History of warehousing

The roots of warehousing go back to the granaries of the early civilizations. These
granaries were used to shelter livestock or store food, hay or other agricultural products,
and were historically available for purchase or distribution during natural calamities like
famines or floods.

Warehouses in the ancient times were mostly built close to sea ports which were
primarily used for importing and exporting goods. Later when railway became a mode of
transportation, rail depots started to replace these sea port warehouses. People found
railroads easier to use and they had a larger access to the mainland. The first known
major commercial warehouse was built in Venice, a centre of major trade routes. In late
1800’s in the United States, transportation between port cities and inland cities were
effectively provided by railroad.

The industrial revolution of the 18th and 19th centuries changed the entire face of the
warehouse design. The sudden globalization during this period made warehouses more
specialized, the emphasis now was on the movement of goods. The First World War
brought technology into the design and warehouses started occupying more space. By
the end of World War I, hand trucks were used for material handling in warehouses and
stacking was done by hand, and stacking heights were designed in 8-to 12-foot range.
During World War II, the fork lift truck and wooden pallets were introduced. Stacking
height of merchandise was increased to 30 feet, nearly a 300 percent increase due the
mass production of forklift truck.

Warehousing systems have seen a continuous growth throughout the history, they have
been moving forward from local storehouses during the middle ages to multi-million
dollar facilities. In 1960's and 1970's in the US automated warehousing meant
automated storage/Retrieval systems (AS/RS). After the late 1980s the AS/RS systems
became obsolete and more emphasis was paid on reducing inventories.

Warehousing

“Warehousing is the process of storing physical goods before they are sold or further
distributed. Warehouses safely and securely store products in an organized way to track
where items are located, when they arrived, how long they have been there, and the
quantity on hand.”

Modern Warehouse

Modern warehouses as compared to traditional ones need to incorporate a lot of extra

features so as to cope up with the changing market trends and customer expectations.
Modern warehouses need to have seamless interfaces and the communication of data
between systems should be the most efficient and fluent in order to create better
performance and in turn a better yield. The changes that need to be made in our
traditional warehouses to bring them up to the modern standards are both physical and
operational ones.

Physical Changes

 Modern warehouses are designed based on future needs instead of the focusing
on the current scenario. A warehouse should have room to be improved.
 Modern warehouses are being customized to handle smaller orders with more
frequent shipping. This customization is changing the way workers are picking as
well as the layouts of warehouses designed to ensure productivity remains at
required levels.
 With demand for increased volume, warehouses are being built with much higher
clear heights. Where once, 20-foot clear heights were common, new warehouses
are reaching 40 feet.
 As elevated clear heights give warehouses more volume and automated
technology creates more heat, HVAC systems must also be updated.
 Cross-docking is becoming more popular as an efficient solution. It’s simply
unloading goods from an incoming vehicle and loading directly onto outbound
vehicles with little or no warehousing time. Therefore warehouse layouts are to
be designed accordingly.

Operational Changes

It is the modern warehouse operations that have revolutionized the whole system of
traditional warehousing to bring it to the modern standards. These operational changes
include two major ones:

 A paperless data communication system that can reduce processing time as

compare to the traditional filing and documentation which not only is slow but is
also harder to keep track of.
 Automation in modern warehouse is not limited to physical automation through
conveyors, robotics, sophisticated racks such as gravity flow racks, carousels
and automated case dispensers etc.
 Warehouse management software is an absolute necessity since it acts as the
brains of the operation. WMS controls the storage and movement of materials
within a warehouse and processes the transactions.
 Automated data collection provides WMS with the data that it needs to work with.
These systems come in many ways such as drones, automatic identification
systems (RFID card, magnetic card, QR/barcode scanner and vision /
 surveillance system), voice and vision tasking technology, automated picking
tools and robotics, automatic guided vehicles and collaborative robots.
 Picking is not done manually but through the collaboration of the automated data
collection and the WMS.
 A modern warehouse allows maximized tracking and tracing of products,
employees and shipped items, regardless of their current location. Tracking and
tracing leads directly into the use of automated systems.

Warehouse Automation

Modern warehouses are automated warehouses. Warehouse automation enables a

warehouse operation to achieve greater outcomes with significantly less effort through
the use of one or more technologies. The best warehouse automation solutions are
scalable, ergonomic, and provide a return on investment (ROI) in months, not years.

Warehouse Automation comes in two parts.

 Digital Automation
 Physical Automation

Digital Automation

Digital automation digitizes and automates manual processes, like inventory data

collection. Data is automatically captured into your software environment, such as your
database.

Physical automation solutions like pick-to-light equipment can come with a hefty price
tag. Many operations lack the available budget. Even if money is available, few can risk
a failed implementation.

This is where WMS comes in. Digital warehouse automation solutions are inexpensive,
like mobile bar-coding and data collection. Warehouse management system is a pivotal
part of the supply chain which mainly controls the storage and movement of materials
within a warehouse and processes the transactions, including receiving, shipping,
picking and putaway. WMS also enables in directing and optimizing stock put away
according to the real-time information of bin utilization status.

Warehouse management system works on Auto ID Data Capture technology, such as

mobile computers, barcode scanners, wireless and RFID’s to efficiently monitor the flow
of products. In this process, data is collected and there is wireless transmission to a
central database on real time basis. Then the database provides the status of goods in
the warehouse accurately. The main objective of WMS is to provide an automated
procedure to handle the records of incoming and outgoing goods. PAF Automated
Logistics Management System (PALMS) that is being used in PAF is one such
warehouse management system.

Physical Automation

Physical automation includes various forms of mechanized automation or the use of

robots and robotic systems in the warehouse. They are very costly to implement as
compared to digital automation. Physical automation only provides a reasonable ROI for
larger high-volume warehouse. Following are some of the systems that contribute to the
automation of the warehouse:

Barcodes/QR code

Barcodes/QR code and barcode/QR code scanners are used for data collection
so that WMS can be used for live inventory at any time. This reduces the
processing time and shows true picture of the inventory to the users. A barcode
or QR code is placed on each item in the warehouse and either a pen type or
fixed or mounted barcode scanner is used for reading those codes transferring
data to the system.

RFID

RFID is an acronym for “radio-frequency identification” and refers to a technology

whereby digital data encoded in RFID tags or smart labels are captured by a
reader via radio waves. RFID has several advantages over systems. The most
notable is that RFID tag data can be read outside the line-of-sight, whereas
barcodes must be aligned with an optical scanner. RFID is used to perform tasks
such as inventory management, asset tracking, personnel tracking and security
of items. Also RFID tag can hold much more data about an item than a barcode
can.

Vision system

Vision systems use the help of cameras to identify the items being stored and
extracted from the warehouse and keep track of the inventory. The system is
faster in collecting data but has an inherent limitation that it needs excessive
lighting to work efficiently.

Vision systems help considerably in quality control as vision machine can ensure
products that the warehouse ships meet specification and product standards.
Smart cameras can also alert workers if boxes moving on a conveyer are filled to
the correct level or spot product defects or anomalies.

Pick-to-Voice system

In a complex and high-intensity warehouse where there are multiple picking

locations that require pickers to be fast and accurate, a “pick to voice” or voice-
directed system can be implemented to improve picking accuracy and the speed
of the pick performed by the warehouse staff. The voice picking system uses
speech recognition and speech synthesis to allow warehouse operators who are
performing the picks to communicate with a Warehouse Management System
(WMS). The staff on the warehouse floor uses a headset and microphone to
receive instructions by voice, and verbally confirm their actions back to the
system.

Pick-to-Light system

Pick to light is a system for picking items from warehouse shelves using lights to
direct workers. As opposed to other warehouse picking systems, pick to light
allows for fast collection without a list.

A typical light-based picking system uses different colored LED lights along with
a series of letters and numbers. Lights are on every storage unit. When
something is needed, the appropriate light turns on. Once the employee reaches
the right unit, there is usually a barcode to scan which updates the system to
know that the appropriate item has been removed.

Warehouse robotics

Warehouse robotics refers to the use of automated systems, robots and

specialized software to transport materials, perform various tasks and
streamline/automate warehouse processes. In recent years, robotics has gained
eminence in supply chain, distribution center, and warehouse management
circles and continues to play a significant role in warehouse automation.
Warehouse automations of all kinds add value to warehousing operations by
automating the execution of menial, repetitive tasks, thus allowing human
workers to focus on more complicated tasks.

Following are the common types of warehouse robotics

Automated Guided Vehicles (AGVs)

Automated guided vehicles help to transport materials, supplies, and

inventory within warehouse facilities. AGVs are used in operations to
 replace manually-driven forklifts or pick carts. Some AGVs autonomously
navigate warehouse facilities by following established routes that are
marked by wires, magnetic strips, tracks, and sensors embedded in the
floor or other physical guides. Other AGVs utilize cameras, infrared and
other advanced technology to navigate workspaces, identify obstacles and
avoid collisions.

Collaborative Robots

Collaborative robots are semi-autonomous mobile robots designed to help

human workers perform diverse tasks in the warehouse environment.
Some collaborative robots follow human pickers around the warehouse
floor and act as mobile storage bins for picked orders. Others direct
workflows through the warehouse, lead associates and transport loads.
Collaborative robots come with sensors that enable them to distinguish
between obstacles and boxes, thus ensuring accurate navigation through
the facility. They can help speed up order fulfillment by delivering picked
orders to workers in other locations in the warehouse.

Articulated Robotic Arms

Articulated robotic arms, a type of pick-and-place robot, are multi-jointed

limbs used to manipulate products within distribution centers and
warehouses. Since these arms can move, turn, lift and maneuver items,
they can be used in the following warehouse operations:

 Picking/packing
 Receiving/storage
 Palletizing

Drones

Warehouse drones are aerial robotic platforms that typically operate

indoors, inside of warehouses or distribution centers. They have robust
obstacle and collision avoidance systems, capable vision sensors, and
excellent on-board processing power. Typically, warehouse drones are
tasked with remote sensing operations inside of facilities using their vision
systems to capture data inside the warehouse. Warehouse drones are just
one component of a warehouse automation system that is data collection.

Benefits of Modern warehousing

The warehouse occupies a critical role in the supply chain. It plays a significant role in
the success of the greater supply chain it’s connected to. Problems or delays in the
warehouse operation can flow downstream to impact invoicing, cash flow and user
satisfaction. Since inefficient processes can have downstream consequences, that
means the reverse is also true. Some of the areas that warehouse automation can
improve operations include:

 Reducing operating expenses, overhead and unnecessary costs from errors

 Protecting the company’s assets, brand and reputation with users and suppliers
 Increasing efficiency and productivity of human resources
 Minimizing manual processes and handling of stock-keeping units (SKU)
 Maximizing warehouse space utilization, layout and flow
 Coordinating usage of material handling equipment, such as barcode scanners
and mobile computers
 Automation can raise the productivity of each worker without increasing your
headcount, in turn increasing the throughput of each shift
 Automating processes, such as data collection and inventory transactions, can
help reduce lost inventory, shrinkage and misplacement while also pushing
toward 99.999% accuracy.

Implementation of modern warehousing techniques in PAF

Firstly, before going for implementation we need to know whether we even need to
implement modern warehousing techniques in PAF warehouses. For that we need to
check for certain symptoms:

 Whether processes are too labor and time intensive

 If struggling to get orders out on time
 Order fulfillment is inaccurate
 Increasing frequency of headcount to check and recheck order accuracy
 Cannot trust inventory levels because counts are rarely right
 Users are unhappy

Secondly, we need to understand that PAF has no need of automation that comes at a
very high implementation cost. Therefore physical automation has to be forgone since
the high cost only provides a relatively low benefit. PAF should start with digital
automation in the beginning.

Thirdly, we have to know the basic steps for automation of a warehouse. Warehouse
automation is a “crawl-walk-run” process. Before jumping into AS/R systems and
autonomous robots, we need to start with the basics and then build on those
fundamentals.
1. Data Collection

The very first area of your warehouse to automate should be the data collection
process. Traditionally, data is collected through handwritten notes on paper or manually
keyed or re-keyed data entry. This data is then stored either digitally on a spreadsheet
or a database or physically in a folder or convenient location in the warehouse, or not at
all. In PAF we use all these methods. For example traffic section still maintains a
register for records since systems are not accurate enough.

Data collection automation involves implementing a system where information from

incoming shipments are captured via a Barcode scanner/QR scanner or RFID (both of
which are feasible for PAF taking into account the cost) and communicated via software
to central data repositories, such as a database which in case of PAF is PALMS.
Moreover mobile warehouse barcoding is an ideal solution for PAF which is just
beginning its automation journey. Mobile barcoding in the warehouse includes:

 Mobile data collection to automate data captured with barcode scanners

 Flexibility and extensibility to start small and expand automation as needed

With mobile barcoding/QR coding technology, PAF has the option to start by automating
only a few key processes.

These barcode scanners/QR scanners should be mobilized and two-way

communication should be established between the pickers and the WMS through radio
communications. This will help increase picking accuracy and reduce wasted labor and
effort due to inaccurate picking.

This data collection ecosystem will completely eliminate human error from the data
entry process, it will also provide the warehouse manager with accurate, high-quality
data which will allow real-time decision-making regarding inventory stock levels and
manufacturing materials or components. By simply automating this one process, the
entire warehouse can operate at a level of efficiency not otherwise possible.

2. Inventory Control

Inventory data is only as good as the quality of data you collect. So after PAF has
ensured that its data will be collected with maximum quality and accuracy through
automation, that data should be put to use in inventory control. Automating inventory
control is done with the help of an inventory management system (IMS). PAF already
has PALMS but this system will have to be linked with the data collection system
devised in step 1 so as to gain total visibility into the inventory as it flows through the
warehouse.
3. Physical Automation

After implementation of digital automation PAF needs to assess whether it needs to

undergo physical automation so as to reduce labor cost and effort. Usually physical
automation becomes necessary in places where labor cost is high. In Pakistan there is
no emergent need for physical automation in PAF as of this moment according to my
point of view. In the future should there arise a need for physical automation, PAF can
then take the next step and renovate its warehouses in the modern colors.

Conclusion