The Seven Critical Steps To a Successful Warehouse Automation
Retailers are turning their attentions to warehouse automation. The reasons may be all too apparent, but the path to a successful project is not so obvious, writes Neil Adcock.
Why are omnichannel retailers suddenly taking an interest in automating their warehouses? Until very recently the retail sector had tended to shy away from making such investments, preferring instead to take on a large labour force to manually process orders. However, that thinking appears to be changing – and rapidly so.
A number of leading retail brands are now actively engaged in adopting high levels of automation. The reasons are clear to see, but the right approach needs to be taken if agility and operational performance are to be leveraged to full advantage.
Several significant factors have come into play to alter the balance between the use of man or machine. Firstly, shoppers are shifting online in a big way. The Office for National Statistics estimate that consumers spent £1bn a week with UK online retailers, up 20.7 percent. Internet shopping now accounts for 15.3 percent of all retail spending.
This massive and continuing growth in online purchases, with its requirement for single item picking, packing and dispatch, as well as increasing SKU proliferation, has placed a huge strain on finite labour resources in the all-important logistics hot spots. Even outside these areas, the pool of available labour is diminishing fast. The introduction of the National Living Wage has also significantly increased costs for highly staffed operations.
Brexit is another factor weighing heavily on the minds of those managing labour intensive operations. The big question is, will the availability of cheap labour from Europe ebb away in the wake of tighter border controls and the lacklustre appeal of a weaker currency? Then there are the competitive pressures within the market place.

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