Maximising efficiency: The benefits of warehouse automation

What are AGVs and AMRs?

An AGV, or automated guided vehicle, is a material handling or load-carrying system that can travel in and around a warehouse following a predestined path without a human operator. These routes are fixed and guided by wires, magnetic strips or sensors. They are also known as self-guided vehicles, autonomous guided or mobile robots.

An AMR, or autonomous mobile robot, is similar to an AGV; however, it is equipped with intelligent navigation capabilities. It uses cameras, sensors, laser scanners, and software to construct maps and navigate autonomously, meaning it doesn’t need to rely on fixed routes.

Improved worker safety
A safer working environment provides a number of different benefits. As we mentioned earlier, automation can reduce the need for employees to perform higher-risk activities like climbing or stacking, allowing human workers to prioritise more brain-focused tasks. This also means that there will be less downtime due to illness or injury, creating a more productive workforce. Over time, this will help to improve the safety record for the company as a whole.
Automated warehouse systems, specifically AMRs, won’t just work seamlessly from the get-go. The safe use of one of these systems is not just down to the manufacturer (although they do play a big part); the end user also has some important responsibilities to fulfil in order for the system to function correctly. The majority of the time, this will start with a risk assessment that will identify and eliminate potential hazards in the workplace. AMRs are programmed to follow set paths, so ensuring that these areas are free of obstructions is essential. You can also set it to avoid specific areas or forbidden zones, as well as giving out a signal when it enters a high-traffic area. Many people have expressed their concerns about the safety of AMRs; after all, if a robot were to have a collision with something in its path, there could be significant damage or injury. However, manufacturers have listened to these concerns and added safety mechanisms to combat these situations, meaning that when you receive and unbox your machine, it will already be set up to protect your workforce.

Some quick statistics about warehouse automation
In 2020, it was stated that the global warehouse automation market is estimated to reach just over $27 billion by 2025, with AGVs forecast to hit $4.6 billion and AMRs $6.8 billion. This significant increase in the use of automation was due to the COVID-19 pandemic, as it allowed essential (and non-essential) businesses to continue running and reduced the adverse effects of isolation periods, as well as allowed companies to follow the rules of social distancing.

The warehouse automation industry is still only just starting to bloom, with more than 80% of warehouses still not having invested in any form of automation technology. In fact, only 5% of warehouses have implemented sophisticated automation technology within the last decade.

Around 65% of a warehouse budget goes into labour costs; however, inventory fulfilment is only correct around 63% of the time. The use of automation can reduce these error rates by up to 67%, meaning overall costs can be reduced by up to 30%.

A quick-fire summary
Hopefully, I have provided an overview of warehouse automation and how different forms of automation operate. Overall, the benefits of automation are proven, as its popularity continues to grow as the years go on. It helps to increase warehouse efficiency, improve employee safety, create a seamless process, and swiftly provide results to your customers.

Warehouse automation may not be for everyone, but it should definitely be considered as your business continues to grow.