The 2022 Global Industrial Robotics Survey published by McKinsey indicated that industrial companies will invest in robotics and automation over the next five years to address the global labour scarcity issue.
Globally, automation will account for 25% of capital spending, and companies expect to reap rewards in terms of output quality, efficiency, and uptime. In Asia alone, the warehouse automation market is estimated to be worth US$10.76 billion and will reach US$23.89 billion by 2028. However, there are questions that need to be addressed when it comes to adoption, especially in terms of costs and level of understanding.
The survey highlighted another key challenge - the implementation of new technologies in setups consisting of legacy technologies and different interfaces. 42% of surveyed noted that they face challenges in (i) getting access to end-to-end solution providers capable of customising solutions to their needs.
There are concerns regarding the (ii) seamless integration of robotics into existing spaces and manned operations, and (iii) compatibility between machines and products. These concerns are compounded by (iv) the expected return on investments and (vi) the lack of implementation experience.
Overcoming barriers to automation adoption
This article details the potential solutions to enable companies in reaping the rewards of automated solutions.
In response to the lack of access to customisable solutions that support traditional warehouses, more global OEMs are establishing partnerships with robotics startups to offer innovative solutions. Their goal is to offer hardware and software solutions while providing a seamless operational experience and faster deployment in the warehouse.
To address the challenge of integrating robotics and automation into existing spaces and manned operations, companies could explore brownfield-friendly solutions that require minimal reconfiguration.
Essential features like real-time obstacle avoidance should be included in the chosen autonomous solution to enable safe operation within a hybrid environment of both manned and unmanned operations, optimising productivity while maintaining a safe and harmonious coexistence between human and machine-driven tasks.
Companies could also adopt intelligent warehouse control systems to ensure compatibility and interoperability between machines and products. By integrating diverse warehouse sub-systems and equipment into the control system, companies can then facilitate seamless coordination of workflows without manual intervention, thus resulting in increased productivity and throughput.
When it comes to costs associated with automation, there are two schools of thought. From a traditional ROI perspective, the upfront investment needed to automate processes might seem greater than traditional methods solely based on capital expenses.
However, an increasing number of companies acknowledge that the ultimate cost implications of not implementing automation can surpass the required initial investment. Through automation, businesses can enhance efficiency, mitigate risks related to labour scarcity, and ultimately attain long-term cost reductions.
Lastly, to address the challenge of a lack of implementation experience, companies could seek collaboration with experienced automation firms that have a good track record.
Starting with pilot and small-scale automation projects will allow companies to identify potential issues before scaling up. This process allows for a controlled environment where companies can learn, iterate, and fine-tune the implementation process for larger and more complex automation endeavours.
Enhancing scalability and adaptability through automation
Automation, driven by artificial intelligence (AI), machine learning algorithms, and integrated advanced sensors, optimises production schedules, allocates resources efficiently, and allows companies to swiftly respond to market conditions and unexpected disruptions, ultimately driving higher levels of productivity and output.
Without automation, companies risk relying on error-prone manual processes, leading to higher costs, extended production cycles, and difficulties in responding to changes in customer preferences or disruptions in the supply chain.
Embracing automation can be challenging, but partnering with like-minded intelligent solutions providers can pave the way for a successful business model, especially in today’s evolving business landscape.
