Warehouse automation technologies have been rapidly adopted in North America in recent years. In fact, the North American warehouse robotics market is projected to have a compounded annual growth rate (CAGR) of 11.2% between 2020-2025. Moreover, North America is expected to have the highest market share in warehouse automation by 2028 due to technological advancements and rising labor costs.
For E-commerce companies, fulfillment and logistics centers, and manufacturing companies, the message is clear: it’s time to implement warehouse automation technology or risk becoming obsolete by the competition.
In this article, we take a closer look at how the COVID-19 pandemic has impacted fulfillment operations, the increasingly high shipping expectations from customers, and how warehouse owners and managers can solve these issues with automation partnerships.
COVID-19 Created a Boom in Automated Fulfillment
Catalyzed by COVID-19, companies are rapidly growing their online business segments. In fact, it’s estimated that the pandemic added $219 billion to U.S. E-commerce sales in 2020-2021. By any measure, COVID-19 has driven more and more sales online, which has resulted in fulfillment demand growing exponentially.
This boom in fulfillment demand has left many manufacturers and distribution centers scrambling to figure out how to best meet the expectations of their customers.
The solution that many fulfillment centers are turning too is warehouse automation. Warehouse automation enables the movement of products into, within, and out of distribution centers with minimal human involvement. These cutting-edge automation solutions allow companies to reduce labor-intensive functions involving repetitive human labor such as lifting, sorting, and data entry.
For example, an autonomous mobile robot in an automated fulfillment center can easily move inventory from a specific location within the warehouse to a specified shipping zone. Simultaneously, automated software keeps track of the exact location of the inventory all along the way so that, if at any point, a person needs to retrieve a specific product, they will have real-time access to source and manage that order. The end result is that autonomous mobile robots dramatically improve the speed, safety, and accuracy of a fulfillment center’s operations, while ultimately affecting bottom line revenue and labor cost savings.
24-Hour Shipping is a Reality Thanks to Warehouse Automation
Customer expectations continue to increase when it comes to the delivery of their goods and services. For E-Commerce Customers, 24-hour shipping is becoming the new normal for many products bought online.
The key question becomes, how do warehouses meet 24-hour shipping expectations in light of the current labor shortage?
The answer for many warehouses and distribution centers is the introduction of warehouse automation. Previously, the thought of making financial investments in warehouse automation solutions was one of the major obstacles to adoption. However, increasing client demands brought about by labor challenges is starting to turn the tide of cost-consciousness.
In fact, post-adoption, many manufacturers and warehouses have discovered that these automation solutions have produced greater returns on investment than human workers. The reason for this is scalability and efficiency. By harnessing warehouse automation, you can better scale your operations to meet your customers’ 24-hour shipping expectations.
Scaling through warehouse automation is not without its challenges, but robust support is available from your trusted warehouse automation solution partner who is an expert at maintaining and optimizing these technologies. With the right automation solutions partner powering your warehouse towards 24-hour fulfillment, the end results are more satisfied customers and new levels of growth for your business.
Prime Robotics Provides the Best Fit for Your Fulfillment Goals
At Prime Robotics, our robotic automation solutions enable warehouse, E-Commerce, and fulfillment centers to gain powerful efficiencies and realize substantial cost savings at each point in their fulfillment process.
We don’t believe in a one-size-fits-all approach to warehouse automation.
Rather, our team is dedicated to creating an automation solution that is the right fit you’re your business goals. For some clients, these solutions are implemented at one or more key points in their process. For other clients, we design an end-to-end robotic automation solution to fit their unique needs.
To better understand how robotic automation can help you meet the fulfillment goals for your business, contact us today!
Author – Nate Aswege, VP Sales & Marketing at Prime Robotics