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Smart Warehouses: How Smart is Smart Enough?

Smart Warehouses: How Smart is Smart Enough? 

What warehouse supervisor and Chief Supply Chain Officer (CSCO) doesn’t dream of experiencing that overused and often misunderstood phrase, “seamless supply chain management”? 

Smart warehouses are becoming increasingly popular as South African businesses look for ways to improve their supply chain operations. If you are considering implementing an intelligent warehouse, there are a few things you need to keep in mind. 

What is a smart warehouse?  

Smart warehouses draw inspiration from intelligent factories and embrace a data-driven environment. These highly successful warehouses automate the entire process of managing inventory in your facilities, ensuring minimal errors in the journey from supplier to customer.  

They offer efficient warehouse monitoring, reduced human errors, decreased customer returns, enhanced asset visibility, improved customer experiences, and expedited shipping as their primary advantages. 

But being smart is more than automation  

Conflating “smart” with “automation” is like comparing truffles dug up fresh from the forest floor to canned mushroom soup. Both are technically fungi, but the difference in experience for the end customer is forests apart. 

Smart solutions turn warehouses into goldfish bowls 

Real-time visibility is the backbone of intelligent warehouse automation. It enables warehouses to operate efficiently, minimise errors, respond to changes in real-time, and provide a high level of service to customers and partners throughout the supply chain.  

How smart is smart enough?  

Transforming a warehouse from a cost centre into a profit centre doesn’t necessarily require a multi-million-rand investment. 

There is no one-size-fits-all answer to these questions. The level of smartness that is right for your warehouse will depend on several factors, including your budget, industry, and specific needs. 

The bedrock of super smart warehouses lies in establishing the foundational elements that grant you real-time visibility. The power of live information allows for agile problem-solving, continuous optimisation, cost savings, and improved customer service. It enables you to rectify the problem by assessing the situation and finding the best optimal solution while generating a return on investment. 

How far down the road is your warehouse to becoming Mensa-level smart?  

The 15-point checklist 

• Advanced Warehouse Management System (WMS): Manages and controls the entire warehouse operation, from receiving to shipping, ensuring efficient inventory control and order fulfilment. 

• Warehouse Execution System (WES): A WES combines a WMS and a Warehouse Control System (WCS). This integrated software optimises tasks, allocates resources, and ensures smooth operations by managing various processes within the warehouse. 

• Data analytics and reporting: These tools process information from various sources to provide actionable insights for better decision-making and process optimisation. 

• Cloud-based technology: Storing and sharing data securely, facilitating remote access and real-time collaboration. 

• Real-Time Location Tracking: Technologies, such as RFID and GPS, monitor the movement of goods, assets, and personnel, improving visibility and efficiency. 

• Predictive maintenance: These algorithms use data analysis to forecast equipment maintenance needs, reducing downtime. 

• Machine Learning and Artificial Intelligence: Continually refine operations by learning from data patterns, optimising routes, and automating decision-making processes. 

• Augmented Reality (AR): Overlays digital information onto the physical warehouse environment, aiding workers in navigation, item location, and quality control. 

• Voice-activated technology enhances efficiency by providing hands-free instructions and feedback to warehouse staff. 

• Cybersecurity measures protect warehouse systems and data from cyber threats, ensuring operational integrity and privacy. 

• Mobile devices and apps warehouse staff use mobile devices and applications for real-time access to inventory information, task assignments, and communication. 

• Collaborative robots (Cobots) work alongside human workers, improving productivity and safety in various warehouse tasks. 

• Energy Efficiency Solutions incorporate energy-efficient lighting, HVAC systems, and monitoring tools to reduce environmental impact and operating costs. 

• Inventory Management Systems enable accurate tracking, demand forecasting, and efficient stock replenishment. 

• Automation and Robotics: Smart warehouses leverage automation, including robots and conveyor systems, to streamline tasks such as picking, packing, and material handling. 

• Internet of Things (IoT) sensors are strategically deployed. throughout the warehouse to collect real-time data on inventory levels, equipment status, and environmental conditions. 

What does a 100% smart warehouse look like that checks most of these 15 boxes? 

Score: (15 points) Your site is the Albert Einstein of warehouses 

The robot pictured below is part of the AutoStore system, a compact, scalable robotic storage and piece-picking solution.   

Since it was designed to integrate sustainable supply chain practices, the system puts the word “smart” into South Africa’s load-shedding hit warehouses. The energy-efficient system is driven by intelligent robots that reduce the need for heat and lighting in the warehouse (each robot uses just 0.1 kW of energy per hour.) 

 As far as future-proofing goes, it’s also received the Green Supply Chain Award from Supply and Demand Chain Executive twice, making it an astute choice for companies building sustainability into their supply chain operations in line with ESG policies. 

Why else is it one of the most intelligent solutions available to Mzansi? The system enables 4X the inventory within the same space versus conventional storage systems. Talk about value: the monthly square meter rent of industrial space in SA rose by 22.58% from 2020 to 2022, according to Statista.  

Score: (5-10 points) Welcome to the semi-smart in-between 

It helps to think of modern warehouse automation as a journey, not as a destination. This step is vital in getting your newly automated equipment, sensors, and IoT to integrate with your organisation’s backend systems.  

Taking the time to find a software vendor who can offer more than just the lowest price can pay off later down the road. A big part of the service is to ensure that your distribution centre and ERP system communicate as if they’ve worked hand in glove for years (even though they’ve only met). 

Whether you modernise incrementally or all at once, this integration forms the foundational “neural network or brain” of your smart warehouse, unlocking the potential for enhanced productivity and profitability. 

Score: (0-5 points) Mostly manual warehouses 

Your manual warehouse needs to be fixed. People are walking around with bits of paper. Sometimes, they get lost. Customers are unhappy. And so is your workforce, who are getting blamed for the shortcomings of your distribution centre, trying to meet impossible demands.  

Unhappiest of all are your warehouse supervisors because their job functions now include firefighting, constantly having to unclog bottlenecks and managing crises. 

An intelligent warehouse’s “smart enough” aspect lies in its adaptability and responsiveness. It’s not a one-size-fits-all solution. However, a dynamic system that can evolve alongside your business needs and technology advancements is a powerful tool for optimising warehouse operations and supply chain management. 

True or false: Busting the myths of smart warehouses 

It’s time to examine some common misconceptions about transforming your warehouse centre into a smart one. 

Smart solutions are only suitable for large, multi-national businesses 

Not true. Smart solutions can be implemented in warehouses of all sizes, and many affordable options are available for mid-sized companies.  

Automated equipment is expensive 

While an initial investment is required, the long-term benefits of increased efficiency, accuracy, and safety can outweigh the costs. Just be aware of doing the due diligence if your company’s considering the lowest-cost option. 

Smart solutions only benefit large companies 

This is not true. Smart solutions can benefit companies of all sizes by increasing efficiency, accuracy, and safety and reducing costs. 

Cloud-based warehouse solutions are more expensive 

While cloud-based systems typically eliminate large upfront investments, they may become costlier over time compared to the one-time purchase and ownership of an on-premise system. 

Automation will increase unemployment rates 

Automation in the warehouse does not necessarily mean cutting staff. When managed with foresight, it can improve efficiency and accuracy in warehouse operations, allowing you to do so much more with your current team. More on this below. 

Ready to start your journey towards an intelligent warehouse? 

Embracing smart warehouse technology can sometimes mean tearing down your existing operations and starting from scratch. Building an intelligent warehouse in stages can be a practical and strategic approach. Let’s explore how you can embark on this journey and the key considerations involved. 

1. Start with a clear vision 

What is your ideal smart warehouse, and how will it enhance your operations? Assessing and prioritising the needs of your distribution centre will serve as your guiding light throughout the phased implementation process. 

2. Break it down into phases 

Next, break your roadmap down into milestones. Consider the duration of each phase and the potential for technology to evolve. You wouldn’t want to implement something today that might become obsolete tomorrow. Careful planning ensures that each phase aligns with your long-term goals. 

While working with telecom giant Vodacom, Apex created a detailed roadmap, explaining how each phase fits into the bigger picture. This not only helped with planning but also minimised disruption to ongoing operations. 

3. Start small 

You can automate your entire warehouse on your own timeline. Start by implementing key technologies or solutions, then expand your implementation over time. 

4. Measure and iterate 

It is essential to measure the results of your implementation to identify what is working well and what needs improvement. This will help refine your plan and ensure you are on track to achieve your goals. 

5. Address Human Change Management 

Implementing automation and innovative technology can be a game-changer for your warehouse’s efficiency, but it can also bring apprehension among employees. The fear of job displacement is a genuine concern. To address this, effective change management is crucial. 

Communication is key.  

Keep your workforce informed about the changes, emphasising that the goal is to enhance their roles, not eliminate them. Offer training and upskilling opportunities to empower employees to work alongside automation effectively. This approach can transform fear into collaboration. 

Packaging up our thoughts 

Building an intelligent warehouse in phases is not only feasible but recommended. It allows you to adapt to evolving technology, minimise disruptions, and address the human element of change. With a clear vision, a well-structured phased approach, and thoughtful change management, you can embark on the journey to transform your warehouse into an intelligent and efficient operation. 

Find out how a trusted provider like Apex can offer warehouse management.  

www.autostoresystem.com/
www.statista.com/statistics/596350/monthly-rents-johannesburg-south-africa-by-property-type/
www.docs.google.com/document/d/1D-56KVQZ1WcuxoTC_sNTbWdUK9OAl-u3TjONQbl7_FM/edit?mode=html#heading=h.6v91ic4qld6

About the author

Guest Contributor

VUKA Group

VUKA Group serves as Africa’s central nexus for conferences and media publications across key sectors. With 20 years of expertise as a trusted media partner, we allow those with valuable insight to contribute to building a platform of collaboration to shape Africa’s future for the better