Siggins blog

You may not need robotics to overhaul distribution efficiency

It isn’t your first day running a distribution center. You probably know automated picking solutions are on the market. 

They’re elegant, efficient and precise. They invite you to imagine your distribution center otherwise — as a facility designed for maximum throughput with minimal labor. 

But here’s the problem. You probably don’t need one. And if your facility isn’t the right fit for automation, investing millions of dollars in it could cripple your business without a glimpse of ROI.   

That’s not to say no one should pursue automation. At Siggins, we design and implement robotic solutions for warehouses all the time. We know these solutions can transform distribution centers, clearing congestion and creating scalable infrastructure to meet future demand. 

But 9 out of 10 times, a distribution center would be better served with a less flashy upgrade (we do those too). And although they aren’t always head-turners, they can deliver dramatic change —think a 50% decrease in labor, 30% reduction in space utilization and more throughput — at a fraction of the cost.

 

So how do you know what kind of solution you need? And what kinds of non-robotic solutions are out there, anyway? Let’s talk about it.

Start with design principles

For plenty of distribution centers, the most sensible path to improved throughput involves little to no new equipment. It happens through smarter design. 

What that looks like depends on your facility. But here’s the essential point: Before making large equipment purchases, pay close attention to your operating methodology. The solution for your throughput issues may lie in a rearrangement of your current assets or in process improvements. 

A straightforward example: Don’t treat every SKU the same. Not every SKU has the same value, sells at the same velocity, has the same weight or occupies the same amount of space. Those factors need to influence how your product is stored.  

If employees are frequently waiting around to access the same product, that means the product should be distributed more efficiently around the warehouse. We’ve seen distribution centers where workers need to use lifts to access high-demand SKUs, all while products on ground level remain untouched. 

It takes a site survey from an expert to identify tech misapplications and other, more tailored improvements to your current operations. And while this kind of systems integration work is affordable, it’s often neglected.  

While there is a practical limit to how much improvement you can expect without new tech, you need to know you’re hitting that limit (at least on paper) before making a big purchase.

Investing in new tech? Implement in stages

Too many DCs jump to buying a shiny new robotic system they aren’t ready for. They’re purchasing an upmarket tuxedo even though they’re hosting a backyard barbecue: It’s not just a bad choice, it’s a liability. 

So to know what equipment you might want to consider, you’ll need to know what kind of facility you’re already running.  

Warehouse systems can be characterized as:

• Manual: The bulk of labor is performed by humans and carts. 
• Mechanized: Machines significantly reduce human labor. Think conveyor systems or forklifts. 
• Automated: Machines perform most labor, with some human assistance. For example, an OPEX Perfect Pick. 

At Siggins, many of our clients come to us with primarily manual operations. This often looks like a serpentine picking system: Workers wheel carts around the warehouse, weaving through aisles.  

For those clients, our first step is to reduce the amount of walking within the warehouse. That generally looks like a combination of upgrades to mechanized tech and warehouse design best practices like separating, concentrating and specializing your workforce and assets. With a far lower price point, mechanized solutions provide a more immediate, stable ROI. 

As demand grows, pursuing an upgrade to semi-automated tech is a smart decision. That’s why we often design phased systems integration plans, implementing more advanced tech a few years down the line and ensuring the tech we install right now is flexible enough to suit those future plans.

Opt for smart upgrades over flashy ones 

Your facility might truly be a perfect fit for a goods-to-person robotic system right now. And as a holistic systems integrator, Siggins can recommend and install this equipment while ensuring it doesn’t outpace the rest of your operations. 

But to protect your business, make sure your goals aren’t better served by other solutions first. In addition to, or instead of, a new robotic picking system, we might recommend:

• Conveyors
• Carton or pallet flow racking
• Vertical lift modules
• Pick-to-light systems
• Carousels
• Different or additional racking and shelving
• A new WMS 

While they aren’t as glamorous as more expensive robotic solutions, all these technologies have advanced significantly in recent years. And aside from a lower price point, this equipment can be installed faster with less troubleshooting and maintenance involved post-implementation. 

That’s not to say all of these upgrades are necessary before pursuing automation. We’ve worked with warehouses implementing automated picking systems without a WMS, because they have no issue tracking inventory and this technology suited their throughput needs.

So, what next?

We’re not trying to discourage you from pursuing automation. We’re just speaking to you the way only a solutions-agnostic systems integrator can. 

Most systems integrators have financial ties to certain manufacturers. They’re inclined to install their partner’s equipment in your facility, even if it’s not the right choice.  

Siggins doesn’t do that. We observe your unique operation, chart the most secure path to your goals and lead you to scalable, streamlined distribution. 

Contact a Siggins representative to discuss improving your distribution center. You’ll be surprised how fast we can be on site. Request a site survey now.