As the global automation market continues to expand, Southgate Global, a leader in the supply of material handling equipment and servicing in operational logistics and fulfilment, argues that the importance of the human element remains irreplaceable, sharing advice on how to optimise and best manage human resources in the supply chain.
According to predictions, the global warehouse automation market will surpass $37.6 billion by 2030[1] and represent 30 per cent or more of logistics and fulfilment business’ capital spending in the next five years[2].
While the move to automation has been profound and continues to revolutionise the way the supply chain operates, Southgate Global has warned against fully automated operations and explains why it is not always a universal solution.
“What is going to become increasingly evident as we learn more about integrating automation, is that it isn’t always appropriate or the best solution,” said Phil O’Driscoll, Head of Innovation and New Product Development at Southgate Global.
He added: “There is no doubt it will be a learning process, but we believe that many tasks remain that require the skill of human operators or that are most cost-effective when done by hand. Knowing when, and when not to automate, is key.”
When weighing up the benefits of automation and whether it is the right fit for an operation, O’Driscoll explains how it’s crucial to recognise that it cannot seamlessly slip straight into any warehouse.
He said: “Warehouses have been historically designed with humans at the forefront and such workflows will not always benefit from automation and AI-powered robots. This can be particularly challenging for older warehouses for example, which would require additional investment which can be extremely costly.
“An entirely automated approach also doesn’t help with highly variable activities, where the cost of automation can be prohibitive or the automated systems overly sophisticated.”
As the sector continues to face unique challenges, particularly with the demand for next-day and same-day deliveries, Southgate predicts a growing trend in fulfilment and logistics equipment specially designed to optimise the human element and blend that with ‘best in class’ automated solutions.
O’Driscoll explained: “Automation isn’t a one-size-fits-all situation, it needs to be working in cohesion with human resources. For the areas where automation isn’t appropriate, innovative equipment is the answer. By optimising manual tasks through innovative equipment, companies can enhance productivity without fully relying on automation.”
This is an area that Southgate works hard to offer solutions to, for example, its Mobile Powered Workstation (MPW) is specifically designed to boost workforce productivity. With its own integrated power system used to power laptops, barcode printers or scanners, the MPW allows operatives to walk and work anywhere in the warehouse.
When used at the loading bay, the MPW can also help operatives reduce processing times for each delivery by dealing with all the stock entry requirements and ERP updates at the point and time of arrival, boosting dock-to-stock cycle times.
With over 600 customers using this solution across the UK and Europe, Southgate’s MPW has already cut major operational logistics and fulfilment operatives’ costs by £4,256 per operative per year, saving customers over £11 million pounds in the last 2.5 years.
As consumers’ appetite for fast, free shipping continues to push the sector to introduce new initiatives, Southgate predicts the areas that still require, or simply benefit from, human labour will be the key areas that see innovative ideas introduced.
O’Driscoll said: “At Southgate, we work closely with our customers to listen to their frustrations and where their operational needs aren’t being met. By reviewing the finer details within the process and identifying where equipment can work with human resources, we offer bespoke solutions that save costs, reduce disruption, meet sustainability goals, and increase efficiency.
“As more companies look to integrate equipment that works in harmony with people, we expect it to shape many upcoming trends.”
For more information on how to maximise the efficiency of the human/automation interface within operations, download Southgate’s latest Briefing Paper and complete its checklist here.
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