Implementing warehouse automation? Here’s seven common pitfalls to avoid…

When you finally get capex approval to invest in a new warehouse automation system the future suddenly looks brighter. Whether you’re planning on introducing new conveyors, an automated picking system or a complete warehouse management software solution, there’s no doubt you’re finally on the road to improving operational productivity and throughput.

However, project approval is just the start of your journey. And without putting a downer on things, there’s a long way to go before you reach ‘Destination: Optimum Productivity’ and there will be many bumps along the way.

But enough of the journey analogies. In this blog we look at some of the common pitfalls companies can make when embarking on a new automation system. Our aim is to provide pointers to help you avoid them and ensure your project is a success.

1. AGREE YOUR GOALS AND DEFINE SUCCESS CRITERIA

There will be a lot of stakeholders across your organisation with a vested interest in your warehouse automation project. Each will want the system to deliver benefits that are specific to their role or their department, and sometimes they may conflict or have totally different perceptions of ‘success’. For example the production manager may want the new conveyor to speed up throughput, whilst the dispatch manager may not have the staff to cope with more items per minute and view sortation as the main efficiency driver.

Solution: From day one ensure all key stakeholders are involved in the specification process. Listen to the goals of each department, agree on what is possible within the scope of the project, prioritise and confirm the final objectives.

By managing expectations and clearly defining the scope of the project, everyone will be able to work to the same agenda and the project will have defined success criteria.

2. INVOLVE ALL – FROM THE OPERATOR TO THE SENIOR DIRECTORS

Often projects are led and specified by a small, senior team who are detached from the day-to-day operations of the business. This can mean they lack the detailed knowledge of how processes are undertaken, or what the obstacles to change may be.

When specifying a system the devil really is in the detail and the people who know your systems inside out are those using them every day.

Solution: Pull together a project workforce with experts from across your business – from the conveyor operator, to the finance manager, the picker and packer, to the stock control supervisor. With representatives from all departments you will get a true understanding of how the business currently operates, before looking to automate it.

By involving the people who are going to use the system you will also get their buy-in from day one, so you can build an army of advocates across your business.

3. DON’T SIMPLY AUTOMATE YOUR CURRENT PROCESSES

Don’t be fooled into thinking that automation is a silver bullet that will solve all your warehouse efficiency issues. Sometimes you can’t simply automate your existing processes – often the way you work will need to change for automation to be effective.

For example, a customer who was manually handling parcels of all shapes and sizes from goods-in to put-away wanted us to automate this exact process by installing a conveyor and barcode system. Unfortunately there wasn’t a conveyor and barcode system within their budget to do this, due to the extreme variances in parcel sizes and barcode positions. Simply adding a conveyor and barcode readers was not the answer. Instead we began by looking at what the customer’s actual objective was e.g increasing the efficiency of goods-in and put away, and then re-designing the whole manual process, before automation was introduced for maximum efficiency.

Solution: Don’t think that simply automating your current processes will be the answer to your productivity challenges. Often automation goes hand-in-hand with process change. Keep an open mind and explore all improvement options, including those that will require the most drastic changes to your current operations. Work with a consultant who can provide simulations of a range of automation options and predict the potential savings to help you make an informed decision.

4. PLAN FOR A PERIOD OF TRANSITION

Installing a new automation system is not a static process and there will be a period of transition (and most likely pain) whilst your new technology beds in and employees get used to it. Don’t expect it to perform perfectly from day one and bring instant benefits – automation systems often need extensive testing and refinement.

Solution: Prepare your workforce for a period of transition, where they will need to be agile and flexible in their approach to their new way of working. Manage expectations in terms of system performance and set realistic goals in terms of productivity improvements.

Remember there are many ways to implement the new system, you can introduce it incrementally – module-by-module, or all at once. And there is no right or wrong method – the answer lies in what’s right for your business.

5. DON’T FORGET THE IMPACT ON THE REST OF THE BUSINESS

A new automation system will often have implications right across your organisation. For example, a new picking system will often need integrating with the ordering system. And whilst you may plan for the software integration, it’s easy to overlook that the team inputting the orders may need to do so differently going forward, to ensure the integration works.

Solution: Systematically work through every operational process to highlight areas where change will be required. Produce an action plan allowing plenty of time for each department to make the necessary changes, including developing new processes and training their teams to use new equipment – all to ensure a smooth transition.

6. PREPARE YOUR WORKFORCE FOR CHANGE

All too often companies introduce new systems without fully appreciating the importance of change management. Employees will often view new technology or process change with trepidation and caution; worrying about the impact on their role, which at best may change and at worst may no longer exist.

Solution: For automation to be successful you will also need to drive operational change. Change management is a well-established practice which should involve:

• Communicating the changes coming, why they need to happen and the impact they will have on the business
• Obtaining feedback and buy-in from all affected employees
• Ensuring an effective training programme for the new system

7. MEASURE AND CONTROL

Don’t implement automation without measuring the impact it has on your business.

Solution: Before your new equipment starts-up, make sure you have a good understanding of your current productivity metrics. After the change is implemented, measure and analyse the results and communicate the successes. If appropriate, you can then use the data to make further adjustments, based on reality, until you have an optimised system and your goals are met.

Going forward the data should be monitored so you can control your processes and maintain your new system’s productivity.

In summary, there are many factors to consider when embarking on a warehouse automation project. In this blog we’ve only had time to touch on a few of the most critical, but all have one thing in common – they involve getting buy-in from across your business and ensuring you look at the bigger picture.

If you would like support with your next automation project, please contact us and we’d be happy to provide a free consultation.