Warehouse automation – why it doesn’t have to be the warehouse worker’s enemy

The positive impact that warehouse automation can have on efficiency and productivity is hard to dispute.   Business after business can provide evidence of how their conveyor systems, AGVs and warehouse software systems have led to increases in throughput, improved accuracy and reduced operational costs.

Yet, every upside has a downside.  In November 2017 the McKinsey Global Institute estimated that robots will displace as many as 800 million workers – or 30% of the global workforce – by 2030.  And, in the UK, 20% of current jobs will be automated over the same period ¹.

So, is automation the enemy of the warehouse worker?  We think not.  This blog looks at the positive impact warehouse automation can have on the UK’s warehousing and logistics labour force.

 Saving the skills shortage

Across the UK’s logistics industry (and others) there is a growing shortage in the supply of skills and labour.  And with Brexit on the horizon, this threatens to get worse with fewer immigrant workers to employ.  The U.K.’s Office of National Statistics reports that immigration has already declined since the vote, with net migration down 31.5% between June 16 and June 17².

Automation has been identified as one of the ways to help overcome this challenge.

It’s a well-known fact that labour shortages can lead to higher wages and operational costs.  And in an industry where keeping overheads down is critical to competitiveness, organisations are looking to automation to reduce their reliance on employing people.

Investing in warehouse automation reduces the risk of a fluctuating labour market and offers steady and predictable performance rates.

Improving health and safety of workers

In the same way that a forklift truck helps alleviate the issues of lifting heavy pallets, automation can have a similar positive impact on the day-to-day safety of employees in a warehouse environment.

Warehouse automation is helping to replace manually-intensive and physically-demanding jobs, reducing the need for lifting, working at height and entering hazardous areas.  Advancements in robotics are making it more common for robots and computers, or ‘cobots’ to help human workers do their jobs in a safe manner, allowing them to complete tasks with precision, leading to fewer mistakes and accidents.

New job opportunities

With machines carrying out menial warehouse activities and delivering greater efficiencies whilst doing so, human workers can be upskilled to perform more fulfilling and interesting work.

Automation is driving the creation of new job types, such as in systems programmers, data analysts, mechanical and electrical engineers.

Supporting unskilled workers

Despite automation, there are still many functions in a warehouse that require manual intervention, for example, picking small products or complex orders.  So the need for proficient workers is still top of the agenda for many logistics companies.

Automation in the form of warehouse management systems (WMS) can help make it easier for businesses to recruit, train and empower lower skilled workers.   Due to the intuitive and easy-to-use nature of WMS, unskilled workers can get up-to-speed with their new role fast, using the system to guide them through their role and making them productive from almost day one.

In conclusion…

Consumers are demanding goods quicker and cheaper than ever before, forcing retailers and their suppliers to maximise efficiency whilst keeping overheads low.  Automation, therefore, with its wealth of productivity benefits, is arguably- inevitable.  However, we hope this blog has helped show how warehouse automation can also have some positive impact on the labour market – helping alleviate labour shortages, creating new jobs and improving the working environment.

Do you need to investigate the benefits of warehouse automation?

If you’re considering introducing or increasing the level of automation in your warehouse, it’s essential to identify your precise requirements, both now and in the long-term. You want to be sure your investment delivers its forecasted ROI, but also that you don’t over-specify and introduce a system too advanced for your operational needs.

Enrol the help of a warehouse automation consultancy from day one – contact us today.

1 http://www.bbc.co.uk/news/business-43259903

2 https://www.technologyreview.com/s/609720/robots-wont-save-the-uk-from-a-brexit-labor-shortage/