Automated Replenishment

19.07.2023

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Revolutionizing Warehouse Inventory Management through Automation

Revolutionising Warehouse Inventory Management

In today’s fast-paced world of warehouse logistics, managing inventory is one of the biggest challenges for any organisation. Maintaining the right amount of stock at the right time is crucial for customer satisfaction and business profitability. But with manual inventory management, there is always a risk of overstocking or understocking, leading to lost sales or excess costs. For all warehouse operations, it’s vital to find a balance between holding sufficient levels of stock to remain efficient and not overstocking which then limits the storage capacity of your warehouse. One way to maintain this balance is through Automated Replenishment.

What is Automated Replenishment?

Automated replenishment is an efficient solution increasingly implemented in warehouses to save on time, travel, and costs. Automated stock replenishment consists of the implementation of automated transportation, storage, and/or management systems to speed up the supply of raw materials or finished products to warehouse locations or production lines. Automating this vital logistics process makes it possible to supply goods to the storage area just when they’re needed.

Pick to Light System in place in the warehouse

Image sourced from: https://www.picktolightsystems.com/

How is Automated Replenishment Implemented?

A warehouse management system (WMS) acts as the central control system for all warehouse processes. Using operational data, the WMS program determines the key inventory management parameters ― for example, minimum stock levels ― and designs and implements the relevant replenishment strategies to ensure optimal order management is maintained. The WMS also enables warehouse operators to manage an efficient digital supply chain that is integrated and aligned with suppliers, to ensure that automating replenishment is carried out exactly when needed.

A WMS will create automatic replenishment plans which are then implemented through the integration of infrastructure solutions e.g. conveyors or robots, to physically move existing stock of items around the warehouse.

 

What Are The Advantages of Automated Replenishment?

Automated inventory replenishment is a pivotal process in running an efficient warehouse, delivering a continuous flow of goods to the storage areas, production lines and pick stations. Here we highlight some of the key metrics and the main benefits of implementing an automated solution for this logistics operation:

Complete, real-time inventory control

Automating stock transfers and replenishment with warehouse management software leads to increased accuracy in goods handling, especially for stock turnover and product traceability. Real-time monitoring of stock levels leads to better management of inventory and with automated systems, businesses can order items based on actual demand, reducing the risk of overstocking or understocking.

Real time data analysis and historical sales data are compiled and assessed to deliver the optimum inventory management strategy. Adding technology innovation through artificial intelligence and machine learning based forecasting, warehouse and distribution centre operators can accurately forecast and manage inventory through the implementation of an efficient automated retail planning and replenishment solution.

 

Inventory Control - Automation Replenishment

Management of product seasonality

Having an automatic stock replenishment system is ideal for dealing with both expected and unexpected increases in demand. The software analyses changes in consumer buying habits and can activate and implement the right stock replenishment processes to ensure the availability of items to cope with changing demand for goods.

Reduced storage costs

Automated stock replenishment lowers logistics costs in facilities that manage large volumes of goods. Automated supply replenishment systems limit unnecessary stock holding, product handling times, and travel distances of both the goods and manual workers.

Increased levels of accuracy

Implementing a WMS eliminates the possibility of errors in inventory management and prevents excessive and unnecessary travel within the warehouse by pickers. Using such a system also minimises any mistakes that may arise in stock handling and product slotting. To make warehouse staff quicker and more efficient in replenishment tasks, the software can also send instructions via put-to-light devices which display information to the picker showing the right quantity and location for each product needed to make accurate replenishment.

Supply chain management

Successful implementation of an automated replenishment strategy has a positive effect on the business process entire supply chain. Suppliers are kept up-to-date through accurate demand forecasting and can ship inventory in a timely manner to avoid excess stock being held in the warehouse.

PickToLight System in use in the warehouse

Image sourced from: https://www.picktolightsystems.com/

Replenishment Operations in a Manual Warehouse

In manual warehouses that do not operate replenishment via large-scale automated solutions such as Automated Storage and Retrieval Systems (AS/RS), there are still many ways to further improve stock management efficiency. WMSs can operate multiple replenishment strategies such as Just-In-Time. This allows warehouse managers to assign the relevant automated store replenishment and strategy to areas within the warehouse as required. The system will automatically create stock replenishment tasks for manual workers detailing how, when and where to replenish items cross the warehouse storage area. These tasks can be helped by using handling equipment such as carts, pallet jacks or using semi-automation e.g. collaborative robotics.

Replenishment Operations in an Automated Warehouse

In warehouses and other distribution center centres with a high throughput of goods, manual product replenishment can be partly or fully replaced with an auto replenishment system that will trigger the movement of goods to storage locations or pick stations.

Automatic handling equipment such as an AS/RS solution allows items to be loaded, relocated and unloaded where required providing a highly accurate and efficiency process for inventory replenishment.

In addition to the storage of inventory, moving stock items within the warehouse can be automated using systems such as pallet conveyor systems and roller conveyors for totes or boxes. These solutions ensure an efficient process to replenish stock to their required location around the facility, from pick stations to the assembly line.

HBC Logistics

Automated Replenishment – A Sustainable Solution

Automated replenishment in warehouses can offer several key sustainability benefits that contribute to both environmental and economic goals. Here are some of the main advantages:

Reduced Energy Consumption

Automated replenishment systems are designed for efficiency, minimising energy consumption compared to other manual processes. These routine replenishment systems are often equipped with energy-saving features, such as smart sensors and optimised routing, to decrease overall energy usage.

Lower Emissions

By optimising inventory management and reducing the need for human-operated machinery, automated replenishment can lead to a reduction in greenhouse gas emissions. Fewer emissions from forklifts, trucks, and other materials handling equipment used in manual replenishment can positively impact air quality and contribute to the UK’s climate goals.

Waste Reduction

An automatic replenishment system or automatic order generation system can be integrated with real-time inventory tracking, ensuring accurate and proportional inventory management and timely restocking. This minimises the risk of overstocking or under-stocking, reducing waste due to expired or obsolete inventory items.

Improved Inventory Management

Establishing an automated replenishment solution allows for better control and visibility over stock levels, and therefore inventory turnover and rates. This results in inventory optimization as it leverages integrated demand forecasting, which can lead to smarter purchasing decisions, as businesses can analyse demand patterns and adjust inventory levels accordingly, preventing unnecessary production and waste.

Resource Conservation

Sustainable practices often involve responsible resource management. Automated systems can optimise the use of resources like packaging materials, reducing waste and minimising the environmental impact of packaging production and disposal.

Increased Efficiency

Automated replenishment systems are designed to be efficient and precise (used to improve replenishment accuracy), which can reduce the time required to complete tasks. As a result, warehouse operations can become more streamlined and require fewer resources overall.

Space Optimisation

Automated systems can make the most of available warehouse space by optimising inventory placement and utilising vertical storage systems. This can reduce the need to expand warehouses, which might require additional resources and land.

 Enhanced Safety

Automated systems can contribute to a safer working environment by reducing the need for manual handling of heavy items and potentially hazardous tasks. This can lead to fewer workplace injuries, labour time and associated environmental impacts from healthcare and recovery.

PickToLight System in the warehouse - button being presssed

Image sourced from: https://www.picktolightsystems.com/

The Future of Automated Replenishment

With the trend in e-commerce buying habits increasingly focused on the availability of stock and quick fulfilment, warehouse operators are under pressure to streamline processes to maintain customer service levels. As this demand increases, so will the implementation of automated replenishment solutions through attribute based forecasting that address the challenges of supply chain management, inventory allocation tasks, replenishment accuracy and inventory optimisation.

Automated stock replenishment is an excellent solution for businesses looking to improve inventory management, reduce costs, and increase profitability. It streamlines the entire process of stock management, improves supply chain efficiency, and provides real-time access to inventory data. By implementing automated systems, businesses can optimise their inventory management (as well as their seasonal planning) and ensure that they always have the right amount of stock – as well as safety stock and shelf availability for this new stock – at the right time.

Additionally, the adoption of automated replenishment in UK warehouses can significantly contribute to sustainable practices, positively impacting the environment, resource management, revenue growth and overall operational efficiency. As companies continue to prioritise efficiency through the integration of sustainable solutions, automated replenishment technologies offer an attractive solution for a management team to achieve these goals.

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SEC Group

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