A comprehensive overview of controlled storage: from readers to robots

Managed warehousing is a way of managing a warehouse that is based on automating and controlling warehouse operations and processes based on a set strategy – simply so that the warehouse operates as efficiently as possible. But managed warehousing has many levels – some companies use manual barcode scanners, others a WMS system that navigates warehouse workers, and others have entrusted part of the operations to “manual” robots. We will show you what managed warehousing looks like in practice, from scratch to seemingly sci-fi scenarios.

First of all, we must point out that none of the mentioned levels of automation is the right one. The selection of processes and tools for controlled storage must be preceded by a careful analysis of logistics processes , which will reveal which option is the most beneficial for the warehouse. Otherwise, effective warehouse processes look different in a small e-shop with board games and different in Alza.

1. Warehouse without automation

With few exceptions, so-called paper-based warehouse operations are not used today due to unnecessarily complicated processes, error rates, and high costs.

In practice, it worked like this: warehouse workers printed out orders from their computers and took them to the shelves. Goods They searched from memory and crossed them off with a pencil on the printed sheets. Then they filled in the shipping details by hand and shipped the goods.

After processing an order, warehouse workers typically went to the computer and manually updated the status of the goods. Even paper warehouse management assumes that the company has at least a basic tool for keeping inventory records, such as Excel.

This method may work for micro e-shops with a few items, where the owner is also the sole invoicer or warehouse worker. For anything larger , it poses a problem:

• lengthy search for goods,
• poor overview of inventory status,
• high error rate,
• collapsing processes with a large number of orders
• and paper consumption.

The more goods a company stores, the more expensive and less efficient paper-based warehouse management becomes.

2. Warehouse outsourcing

Companies that do not have their own warehouse outsource its management to a logistics partner. The latter:

• stores goods,
• processes orders,
• prepares goods for distribution (e.g. localization or repackaging),
• hands over the goods to the expedition
• and chooses a suitable storage and removal strategy himself.

The disadvantage is that the company has no control over the logistics processes and must rely on a partner who does not know what is going on . For example, the owner of an e-shop cannot speed up the order picking process, nor can he make sure that warehouse workers do not make mistakes.

On the other hand, outsourcing is the best option for companies that do not have the resources for their own warehouse or lack warehouse workers. For some medium-sized e-shops, operating their own warehouse may be too expensive and outsourcing to a modern logistics partner will potentially improve their services .

3. Warehouse records and shipping tools

The basic level of automation in a warehouse is represented by a warehouse module in an accounting or ERP system , typically connected to an e-shop and a shipping system. This method is used in the Czech Republic by most medium-sized e-shops and companies with their own warehouse.

Warehouse records in the ERP system serve as a catalog in which each item has its parameters, price or position in the warehouse. More advanced warehouse modules allow you to assign barcodes to the items. Warehouse workers are then equipped with readers that read the codes on the shelves, the items are removed from the system and the printer immediately prints a shipping label. The system also simplifies the receipt of goods in a similar way.

Thanks to the connection with the e-shop:

• the order data is transferred to the ERP warehouse module,
• the status of goods in the e-shop always corresponds to the actual stock level in the warehouse
• and after shipment, the customer will receive an automatic transaction email with the shipment number, thank you note and invoice.

And thanks to the connection to the shipping tool , the data is automatically transferred to the selected carrier and the system pre-prepares shipping labels.

This method of warehouse management eliminates a large part of manual work, especially data transfer between systems, and speeds up the receipt and issue of goods. However, warehouse workers still have to remember the location of goods and cannot fully work with storage strategies .

4. WMS –⁠ a managed warehouse in the true sense of the word

Warehouse Management System (WMS) is a separate tool that, like the ERP module, allows for the recording of goods or monitoring of inventory levels, but also includes other functions. The fundamental difference between the two systems is that ERP records the status of the warehouse, while WMS actively manages the warehouse .

Warehouse workers are equipped with readers with displays on which the WMS shows them which goods to pick and the shortest route to them . The WMS calculates this based on an individual and optimized mathematical algorithm.

Furthermore, WMS enables advanced addressing of goods . It assigns positions to individual goods immediately after they are put into storage based on the type of goods, weight, shelf life or turnover rate. Upon receipt, the warehouse worker reads the goods code and the WMS automatically sends it to the optimal location in the warehouse according to the selected storage strategy.

Thanks to these and other features, WMS significantly speeds up warehouse processes, thereby increasing its overall efficiency. WMS is a necessity for large e-shops, but thanks to cheap cloud options, these tools are now also available to small and medium-sized businesses.

5. Controlled warehouse with robots

If companies want to take automation a step further, they need to incorporate warehouse robots in addition to software. The most common ones include automatic stackers and autonomous trucks .

Both types of machines replace forklifts in practice. In the first case, stacking cranes are placed on the shelves, which move in the aisles and allow goods to be stored or retrieved. Autonomous trucks have the same functions, but are not fixed to the shelves, so they travel in predefined paths around the warehouse.

In both cases, the machines are controlled by software that is connected to a WMS or similar tool. The drawback is that these machines only handle goods at the pallet or box level. They are not yet sufficient for individual pieces of smaller goods.

These tools currently only make sense for large companies that handle thousands of warehouse movements per day and for maximum efficiency a separate WMS is not enough. It is a huge investment that often requires warehouse reconstruction (for example, to get the technology to all locations), which is why for most companies the most affordable method of automation is using a WMS .

6. Fully automated and robotized warehouse

There are still very few fully robotized warehouses. Mainly for the already mentioned reason that there are no technologies that would completely replace the work of warehouse workers . However, we expect that with each passing year there will be an interesting shift in the field of warehouse robotization.

Even a warehouse full of autonomous robots cannot do without employees. There is always a need for service or a plan B in case the machines break down. For example, Amazon employs service technicians to keep these advanced technologies running .

Analyze first, then implement

Before a company decides which warehouse management system to choose, it must start with an analysis. This is the only way to find out whether the given system is beneficial for it, how much it will save costs, or whether it is more of a waste of money in its case. A professional analysis can be prepared for you by, for example, the Chamber of Logistics Auditors .

If you are considering purchasing a WMS, please contact us . We will discuss your situation with you and advise you on which solution is best for you.

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