Peter Jones explains how automation and robotics, along with data, are shaping the industry and becoming useful and accessible tools for SMEs.
Automation and robotics are no longer exclusive to large corporations. These technologies are becoming increasingly affordable and accessible for small- and medium-sized enterprises (SMEs), leading to a new wave of transformation in warehousing and supply chain operations.
“Automation is allowing smaller businesses to stay in their existing facilities by increasing storage density and improving put-away and picking processes,” says Peter Jones, Managing Director of Prological.
This shift is enabling SMEs to transition from manual inventory control to integrated, digital-based systems, improving operational efficiency.
Maximising space efficiency
One of the benefits of automation is its ability to optimise space. Traditionally, smaller warehouses face limitations in how much vertical space they can utilise due to the size of mobile materials handling equipment and the need for wide aisles.
“Automation systems are agnostic to height,” says Peter. “This allows businesses to make full use of their floor-to-ceiling storage capacity and enables them to increase cubic metre storage per square metre of footprint.
“We’ve seen this transformation in two recent case studies, both in the apparel sector, where businesses that previously required 3000 sqm of warehouse space can now operate out of just 1500 sqm while maintaining the same product volume.”
While this two-to-one ratio may not quite work out in every environment, it exemplifies the spatial efficiency that automation and robotics can bring to smaller operations.
“In smaller operations, if you’ve got a 1500 sqm warehouse, you might traditionally have six to 10 people in the operation,” he says. “By automating the warehouse, you might only require three or four people.”
For SMEs, reducing the number of staff can translate into financial benefits, strong ROI, and enable increases in sales and/or market share due to the uplift in capability combined with a decrease in operating costs.
Upskilling the workforce
Adapting to automation requires a shift in the skillset of the workforce. The transition from manual to automated environments introduces new operational requirements, which can be a challenge for smaller businesses.
“The baseline skillset for operating in an automated environment is quite different from that of a manual one,” says Peter.
Smaller businesses typically employ workers with a broader but lower-level skillset compared to larger corporations. This creates a wider gap when transitioning to automation.
“While the headcount may decrease, the personnel that remain will likely need to be upskilled,” explains Peter.
Some workers will adapt to the new environment, while others may find the transition more challenging.
In contrast, larger businesses like Amazon have already embraced automation and hire staff based on the company’s specific needs for these systems.
The future of automation and robotics
Peter envisions a future where automation and robotics become the standard across all businesses, part
of the operational portfolio, regardless of size.
“There are many more small businesses than large ones, and as the technology becomes more accessible, automation will become the predominant environment for businesses by the end of the
decade,” he says.
One trend Peter points out is how smaller, entrepreneurial mechatronics engineers are building small nimble companies who are driving this new wave of innovation in automation.
“Smaller companies are coming up with solutions that even large automation providers are beginning to adopt,” he says, describing a “virtuous circle” of development.
As these smaller companies develop new technologies, larger businesses replicate and scale them, creating a continuous cycle of innovation and improvement.
This ongoing evolution is making automation more accessible and cost-effective for businesses of all sizes.
Whether through automated storage and retrieval systems (ASRS) or robotic picking solutions, these technologies are becoming more widely available and adaptable to a range of industries and operations.
Tailoring automation to business needs
The type of automation deployed often varies depending on the specific needs and stock profile of the business. For smaller operations, ASRS systems are beneficial, allowing goods to be stored in compact spaces and retrieved efficiently.
“Smaller environments lend themselves to specialised, small-scale ASRS systems,” explains Peter.
These systems use robots to put away and retrieve stock, improving efficiency without requiring large footprints. No fork lift isles, but floor to roof density.
On the software side, warehouse management systems (WMS) and transport management systems (TMS) are being integrated with warehouse control systems (WCS) to manage automation.
Initially, different types of automation required their own software systems, but now suppliers are offering platforms that can manage multiple types of automation.
“At the tier-one level, WMS and automation providers are starting to integrate each other’s systems,” says Peter, predicting further advancements in seamless integration between software and automation in the future.
The role of data
Automation is not just about robots and machines; data plays a critical role in making these systems work effectively.
“Data is the engine room,” says Peter. “If your data isn’t accurate, your automation won’t work.”
For businesses looking to transition to automation, it is essential to ensure that data is clean and accurate before beginning the process.
In Peter’s experience, no company has ever had data ready to integrate with automation at the start of a project.
He advises businesses to prioritise cleaning up their datasets, particularly customer, product, and order master files, to ensure a smooth transition to automation.
“Most automation integration issues fail due to incorrect data,” he says.
The growing accessibility of automation and robotics is transforming the landscape for SMEs, offering them the opportunity to increase efficiency, reduce labour costs, and optimise space utilisation.
Peter says these technologies are becoming indispensable for businesses of all sizes as they continue to evolve and become even more cost-effective.
“Proper data management, upskilling the workforce, and designing your system to benefit you today while scaling for tomorrow are the keys to your success.
For more information on Prological, click here.
