How to prevent bottlenecks and find the right warehouse automation and optimization system?

Warehousing is an essential component of the supply chain management of a company. The main concern in regard to efficiency and productivity still lies within the logistics, cost control and cost reduction. Warehouses manage the inflow, storage and outflow of different types of inventories. 

The development in transport and rise in commerce have led the supply chain industry to evolve rapidly. Warehousing, which once was just a tiny part of the supply chain, is now a significant part that helps drive businesses forward. This has been particularly true for the last couple of decades. The digitization of warehousing methods pivoted businesses and major e-commerce organizations toward implementing modern technology and automation for processes and for managing warehouses. 

In the early days, warehouse automation meant massive, fixed systems that required a lot of money and months to years of closures to complete implementation. 

Today, warehouse automation has come a long way. Systems are flexible, adaptable and more effective than ever before. There are traditional technologies that are adding new capabilities to their legacy systems.

 

 

Implementation of the AS/RS brought many advantages. It reduced labor costs and helped achieve seamless processing and logistics. But that’s not all. One of the main advantages was the tall vertical storage aisles that enabled faster access to inventory and maximized storage space. This innovation made us rethink traditional warehousing. 

But no matter how much innovation and technology exists out there, there are challenges that we have to tackle in order to improve operational processes for a warehouse.

One of the most common warehouse management issues is called the “Bullwhip effect” explained in 2016 by Kasimov. This phenomenon arises where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability. Once it occurs, it can face undesirable consequences of organizational success towards supply chain management.

 

But no matter how much innovation and technology exists out there, there are challenges that we have to tackle in order to improve operational processes for a warehouse.

One of the most common warehouse management issues is called the “Bullwhip effect” explained in 2016 by Kasimov. This phenomenon arises where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability. Once it occurs, it can face undesirable consequences of organizational success towards supply chain management.

 

 

 

Warehouse bottlenecks

A bottleneck in a supply chain can also be referred to as a situation, in which a commodity takes the most time for a specific request. Items that are held or need to be completed early, will easily overflow storage rooms, forcing workers to wait until continuing the operations work.

In order for the warehouse capacity to remain effective and efficient, the organization needs to address the issues of warehouses through the proper implementation of specific strategies.

Most of the frequent challenges of the warehouse operations arise due to bottlenecks. Equipment usage and internal job processes are the most common bottlenecks for any type of warehouse.

Identifying and eliminating the cause of the bottleneck will boost efficiency that will eliminate the waste of labor and utility.

 

Short-Term & Long-Term Bottlenecks

Short-term bottlenecks occur for a momentary period of time. For example, short-term bottlenecks can be caused by an employee being out sick for a few days, a machine needing repairs, or another temporary, short-term reason. Short term bottlenecks can also occur due to unexpected changes in consumer behavior.

Long-term bottlenecks, however, cause prolonged operational flow issues that may reoccur until they are addressed. 

These bottlenecks can be generated by :

  1. Bad layout design;
  2. Inefficient machinery or technology;
  3. Limited resources;
  4. Time-consuming manual processes; 
  5. Lack of labor and/or poor training; 
  6. The inability to adapt to quicker operations to meet consumer demands. 

When analyzed and addressed, long-term bottlenecks can improve the speed, accuracy, throughput, and customer satisfaction of a warehouse facility.

Our solution 

By investing in automation and technology, in order to prevent bottlenecks and improve the warehouse processes, businesses can become more resilient and easily adaptable to present and future demands.

Logiqs solution is the iCUBE –  the intelligent storage-retrieval system – designed from the ground-up to solve the challenges you are facing.

 iCUBE system uses an array of 3D-Carriers and Lifts, making operation redundant by design, while also allowing the parallel fulfillment of inbound, outbound and order picking processes.

Our turnkey ASRS solution provides flexible storage for multiple types of pallets and allows the users to easily configure the storage and dispatching strategies of the warehouse.

Why should you choose the iCube AS/RS

  1. Achieve a higher efficiency, productivity and yield;
  2. Improve your warehousing capabilities in a future proof way;
  3. Gain more predictability and control over your warehouse;
  4. Scale up with your warehousing in both size and throughput easily when your business requires it.

The iCUBE is managed and controlled using our proprietary Dat-A-Logiqs Software. This software package uses two main applications: Dat-A-Control and Dat-A-WMS.

  1. Dat-A-Control automatically handles the machine movements and controls,
  2. Dat-A-WMS handles the space and inventory management in the warehouse.

The Dat-A-Logiqs Software suite gives full control and unmatched flexibility to the warehouse operators, allowing them to fully automate operations and achieve the process flow they need for their operation.

 

Conclusion and recommendation 

Balancing between human and technology will be the optimum solution to handle the bottleneck issues of any warehouse. Without the help of modern technologies, it will be difficult for labor to achieve the company goals. 

Also, in order for any warehouse facility to be capable of withstanding future technological advances and keep the business to run smoothly, future proofing the facility is a great solution. 

Start your journey today by creating simulations of your ideal warehouse using our 3D Configurator and choose Logiqs flexible and modular system that can easily scale and be repurposed in new environments. 

  • Optimize processes 
  • Enhance data quality 
  • Integrate an intelligent software
  • Simulate throughput for different technical solutions

    Get in touch with us for more information

      Phone: +31 174 514141
      Email: info@logiqs.nl
      Address: Honderdland 841, 2676 LV Maasdijk, The Netherlands