Fully automating a warehouse doesn’t mean the journey is over. As businesses grow, customer expectations change and order profiles evolve, even the most advanced automated operation may eventually need to expand or adapt. But adding new automation isn’t as simple as installing new equipment. The real challenge is implementing and transitioning to new systems without disrupting the operation. Orders still need to get out the door, service levels need to be maintained, and existing processes must continue to perform while the facility evolves. So, how can businesses expand or upgrade warehouse automation while keeping operations running smoothly throughout the cutover?
From the outset, our team of experts at Toyota Automated Logistics ensures future needs are considered when providing automated solutions. We believe that knowing an operation inside-out helps customers scale with solutions, which can be smoothly integrated into existing systems.
Expanding post-automation requires a strategic approach that aligns with a customer’s business goals. However, before considering how to move forward, we need to take a step back to the beginning of the initial automation process.
The best time to plan for future growth is before the automation is installed. That means designing the system not just for the day it goes live, but for the future point when the operation is expected to reach its planned capacity, what we call the “design year.” The design year is not necessarily the year after implementation; it represents the future level of demand the system is designed to support based on projected growth.
Planning for the design year means looking beyond today’s needs and considering questions such as:
These are critical considerations when designing a system for the long term. In our experience, customers rarely stand still, and the design year throughput and quantities are their best estimates based on historic data. Planning for that growth upfront helps ensure the system can evolve alongside the business.
With the design year parameters understood, an evaluation of the operation can begin that will lead to structured and orderly scaling for the warehouse.
This work includes assessing whether order profiles and/or throughput requirements have changed. That means taking a fresh look at the current data and comparing it to the design estimates made when the system was first installed. If these have changed, then we help the customer decide if working processes need to be altered or if further expansion of the system is required.
When a customer is using TAL’s on-site support services, one of our process engineers is often part of their team. They can help to evaluate what is working well and which processes can be improved to optimize the system. In addition, our long-term life-cycle planning services provide continuous support and advice on maintaining systems and maximizing their performance.
Next we identify strengths and weaknesses by evaluating where operations excel and challenges persist. We do this by assessing how the system is being used compared to the initial design, and focusing on areas that have the biggest impact – such as receiving, picking, packing and shipping. In addition, it’s important to determine if there are any bottlenecks, looking for inefficiencies that could be improved with further automation or adjustments in processes.
As your business evolves, your warehouse needs may change, too. Maybe order volumes have increased. The SKU mix may have shifted, a new sales channel may be creating smaller, more frequent orders or labor availability may have become a greater challenge.
Using our assessment, Toyota Automated Logistics can identify where incremental automation can address these changes and improve warehouse performance. Adding new technologies needs to be planned just as carefully as it was for the original system, including considerations for software updates, integration and employee training.
Toyota Automated Logistics works closely with the customer to ensure each phase of automation supports specific business objectives, such as improving order fulfillment speed and accuracy, or reducing the cost per item or case.
As with the original project, KPIs should be used to measure the impact of any new automation. By planning for future needs, companies can scale their own automation up or adjust it as demand changes, without having to rethink the entire operation.
We have a portfolio of scalable technologies that can help future-proof a customer’s warehousing operations.
A good example is ADAPTO, one of our automated storage and retrieval systems. Its modular design allows for the addition of extra storage space, and more shuttles can be added to increase throughput. Its modular design allows customers to add storage space and increase throughput by adding more shuttles. Warehouse layouts can also be adapted as needs change, while additional fixed automation, such as pallet-building and depalletizing robots, automated packing machines and goods-to-person workstations can be integrated into the operation.
In recent years, the efficiency and reliability of mobile automation have improved, giving existing warehouses even greater flexibility when looking to scale. Automated mobile robots (AMRs) and automated guided vehicles (AGVs) can be brought in and out of service to help manage short- and long-term demand.
Toyota Automated Logistics has extensive expertise integrating both fixed and mobile automation, ensuring everything works together to get the best value from any expansion. By following the steps outlined above, companies can effectively scale their warehouse operations even after fully automating. This ensures they remain responsive to changing market demands and can improve their competitive advantage.
For more details on scaling up, please reach out to our experts.