By Ned Bauhof, Vice President, Precision Distribution Consulting, Inc.

Because of the complex business strategies and supply chain structures in many organizations, making a case for automation in the warehouse can be a difficult endeavor. Notice that I said “in the warehouse.” Automation has existed for decades on the other side of the wall in manufacturing, and today, it is rarely given a second thought when new production, and packaging and filling lines are installed. Air conveyor, case conveyor, packaging equipment, and high-speed palletizers are all forms of automation, which by definition means “the removal of human intervention to complete a function.”

When evaluating automation as part of the overall supply chain strategy, companies need to be creative and must consider all aspects of the business, not just how to reduce cost as a means to profitability. Consideration should be given to facets of the business that will simultaneously reduce cost while putting the company at the forefront of the industry, maximizing customer service, and positioning the company for growth in the years to come.

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