In this segment of Aaron’s conversation with Jonathan Briggs on robotics in fulfillment, we delve deeper into the challenges and opportunities presented by automation technology.Â
This candid conversation between two industry experts continues to explore the complexities of robotics adoption, standards, and strategies, while also highlighting the broader impact of these innovations on the supply chain. Join us as we unravel the ongoing saga of integrating robotics into the world of fulfillment.
The Challenge of Unpredictable Standards in Robotics
The conversation starts on a familiar note—a concern we all share when dealing with robotics: the unpredictability of future standards. The fear of investing in a technology that might become obsolete is a constant refrain. In this discussion, one of the experts recalls visiting a friend’s older house equipped with cutting-edge technology of the past: telephone jacks in every room and central air. These were once heralded as innovations but have since become outdated, much like what some fear could happen with robotics.
In response to these concerns, the other speaker emphasizes the importance of not waiting indefinitely for the perfect solution. While technology continually improves, waiting for the perfect technology might mean missing out on the benefits of automation. The key is to find a balance between the desire for the latest technology and the need to remain competitive in the present.
Leveraging Smaller Wins and Agile Approaches
The conversation underscores the need to find solutions that provide decent to good results within a reasonable timeframe. This can involve incremental investments in automation, focusing on shorter return on investment (ROI) horizons, ideally between 12 and 18 months. Keeping a realistic three-year ROI in mind is important because waiting for a 10-year ROI may result in missed opportunities and less agile operations.
Shorter-term ROI goals allow businesses to adapt to new technologies faster and get ahead of the curve. The iterative nature of AI and automation ensures these systems improve over time, potentially exceeding initial expectations.
Understanding the Impact on the Broader Supply Chain
The conversation further delves into the broader implications of robotics in the fulfillment center for the entire supply chain. Automation generates massive amounts of data, offering invaluable insights into inventory management, SKU optimization, and packaging.
In particular, data analytics can help with SKU optimization. By understanding SKU velocities and correlations, businesses can make informed decisions about where to store specific products and the quantities needed in various markets. The insights can also aid in the development of hub-and-spoke models for better distribution.
Additionally, automation enhances inventory accuracy through cycle counting, reducing the need for manual checks. Improved inventory control not only ensures a better customer experience but also reduces carrying costs and operational inefficiencies.
Furthermore, automation has a significant impact on packaging optimization. For example, businesses can streamline their packaging options, reducing the number of box types and efficiently utilizing transportation cubing. All these measures help in reducing costs and improving sustainability.
Where to Begin Your Robotics Journey?
The conversation concludes by addressing a critical question: Where should brands start when considering robotics for their fulfillment operations?
The response is multifaceted. First and foremost, businesses must assess their profile, evaluating their complexity, volume, and growth prospects. However, the key message is that it’s never too early to start thinking about the future. Given the lengthy timelines for procurement and implementation, planning for automation should begin well in advance.
Consulting with industry experts, integrators, and other 3PLs can provide valuable insights. Starting with information-gathering sessions and assessing the viability of robotics in your operations can be an excellent starting point. And it’s not just about cost savings; automation can also help when facing workforce challenges, such as high turnover and labor shortages.
In the end, there’s no fixed formula for when to embrace robotics, but staying informed, considering your business profile, and collaborating with knowledgeable partners can set you on the right path toward harnessing the benefits of automation in fulfillment.
Join Us for More Insights in This Podcast
This podcast explores the complexities and opportunities of robotics in the world of fulfillment. Continue to unravel the intricacies of integrating robotics into modern supply chains here. Don’t miss out on the insights, challenges, and strategies that will shape the future of fulfillment.
