What Are the Pros and Cons of Warehouse Automation?

March 27, 2017

Typically, when companies outsource their warehousing, packaging and distribution tasks to an outside company, it is to reap the benefits of automating all these duties. At present, you may be pondering a change in this area for your own business and not sure if it is the right time to enact the necessary measures to bring this about for your company. To help you make a decision, refer to the following pros and cons for warehouse automation.

The Pros of Automating Warehouse Tasks

• Increased output without moving to new premises is the main benefit of turning to a professional company to automate your various warehousing, packaging and distribution tasks. Even when you decide to automate your on-site tasks, it can result in a higher output.
• A reduction in the number of hiring and training periods is needed for seasonal sale spikes. In addition, fewer layoffs will occur after the seasonal spikes are over for your company.
• You will reduce labour costs since fewer employees are necessary and this will allow you to spend capital to improve other areas of your business. All of this will lead to an increase in profitability.
• Higher accuracy with inventory and stock management, thanks to computer software and digital barcodes. You even will be able to learn which of the products that you stock too little or too much of according to the demand for them.

The Cons of Warehouse Automation

• It will interrupt your present warehouse activities until all the changes are complete, and this could reduce your incoming revenue temporarily and hinder you from reaching your quarterly goals.
• Your current workers may need retraining if the automation replaces their jobs.
• The initial changeover can be expensive, and you need to analyse whether or not your budget allows for all of the costs.
• Automation may be ideal for only your peak seasons and not worth the expense during the slow periods. The timing has to be right for automating your warehousing for it to be the right move.
• Your products may not be ideal for the automation process. Today, there are still products that call for a hands-on approach for warehousing, packaging and distribution processes.

If you are still unsure about whether or not warehouse automation is right for your business, consult with our company of Challenge Packaging and Warehousing Solutions. We will meet with you to learn your needs and explain all of the services that we can provide for your specific business model. After our meeting, you will be able to make your final decision in an informed manner.

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Vic 3026

Telephone: (03) 83609736
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Email: info@cpacks.com.au

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