Good news! Small and medium-sized enterprises (SMEs) have come to realize that adopting new technologies can bring them considerable benefits. For the SME, these benefits include reduced costs, improved productivity, elimination of errors, increased efficiency and, above all, faster return on investment.
According to the France Num watchdog, more and more SMEs are equipping themselves with digital solutions. Since the last years, the trend has grown in momentum: SMEs with their own websites have increased by 78%, while the number of such websites offering online sales has increased by 120%.
Clearly, SMEs are responding to changing consumer expectations. Companies increasingly offer to deliver directly to the consumer as part of their e-commerce strategy.
It’s all a far cry from the pen and paper administration of old. What if you used robots to facilitate order picking in your distribution centre? Why should automation be restricted to large companies and industry?
SMEs have much to gain from installing automation technology.
Automation as a response to new challenges
The emergence of e-commerce has signalled a revolution for many SMEs. Some have seen their order books grow tenfold or even hundredfold. Certain sectors also have to deal with seasonal spikes (back to school, Christmas, promotions etc.). And they also have to be able to deliver faster all the time: next-day delivery is now the norm.
But faster order picking requires the recruitment and training of temporary personnel, who can have a disruptive effect
Finally, in the current pandemic, we have to cope with high absenteeism.
These are all factors that can prompt managers to consider the digitization and automation of their warehouse processes.
Logistics performance can also become a selling point. This is what Bétrancourt, a company that specializes in protective clothing, does on its website. Employees of the client company simply indicate their size, and their trousers or jacket are delivered directly to their home rather than a local drop-off point. To simplify the customer experience as much as possible, Bétrancourt offers this service in the form of a dedicated e-shop.
Order picking in the Bétrancourt distribution centre - © Scallog / Bétrancourt
Obviously, every warehouse automation project must satisfy the classic return on investment conditions. Here, priority goes to solutions suited both to existing volumes and the (foreseeable or unforeseeable) future expansion of business:
Évidemment, un projet d’automatisation d’entrepôt doit répondre avant tout aux critères classiques de . Il faut en particulier privilégier des solutions qui vont s’adapter autant à l’existant qu’à l’évolution (prévisible ou non) de l’activité :
- Easy integration in existing warehouse
- Short commissioning times (typically 3 months)
- Easy for operators to learn
- Enables expansion of the installation, or even its relocation to another building
Automation is increasingly deployed in warehouses not only as a means of saving resources, but also as a way to attract new customers. At Bétrancourt, we are proud to show visitors around our distribution centre and demonstrate how logistics can make a value-added service possible - Chief Operations Officer, Scallog.
Let's take a closer look at how to actually get such a project moving.
Launching a digitization and automation project
Warehouse automation is based on the digital tracking of inventory. In some SMEs, stock is managed through a rudimentary Warehouse Management System WMS application bundled with the Enterprise Resource Planning (ERP) solution they use. Such enterprises are faced with a choice :
- either they install a more robust WMS, which adds to project costs
- or they transfer certain functions to the WCS (Warehouse Control System), the software that controls the robotics solution. This obviously requires a powerful WCS, which is fortunately the case with the solution offered by Scallog
For companies that have not yet digitized their warehouse operations, we recommend the simultaneous installation of both solutions : this eliminates the need to re-configure the WMS and reduces implementation costs accordingly.
The key point, in all cases, is to define the different processes well:
- Order picking,
- Restocking,
- Returns,
- Inventory.
Your provider requires real expertise to help you make the best choices.
Ideally, operators will be involved in the project because they are the ones who know best the different operational constraints. They will also be able to confirm that automation generates real improvements in working conditions.
To finance equipment costs, a leasing option is available. And don’t forget to ask about the different financial assistance packages available.
With Scallog, automation is accessible to everyone
At Scallog, we want all businesses, regardless of size, to reap the benefits of automation.
Bricolux, for example, installed a goods to man solution with 20 mobile shelf units, 3 Boby robots to carry them to operators and one order picking station, on a floor area of just 300 m². Their line of business ? Delivering school materials to schools and individuals. Today, the system installed at Bricolux has 10 robots and 70 shelf units.
This “starter kit” approach accelerates the implementation of the solution while working within your constraints :
- Size of zone (usually severely limited)
- Structure of the building (beams, ceiling height)
- Floor condition (the floor simply needs to be flat)
Farmy, a Swiss e-commerce provider specializing in organic and local produce, has transformed a former wine cellar in the heart of Zurich into an automated storage space. All in an area of less than 500 m², complete with low ceilings, pillars and uneven floors.
Fortunately, not all warehouses have such constraints. To cope with increased activity, Scallog installations are easily expandable : Ainsi, l’e-commerçant suisse spécialiste du bio et du local a pu transformer une ancienne cave à vin du cœur de Zurich en un espace de stockage automatisé. Le tout dans une surface de moins de 500 m² comprenant des plafonds bas, des pylônes et des dénivelés.
Fortunately, not all warehouses have such constraints. To cope with increased activity, Scallog installations are easily expandable: Tous les entrepôts n’ont heureusement pas de telles contraintes. En revanche, pour faire face à une augmentation de l’activité, les installations Scallog sont facilement extensibles :
- To increase storage capacity, simply add more shelf units
- To increase the order-picking capacity of operators, simply add more robots.
- In especially busy periods, you can even rent additional robots.
The benefits of automation
The Bricolux automation project was the subject of an in-depth feature in the March 2021 issue of Supply Chain Magazine. For Bricolux, the main benefits are :
- Better responsiveness to volume spikes with next-day delivery of online orders
- Storage space reduced by 50% thanks to narrower aisles between shelves
- Reduced error rate: initially 4%, now 0.5%
- Reduction in the distances walked by operators (from 15 km to 10 km per day; the target is 5 km)
Alain Collard, managing director of Bricolux, concludes: "In the world of the SME, there is a misconception that robots are out of reach as they are expensive and complex to deploy. Our plan proves otherwise.“
Farmy, Bricolux, Bétrancourt are just a few examples among many. The trend is established and more and more SMEs are installing warehouse automation solutions. And most of them are delighted to share their experiences - so take the opportunity to hear them and judge for yourself !
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