Conventional warehousing finds the sweet spot

If ever there was a year where talk of technology seemed to be everywhere all the time, it’s 2024. Artificial intelligence (AI), of course, often dominates the conversation. But in the materials handling world, a close second is robotics. From the trade show floor to social media, and simply networking with colleagues, technology is front and center.

And while automation can do wonderful things on a warehouse floor, the reality is that most operations still get by in a largely conventional manner. Rack, lift trucks, man aboard orderpickers and the like continue to dominate and get the job done.

“About 25% of the companies I work with have made significant investments in automation over the last three years, while another 25% have light automation such as conveyance, pick modules and autonomous mobile robots,” says Bo Thomson, vice president of consulting at enVista Corporation.

That’s what Steel King sees, too, according to Ryan Wachsmuth, southeast regional sales manager: “When you look at the grand scope of companies on a quantitative level, most operate in a largely manual environment,” he says. “It’s the larger Fortune 500 companies that have gone the highly automated route.”

Lack of automation, or even “automation light” doesn’t have to equate to inefficient operations, either. Adding automation for automation’s sake is always a recipe for complications, and plenty of organizations are managing productive operations even without the latest bells and whistles.

It’s important to keep in mind that one person’s definition of highly automated is different from the next, too. Most operations, however, skew toward less versus more. “Autonomous mobile robots, for instance, could classify as automated to one person, but not another,” says Thomson. “Furthermore, automation is often only used for the portion of the order volume that fits the requirements of the automation.”

The result can be a largely manual operation, with some pockets of technology scattered throughout. Think along the lines of carton sealers, document inserters and pallet wrappers. None of these pieces of equipment fall under the “highly automated” category, yet they can deliver strong results at relatively low investment levels.

And conventional equipment continues to innovate. Today’s lift trucks and conveyors, for example, offer features never dreamed of even a decade ago. Despite all the buzz surrounding automation and technology, conventional warehousing is alive and well—it’s just a matter of how you go about it.

Manual is efficient, when done right

Many robust forms of technology and automation have a place in modern warehousing. And where applicable and within budget, these tools can be worth a consideration. But the sweet spot can also be found with little to no automation.

“Our tagline is ‘optimize, connect, automate,’” says Keith Ingels, RLM manager of solutions and support centers at Raymond Corp. “If you put automation in the wrong spot, it doesn’t solve issues. So, you need to apply automation correctly.”

Places where automation can shine include highly repetitive tasks, or the dull, dirty and dangerous tasks that humans would prefer to step away from when possible. But machines and technology are missing some components that make human involvement with conventional equipment a better idea.

“Machines can’t share creative ideas for improvement,” says Ingels. “People are an invaluable resource.”

There’s also an argument to be made for challenging operations first, before spending capital on automation. Consider, for instance, establishing a pick zone in your facility.

If you set it up in a largely manual fashion, and never challenge it for improvements before throwing money at it, you’re not likely to make any gains. Applying input from the associates on the floor to make that zone more efficient might get your farther than expected, all without more technology.

When you look at setting up efficient, largely manual operations, assess your layout and materials flow. “I see companies with SKUs all over the place, which requires their associates to go up and down the aisles inefficiently trying to pick and pull,” says Wachsmuth. “You can reevaluate your layout and place those products in more accessible and logical locations. Understand where you are, how you got there, and where you want to be.”

That might be an easy fix, or it might be a larger overhaul. “Sometimes it means tearing it all down and thoughtfully placing your racking in a very different configuration,” says Wachsmuth. “You need to move away from the idea that ‘it’s always been here, but now it has moved,’ and leaving it at that.”

Another key area of focus before considering automation is slotting and proper location sizing. Alongside that, a well-thought-out wave strategy to group similar orders can go a long way toward increasing productivity, Thomson points out.

The type of company or operation you are matters, too, in terms of manual versus automated operations. Facilities with a wide variety of product, such as third-party logistics providers (3PL), often excel in less automated operations, says Rick DaSilva, national sales manager at Presto-ECOA Lifts.

“If you have an operation that caters to many different types of customers, that lends itself to more conventional warehousing,” DaSilva says. “The pallets are tall, you have to move them or the worker up and down for storage and retrieval, and this can be tough to automate.”

Today’s warehousing often works surprisingly well in conventional approaches, agrees Jared Green, director of global sales at Crown Equipment. “You see full pallet loads coming inbound, employees breaking them down, and then going out as eaches,” Green says. “Such a high number of SKUs is less predictable, and therefore lends itself to manual handling.”

Other strong applications for largely manual operations include case pick to pallet, using pallet jacks, walkie riders and orderpickers, reach and turret trucks for pallet picking, put away and replenishment, says Thomson. “You can also use each-pick to pick cart using cluster/cart pick technology or batch pick to sorter or put wall,” he adds.

By adding only a little automation, or using modern iterations of conventional equipment, then, you can still operate efficiently. This is true especially in smaller facilities.

“Facility sizes under 200,000 square feet will play a more prominent role in a manual environment operation as their volumes and building headcount make it difficult to justify automation,” says Thomas Stretar, vice president of technology at enVista.

Conventional yet innovative

While conventional warehousing might seem simple—and the equipment that goes along with it the same—that’s not the case. As operations have changed, so has the equipment that supports it.

“There are now thousands of varieties of pallet loads and demands from customers,” says Wachsmuth. “We can’t tell our customers ‘pick a pallet to fit our product.’ It’s the other way around.”

Steel King has created new and different rack lines to support the various types of pallets and loads in today’s operations. There’s everything from basic selective racking to drive in, push back, pallet flow, and even bigger systems like automated storage and retrieval (AS/RS) and those equipped with pick modules.

“We can take a customer’s vision and create what they need,” says Wachsmuth. “If they can imagine it, we can make it come to life.”

Lift trucks, too, now come in a range of models and features. Crown, for instance, recently introduced its Crown SP 1500 series orderpicker. It includes design features that both enhance operator safety and improve picking efficiency. With a mid-platform window, the truck improves visibility at height, and includes a customizable, operator-centric compartment.

Looking ahead, conventional warehousing will still be part of the equation, but with some differences. “I believe we will continue to see a lot of people on the warehouse floor,” says Ingels. “But I also see a trend toward better interactions with technology. We’ll see more integrated equipment that can make operators more efficient by supporting them with the technology available.”

DaSilva sees this as well. “In the manual space, we’re all about improving productivity and worker safety,” he says. “If a worker must load a pallet that is full of heavy compressors, for instance, what’s the most efficient way to do that? We help them solve these issues.”

One potential wrinkle, however, is the labor shortage. It’s a widespread problem that is often helped with automation. But conventional equipment OEMs and integrators are there to assist and help with creative approaches, including partnering humans with tools that make them more efficient.

Manual doesn’t mean unsuccessful or inefficient, as many companies are proving today. Pairings of human workers and lighter-duty automation often equate to the sweet spot, and it’s always going to be essential to consider those options before investing in highly automated options.

Thomson sums it up like this: “Throughout my experience, I’ve found that two-thirds of distribution center assessment recommendations are tactical, requiring limited investment and difficulty, while producing good productivity improvement.”