Automation in warehouse management

Automation in warehouse management

Along with the rapid development of the goods supply and production industry, the explosion of e-commerce and the dominance of FMCG FMCG products, a great challenge was posed to all those retailers is a reasonable allocation of resources in supply chain management, especially warehouse management.


Until recently, the retail industry around the world had made strong digital technology investments and automation for warehouse management.


The explosion of FMCG and eCommerce

Until recently, the retail industry around the world had made strong digital technology investments and automation for warehouse management in the supply chain, especially in pioneering markets. But such investment tendency in the Vietnam market is still limited.


Starting as a specialized retailer of diapers and formula, has now expanded to a retailer that offers a wide range of products for babies thanks to successful warehouse automation, eliminating complete shipping costs for buyers and minimize delivery time. Or with UPS (United Parcel Service) Worldport, warehouse automation provides the performance equivalent to 84 people in a second, ie 416,000 employees in an hour. Achieving such productivity with manual processes will require a huge and extremely expensive human resource.


Warehouse automation solutions


From the testing and success of these brands, warehouse automation is a promising solution. However, it is a long process and requires a lot of continuous technological improvement. Here are some of the most basic issues that every business needs to capture and note in order to automate success:


1. Know the output of goods clearly

Exactly identifying the above factors is a way to conduct warehouse "health" checks for an appropriate automation strategy. The more accurate the model is, the more viable the warehouse solution (depth or width) is. The questions should be asked: How much is forecast growth? How do business performance and promotions affect the flow of goods? How do the different automation models affect warehouse conditions and their expansion potential?


2. Consider the level of service

This note relates to the brand's future development trend. The services currently in use and the services that can be implemented require all changes to be implemented in the direction and extent of achieving the highest competitive advantage. For example, service levels often face challenges in the peak season. Therefore, it is important that the system is able to process the output during the available time, always having to overcome the replacement growth rate to test the validity of the solutions.


3. Integrated planning

How does the automated system fit into the facilities? Are manual areas affected? Are there enough doors? How to expand the needs arising out of the scope of the proposal? These often-overlooked factors should always have been specifically planned to ensure the success of the project.


4. The coordinate software integration process

There are many different warehouse management systems (WMS), each business needs to find the most suitable solution to optimize its performance. Using a WMS that is inconsistent with the warehouse's manufacturing and distribution operations means that performance is not much improved compared to manual work.


5. Ensure smooth running and forwarding

The most important element of the project is the operation phase - a stage with lots of potential risks. The time and budget for testing the automation system must be large enough to convert inventory and ensure productivity through actual numbers.


Some factors that affect warehouse management include business dynamics, expectations of volume growth, types of products distributed or business policies and promotions. Peak season. If businesses do not grasp these factors, investment activities will be unsustainable and inefficient.


Manual order processing operations are at their limits. In such circumstances, warehouse automation is the best solution to eliminate the difficulties that arise. In today's market, when consumption speed increases rapidly, fierce competition pressure, customers will There are more options for receiving, paying and shipping.


This necessarily requires a revolution in warehouse management. The fact that many FMCG businesses succeed with this new model around the world is the impetus for the Vietnamese goods production industry to quickly change.




At Orgit, we are problem solvers, next-generation thinkers, and efficiency aficionados. Operating at both local and global scales, Orgit offers comprehensive solutions packages developed by in-house industry experts, tested against real-world scenarios, and designed for the changing supply chain. Learn more about Orgit’s solutions or get in touch with our experts today.