Despite growing fears surrounding automation in the supply chain and logistics industry, the blend between human intellect and automation can truly unlock the future of the industry. Automation’s true potential lies in empowering workers and opening the door to a world of integrated possibilities. John O’Kelly, Founder and CEO, Newcastle Systems, discusses the growing need for automation and why that doesn’t mean you must fire your workforce.
The supply chain and logistics industry is experiencing a profound transformation driven by the convergence of cutting-edge technology and human expertise. While many fear that automation will render human workers obsolete, the reality is quite the opposite. Instead of replacing jobs, automation is redefining roles, enabling workers to focus on higher-value tasks while optimising warehouse operations. The key to success lies in fostering a seamless collaboration between people and machines to create smarter, more efficient warehouses.
As businesses prioritise speed, accuracy and customer satisfaction, automation is pivotal in revolutionising operations. However, successful warehouse management goes beyond mere efficiency – it also directly impacts customer experience. Faster, more accurate fulfilment and streamlined logistics ensure that customers receive their orders as expected, reinforcing brand trust and loyalty.
The rise of automation solutions in warehouses
Conventional methods have placed an increasing burden on warehouse workers, particularly with the growing demand for next-day delivery, overnight returns and other high-efficiency expectations. Consumer expectations have skyrocketed, putting immense pressure on human workers to meet unrealistic demands. Simply hiring more staff or working faster is not a sustainable solution. Instead, businesses must develop comprehensive strategies that leverage innovative automation to handle these evolving market demands.
Warehouses that integrate automation gain increased efficiency, expedited order processing, reduced errors, enhanced visibility, scalable operations and the capability to function around the clock. These enhancements streamline logistics, translating into improved customer satisfaction. Reduced order errors, faster shipping times and real-time tracking capabilities mean customers receive their goods accurately and promptly, reinforcing a positive shopping experience. While these solutions are transformative for warehouse operations, they do not eliminate the need for human workers.
Why human labour remains essential in warehousing
Despite the rapid adoption of automation in warehouses and distribution centres, human intervention remains critical. What is evolving, however, are the roles employees play in collaboration with technology. Automation handles repetitive, labour-intensive tasks, freeing up workers to focus on complex, adaptive and high-value activities. Here’s why human labour remains indispensable:
- Cost-effectiveness: While automation can lead to long-term savings, its initial investment is significant. For many small and mid-sized warehouses, keeping a workforce remains a practical choice for tasks that technology alone struggles to manage efficiently. Human workers help bridge the gap where full automation is not feasible.
- Adaptability and flexibility: Machines excel at performing repetitive tasks but struggle with handling unexpected changes. Humans can quickly adapt to shifting priorities, such as managing last-minute order modifications, addressing inventory discrepancies or responding to urgent shipping requests. This flexibility ensures that warehouses can maintain a high level of service, even in unpredictable circumstances.
- Dexterity and precision: Although robotics have made great strides, they still lack the dexterity to handle fragile, irregularly shaped or highly specialised products. Human workers are essential for delicate tasks that require a careful touch, ensuring that items reach customers in perfect condition.
- Critical thinking and problem-solving: Automation systems can experience failures due to power outages, software glitches or mechanical breakdowns. Human workers bring problem-solving skills to the table, enabling quick resolutions that keep operations running smoothly. Their ability to troubleshoot and make on-the-spot decisions is invaluable for maintaining efficiency and preventing delays in order fulfilment.
Humans and machines collaborating in the warehouse
The integration of Artificial Intelligence and advanced automation in logistics has ignited a rapid push toward modernisation. For over a decade, technologies like automated conveyor systems, autonomous forklifts and robotic pickers have been reshaping the industry. However, the most successful implementations strike a balance between technology and the human element. Automation serves as an ally to warehouse workers, complementing and enhancing their capabilities rather than replacing them. Here are some examples of how people and machines collaborate in warehouse environments:
- Automated guided vehicles (AGVs): AGVs move heavy goods across warehouses, boosting efficiency and minimising the risk of strain-related injuries for workers. By automating transportation tasks, workers can focus on higher-value responsibilities that require human judgment and expertise.
- Mobile-powered carts: These ergonomic workstations bring tasks directly to employees, minimising unnecessary walking and optimising workflow. Equipped with wireless automation solutions, mobile-powered carts allow workers to input data, receive instructions and complete tasks more efficiently, reducing processing times and improving order accuracy.
- Voice picking technology: Warehouse workers can use voice-picking automation to receive verbal instructions for picking orders, eliminating the need for paper checklists. This hands-free approach speeds up order fulfilment and reduces errors, directly enhancing the customer experience by ensuring that the correct products are shipped every time.
- Collaborative robots (Cobots): Unlike traditional industrial robots, cobots are designed to work alongside humans, assisting with repetitive tasks like order picking, pallet loading and quality control inspections. By reducing physical strain and increasing efficiency, cobots help warehouses maintain a consistent level of productivity while supporting human workers.
- Automated storage and retrieval systems (AS/RS): These systems efficiently manage inventory storage and retrieval, ensuring that products are organised and accessible. Human workers oversee these systems, directing operations and addressing any inventory issues. AS/RS solutions improve inventory accuracy and reduce the likelihood of stockouts or misplaced items, contributing to a seamless customer shopping experience.
The impact on customer experience
Efficiency in warehouse operations is no longer just about internal cost savings – it directly affects the end customer. Today’s consumers demand fast, accurate and transparent fulfilment processes. Businesses that successfully integrate automation with human expertise can meet these expectations more effectively, resulting in:
