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Key Considerations for Establishing a Smart Warehouse

Modern business transformation has been greatly influenced by the advancement in modern technology. A smart warehouse is the start of the modern warehouse model and an end towards the conventional manual warehouse management. The objective of a smart warehouse was to maximize effectiveness and efficiency through automation, agility, collaborative robots, and data visibility. This article discusses key considerations for establishing a smart warehouse through technology. Modern technologies play an important part in the business world. In a fast pace world, companies need to rely on smart technologies where computers and machines are used for warehouse operation that were traditionally performed by people.

Automatic Storage and Retrieval System (ASRS)

ASRS is commonly used in modern warehousing models to boost storage capacity and maximize output through systems and technology. However, any organization needs to ensure that the correct systems are selected based on the nature of the business and the company’s long-term goals. A company can use historical data and trends to simulate the estimated projections with optimal inventory holdings and SKU velocity classifications. The data will accurately point the company to the required size and throughput capability of the ASRS and provide a positive impact on the entire fulfilment process. This helps to boost both the upstream and downstream processes in the organization. Shelf-based, bin-based and robotics picking are the various type of ASRS models. Selecting the correct model of ASRS will maximize the return of investment between cost and time savings.

RFID Technology and Warehouse Layout Design

Radio-Frequency Identification(RFID) technology helps to identify an object through radio waves without human intervention. With an RFID identity, data collected are transferred through a communication interfaces to a system where it could be stored as data-based or to be analysed when required. RFID is often integrating with barcoding technologies to create smart labels which can be used for inventory management and personnel tracking applications.

The smart warehouse uses RFIDs to manage warehouse functions such as RFID stock count and inventory inbound/outbound tracking purposes which boost throughput maximizing efficiency in operations processes and minimizing possible warehouse challenges such as manual man-made errors. A warehouse layout must be planned in a logical process flow as it will directly impact the efficiency and productivity of any warehouse.


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Razit Bin Mydin, DLSM
Razit Bin Mydin has substantive warehousing experiences and is currently supervising warehouse operations, and specifically in the cables industry. He is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Razit completed the Diploma in Logistics and Supply Management (DLSM) on September 2021 at SIPMM Institute.
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