How automated operations with robotics and AI-enabled services is revolutionising warehousing.

Material handling and warehousing are closely interconnected processes within supply chain management, and their synergy is crucial for optimising efficiency, reducing costs, and enhancing overall productivity. Efficient material handling is essential for successful warehouse operations, also minimising damage and loss of goods. Modern material handling and warehousing are highly automated operations with robotics and AI-enabled services bringing further advantages. Against this backdrop, what are some of the latest advancements in material handling technology that have significantly improved efficiency in warehouse operations?

“Remember the warehouses of yesteryears? Dusty warehouses filled with endless rows of shelves, a reliance on muscle power, and a whole lot of guesswork in managing inventory. But those days are fading faster than end-of-season markdowns. Today's warehouses are undergoing a metamorphosis, transforming into dynamic ecosystems driven by a powerful interplay of cutting-edge technologies. Warehousing 4.0 represents a complete material handling revolution, fundamentally reshaping how we approach logistics,” says Asim Behera, President, Daifuku Intralogistics India Pvt Ltd. Asim cites the examples of collaborative approach today as opposed to the siloed automation solutions of the past. Examples include high-bay automated storage and retrieval systems (AS/RS) of modular design and multiple configurations; Sorting Transfer Vehicles (STVs); agile AMRs; collaborative robots; or Daifuku's proprietary WareNavi WMS – the new AI-powered dynamos driving efficiency in distribution centres driven by the IoT network. “This tech revolution is about harnessing data to create a truly intelligent warehouse. Warehousing 4.0 is about collaboration – a powerful network of technologies working together to achieve peak performance. It's a testament to human ingenuity, and the future of how we handle and distribute goods is bright,” he says.

Prateek Jain, Co-Founder & COO, Addverb Technologies, agrees. According to him, some of the latest advancements in material handling technology that have revolutionised warehouse operations, making them more efficient and streamlined than ever before include: Autonomous Mobile Robots (AMRs); Automated Guided Vehicles (AGVs); Self-Driving Forklifts; Rail Guided Vehicles (RGVs); Sorting Robots; and the Warehouse Management System (WMS). “Advanced WMS software integrates with various technologies such as barcode scanners, RFID tags, and automated conveyor systems to streamline warehouse operations. WMS enables real-time tracking of inventory, efficient order fulfillment, and better utilisation of warehouse space,” he explains.

“In recent years, the landscape of warehouse operations has undergone a remarkable transformation, thanks to emerging technologies. These innovations have not only improved efficiency but also revolutionised how warehouses function. Let's explore some of the key advancements that have reshaped the warehousing industry,” says Chintan Oza, Entrepreneur & Mentor, and Founder, Anantam Ecosystems. To the systems mentioned above, he adds Drones for Inventory and Asset Management; Robots for Automated Order Packing; Advanced Batteries with extended lifespans powering warehouse machines like forklifts and robots; 3D printing, which has brought manufacturing closer to consumers; Digital Automation that replaces manual tasks; Warehouse Design Optimisation; and Mobile Devices and Wearables for streamlined communication and reduced manual efforts. “Emerging technologies have transformed warehouses into efficient hubs where automation, data-driven insights, and collaborative human-robot workflows converge. As we embrace these innovations, the future of warehousing promises even greater efficiency and agility,” he elaborates.

Warehouse Design Optimisation, as Chintan Oza mentioned above, is an important element in modern warehousing. Are there specific examples of how optimising warehouse layout and flow paths can enhance material handling efficiency?

“The layout of a warehouse significantly influences the efficiency of material handling systems. An optimised warehouse layout ensures seamless flow, accessibility, and effective space utilisation, which in turn enhances material handling efficiency. By strategically designing flow paths, warehouses can minimise congestion and streamline the movement of goods, leading to faster processing times and reduced risk of damage. Effective layout planning also involves considering the type and volume of goods handled, ensuring that high demand items are easily accessible, thereby reducing travel times and improving order fulfilment rates,” asserts Dhritiman Chakraborty, Director Operations, Ingram Micro India Private Limited, and cites three specific examples:

1. Zone layouts for pick paths: Implementing zone-based layouts in a warehouse can dramatically improve the efficiency of picking operations, which are crucial for order fulfilment.

2. Use of cross-docking: Cross-docking eliminates the need for storage in the warehouse by directly transferring goods from the inbound delivery vehicles to the outbound vehicles destined for customers or other locations.

3. Optimal placement of high turnover items: Placing high turnover items closer to the shipping and receiving areas minimises movement within the warehouse, thus reducing the time and effort needed to transport these items.

“Optimising warehouse layout and flow paths can significantly enhance material handling efficiency by streamlining operations and reducing unnecessary movements,” says Sunil David, Digital Technology Consultant, and provides some recent strategies and examples, which include:

∙         U-shaped layout: This layout is advantageous for its simplicity and effectiveness, allowing for a streamlined process from receiving to shipping.

∙         Use of right equipment: Equipment like forklifts, pallet jacks, and automated guided vehicles (AGVs) should be selected based on the specific needs of the warehouse, such as load capacity and maneuverability.

∙         Technology integration: Employing Warehouse Management Systems (WMS) and other automation technologies like automated storage and retrieval systems (AS/RS) helps in optimising the layout by automating inventory management and reducing manual handling.

∙         Workflow and space analysis: A thorough analysis of the warehouse’s space and workflow is necessary to identify bottlenecks and inefficiencies.

∙         Continuous improvement: Implementing a culture of continuous improvement through regular reviews and adaptability to change can further enhance efficiency.

 “By carefully considering these factors and employing strategic planning, businesses can create a warehouse layout that not only maximises space but also significantly enhances overall operational effectiveness and productivity. In India, several companies are actively optimising their warehouse layouts to enhance efficiency and productivity. One of them is WareIQ, which utilises advanced WMS to streamline operations. Another is Hopstack, which emphasises the use of digital tools to optimise warehouse layouts. These examples illustrate how thoughtful warehouse design, combined with the integration of advanced technologies like AI and comprehensive management systems, can significantly improve the efficiency and productivity of warehousing operations,” Sunil David elaborates.

For Purushottam Tatkar, Head of Contract Manufacturing IMEA, Henkel, warehouse simulation software applications have become very handy to design efficient warehouses for all movements and storage scenarios. These tools simulate to a large extent the expected bottlenecks for throughout expectations of the proposed warehouse. “These software tools very nicely and with a data driven way highlight potential traffic and cross movements. Certain decisions related to civil infrastructure cannot be changed later without huge cost implications. This is where simulation comes very handy. In my personal experience we change a number of docks for proposed warehouses based on simulation, which otherwise would have become a huge bottleneck for real operation. The right planning for holding, pre-batching, preparation areas considering throughput and flow expectations is possible with the help of automation. This ultimately helps achieve cost and efficiency targets set for the warehouse,” he explains.

AS/RS – Automated Storage and Retrieval Systems (AS/RS) – are computer-controlled and robot-assisted systems that can retrieve items or store them in specific locations. The system usually comprises predefined locations where machines can follow established routes to store and retrieve inventory items. How does AS/RS contribute to space utilisation and productivity within warehouses?

“These storage titans leverage stacker cranes for efficient retrieval and storage, maximising space utilisation for palletised goods (unit loads) or smaller items (mini-loads) within towering warehouse bays,” says Asim Behera. He cites the example of the Daifuku's high bay AS/RS solution that redefines warehouse capacity. “These cutting-edge technology systems, reaching heights of 10 to 40 meters, leverage stacker cranes for efficient retrieval and storage of both pallets (up to 1,500 kg) and smaller items (up to 50 kg). This isn't just about more storage; it's about maximising every cubic meter of your warehouse. Imagine quadrupling your density! The Daifuku's high-bay AS/RS goes beyond one-size-fits-all. Our modular design and multiple configurations ensure a perfect fit for warehouse operation,” he explains. The Daifuku high-bay AS/RS comes in two versions: Single-deep configuration – prioritises easy access for frequently retrieved items; and Double-deep configuration – maximises storage density for less frequently accessed items.

“AS/RS are advanced systems designed for precise storage and retrieval of carton and pallet loads. These systems utilise specific racking structures, ensuring maximum throughput accuracy and operational safety,” says Prateek Jain. According to him, AS/RS offer the following advantages:

∙         Vertical Storage: AS/RS systems utilise vertical space efficiently by storing goods in tall racks, maximising storage capacity within a smaller footprint.

∙         High-Density Storage: This high-density storage minimises wasted space and optimises the use of available cubic footage, increasing storage capacity.

∙         Dynamic Storage Allocation: AS/RS systems allocate storage locations based on inventory levels, demand patterns, and item characteristics.

∙         Automated Retrieval: Robotic arms, conveyors and shuttles are used to retrieve items from storage locations automatically. This eliminates the need for manual picking and reduces labour costs while speeding up order fulfilment and improving accuracy.

∙         Real-Time Inventory Management: AS/RS systems are often integrated with warehouse management software, providing real-time visibility into inventory levels, locations, and movements.

∙         Adaptability and Scalability: AS/RS systems can be customised and scaled to accommodate changing storage needs and business growth.

“AS/RS offers warehouses numerous benefits. Firstly, they excel in maximising space utilisation by vertically storing items, taking advantage of high ceilings inaccessible to traditional shelving methods, thus enabling warehouses to accommodate more inventories within a limited space. Additionally, AS/RS significantly boost productivity by automating the retrieval process, eliminating the slow manual picking method and expediting order fulfillment,” says Chintan Oza. “Moreover, these systems ensure accuracy in inventory management through computer-controlled locating and retrieving mechanisms, minimising picking errors and guaranteeing precise orders. Furthermore, AS/RS contribute to reducing labour costs by automating retrieval tasks, thereby decreasing reliance on manual labor and potentially lowering overall operating expenses. Lastly, these systems enhance safety by eliminating the need for workers to engage in potentially hazardous activities such as climbing ladders or navigating risky areas to access stored items,” he elaborates.

Material handling equipment is an important part of any warehouse. From receiving the materials, storing and retrieval, there is a seamless movement of materials within the warehouse. What strategies do companies employ to integrate material handling equipment with inventory management systems for better tracking and control of stock levels?

“The synergy between material handling equipment and inventory management systems is crucial for maintaining accurate stock levels and ensuring efficient operation. By integrating systems such as Warehouse Inventory Management Software (WMS) with material handling solutions, warehouses can achieve real-time visibility into stock movements, improve put-away processes, and enhance the utilisation of handling equipment. This integration facilitates accurate tracking of inventory, aids in efficient order picking, and ensures timely replenishment of stock, thereby minimising the risk of stockouts and overstocking,” says Dhritiman Chakraborty.

According to Sunil David, companies employ a range of strategies to effectively integrate material handling equipment with inventory management systems to enhance the tracking and control of stock levels. In his view, some key strategies are:

∙         Automation and robotics: Many companies use automated material handling equipment such as AS/RS, conveyors, and robotic pickers that are integrated with their WMS.

∙         Barcoding and scanning: Implementing barcode technology and scanning equipment is a common strategy.

∙         IoT and connectivity: The Internet of Things (IoT) plays a crucial role in connecting material handling equipment with inventory management systems.

∙         Data analytics and machine learning: Advanced data analytics and machine learning algorithms can analyse data collected from material handling equipment

∙         System integration platforms: Companies often use enterprise resource planning (ERP) systems that integrate various subsystems including inventory management and material handling operations.

∙         Custom software solutions: Depending on specific needs, companies might develop or customise software solutions that allow for better integration between material handling equipment and inventory management systems.

“These companies exemplify how integrating material handling systems with advanced inventory management solutions can lead to more streamlined operations, better inventory accuracy, and overall increased productivity in the warehouse environment. Such integrations are crucial for modern businesses looking to optimise operations and reduce overhead costs associated with manual inventory management and material handling,” says Sunil David.

“Use of Automated Guided Vehicles (AGVs) has already started making in-roads in mammoth warehouses. Many 3PLs now operate mega warehouse spaces and deploy automation solutions beyond manually operated pallet trucks to keep the speed of operation. Unless these automated vehicles are linked to WMS systems providing real time commands for the tasks, operations can never achieve required speed, efficiency and intelligence,” says Purushottam Tatkar. “The biggest challenge of achieving RoIs in all these automations lies in achieving maximum utilisation delivering peak output and savings,” he adds.

In your experience, how does the integration of robotics and automation impact labour efficiency and overall operational costs in warehousing?

“I've witnessed countless trends come and go. But the rise of robotics and automation isn't a passing fad – it's a full-blown revolution. It's fundamentally reshaping how we approach efficiency and cost control in our warehouses, and let me tell you, it's an exhilarating ride. Forget the dystopian visions of robots stealing every job. The reality is far more strategic. Automation tackles the repetitive, physically demanding tasks that drain human energy and focus,” says Asim Behera, and goes on to cite several examples:

∙         Pickers Unleashed: High Speed Sorting Transfer Vehicles (STVs) and Autonomous Mobile Robots (AMRs) become the tireless runners, fetching goods and delivering them directly to pickers.

∙         Ergonomics on Steroids: Heavy lifting and precarious ladder climbs become relics of the past. Robotic arms and Automated Storage and Retrieval Systems (AS/RS) take over these physically demanding tasks, reducing workplace injuries and boosting worker well-being.

∙         Labour Optimisation: Automation allows for smarter staff allocation, potentially leading to a smaller team focused on higher-value activities. Helps HR Managers to plan and allocate teams efficiently.

∙         Faster Throughput, Tighter Footprint: Automation accelerates picking and packing processes, allowing you to fulfill orders faster. This translates to potentially needing less warehouse space, as faster movement means you can optimise storage utilisation and potentially downsize your footprint.

∙         Inventory Accuracy on Autopilot: Robotics and automation minimise error in picking and put-away processes.

“The future of warehousing lies in a collaborative environment where humans and robots work together, leveraging the unique strengths of both. Human ingenuity meets robotic precision to create a truly intelligent and efficient warehouse ecosystem. It's not about replacing humans; it's about empowering them to do their best work,” says Asim Behera.

Prateek Jain is of the view that robotics and automation have greatly improved labour efficiency by automating repetitive and physically demanding tasks. This allows human workers to focus on more complex and value-added activities, leading to increased productivity and throughput in warehouse operations. Moreover, robotics and automation can help mitigate labour shortages and fluctuations in demand. With automated systems in place, warehouses can operate consistently and efficiently regardless of staffing levels, reducing the need for temporary or additional labour during peak periods.

“In terms of operational costs, while the initial investment in robotics and automation technologies can be significant, the long-term benefits often outweigh these costs. Automation reduces labour costs by minimising the need for manual labour and decreasing reliance on temporary or seasonal workers. Additionally, automation can lead to savings in areas such as reduced errors and product damage, optimised inventory management, and lower energy consumption. Overall, the integration of robotics and automation in warehousing not only improves labour efficiency but also contributes to lower operational costs and a more streamlined and agile supply chain,” says Prateek.

Chintan Oza lists out a few points that can effectively bridge the labour efficiency and overall operational costs equation:

∙         Robotics and automation are transforming Indian warehouses. They accelerate order fulfillment through tireless robots, potentially reducing labor costs with smarter task allocation.

∙         While automation might displace some jobs, Indian institutions can bridge the gap by reskilling the workforce for tasks like robot maintenance and data analysis.

∙         The high upfront investment can be tackled through government incentives, and smaller warehouses can benefit from exploring modular or collaborative robotic solutions. 

∙         Investing in a reliable power grid and exploring alternative energy sources are also crucial for smooth operations.

“By embracing the above strategies, India can unlock automation's potential to streamline warehousing and boost its logistics sector,” he says.

What are some key safety considerations and best practices in material handling and warehouse operations, particularly when implementing automated systems?

“Implementing automated systems in material handling and warehouse operations brings significant efficiency improvements but also introduces specific safety challenges,” says Sunil David, and also lists out a key points for safety considerations and best practices to ensure a safe work environment:

Training and education: Ensure all staff is thoroughly trained on new technologies and equipment.

Risk assessment and planning: Conduct detailed risk assessments before implementing any new automation technology.

Maintaining clear pathways: Automated systems like AGVs and robotic pickers require clear paths to operate effectively and safely.

Regular maintenance and inspections: Automated equipment should be regularly checked and maintained according to the manufacturer's recommendations.

Physical barriers and safety guarding: Install physical barriers or safety guards where necessary to protect workers from automated equipment.

Emergency stop controls: Ensure that emergency stop controls are accessible throughout the facility.

Integration with safety management systems: Automated systems should be integrated into the existing safety management protocols of the warehouse.

Use of protective equipment: Require workers to use appropriate personal protective equipment (PPE) based on the specific risks associated with automated machinery.

“By adhering to these safety considerations and best practices, companies can significantly mitigate the risks associated with integrating automated systems into material handling and warehouse operations. This careful approach ensures not only the efficiency but also the safety of all personnel involved,” says Sunil David.

“Safety aspects are of paramount importance in the selection of any automation system. Any warehouse operation is a high risk operation considering various hazards each activity carries inherently like fall, collision, spillage, wrong chemical compatibility, etc. Each hazard has the potential to inflict human injuries. Therefore it is imperative that interlocks and safety measures are well thought through in both hardware as well as software for automation. This can be achieved only when safety is considered as an important top priority right from the design stage. Risk assessments and FMEAs are required to be done for each process step and based on risk priority numbers mitigation actions need to be defined and implemented thoroughly,” says Purushottam Tatkar. According to him, the right balance of hardware and software measures need to be incorporated as mitigation actions. For example, chemical storages; chemical compatibility of storage of materials is super important which can not be left to human decision making. In case of automated warehouses, software can be built with inbuilt programs which will assign locations only based on chemical compatibility based on surrounding already stored materials. “Another example would be use of AI for location allocation to material based on FMS classifications, which reduce time to retrieve fast moving materials and improve warehouse throughputs,” he points out.

“Implementing automated systems in material handling and warehousing operations necessitates a focus on safety considerations and best practices. It is crucial to ensure that automated systems are designed with safety in mind, incorporating features that prevent accidents and injuries. Regular maintenance and inspections are essential to ensure the proper functioning of automated equipment. Training employees on safe operation practices and emergency procedures is also critical. Furthermore, it is important to design workspaces that accommodate both automated systems and human workers, ensuring a safe and efficient coexistence,” explains Dhritiman Chakraborty.

“Advancements in material handling and warehousing technologies have been transformative, driving efficiency, accuracy, and productivity to new heights. As we continue to embrace these innovations, it is essential to maintain a focus on safety, integration, and strategic planning to fully realize the benefits of these advancements in the supply chain domain,” he concludes.

Note: The responses of various experts featured in this story are their personal views and not necessarily of the companies or organisations they represent. The full interviews are hosted online at https://www.iedcommunications.com/interviews)