For companies looking to enhance warehouse performance, automation offers tangible benefits that improve both day-to-day operations and long-term business growth. Key benefits include increasing throughput capacity, improving operational efficiency, and reducing reliance on scarce labor resources. It also provides predictability through consistent performance, removes repetitive tasks and makes it easier to manage peaks.
Nevertheless, only around 10% of facilities have high levels of automation, while the majority remain heavily reliant on labor. Despite the benefits and the possibility of falling behind competitors, many still see automating as a daunting and risky investment.
When assessing the first step into automation, it’s important not to regard it as an all-or-nothing scenario. At Toyota Automated Logistics, we guide our customers through the different levels of automation that can deliver both quick wins and long-lasting, phased improvements to a business.
Oftentimes, a company’s first step into warehouse automation incorporates technologies that reduce transportation times in the facility and reduce errors in order fulfillment. This can include small conveyor and sortation systems or point solutions to support pack-out, all of which can dramatically improve the speed and efficiency of the operations. Simple controls or a basic warehouse control system can be leveraged to operate this level of automation.
Semi-automated solutions incorporate technologies that improve the productivity of many manual processes, for example in storage and picking areas. This can include the installation of automated storage and retrieval systems (ASRS) for more efficient inventory storage or goods to person systems for faster item picking. For high-velocity SKUs, a simple pick to light system can make a huge difference in order speed and accuracy. This level of automation can address key challenges in a warehouse operation without requiring full system automation throughout the facility. However, with the need for inventory control and order management, a more robust software package like a warehouse execution system (WES) and warehouse management system (WMS) will likely be necessary.
For companies who start with transportation automation like conveyor or a small fleet of AGVs or with point solutions that improve a functional area like storage or picking, a next step is often adding additional automation to solve bottlenecks like palletizing, depalletizing or repetitive item picking. With multiple automation systems in play, it is critical to focus on automating good processes versus bad and ensuring the solutions work together and with a reliable warehouse software system.
Successful warehouse automation begins with a strategic partnership. The first step is working with a trusted solution provider to take a consultative approach and develop a clear action plan tailored to your operational goals to ensure the right technology, software and overall operational design are taken into account.
This begins by evaluating the current warehouse flow, looking at issues such as how many operators are required for each process and where bottlenecks occur. It’s also important to think about operational “pain points” like employee turnover numbers and problems managing peak times.
In addition, it is critical to examine existing data about order profile and throughput, as well as the number of stock keeping units (SKUs) and their turnover. This will help answer questions about how much of the daily activity can be automated, which products are most suited for automation, and what percentage of SKUs can be handled by an ASRS, autonomous mobile robots (AMRs), or a conveyor and sortation solution.
The next stage deals with implementation of the project. As a trusted solution provider, we partner with our customers' operations teams to develop a phased implementation plan that aligns with their operational goals, budget, and long-term growth strategy. This involves providing guidance on how to phase the installation of a new system without too much disruption to current operations – be it on a greenfield site, inside an existing facility or one that is being extended.
Partnership doesn't end at go-live. Instead, it enters a new phase. Most automated systems do not reach their full design capacity on day one, which is why a structured ramp-up strategy is critical. We work closely with our customers to optimize system performance, train operators, and gradually increase throughput in a way that minimizes disruption while building confidence in the new operation.
Once the system is fully operational, we revisit the objectives established at the start of the project and measure performance against key success metrics. This includes evaluating improvements in productivity, reductions in order fulfillment errors, system availability, and progress toward achieving the expected return on investment. These insights help ensure the solution delivers tangible business value while identifying opportunities for further optimization.
As the operation matures, the focus shifts from optimization to growth. Every automation solution is designed with future scalability in mind, but eventually there comes a point where incremental process improvements alone are no longer enough to meet increasing demand. When that happens, companies can confidently expand their operations by adding capacity, functionality, or new technologies without starting from scratch. A well-planned automation strategy provides flexibility to evolve alongside the business, ensuring the operation continues to support long-term growth.
Ultimately, it's important to understand that warehouse automation is a journey, not a single step.
Successful automation requires a thoughtful, strategic approach. Rather than rushing into a solution, companies should first ensure their existing processes are well understood, operational goals are clearly defined, and they have a roadmap that supports both immediate improvements and long-term growth.
A recent Interact Analysis survey found that the number one barrier to executing a project is integration. Therefore, it’s important that companies pick an automation partner that has the right experience, expertise and resources to guide them through every stage.
Finally, if operation teams follow a well-defined action plan, they will set the warehouse operation up for success, both for now and in the future.
To guide your first automation initiative, consider the following action plan:
For help laying the foundation for a successful automation strategy, reach out to our team. Toyota Automated Logistics’ experts can help you identify opportunities, prioritize investments and develop a roadmap tailored to your operation.