Prological Managing Director, Peter Jones, discusses with MHD the importance of tailoring automation and robotics solutions to clients’ specific environments, tasks, and needs, and why consultancies are essential in guiding these processes.
Automation and robotics are irrevocably changing warehousing and supply chain management. Yet, despite the incredible potential these technologies hold, there’s a crucial caveat: there is no one-size-fits-all solution.
This was a key insight shared by Peter Jones, Managing Director at Prological who’s a seasoned consultant in the field, whose expertise sheds light on the nuanced approach necessary for successful implementation of automation systems.
“There is no one-size-fits-all solution in robotics and automation,” says Peter. This statement underscores the diversity in needs across different clients and environments.
Automation solutions are tailored to specific situations. Consequently, what works well in one setting might prove suboptimal in another. This is a critical understanding that can save companies from costly mistakes.
Understanding the context: the key to successful automation
A clear analogy illustrates this point. Imagine a family of five needing a new car. A sleek Mazda MX-5 might be a fantastic vehicle, but it wouldn’t be practical for a large family. Similarly, a business might be sold on an impressive piece of robotics technology, only to find it ill-suited for its specific needs.
“It’s not about the tool itself being good or bad,” explains Peter. “It’s about whether it’s the right fit for the task at hand.”
Salespeople in the automation industry excel at showcasing their products, often using impressive case studies and success stories. However, these examples are typically tailored to specific environments and tasks.
Changing the client, environment, or task profile can make even the most advanced technology unsuitable. This is where an objective consultant becomes invaluable.
Navigating the complexities of automation
Consultants bring a broad understanding of the myriad options available within the automation landscape. They help clients discern which technologies will genuinely benefit their operations, rather than simply relying on the most compelling sales pitch.
“A higher level of complication arises because very few environments will be best served with just one type of automation solution,” notes Peter.
For instance, Autonomous Mobile Robots (AMRs) are excellent for specific tasks but might not be as effective for others. In larger operations, integrating multiple technologies often yields the best results.
However, this introduces another layer of complexity: integrating different systems and managing various suppliers. Here, consultants help strike a balance between the perfect automation solution and the practicalities of system integration and sustainability.
Financial and Operational Considerations
The stakes are high in automation investments. These technologies require significant capital expenditure and have long return on investment (ROI) cycles.
Despite the potential for substantial operational efficiencies and service improvements, a misstep can result in suboptimal performance and wasted resources.
Peter warns, “It can be very easy to put $20 million, $50 million, or even $100 million into a facility and end up with a solution that doesn’t quite fit.”
This financial risk underscores the importance of making well-informed decisions. The benefits of automation – reduced operational costs, faster fulfilment, and improved inventory control – are contingent on selecting the right technologies and integrating them effectively into existing systems.
Transforming warehousing: the new norm
Automation is not only changing how warehouses operate but also how they are designed. Peter explains that high capital expenditure on automation can lead to significant savings in footprint and leasing costs.
“Many modern automation solutions are agnostic to height, enabling the use of taller warehouses with smaller footprints,
“We have examples in Sydney of warehouses over 20 metres high with very high levels of automation,” Peter points out.
Such designs challenge the traditional warehouse model, which typically involves large, sprawling facilities.
The Amazon facility at Erskine Park, for example, uses multiple low-height floors for AMRs, with a total building height of 26m, maximising both floor and cubic space efficiency.
Similarly, the Woolworths National DC at Moorebank is over 45 metres tall, an automated pallet facility at 44,000 sqm. This demonstrates the potential of automation led, vertical warehousing, a principle that can start making sense at as small as 10,000 sqm in a traditional build.
The human element: adapting to new roles
The introduction of advanced automation technologies significantly alters the roles within a warehouse. In highly automated environments, the nature of work shifts from manual, person-to-goods tasks to more static, goods-to-person workflows. This change reduces physical movement but increases the need for focus and adaptability.
“People need to be changing tasks every 90 minutes to two hours to avoid monotony and potential health issues.”
Additionally, the type of person suited for these roles changes. Automation environments require individuals who can maintain concentration on a narrower range of tasks without the traditional stimuli of a bustling warehouse,” Peter explains.
The role of artificial intelligence
Artificial intelligence (AI) is often hailed as the next big thing in warehousing and supply chain management. However, according to Peter, there isn’t a role, yet, for AI in the warehouse environment that tier-one warehouse systems can’t already handle.
“While AI has proven transformative in predictive tasks such as inventory management and forecasting, its applications within the physical warehouse are limited and the capabilities some discuss are already present in advanced warehouse management systems (WMS),” says Peter.
AI shines in areas involving complex predictive analytics and big data, but in the realm of day-to-day warehouse operations, existing systems are already highly sophisticated.
“For example, WMS can interleave tasks to minimise dead running, significantly improving efficiency,” says Peter. “Eventually AI may find a more substantial role, but for now, its impact in the warehouse is more evolutionary than revolutionary.”
The imperative for expert guidance
Given the high stakes and complexities involved, engaging with a specialised supply chain consultancy like Prological is crucial before investing in automation and robotics.
As Peter highlights, “The world of automation is full of traps and pitfalls led by some of the best salespeople. An objective consulting team can guide you through this intricate process.”
Consultants bring an unbiased, experienced perspective to help businesses navigate the maze of options, ensuring that decisions are well-informed and aligned with long-term goals.
They assist in designing tailored solutions, developing accurate business cases, and managing the cultural and operational changes that come with automation.
Looking to the future
In the next decade, automation is expected to become normative in most businesses, much like barcoding did in the late 90s and early 2000s. However, this shift will also bring challenges, particularly regarding existing warehouse infrastructure.
Many traditional warehouses are not designed for the demands of modern automation, from slab specifications to vertical space utilisation.
Peter’s insights paint a future where automation is not just an operational advantage but a necessity.
Businesses that fail to adapt may find themselves left behind in an increasingly automated world. This is why the journey towards automation must be undertaken with careful planning, expert guidance, and a clear understanding of both the potential benefits and inherent challenges.
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