Why Interoperability is Crucial for Warehouse Automation

January 17, 2024

By Jens Bohnwagner, CEO, XSQUARE Technologies

As the global economy grapples with the far-reaching impacts of the COVID-19 pandemic, and efficiency and agility are paramount, warehouse automation has experienced rapid growth and transformation in the Asia Pacific region. A recent report highlighted that the Asia-Pacific Warehouse Automation market is projected to compound at an annual growth rate (CAGR) of 17.3% between 2023 and 2028. This indicates that businesses will continue to adopt warehouse automation technologies to stay relevant and to meet the evolving demands of customers.

But one of the most asked questions is, “What exactly does warehouse automation entail?”.

By easy definition, warehouse automation combines cutting-edge technologies to streamline and optimise warehouse operations, with hardware solutions such as Autonomous Forklifts to enhance material handling and software solutions like Warehouse Control Systems (WCS) to manage automated processes. While these solutions are readily available as off-the-shelf products and services, the key to a successful warehouse automation journey lies in interoperability - enabling seamless integration and collaboration among various systems. By integrating different equipment such as autonomous mobile robots (AMRs), shutter doors, storage systems, cargo lifts, conveyor systems, warehouse management systems (WMS), and the list goes on, interoperability, at its heart, creates a connected ecosystem, fostering operational efficiency, adaptability, and scalability.

A pioneering automation success story

Amazon, a classic case study in warehouse automation, exemplifies the successful implementation of interoperable automation systems. At the same time, it is important for us to note that the picture-perfect outcome of Amazon’s success is also due to a combination of Amazon's commitment to go beyond utilising existing technologies. For example, Amazon’s robotics team continuously push innovation boundaries to optimise robot performance. The team has been teaching robots to understand cluttered environments in three dimensions, enabling them to locate specific items and make reliable picks using advanced grasping techniques.

The success of Amazon in managing large order volumes at reduced costs while maintaining a high level of customer satisfaction is a result of their decision to harness the use and research of advanced technologies for robotics, AMRs, and intelligent software system.

Avoiding costly pitfalls

So what constitutes an unsuccessful case of automation? Siloed automation systems, characterised by a lack of communication and coordination between different components, pose significant risks and drawbacks to warehouse operations. The absence of seamless integration can result in inefficiencies, errors, and operational hindrances that impede business performance. Siloed systems, more often than not, lead to outcomes such as rendering previous investments in automation technologies futile.

I have witnessed the challenges faced by customers who, unfortunately, had to bear with the consequences of siloed automation systems that created more problems in the warehouse instead of seamlessly integrating processes to increase efficiency and productivity. Such an ‘upgrade’ ended up creating more trouble-shooting that led to no fruitful outcomes, sometimes even discouraging workers from employing technology at the warehouse.

Why interoperability is key

In contrast, a connected warehouse ecosystem built on interoperability functions on a whole new level, offering a multitude of advantages. By enabling seamless communication and coordination between various systems, businesses can experience enhanced accuracy, speed, and productivity. Real-time data exchange also facilitates efficient decision-making, reducing errors and delays in warehouse operations. Inventory management becomes streamlined, ensuring optimal stock availability at the right time. Additionally, a connected ecosystem empowers intelligent process automation, where different systems work harmoniously to automate repetitive tasks, freeing up human resources for higher value-added activities.

Importantly, achieving interoperability does not necessitate a complete overhaul of existing systems for warehouse operators. Instead, businesses can seamlessly transition and implement interoperable solutions without the need for disruptive reconfigurations by collaborating with the right warehouse automation partner. A competent automation provider understands the intricacies of existing systems and offers solutions that integrate seamlessly with the current infrastructure.

Overcoming complex warehouse systems challenges

However, achieving interoperability in complex warehouse systems poses significant challenges. One major obstacle is the lack of compatibility, which hinders interoperability due to the unique data formats, communication methods, and integration requirements of each system.

The integration of various systems within a complex warehouse environment introduces another layer of complexity. Warehouse ecosystems encompass a wide range of technologies, from straightforward integrations like WMS and barcode scanners, which have readily available open standards and APIs, to more complex integrations involving shutter doors, elevators, fire-rated shutters, conveyor systems, and ASRS (Automated Storage and Retrieval Systems). Each of these integrations presents its own set of challenges, such as varying communication protocols, data formats, and hardware interfaces.

Successfully integrating these complex systems requires active collaboration between vendors and stakeholders, including warehouse operators, technology providers, and system integrators. While some may claim to offer integration capabilities, the true differentiator lies in the ability to handle the intricacies and complexities involved.

Rewriting the rules of intralogistics

Our experience in this industry, combined with our interactions with operators who have faced challenges in their automation journey, has defined our business offerings. At XSQUARE, complete interoperability is our top priority for our customers. Our rapidly expanding clientele, which includes conglomerates in the pharmaceutical, manufacturing, 3PL, chemical logistics and other sectors, is a testament to our broad industry appeal. We have successfully assisted corporations in achieving warehouse automation and interoperability across various industries. Our vision is to continually bring intelligence to every warehouse, anywhere in the world, where goods can flow harmoniously and safely.

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