The Evolution and Impact of Warehouse Automation and Smart Factory Technologies
Deloitte's 'smart factory' aims to demonstrate potential of warehouse automation. The $8-million facility is the fourth of its kind in the world, and while there are similar demonstration facilities in the United States, Japan and Germany, the Montreal location is unique because its main focus is warehousing. Deloitte, a business consulting firm, plans to bring clients to the facility to show them what's possible with new technologies and allow them to better adapt to labour shortages and supply chain disruptions.
Advanced Robotics and Computer Vision
Much of the new technology at the facility is enabled by advances in computer vision, which has "radically changed" where robots can be used and allowed them to work closer to humans. For instance, a robotic arm at the Montreal demonstration facility attempts to pick up a small box; if it senses that it doesn't have a good grip, it puts the package down, adjusts and tries again. The arm uses vision technology to "see" the packages, which helps the robot know what tool is required to pick up that box or where exactly to position itself in order to get that product in exactly the right spot.
Computer vision advancements also allow automated systems to receive goods—scanning incoming pallets and detecting the number of packages and whether any are damaged—as they're unloaded from a truck by an automated forklift. That forklift can then place a pallet onto a self-driving robot, called an AGV or automated guided vehicle, which moves them into position to be unloaded by the robotic arm. Furthermore, the robots can also "learn" from repeated operations; if the product falls, the robot and the vision system can remember that and learn from those mistakes.
The Role of Software in Automation ROI
Automation control software plays a critical role in the return on investment companies can realize through the use of warehouse automation. Much of the added value that can be achieved is made possible by the software that controls the automation solution and integrates the automation into warehouse, supply chain and delivery processes. With the right software, companies can reduce their upfront investment without compromising future flexibility, enhance inventory management in ways that reduce costs, and improve day-to-day operating efficiency.
Must-Have Capabilities for Automation Control Software
- Modular, preconfigured architecture: Integrates automation control, warehouse execution and management, with industry-specific preconfigurations.
- Intelligent inventory and order management: Manages inventory based on batch, expiry or best-before dates and aligns with customer expectations.
- Resource orchestration: Controls both automation and manual processes to avoid siloing.
- Traceability and analytics: Supports detailed tracking and 3D visualization of warehouse operations.
- Intuitive user interface: Easy to use, consistent and multilingual.
Economic Drivers and Market Growth
A new study says the global logistics automation market size will be valued at US$81.5 billion by 2033, and that Canada’s manufacturing sector is helping drive the growth. This growth is propelled by the urgent need to cut costs, reorganize workflows, and boost productivity. Automated warehouses have driven the demand for quicker responses and the requirement to manage a more significant number of stock-keeping units (SKUs) with less error due to the introduction of always-on e-commerce.
Warehouse Efficiency and Market Challenges
As detailed in the following data, automation significantly impacts operational capacity and market outlook:
| Category | Impact and Data Points |
|---|---|
| Labor Efficiency | Reduces the number of workers needed by 75%. |
| Market Growth Rate | A yearly increase in the logistics automation market of 10.2 per cent from 2025-33. |
| Warehouse Size Evolution | Warehouses grew to approximately 200,000 square feet by 2020, up from an average of 65,000 square feet in 2000. |
| Primary Executive Concern | 35 per cent of executives say their primary challenge is to fulfill more orders quicker and cheaper. |
Specialized Solutions for the Supply Chain
Automation can also help manufacturers – as well as warehouse operators – adapt to Quebec's labour shortage. Finding entry-level workers is the biggest challenge, making automation attractive because it reduces the need for those workers. In specialized sectors, such as the cold chain, Lineage uses a process called Dynamic Profiling, which gives them the ability to adapt to a wide range of needs over time. Automated Storage and Retrieval Systems (ASRS) technology moves products seamlessly through multi-level and high-bay locations, maximizing storage density and reducing service times. Fully automated warehousing uses a smaller footprint to handle more product, which means lower energy consumption and better efficiency.
