According to estimates, the compound annual growth rate (CAGR) of the global warehousing automation market is expected to reach 12.6% in 2023, including private equity firms joining in acquisitions to improve products and services and increase revenue.
Global Warehouse Automation Market Distribution and Status:
In the global warehouse automation market, the EMEA region and the Americas region of Europe, the Middle East, and Africa are highly concentrated markets for large customers and large-scale projects. The Asia-Pacific region (APAC) is a highly fragmented market with mixed large-scale and small-scale projects. China's market is composed of business owners, foreign system integrators, and local system integrators.
The global economy is slowing down. In the first half of 2019, many warehousing automation manufacturers had poor performance, but they benefited from the vigorous development of e-commerce (especially in the APAC region), consumers requiring faster and faster arrival times, and continuous labor shortages. Driven by sexual factors, the order volume has rebounded strongly. It is not affected by the economic situation. Warehousing automation is expected to become the key to driving revenue growth. It also promotes vertical integration and has come to the supplier level. The acquisition of warehouse automation solution suppliers has already for the trend.
People have changed their usual shopping methods and started to buy food and household necessities through e-commerce platforms. Therefore, the logistics industry is also facing severe challenges. To improve transportation efficiency, operators must introduce robots and networked equipment to reduce labor costs and realize automatic picking and intelligent warehouse management. Because of the dramatic changes in consumer shopping patterns, the new consumer experience brought by the retail industry is also driving the transformation of the warehousing industry.
What is an Automated Warehousing and Logistics System?
The automated storage system, also known as the automatic access system, is an automated system composed of high-rise three-dimensional shelves, stackers, various types of forklifts, in-out storage systems, unmanned trucks, control systems, and peripheral equipment. Use automated warehousing systems to continuously check expired or stocked products, prevent bad stock, and improve management. The automated warehousing system can make full use of the storage space, realize the online control of the equipment through the computer, process the items quickly and accurately according to the principle of first-in, first-out, and carry out reasonable inventory management and data processing.
The warehousing and logistics system is generally divided into five key points: Incoming goods receipt, warehousing and shelf, storage, picking, and shipping. To accurately manage the goods in these five links, it is only possible to achieve the premise of accurately identifying the identity of the goods. Therefore, many companies use barcode scanners, wireless local area networks, and radio frequency identification systems. Such automatic identification and data capture technologies can effectively upload the status of the goods to the central storage system or the database of the logistics center for unified management. For a good warehousing and logistics system. It is necessary to consider all aspects of the enterprise. According to the different attributes of each industry, integrate all kinds of automation equipment, such as roller conveyor systems, overhead storage machines, stackers, etc. Board storage system, picking system, etc., and can be combined with upper-level ERP system and supply chain system. The features of the automated warehousing and logistics system are fast, efficient, and reasonable storage of materials and timely and accurate provision of required items.
Learn about the Evolution of Warehousing Systems:
Warehousing is one of the important links of commodity circulation and an important pillar of logistics activities. It is not only a comprehensive place to reflect the status of factory material activities, but also a transfer station connecting production, supply, and sales, which plays an important auxiliary role in promoting the improvement of production efficiency. The development of warehousing has gone through five stages so far as follows:
- Manual storage:
Manual warehousing is the most primitive stage of the development of the warehousing system. For example, the storage, transportation, and control of warehouse materials are mainly realized by manual labor, which is inefficient and prone to errors. However, in the current manual warehousing, the effect of less investment and quicker returns is still in operation.
- Mechanical storage:
Mechanical warehousing is a warehouse that moves and handles materials through conveyor belts, industrial transport vehicles, manipulators, and cranes, and uses shelves, pallets, and movable shelves to store materials. Through the manual operation of mechanical access equipment, limit switches, screw mechanical brakes and mechanical monitors are used to control the operation of equipment.
- Automated warehousing:
The development and application of automation technology have played an important role in promoting the development of warehousing technology. AGVs, automatic racks, automatic access robots, automatic identification systems, automatic sorting systems, rotating three-dimensional rockets, etc., have all joined the ranks of automatic control equipment in the warehouse system, improving work efficiency.
- Integrated automated warehousing:
Automation technology is increasingly used in production and distribution, but it cannot fully meet the higher requirements of enterprises for the overall performance of the system, which seriously affects the efficiency of enterprises. The focus of automated warehousing research has gradually shifted to the real-time, coordination and integration of material control and management, resulting in integrated automated warehousing. Computers, data acquisition, controllers of mechanical equipment, etc. can summarize information in a timely and efficient manner so that all parts of the system can cooperate efficiently, and the adaptability of production and overall benefits can be improved.
- Intelligent automated warehousing:
With the development of artificial intelligence technology, warehousing technology has also been promoted to a higher stage. An intelligent warehousing system is a comprehensive science and technology integrating material handling, warehousing science, and intelligent technology. Due to the advantages of labor-saving, fast and accurate operation, high storage efficiency, and low logistics costs, it has been more widely valued. Intelligent automatic warehousing is an indispensable and important part of the supply chain, logistics, and manufacturing, which not only improves enterprise efficiency and competitiveness but also increases customer satisfaction.
- Fast delivery: In all processes, manpower is required only from the stage of packaging to delivery, and up to 80% of the logistics boxes are delivered to the staff, and then packed by humans, which is like the way of picking goods on the shelves in the past. Compared with the reduction of 3 people, the time of product delivery is reduced by 60%, and the production capacity can be 10 times the original during the peak order period.
- High density: The warehousing system deploys three-dimensional space, the shelf can reach up to 14 layers, with shuttle-type automatic storage and tens of thousands of logistics boxes, the storage space reaches 30,000 to 40,000, and the storage scale and density are high.
- Accurate decision-making: Through AI data calculation, combined with factors such as seasons, weather, festivals, and regions, popular commodities can be scheduled for storage in advance, and business opportunities can be grasped in advance. After placing an order, build a model according to the order correlation, optimize the picking and tally batch and order, and allow the same order to be shipped together with zero-time difference, and the operation can be completed accurately.
With the advancement of the digital transformation of manufacturing enterprises, the new generation of logistics enterprises must also transform to digital intelligence. Using 5G, combined with artificial intelligence, the Internet of Things, and other technologies, it can more efficiently solve the difficulties and pain points in warehouse management, and realize real-time management and control of all links in business processes and operation scenarios to achieve refined warehouse management.
Make Good Use of Smart Warehousing and Logistics Systems to Enhance the Competitiveness of Enterprises:
Enterprises are facing an ever-changing market and increasingly fierce competition in various industries. How to improve production efficiency and reduce operating costs is a problem that every operator must face. Among them, warehousing and logistics system plays an important role in enterprise management. In part, when it comes to intelligent warehousing and logistics system equipment, the current technology can not only save labor and improve transportation efficiency, but also can quickly and accurately shorten the time of delivery and delivery, and reduce the cost of production and purchase. The improvement of electromechanical technology and the integration of electromechanical technology can effectively enhance the competitiveness of enterprises.
What are the Advantages of an Automated Warehousing and Logistics System?
- Improve the efficiency and accuracy of production and distribution:
The automated warehousing and logistics system adopts advanced information management systems, automated material storage, sorting, and handling equipment, etc., so that goods can be automatically accessed and sorted in the warehouse as needed. In the logistics and transportation link, the automated logistics system automatically arranges delivery and distribution according to the received order information. By using automatic picking technology, electronic label technology, automatic sorting technology, etc., sorting and distribution can be greatly improved. efficiency and accuracy.
- Enterprise information integration:
Logistics informatization is an important part of enterprise informatization. The logistics information management system realizes the automatic transmission and reception of information between various systems of the enterprise by connecting with other management systems of the enterprise. The automated warehousing system can automatically obtain and process order information from other management systems, ensuring rapid information acquisition, timely processing, an accurate and efficient summary of distribution needs, and stocking and distribution.
- Improve space utilization and reduce land cost:
The automated warehousing and logistics system uses high-level shelves to store goods, and the storage area can be developed to high altitudes, reducing the area of inventory, and improving the utilization rate of storage space and storage capacity. The storage capacity per unit area of the shelf area of the three-dimensional warehouse is 5 to 10 times that of the traditional ordinary warehouse. Compared with the traditional ordinary warehouse, it can save the floor space and reduce the land cost.
- Reduce the dependence on labor requirements and reduce management costs:
Automated warehousing and logistics systems can reduce the need for labor and improve labor efficiency. For example, compared with the automatic warehousing and logistics system, the warehousing and logistics personnel equipped when storing goods of the same tonnage can save more than 2/3 of the labor cost, that is, create the greatest benefit with the least labor.
- Improve the efficiency of inventory logistics management
The automated warehousing and logistics system can comprehensively control and manage the warehousing, warehousing, moving, and inventory of inventory, conduct real-time analysis, and control of items, providing a basis for enterprise managers to make correct decisions, and reduce inventory to the minimum. Optimize storage capacity and improve capital flow speed and utilization.
Enterprises need to be able to quickly respond to market changes and meet market demands. The increasingly advanced information technology coupled with cloud-based operation management technology will help enhance the competitiveness and value of the enterprise.