SupplyChainTalk: Warehouse automation and its effect on your people

On 22 May 2024, SupplyChainTalk host Ana Maria Velicawas joined by Prof. Dr. Md. Mamun Habib, Professor, Independent University Bangladesh and University of Texas; Patrick Strauss, Chief Intelligent Environments Solutions Officer (CIESO), GlobalLogic UK&I; and Simon Daniel Houghton, Director of Sales UKI, Geekplus.

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In the U.S. alone, some 1.5 million workers are employed in the warehouse and storage sector. The UK’s transportation and storage sector employs 1.8 million, and millions more work in warehouses all around the world. While some prior work has explored the impact of automation on these workers, there is still limited understanding of how automated technologies are changing these employees’ daily lives. Findings have shown that sentiment regarding automation was about 40% negative and 60% positive, and a number of recurring concerns and hopes have been identified: On the negative side, workers were worried about losing their jobs, having inadequate training resources, and dealing with downtime or errors caused by technology malfunctions. These findings throw the human element of automation in sharp relief, as well as the fact that humans in 2024 are still instrumental to running warehouses. On the labour market, warehouse workers are still in high demand. However, repetitive and menial tasks are increasingly done by robots. The training of workers to get them familiar with operating and co-working with automated systems is also key. 

Is here a reason for warehouse workers to worry?
The current warehouse technology is designed to augment human workforce rather than replace it. To make automation a success, two things should be top of mind for the C-suite – purpose and communication. Business regardless of the sector they are in are still chasing the shiny new tool and can’t give a straightforward answer to the question why they need automation. Automation, if done correctly, will also offer new opportunities to create jobs. Currently, about 50 % of an operator’s time in a warehouse is spent in transit, which can be regarded as dead time that’s also creating accidents – and that is where AMRs can do a great job. Thanks to robots, people can work in a cleaner, more pleasant working environment. Some employers make the environment nicer by setting up workstations with ergonomic anti-fatigue mats, heaters and fans and a little radio. Although the cost of automation can be high, it will reduce operating costs and improve the level of health and safety. It also improves the reputation of the brand. Robots can be made more relatable to staff by giving them names or painting them in company colours. Automation can save money too, which is the most obvious in lights-off environments, where, of course, human workers have a much nicer environment. eople that matter in technology-related decisions. Robotic systems that move around are mostly fenced off from human workers. But safety is equally or even more key in environments of human-robot collaboration. 

The panel’s advice

• To establish what level of automation your warehouse needs, answer the following questions first: What do you want to achieve with automation? Why do you want to achieve it?
• The best efficiency gains can be achieved where the most people are – picking and packing.
• Don’t automate the warehouse at one go. Automate the processes that create bottlenecks first.
• Leverage big data to explain the benefits of automation to your stakeholders.
• Bring in unbiased external change managers