Automated Material Handling

The shift to online shopping forever changed how companies fulfill their customers' needs. Speed, efficiency, and accuracy are mandatory, and companies are reacting to ever-increasing consumer demand by implementing goods-to-person automation to meet their needs. The result is an automated material handling equipment market that’s forecasted to grow by 8.9% between 2024 and 2029–that’s an increase of over $18 billion in four years.

Automation can optimize the material flow of goods from the moment they arrive at a warehouse to when they ship to customers, an invaluable resource in a consumer market where every second counts. 

TGW Logistics understands the need for efficient, seamless throughput. We designed our automated systems to immediately integrate arriving goods into a warehouse’s workflow. This level of efficiency sets the tone for a seamless process throughout the warehouse. But what happens after that?

Let’s walk through a typical material flow in a fulfillment center to better understand how goods-to-person automation can transform logistics. 

State-of-the-art automated storage is crucial to a distribution center’s success. It supports successful inventory management, optimizes warehouse space, and streamlines retrieval and fulfillment. In a world of fierce consumer demand, companies must look to automation for seamless storage solutions or risk losing business to their competitors.

The real power of ASRS lies in its ability to allocate storage dynamically based on real-time data. Dynamic storage allocation supports storing goods in the most efficient spots based on demand, inventory levels, and size.

This approach provides a more efficient storage and retrieval system than storing goods in fixed locations. Storing high-demand items closer to picking areas speeds the retrieval process, while less frequently needed goods are placed in deeper storage.

This data-driven approach improves operational efficiency by reducing the travel time needed to retrieve an item and maximizing available space. It allows a warehouse to handle more inventory without expanding its footprint.

The next step in the material handling journey involves preparing goods for shipping. Items move from picking to packing stations. Here, automation supports efficient packaging so each product arrives at its destination and remains safe during transport.

Automated packaging systems meet the unique needs of each logistics center. Some systems are semi-automated, making packing more manageable for employees. Others are fully automated and require little to no human interaction. In addition, automated packaging systems are designed to accommodate specific product types and sizes.

Offering value-added services such as inserts, coupons, and custom holiday wrapping can be difficult. Automated systems powered by warehouse management software seamlessly work these processes into the material flow without causing backups.

Let’s look at the steps involved in fully automated packaging: 

• Goods are scanned at packing stations to ensure accuracy.
• The automated system prepares boxes suitable for the packed item size.
• Either robotic arms place items in the box or a box is built around the items.
• Protective material is added to the box to secure the item during shipping.
• Boxes are automatically sealed with packing tape, adhesives, or straps.
• Packed boxes are weighed and labeled for tracking.
• Automated cameras provide quality control by inspecting boxes to ensure correct packing.
• Conveyors transport boxes to shipping areas. 

This intricate system provides many benefits to warehouses with high throughput. Automation speeds the packaging process and significantly reduces human error. It also decreases material waste by packaging items in appropriately sized boxes, which promotes supply chain sustainability and lowers shipping costs. 

Product returns are inevitable. Companies must have systems to facilitate the smooth transfer of items back into their fulfillment center. Automated systems simplify this with material handling solutions that support an organized and efficient workflow. 

Customers return items for different reasons. A pair of jeans may not fit correctly, or a product may sustain damage at some point during the fulfillment process. These factors come into play when a company processes a return and provides a refund or exchange. 

Here’s a walkthrough of a return process supported by automation: 

• Returned items are scanned into the warehouse management system to confirm that the item matches the original order. 
• Automated conveyors sort items based on the reason for the return. 
• Sensors weigh and inspect items to determine their condition. 
• Conveyors or AMRs automatically route undamaged items to storage or workstations for manual inspection and redistribution. 
• Damaged items are routed to repair or disposal areas. 
• Refunds are triggered based on the condition of an item. 
• New orders are auto-generated if the customer requests an exchange. 

This seamless process supports fast returns, keeps a warehouse’s inventory up-to-date, and maximizes storage space. Automation also offers sustainable solutions by sorting damaged goods and moving them to shipping areas for transport to recycling or donation centers. 

Automated logistics systems provide the infrastructure needed to streamline the entire material flow in fulfillment centers. Each system is tailored to meet industry demands and solve a company’s unique needs, so every automated system looks different.

However, several critical components help maintain efficiency throughout most automated warehouses.