Unlocking the power of digitalization in your warehouse

During a recent webinar from Automated Warehouse, key industry experts – Ken Ramoutar, chief marketing officer at Lucas Systems, Michael Taylor, chief product officer and co-founder of Duality AI, and Bob Kennedy, principal and founder of RC Kennedy Consulting – explored the emerging technologies, from robotics and automation to the latest data analytics and artificial intelligence, that are changing how engineers design warehouse systems.

During the session, Kennedy delved into what digitalization means for warehouse systems and how business owners can implement these tools to gain new insights and efficiencies within their supply chain. Here were some of his insights:

What are some of the first steps to getting ready for digitalization?

Kennedy’s perspective on digitalization is informed by 40 plus years implementing warehouse management systems. During those projects, he has seen a lot of integration with technologies, whether it’s automation or voice systems or other external systems. When Kennedy hears the term ‘digitalization,’ he thinks of it as ‘automation plus,’ that is, new technology incremental to traditional means to automate the processes of a warehouse.

How do you decide what is the right data to collect?

Companies often don’t do a very good job of defining their business requirements, which is essential for identifying pain points and operational needs. Kennedy says once you understand that, only then can you identify the type of technology and data you need to support those needs.

What tools are available?

Traditionally, a WMS system is a comprehensive system that runs the warehouse, every function, every area of the warehouse. It picks, it packs, it puts away, it manages inventory and so forth. What's evolving now is that the WMS is becoming the foundation system, or hub, that integrates with more specialized systems such as slotting, voice systems, and automation systems. 

We hear a lot about ease of use; what do the latest software and AI enable?

There is a real opportunity in terms of bringing in AI and machine learning technologies to make the warehouse operation more responsive to an ever more dynamic market. An e-commerce warehouse that is streaming in orders by the thousands must do very complex things that humans can’t process as quickly or as well.

At the same time, Kennedy said that he has perceived that there’s a lot of anxiety in the market with respect to AI. Companies are worried that if they don’t have AI technology, they’ll fall behind. His advice: just relax. “As these tools evolve, they’re going to have an AI element to them,” he says. “Focus on making your operations as good as they can be now with the tools that you have. Focus on understanding your business. When you’re ready to make the jump, you know the technology is going to be there.”

What role does the human factor play in deploying digital technology?

Kennedy sees software becoming a part of the domain of the user, where the user can maintain the software themselves. This is called low-code or adaptive software, where the system itself enables the user through automated tools to create software quickly. Coupling adaptive software with generative AI, automated testing tools, and simulations creates a huge paradigm shift for the roles that humans play in the development, testing, and deployment of software. 

How much are predictive analytics being used? 

Companies need to start looking beyond the four walls of their warehouse to improve their supply chain, operation, and customer service. In today’s global market, there's a lot of opportunities for risk and disruption. Kennedy thinks warehouse operators should be looking at AI predictive tools that can help them forecast and react to supply chain disruptions dynamically.

“In the not-so-distant past, suppliers were located across the street or across town.  Now they are across an ocean.  Your products may be handled a dozen times before they reach you.  And each of those touch points is an opportunity for disruption.  Tools to mitigate that risk will become a part of everyday experience for companies.”

Are there often surprises as companies embark on digitalization? 

When you're embarking on a new project with new technology, it’s a good idea to at least consider grabbing an expert and pulling them in for at least some portion of that project. “So many times I’ve seen a project where the software has been tested and seems to work well, but when you deploy it, the operation struggles,” Kennedy says. “This often happens because the system has been designed to solve a problem other than the real problem.

“A consultant that is familiar with the technology is going to be able to help you strategize on exactly what it is you're trying to solve. They’ve done it before. It may be a new experience for you.  That’s why it’s a good idea to get somebody who's been there, done that.”

RC Kennedy Consulting is here to help. We are a network of supply chain experts with decades of experience in a variety of fields that are dedicated to helping businesses improve their operations and become better positioned for growth. Contact us to learn more. 

Download Automated Warehouse’s new eBook, Digitalization of the Warehouse, for a deeper dive into these topics.