August 23, 2022

Warehouse Automation Statistics for 2022

Get insights on how to improve efficiency with warehouse automation. Read this article to know more.

Warehousing is more than just a place to store goods; it's also a process. The role of automation in warehousing has grown immensely over the last decade. Automation in the warehouse is set to continue growing, particularly with the adoption of robotics, AI and machine learning. In this article, we look at some of the statistics about warehouse automation.

What is Warehouse Automation?

Warehouse automation refers to the use of various IT-based technologies that enable a warehouse to run considerably more effectively and efficiently in order to accomplish larger results with significantly fewer efforts. It is possible to automate a warehouse in a simple or highly complex way. Some warehouse automation installations encompass everything from trailer unloading to order fulfillment, but people are still there. The goal of basic automation is to eliminate repetitive tasks by using planning, machinery, and vehicles. Let's look at the many forms of warehouse automation, how it works, and the major benefits warehouses obtain from deploying automation technology.

Warehouse Automation Categories

Artificial intelligence and robotics are used in advanced systems. Among the warehouse automation categories are:

Basic Warehouse Automation

Automation of basic warehouse tasks helps humans reduce the amount of manual labor they are required to perform otherwise. For example, inventory is transported from point A to point B by means of a conveyor or carousel.

Warehouse System Automation

Using software, machine learning, robotics, and data analytics, the Warehouse System Automation system automates processes and procedures. For example, a warehouse management system evaluates all orders that need to be filled in a day and instructs users to select similar items to fill all orders at once to reduce the number of trips to the warehouse.

Mechanized Warehouse Automation

Robotic equipment and systems are used in mechanized warehouse automation to aid humans with warehouse activities and procedures. One example is autonomous mobile shelf loader robots, which lift product racks and bring them to human pickers to retrieve and sort.

Advanced Warehouse Automation

The advanced warehouse automation technique integrates automated warehouse robotics and automation technologies that allow labor-intensive human tasks to be replaced. Imagine a fleet of robotic forklifts that navigates a warehouse using advanced AI, cameras, and sensors and transmits its location online.

Statistics on Warehouse Automation Types

More than 80% of warehouses now are completely unautomated. Here's why, according to statistics, you should think about the various sorts of automation. Warehouse automation helps to speed up operations and improve accuracy in the warehouse. There are different types of automation that can be used in the warehouse, each with its own set of benefits. Here is a look at the different types of warehouse automation and the benefits they can offer:

1. Pick-to-light Systems: Pick-to-light systems are used to help workers locate items that need to be picked. These systems use lights to indicate where an item is located and what needs to be done with it. This type of system can improve accuracy and efficiency in the picking process.

2. Put-to-light Systems: Put-to-light systems are similar to pick-to-light systems, but they are used for placing items into storage locations. These systems can help to improve accuracy and efficiency in the putting process.

3. Radio Frequency Identification (RFID): RFID technology can be used for tracking inventory in the warehouse. RFID tags can be placed on items and tracked as they move through the warehouse. This type of system can help to improve inventory management and control.

4. Automatic Storage and Retrieval Systems (AS/RS): AS/RS systems are automated systems that are used for storing and retrieving items from storage locations. These systems can help to improve efficiency in the warehouse.

5. Conveyor Systems: Conveyor systems are used to move items through the warehouse. These systems can help to improve efficiency in the movement of goods through the warehouse.

The Benefits of Warehouse Automation

There are plenty of statistics about the growth of warehouse automation. Below are a few key figures that illustrate how automation has grown over the years: - Manufacturing companies will spend $23.7 billion on automation in 2020. By 2025, up to 50% of all e-commerce orders will be processed by autonomous robots. The average order fulfillment time will decrease from 4 hours to 30 minutes by 2028. Warehouse productivity is expected to grow by 27% by 2022. These numbers show that automation is not slowing down, but rather is growing exponentially. They also show that the benefits of automation are certainly worth the investment and effort. The rapid expansion of e-commerce has reduced order fulfillment times in order to satisfy the increased fulfillment demands. Customers are expecting same-day or next-day delivery. As a result, automation aids in the fulfillment of agile and nimble order delivery.

Lower Prices: Automation helps to reduce operating expenses and unnecessary errors, as well as overhead costs and costs associated with safety, labor, equipment, and maintenance. It also lowers the price of energy consumption and storage space. It improves warehouse space use and throughput.

Workforce Productivity and Retention: Automation can improve human resource efficiency and productivity. Organizations do not need to hire additional people; rather, they can get higher output from each employee without growing headcount. This makes the work of a warehouse crew easier by reducing manual processes and making it safer, which leads to higher staff retention.

Better Inventory: The automation process improves inventory data collecting and sharing across functional domains. This improves inventory management and control, making it nearly 99.9999% correct. It aids in the reduction of lost inventory, shrinkage, and misplacement, as well as the reduction of shipping errors. It fulfills orders using a just-in-time (JIT) methodology.

Sustainable "Green" Practices: Automation aids in environmental conservation. It decreases land utilization by reducing inventory, produces less waste, reduces energy requirements for running the facilities, and lowers overall expenses. These green techniques aid the environment in the event of refrigerated or temperature-controlled facilities or warehouses that handle specific products or hazardous trash. These advantages become extremely difficult to manage.

How Automation in Warehouses Works?

The warehouse automation process begins with the order management system (OMS). This communicates with the inventory management system to determine what items are required and when they will be required next. The OMS triggers the picking process, which can be done manually or with the help of automation. Automatic conveyor belts, pick-to-light systems, and robots are examples of some ways to pick and put away goods in the warehouse. In order for these systems to work effectively, there need to be barcode readers, sensors, and RFID tagging. The OMS also tracks the location of each item in the warehouse. This means that a picking device can find the items it needs and then direct them to appropriate picking locations. These locations can be external to the warehouse, inside a storage container, or on a pallet.

Automation systems in warehouses can perform more complicated, non-repetitive tasks. In the past, automation meant a conveyor belt or a fixed machine that repeated the same action over and over again. When real volume fell short of engineers' predictions, many automation efforts were prohibitively expensive due to the fact that solution designs demanded engineers to anticipate their highest volume needs. Automation solutions for warehouses, on the other hand, often include robots and cranes that can perform simple and complex tasks as needed. Collaborative mobile robots, for example, integrate AI and machine learning to optimize jobs in real-time based on warehouse circumstances and work objectives.

The Statistics Behind Why Operations Are Being Automated

Before delving into statistics on how automation might assist warehouses and distribution centers who pursue it, it's necessary to understand the patterns that have pushed many of today's order fulfillment operations to explore it. Among these are growing technological awareness, rising labor expenses, and rising land/rent/facility costs, all of which motivate business owners to automate to save costs.

  1. Currently, more than 80% of warehouses lack any form of automation. In contrast, only 5% of warehouses have utilized sophisticated automation technology and solutions over the last decade. Consequently, the warehousing automation ecosystem has a plethora of market potential.
  2. According to estimates, 42% of warehouses and distribution facilities planned to invest in technology and automation in 2018. According to the data from Peerless Research Group's (PRG) 2018 annual survey, 40% of respondents planned to invest in conveyors and sortation equipment, 25% in robotics, and 14% in AGVs. An additional 49% planned to invest in software that runs the equipment such as WES, WMS, or WCS.
  3. By 2023, warehouse automation technologies such as robotics, logistics, etc. are expected to exceed $22.4 billion globally. Automating warehouses is already big business, and it will only grow as more companies and operations adopt it.
  4. In the years to come, warehouse and operations managers anticipate increased spending on material handling equipment and automation. There was a 52% expectation of greater investment, while 43% anticipated the same expenditures each year. Investments were expected to decrease by only 5%.
  5. On average, warehouses or distribution centers plan to invest $350,000 in automation. Investments of all sizes can affect this average. According to the respondents, the median projected expenditure was a little under $7000.
  6. The warehouse automation industry is predicted to increase by more than 38% by 2021. The warehouse automation industry was valued at $15 billion in 2019, representing a 10.9 percent increase over the previous year. The global warehouse automation market is expected to drop by 6% by 2020. However, growth of over 38.4 percent is expected this year (2022) to reach $19.5 billion. According to predictions, the market will expand 1.5x in the mid-term (by 2025) and will surpass $37.6 billion by 2030. Between 2021 and 2030, the predicted compound annual growth rate is expected to be about 10%.
  7. It is predicted that at least 620,000 shipments of various warehouse automation technologies will be made worldwide by the end of 2022. In comparison, approximately 40,000 units were shipped in 2017. Whether you measure warehouse automation by the amount of money spent or the number of units ordered and installed, it's clear that the trend is upward.
  8. Warehouses, distribution facilities, and order fulfillment activities employ 53.7% more people than they did just five years ago. The sector employed an estimated 915,000 people in 2016. By April 2022, that figure had risen to little over 1,400,000. A number of developments have contributed to this surge, notably the continuous growth of eCommerce in the United States.
  9. Labor expenditures account for around 65% of most warehouse facility operating budgets. That is a massive sum, far exceeding the price of taxes, utilities, rent (or building maintenance), and distribution combined. To attract and retain workers, businesses are discovering that they must offer increasingly higher wages and benefits as the labor market continues to contract.
  10. From January 2020 to September 2022, the average hourly wage of all warehouse/logistics employees increased by about 10%, representing some of the highest compensation growth since data collection began. A tightening labor market has resulted in a considerable increase in worker remuneration, which has outpaced inflation over the same time span. Payroll is one of the single highest expenses for most operations, which has damaged many businesses' bottom lines, pushing a shift to automation for cost reductions. This trend has only intensified in recent years, particularly in light of the coronavirus pandemic, which has prompted many businesses to compete for workers by offering greater wages.

Key takeaway

Automation has changed and continues to affect the nature of work in the order fulfillment, materials handling, and supply chain industries. It's impossible to avoid hearing about how automation will either eliminate employment or usher in a new era of enhanced productivity, even if you don't work in those fields. The right warehouse automation system is a wise investment that can reduce errors, reduce injuries, and increase productivity for the warehouse. Compared to older, obsolete warehouse automation technology, flexible warehouse automation systems are less expensive, easier to implement and provide a faster return on investment.

VisionERA is well-suited for integration into existing infrastructures because of its plug-and-play features and rapid adaptation to varied situations. Its human-AI alliance process makes it an excellent choice for non-programmers. The adaptability of the platform and the ease with which processes may be customized by the user make it beneficial in a variety of fields. Because of VisionERA's adaptability, it can be used whenever a significant quantity of documents must be processed. Adopting the vision ERA in the warehouse industry can save time, cut operating expenses, ensure compliance, optimize various activities, and eliminate administrative errors.

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