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This article is part of our SME Corner, offering insights from our subject matter experts to guide you on your warehouse automation journey.

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Warehouses are the backbone of supply chains, but in today’s unpredictable world, they’re being asked to bend, flex, and keep up with everything from unpredictable consumer whims to geopolitical shake-ups. Research from Gartner shows that, on average, a supply chain disruption impacts a business every three years, making resilience not just a precaution but a strategic necessity. 

As disruptions become more frequent, warehouses must integrate advanced automation solutions to ensure the reliable flow of goods despite these challenges. But what does it take for a solution to be resilient enough for your operations? This guide explores essential strategies and questions every organization should consider to ensure their warehousing solutions can adapt to future challenges and keep operations running smoothly.

1. How Comprehensive is the Solution? 

Every solution has its limitations, so you’ll need to determine your current needs—and where you might be headed—to see how well the solution fits both. Consider potential scenarios: can the solution adapt smoothly, or would it need a significant investment to adjust? 

• Adding Distribution Channels: If your warehouse currently supports only store replenishment, could the solution be easily expanded to include e-commerce or vice versa?
• Flexing to Channel Shifts: How will the solution adapt if a large portion of your orders suddenly shift from B2B to B2C or the other way around? Will the system adapt to surges in channel mix ratios or does it rely on separate technology and processes to satisfy omni-channel needs.
• Adapting to Consumer Behavior: How would the solution manage a sudden surge in demand for a slow-moving product, say, if an influencer suddenly made it the next big thing overnight?
• Managing SKU Changes: Can the solution accommodate changes in inventory levels and SKU diversity, such as when new products are introduced or acquired with different dimensions? Can it efficiently handle both cases and individual pieces, with proficiency at both levels?
• Enabling Advanced Capabilities: How efficiently can the solution support various warehouse processes like order sequencing, discrete picking, batch picking, and sortation? How about case and piece picking?
• Level of Automation: Does the solution require a relatively large amount of hardware and labor to get the job done? How physically demanding will operating the system be? How truly automated is the solution?

2. How Complex is the Solution? 

Warehouses are complex. Storing, picking, packing, and shipping thousands or even millions of items every day, with little to no room for error. Unfortunately, many automated solutions mirror this complexity, with designs that require extensive engineering to set up, maintain, and scale. 

For example, Legacy Automated Storage and Retrieval Systems (ASRS) often rely on heavy machinery that can take years to install. They also often have complex conveyance networks and limited flexibility to scale throughput and storage independently—often requiring extra investment in one to boost the other. In contrast, mobile ASRS such as the Exotec Skypod system offers modular scalability, making it a more flexible and cost-effective option as your needs change. Simply put, businesses should seek automation systems that address their challenges without adding new ones.

3. How Real-Time is the Solution? 

When choosing warehouse automation, look for systems that provide real-time visibility and transparency into your processes and inventory while automatically adjusting to changes. The key lies in the software driving the solution: opt for PC-based systems driven by advanced algorithms and AI rather than traditional PLC-based systems. Without these features, your business will be reacting to supply chain challenges instead of proactively managing—or even leveraging them—to stay competitive. Here’s what to consider:

• Visibility: Look for systems that provide real-time updates on inventory location and movement, with organized SKU data for easy tracking. This requires strong computational power to handle large data sets. Better visibility means you can improve sell-through rates, prevent shrinkage, and enhance forecasting accuracy.
• Transparency: Choose solutions that alert you to issues as soon as they arise and help identify any blind spots in your operations. These insights enable you to proactively address disruptions, identify bottlenecks, prevent delays, and minimize inefficiencies.
• Enhanced Automation: Your solutions should be adaptable to changing demands, such as fluctuating SKUs and order patterns, meeting complex supply chain needs. This also requires high computational power for managing large data sets effectively as it requires continuous learning and optimization, allowing rapid adjustments and keeping operations lean.

4. What if…? 

Considering ‘what if’ scenarios can help you assess the flexibility and robustness of potential solutions. Here are some hypothetical situations to evaluate how the solution might perform under changing conditions.

• What if you need to rapidly expand operations to capitalize on business opportunities?  
• What if you need to move operations to a new facility? 
• What if you want to leverage predictive analytics?
• What if a hardware or software failure occurs? 
• What if energy costs soar?
• What if a cyberattack disrupts operations?
• What if government policy changes and requires your business to adapt to new regulations?
• What if geopolitical turmoil creates instability?

5. What Support is Offered? 

Issues are inevitable in any solution, but certain key factors can help you choose a trustworthy partner who will deliver on their promises. Some main considerations are:

• Operational Guarantees and Support: What guarantees come with the solution, and what level of support will be provided to back those guarantees? It’s essential to ensure there’s a strong, dedicated team to keep things running smoothly and address problems quickly.
• Customization vs. Product Orientation: Is the solution custom-built or a standardized product? Customized solutions may bring unique issues that require specialized fixes. In contrast, a standardized product used by many customers will likely have common issues that, once solved, benefit everyone.
• Proven Track Record: Choose a solution provider with a strong track record in automation for businesses like yours. Ask for case studies that show their approach and results, and if possible, tour a customer facility to see the solution in action and get direct feedback. Also, check how long they’ve worked with key clients—long-term relationships can be a good sign of reliability and solid support.

The Exotec Skypod system delivers the optimal mix of performance and flexibility for goods-to-person robotic automation, ensuring resilient operations. With up to 5x throughput compared to manual operations and retrieval times of under two minutes for all SKUs, it meets the demands of fast shipping for all inventory.

The modular system decouples throughput from storage, ensuring industry-leading flexibility. Thus, increasing throughput doesn’t require a proportional increase in storage, preventing unnecessary equipment spending. Additionally, the system is channel-agnostic, serving both B2B and B2C orders seamlessly with both case and piece picking capabilities.

Experience the Skypod system in action with an Exotour at one of our customers’ warehouses. See it firsthand and hear directly from the site’s leaders. Space is limited, so if you’d like to join, request an invitation using the link below.