Warehouse management is a highly intricate network of processes and the desire of customers for swift order processing and delivery only adds to its complexity. The demand for instantaneous stock control and speedy delivery times has emphasised the need for more efficient warehouse management practices in the rapidly evolving fashion industry, where the reliance on bulk orders is no longer the norm. Additionally, the fashion e-commerce industry’s continued expansion is impacting warehouse operations amidst increasing consumer expectations. And all this is only possible through technology.
Major issues that the warehouse industry has long been grappling with
The processes inside warehouses such as inventory management, order fulfilment, material movement, material storage, picking, packing and shipping are critical to be addressed. However, technology has the answer to most of the bottlenecks. There are technologies available nowadays to improve the throughput of inside operations of warehouses, relying on big data, robots, artificial intelligence (AI) and predictive analytics solutions. Warehouse automation can equip facilities with tools that enhance productivity, maximise efficiency, minimise errors due to manual product handling, optimise the throughput of their logistics processes, foster a safer working environment and avoid stockouts.
In a warehouse, any operation can be automated. This includes the movement of stock by means of mobile robots or conveyor systems for boxes, product slotting management via automated guided vehicle (AGVs) or stacker cranes and load consolidation with robotic stretch wrappers.
Here are some common problems that fashion retailers and warehouse operators have been facing and the automation solutions that can help address these problems:
Issue 1: Material handling and movement inside traditional warehouses is uneasy
One of the most common bottlenecks that warehouses have been dealing with for years is the management and transfer of material. Fashion warehouses often face challenges related to the handling and movement of delicate and flexible, high-value items such as clothing, accessories and footwear. These items often get damaged during transportation, storage and retrieval as these require special care which humans are not able to provide many a time.
These items also need to be sorted and organised based on factors such as brand, make, colour, size and style. Additionally, fashion warehouses need to manage a large number of SKUs (stock-keeping units) and handle a high volume of orders, which creates logistical complexities.
Solutions: One method that can assist in fixing the challenges of warehouses is automation. Warehouses can use automation technologies such as robotic material handling systems to improve material handling and movement. These technologies reduce labour intensity, increase efficiency and improve accuracy.
| Sangeet Kumar, Co-Founder, Addverb – A technology company owned by AJIO (Reliance Retail was on board last year January as Addverb’s largest shareholder) talks with Team Apparel Resources and tells how it helps warehouses in the retrieval of goods and storage to make them more streamlined and simplified!
Addverb is a pioneer in providing automation solutions to warehouses and logistics operations. The ease of storage and retrieval is the major contributor to warehouse efficiency as it directly impacts labour utilisation, space utilisation and material movement which adds to the cost and time consumption. Here are a few ways Addverb can help warehouses in the retrieval of goods and storage to make them more streamlined and simplified: Addverb’s automation solutions can help warehouses in the retrieval of goods and storage by reducing manual labour, improving accuracy and speed and providing real-time visibility and control over warehouse operations. This can lead to more streamlined and simplified warehouse operations, ultimately improving productivity and reducing costs. |
For example, autonomous mobile robots (AMRs) can be used to transport goods around a warehouse, freeing up human workers to focus on other tasks such as picking and packing. Similarly, robotic arms and grippers can be used to handle delicate items in tandem with AMRs or conveyors, reducing the risk of damage during transportation and storage.
An optimised warehouse layout can also reduce the distance and time required for the movement of the material, resulting in improved efficiency. The layout should be designed to minimise congestion and ensure that there is enough space for the movement required.
Warehouses can use material handling equipment such as forklifts, pallet jacks, conveyors and cranes to move and handle materials more efficiently. The right equipment can help to reduce the time and effort required for material handling and movement.
Also, busting the myth that robots can only be used in large-scale warehouses, Nicolas Chee, CEO and Founder, ForwardX Robotics told Team Apparel Resources (AR), “AMR installation can be feasible for small-scale warehouse operations, depending on the specific requirements and constraints of the operation. Using our Robots-as-a-Service (RaaS) pricing model reduces the initial investment and financial risks for smaller operations. The long-term benefits in terms of efficiency, accuracy and cost savings make it a profitable investment. Additionally, there are a range of AMR options available, including more affordable and compact models that are well-suited for smaller operations.”
Issue 2: Retrieval and storage consume significant time!
A common warehouse problem that impacts fashion warehouses! This refers to the process of locating and retrieving items within the warehouse, as well as storing newly arrived in an efficient and organised manner.
Fashion items are often highly seasonal, with demand fluctuating rapidly throughout the year. As a result, it’s important to be able to quickly locate and retrieve specific items in order to fulfil orders and meet customer demand which is not the case in most of the traditional warehouses. A time-consuming retrieval and storage system delays order fulfilment, leading to reduced productivity and increased labour costs.
Additionally, it results in errors such as misplaced or lost items, which can lead to customer dissatisfaction and lost sales.
Solution: To address this problem, fashion warehouses should invest in technology such as automated storage and retrieval systems or implement more efficient storage and organisation strategies. Warehouses can use automation technologies such as conveyor systems, automated storage and retrieval systems (AS/RS) to improve storage and retrieval processes. These systems can help to reduce labour costs, increase throughput and improve accuracy.
Additionally, the warehouses can optimise storage space by using vertical storage, such as multiple levels and high bay shelving. This can help to maximise the use of available space, allowing more items to be stored.
| A very recent development has happened by Renatus Robotics. The company has launched a revolutionary robot warehouse system with ‘One-Stop Pick & Pack’ technology, allowing for picking, consolidating and packing all in one stop. Unlike other systems that require additional equipment and labour costs, Renatus’ 3D storage rack system simplifies the process, streamlining inventory management and order fulfilment. With Renatus Cortex’s fleet control and dispatch algorithm, goods arrive already sequenced and consolidated, making packing easier and more cost-effective. |
Issue 3: Picking and packaging of an order isn’t a streamlined process!
Picking and packaging operations are crucial in warehouses as the right product should reach the right customer. Studies have shown that a single picking mistake reduces order profitability by as much as 13 per cent. However, this still is a prolonged issue for warehouses!
Solutions: One method to improve order distribution is by using picking assistance systems, such as pick-to-light or voice picking. Pick-to-light systems make use of visual cues, like lights and displays, to guide operators to the proper items and amounts. This not only reduces mistakes but also increases productivity by getting rid of manual paper-based or electronic picking lists.
| “Implementing automatic picking and packing processes in a warehouse has its very own benefits, Firstly, it increases order accuracy, reducing the chances of shipping incorrect items to customers, which leads to returns, refunds, and customer dissatisfaction. Secondly, it enhances productivity by reducing the time and effort required for manual picking and packing, allowing warehouse staff to focus on other value-added tasks, such as inventory management or quality control. Moreover, it minimizes physical strain on operators, reducing the risk of injuries and improving overall safety in the warehouse. Additionally, automated picking and packing processes enable real-time tracking of inventory, providing accurate and up-to-date information on stock levels, which helps in preventing stockouts or overstock situations.” Nikolay Starikov COO, Cleverence |
Voice picking involves wearing devices, for example, headsets that give audio instructions to operators thus allowing them to keep their hands and eyes free while selecting orders. This technology permits real-time communication between workers and warehouse management systems, enhancing precision and speed of order fulfilment.
The issue of picking and packaging an order or bulk orders in a warehouse can also be resolved through the following strategies:
Optimise storage layout: The layout of the storage area can have a significant impact on the efficiency of the picking process. Items that are frequently picked should be placed in easily accessible locations and the layout should be designed to minimise the distance travelled by pickers.
Implement efficient picking methods: Warehouses can use batch picking, zone picking or other efficient picking methods to improve the speed and accuracy of the picking process. These methods can help to reduce the time required for picking and increase productivity.
Use automated packaging systems: Automated packaging systems can help to improve the speed and accuracy of the packaging process. These systems can handle tasks such as labelling, weighing and sealing.
| Process of Automatic Picking and Packaging
The orders are first received by the warehouse and entered into the system. Then, based on the order, items are retrieved from their designated storage locations and brought to an assembly area. There, they are gathered onto a conveyor belt and sent to the packing station. At the packing station, items are sorted into orders and packaged according to customer specifications. Once all items for an order are packed, it is then shipped to the customer. This entire process is done automatically by machines, which helps to speed up order fulfilment and reduce errors. |
Issue 4: Lack of inventory accuracy results in overstocking or stockouts!
Inventory management is one of the crucial activities in warehouses which, if not done correctly, adversely impacts the efficiency and effectiveness of warehouse operations. Inaccurate inventory counts result in stock outs or overstocking, which negatively impacts customer satisfaction and profitability. This problem can arise due to various factors such as human errors, improper tracking, and system glitches.
Both overstocking and stockouts result in lost sales, missed opportunities and a damaged reputation. In addition, the lack of inventory accuracy can make it difficult to plan for future demand and replenish stock in a timely manner.
Solutions: To address the problem of inventory accuracy, warehouses can implement regular inventory audits and invest in technology such as barcode scanners and automated inventory management systems (WMS – Warehouse Management System). These solutions can help to improve the accuracy of inventory data, reduce errors and optimise inventory levels to prevent overstocking and stockouts.
Warehouse management system (WMS): A WMS can help to manage inventory levels, track item locations and optimise storage space. This can help to reduce errors and improve the accuracy of inventory management.
RFID technology: RFID technology can help to automate the inventory management process by tracking the location and movement of items in real-time. This can help to reduce errors and improve inventory accuracy.
Optimise inventory layout: The layout of the storage area can have a significant impact on the efficiency of the inventory management process. Items that are frequently picked should be placed in easily accessible locations, and the layout should be designed to minimise the distance travelled by pickers.
Streamline operational processes: Operational processes such as receiving, putting away, picking and shipping should be streamlined to reduce the time required for each process and increase productivity.
Issue 5: Traditional warehouses are not safe for humans!
Traditional warehouses can pose safety hazards for workers due to various factors such as heavy equipment, high shelves and repetitive tasks. Workers may be at risk of getting hit by moving equipment or falling objects. Traditional warehouses typically have high shelves that require workers to use ladders or other equipment to reach products, which can increase the risk of falls or other injuries.
Moreover, one inherent nature of warehouses is repetitive tasks and many areas in a traditional warehouse involve repetitive tasks such as lifting, carrying or moving heavy objects, which can lead to injuries such as back strains or repetitive motion injuries.
Solutions: Fully manual operations put employees at more risk of injury due to the labour-intensive nature of warehouse workflows. Apart from implementing safety protocols such as providing proper training for workers, installing safety equipment and signage, improving lighting and ventilation, and implementing ergonomic workstations, the modern warehouses can use technologies to reduce the need for heavy equipment and repetitive tasks, further enhancing worker safety.
Human-robot collaboration is something warehouses are doing but the use can be accelerated. Collaborative robots or cobots are robots that specialise in performing repetitive tasks and are safe to work alongside humans. Additionally, they are perfect to be used in warehouses for tasks like picking and placing and performing strenuous and fatigue-causing activities.
Implementing safety sensors such as light curtains and laser scanners can also be used to detect when a person or object is in the path of equipment. When the sensor is triggered, the equipment will stop or slow down to avoid a collision.
For example, AMRs/ACRs and advanced forklifts use sophisticated sensors and cameras, similar to those used in autonomous vehicles yet they travel at a fraction of the speed and eliminate injuries that come with pulling heavy carts or pallet jacks and they do not get fatigued.
“ForwardX takes safety very seriously and has implemented a range of measures to ensure that its AMRs are safe to operate in apparel warehouses. These measures include advanced sensors and cameras that allow the robots to detect and avoid obstacles, as well as warning signals and audible alerts that alert nearby workers about their presence. Additionally, the AMRs are programmed to operate at safe speed and to follow strict safety protocols and all operators are trained in safe operating procedures. The company also works closely with its customers to assess potential risks and implement appropriate safety measures,” commented Nicolas Chee.
Fashion brands and retailers unlocking the potential of warehouse automation
Fashion brands, retailers and e-commerce companies have realised the investments in warehouse automation can make them more efficient. Renowned fashion brands Bestseller and Nike have partnered with robotics companies such as Klinkhammer, HAI Robotics and Geek+ respectively to implement automated picking robots in their warehouses for improved order-fulfilment efficiency and accuracy.
FM Logistic and IKEA have also partnered to deploy Locus Robotics’ robots for parcel order processing, marking the largest implementation of logistics automation at FM Logistic in Central Europe and advancing IKEA’s omnichannel strategy in Poland, with plans to duplicate the set-up in India’s Farrukhnagar warehouse that is in partnership with United Colors of Benetton.
Uniqlo’s parent company, Fast Retailing, has partnered with Daifuku to automate its brand warehouses in Japan and overseas markets. The robotic system in its Tokyo warehouse transfers products delivered by trucks, reads electronic tags, confirms stock numbers and wraps products on a conveyor belt with cardboard and labels. The goal is to reduce the amount of work done by employees in the warehouse.
Superdry has launched a major initiative to roll out intelligent goods-to-person robotic systems across its international network of regional distribution centres. The robots work in unison with manual pickers, automatically selecting and lifting modular pick-walls and transporting them to pick-to-light stations where a predetermined pick-face is presented to the operative. Under the guidance of pick-to-light technology, items are manually selected, scanned and placed for maximum speed and accuracy. Walk-time is eliminated, giving a design capability to offer up to 600 picks per hour, with 99.9 per cent accuracy.
Reputed retail company Varner Group’s distribution centre and warehouse have processes designed to manage pallets, cartons and item-level units and piece picking for e-commerce fulfilment and garments on hangers.
PUMA and its partner Bastian Solutions have invested in an automated warehouse system at their Indianapolis, Indiana, USA facility, incorporating innovative technologies such as the AutoStore Black Line and in-line packing automation, resulting in a significant increase in capacity and speed compared to their previous set-up.
Additionally, GXO Logistics successfully uses robots for order picking in a fashion e-commerce warehouse in Tilburg, the Netherlands. The Pick-it-Easy Robot, designed by Knapp AG, is capable of recognising products and placing them onto conveyors for sorting and routing and this has increased its efficiency by 120 per cent.
In India, Walmart, Myntra, Flipkart and Amazon are among the pioneers of warehouse automation. Amazon in India uses KIVA robots in its large warehouse facilities. Amazon has already invested heavily in fulfilment centres in India and its data-centric approach enables it to offer next-day delivery for select products in large cities.
Myntra, one of India’s largest online fashion retailers, has implemented a range of automated technologies in its warehouses, including automated storage and retrieval systems (AS/RS) and conveyor systems, while Raymond has implemented an automated warehouse management system (WMS) to improve inventory management and order fulfilment. This technology helps reduce errors and increase efficiency.
Luxury Indian fashion brand House of Anita Dongre has also invested heavily in automating its warehouse. Speaking to AR, Pradeep Gupta, Head Warehousing & Logistics, House of Anita Dongre Ltd said, “Automation in picking has transformed our warehouse operations. The ability to ship bulk orders in real time has improved our inventory management and order accuracy. It has also eliminated the need for manual tuning, reducing errors and speeding up the order fulfilment process.”
AJIO, the fashion e-commerce business of India’s largest company Reliance Industries Ltd., is going one step ahead of its competitors in the country. The robotics start-up Addverb has already deployed pick-by-voice software Zesty in AJIO’s warehouses along with other automated equipment such as robotic conveyors and semi-automated systems.
Future of warehouse automation looks bright, especially in India
The western world has always been known to be tech-friendly in businesses. However, India is catching up fast, and rightly so as the Indian fashion retail market is worth US $ 96.47 billion which invites a lot of automation across the supply chain, including warehouses. The advantage for technology players is that India poses massive opportunities for both offline and online businesses and warehouses can be set up according to the needs and requirements of both types of business models. Particularly, e-commerce has been recording a massive surge in terms of demand recently. As a result, the retailers will need advanced warehousing solutions to meet the demand of the customers in the shortest lead time.
Walmart Global Tech, the tech innovation arm of Walmart, is also all set to initiate automation much more aggressively in Walmart’s warehouses and supply chain across India.
Hari Vasudev, SVP Retail Tech Platforms and Country Head, Walmart Global Tech mentioned, “We are partnering with companies and are developing in-house solutions that allow us to use robotics and automation in our warehouse, that allows us to be a lot more productive and makes our associates focus on higher-order bids. This means they are focused on higher-value work and mundane work is done through automation and robotics. It is more specifically for custom supply chains when it is the use of robotics and automation more effectively in our social centres, distribution centres and sortation centres.”
Due to India’s growing e-commerce industry and the need for efficient warehouse operations, it makes sense for companies like ForwardX Robotics to target India as a market for its products. To date, ForwardX has been focusing on expansion into the US and Europe, as well as its established presence in parts of Asia including China, Japan and Korea, but the company has not put a lot of resources into India, yet.
“That isn’t to say that we don’t have our eye on it! It is definitely a target market and we know we could provide great value to the country’s warehouses, improving efficiency, speeding up order fulfilment and reducing costs,” asserted Nicolas Chee.
