6 major benefits of smart warehouses for businesses

Warehouse optimization

Warehouse optimization

Traditional warehouses are labor-intensive. They involve a lot of human workforce and manual operations that could lead to higher error rates. Smart warehousing reduces the need for human work.

Faster delivery, fewer returns

Faster delivery, fewer returns

A survey conducted in 2021 found that over 40% of consumers in the United States anticipated their online deliveries to arrive within two to three days.

Reduction of operating costs

Reduction of operating costs

A smart warehouse system contributes to cost savings. Thanks to smart equipment monitoring and advanced analytics, you can get timely alerts about a high downtime risk and save on equipment repair.

Real-time tracking throughout the supply chain

Real-time tracking throughout the supply chain

In traditional warehouses, employees have to wait for days or even weeks for reports to come. With IoT, you can get real-time data on the traffic flows and optimize them right away.

Better adaptability

Better adaptability

Warehouses that are proactive in embracing new technologies and efficient space utilization are better equipped to respond to shifting market demands and operational adjustments.

Increased accuracy of warehouse operations

Increased accuracy of warehouse operations

Ensuring high-quality data is crucial in leveraging the value of a warehouse. The quickly and accurately logged data gives more opportunities to use the information across various business departments.

Salamat Andishan Beh Shafa

What is a smart warehouse?

It’s an IoT-enabled warehouse that uses hardware and software technologies to automate workflows and drive efficiency. In a smart warehouse machines, computing devices, and objects are interconnected to make a single network. Via this network, you can transmit the instantly collected data, analyze it, and use it to your benefit. Many agencies still use traditional methods of managing warehouse space, sales, storing, picking, and supply chain planning. However, they can be enhanced with smart warehouse systems and increase their competitive advantage.

A smart warehouse relies on technologies like sensors, RFID tags, and robots to monitor goods’ movement and inventory levels. This data is collected and transmitted to Warehouse Management Software (WMS), which generates instant reports on stock levels, order fulfillment rates, goods’ shelf life, and more. Using this information, warehouse managers can identify bottlenecks and optimize the flow of goods to ensure timely and hassle-free delivery of products.

Key technologies of smart warehouse

RFID, IoT sensors, and AI algorithms are all smart warehouse technologies. Let’s explore them further.

  • AI-powered software: Artificial Intelligence analyzes the collected data to optimize your decisions. For instance, it can use previous-month ordering statistics, analyze reports, and make calculations and forecasts about the product demand for the next month. Thus, you can optimize your placement of goods and order amounts.

  • Guided automated vehicles (AGVs): Automated guided vehicles, also called AGVs, such as pallet carts and forklifts are self-guided and follow digital paths within the warehouse. These vehicles load and unload containers, boxes, and pallets.

  • IoT in warehousing: Warehouse processes can be optimized with IoT systems. If you need to speed up your packaging and shipping and deliver goods to customers fast and flawless, IoT might be just what you need. Connected shelves can inform you of the low stock of items, theft, or damage every time it happens. IoT sensors have gained a longer battery life and their costs have decreased, so it’s a good place to start smart warehousing.

  • Radio-frequency identification (RFID) tags: These are tags attached to individual goods or packages to transmit information to a central database. All the data is sent via electromagnetic signals. The products with RFIDs can also be scanned at a distance for easier storing, finding, and managing.

  • Robots and drones: Modern robotics boost the speed and accuracy of warehouse operations and ensure the safety of workers and equipment. AGVs can collaborate with humans or other robots to move items around the warehouse. By using voice-automated order picking, a user can identify a pallet, which a robot can then lift and transport to the required location. Drones can perform inventory-related tasks such as locating objects, conducting stocktakes, and performing cycle counts. Collaborative robots, or cobots, work alongside human workers to automate tasks such as machine feeding or material handling and complete laborious or repetitive tasks.

There are 3 types of WMS software you can use

1

WMS system as a standalone solution

Such software works in isolation from other enterprise systems. It will require additional steps to customize and integrate with other processes.

2

Cloud-based WMS system

This system is more flexible, scalable, and relatively easy to recover in case of malfunctions.

3

WMS system integrated into ERP as a module

Via an ERP-based system, you can handle accounting, shipment, and parts that are still to be manufactured before the order is ready for delivery.