictures rather than precise diagrams which you can simply lift and superimpose onto your own warehouse operation.

That said, however, there are a number of facts and statistics that keep popping up when you look at these case studies: the increase in productivity tends to be around three to four times; orders tend to become more accurate; and operations become 24/7 where the company wants it to be.

But still, it’s best to use them as guides.

Learning from othersIt’s important to share information but it’s also important to remember that your company is different



Robots in warehouses

This company was one of the first to automate its warehouse with robots, and currently has 300 autonomous mobile robots operating in its 22,000 sq metre facility.

The implementation has been so successful that it has decided to go ahead and bring in driverless forklifts, complete with picking arms, to further increase productivity.

Currently, the daily processing capacity of the warehouse stands at 100,000 – which is double the capacity it initially achieved when it first implemented robotic technology.

The company has scaled up and is looking at new technologies that other warehouses have not even thought about yet. n

Case study 1: B2B tech logistics

Source: Geek Plus Robotics

2 to 3orders were 2 to 3 times more accurate after the introduction of robots

300number of robots installed

Warehouse area: 22,000 sq metres Storage capacity: 1.7 million itemsFulfilment capacity: 100,000 piecesNumber of robots: 300 units

50,000 to 100,000daily processing capacity has exceeded 100,000 orders, after initially increasing to more than 50,000

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When one of the largest postal services in the world implements a robotics solution in its warehouse, you know that the technology has truly arrived.

With processing capacity of 600,000 a day, the facility is one of the busiest in its vast network.

The number of robots installed is 320, which seems low compared to the amount of work

that the facility is capable of doing.

If the organisation rolls out the robotics solution to its many other facilities, it could eventually become one of the largest implementations of robotics in the world.

And with robots bringing about 50 to 70 per cent savings in labour costs, it seems only a matter of time. n

Case study 2: Postal service


50 to 70%robotics have enabled savings of between 50 and 70 per cent


Warehouse area: 5,000 sq metres Sorting capacity: 20,000 parcels per hourFulfilment capacity: 50-100,000 piecesNumber of robots: 320 units

600,000daily processing capacity has exceeded 600,000 parcels using just 320 robots




One of the world’s largest sportswear retailers has installed a total of 58 robots in two of its warehouses, along with approximately 550 shelves, which store some 25,000 SKUs.

Despite being such a large company, its application of robots is minimal in the context of its global operation – with more than 1,500 stores worldwide in more than 50 countries.

If the company were to introduce robots in all its facilities, that would be a huge number of robots. But rather than sudden change, which can be disruptive, the company appears to be taking an incremental approach.

In the roboticised warehouse, the operation goes on seven days a week, 24 hours a day. The deployment took just two months. n

Case study 3: Apparel retail


3 to 4picking efficiency has increased 3 to 4 times compared with human labour


Warehouse area: 23,000 sq metres Picking capacity: 350 pieces per hourStorage capacity: 25,000 SKUsNumber of robots: 58 units

350picking efficiency has increased to 350 pieces per hour


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Sometimes it’s a good idea to wait until a new and innovative technology develops to a point where it becomes useful and affordable. That time arrived for warehouse robots at least a year or two ago.

For some, warehouse robots have been more than earning their own way for a decade or so. It’s no coincidence that Amazon is the world’s largest online retailer, and is one of the world’s top 10 logistics companies. It may seem strange to say it, but the company’s acquisition of Kiva Systems was fundamental to the phenomenal growth it has enjoyed over the past few years.

When Amazon took Kiva Systems’ warehouse robots off the market, it prevented warehouses and other retailers from streamlining their operations. Now, however, there are many companies offering a wide range of warehouse robotics and automation technologies.

Amazon reportedly has more than 100,000 robots in operation in warehouses, which is probably more than the total number of robots

made and supplied by other companies, but the gap is not only narrowing, it will continue to be closed, and it seems inevitable that Amazon will be surpassed. Amazon might be big, but it’s still only one company, and the rest of the world is bigger.

And since it does not supply robots to the market, Amazon will not directly make any money from the growth of the sector.

According to BIS Research, the total size of the warehouse robots market will almost treble in size over the next two years – yes, just two years. And who would argue?

The warehouse robot makers are reporting a brisk trade. The good thing now is that there is a competitive environment in which companies are trying to develop innovative products and deliver a better level of service.

That can only benefit the buyers, who almost certainly grow in number. Some estimates suggest that only 10 per cent of warehouses currently have some advanced automation systems installed. It might actually be less.

But even if it is 10 per cent, it’s very likely that BIS Research’s forecast is quite realistic because it’s difficult to see warehouse managers rejecting robots as a way to increase productivity – it’s just a matter of time anyway.

And finally, it’s interesting that the Asia-Pacific region is thought to have more warehouse robots in operation than the rest of the world combined. This is interesting for many reasons, not least because it is Europe and America that tend to be the early adopters of new technology.

But then, much of the manufacturing and logistics operations of European and North American tends to be done in Asia, so it’s probably to be expected. And according the figures, Asia is expected to maintain its lead. n

Warehouse robots in future

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Website: https://www.GeekPlusRobotics.com/Email: [email protected]

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