With the introduction of the national living wage and the auto-enrolment into employer pension schemes under the NEST initiative, some businesses have raised concerns that this will impact their ability to trade profitably. Given that many manual warehouses have a large employee base, particularly with the huge increase in order picking required by the rise of eCommerce, employment costs are going to significantly increase over the next few years.
In light of what to many is likely to be a surprisingly large increase in the employee cost base, the case for automation within the warehouse may have a more rapid and consequently more attractive return on investment.
When considering the introduction of any level of mechanisation or indeed automation of warehouse processes it’s important that the solution proposed integrates holistically with the whole of the operation. It might be enough to just add a bagging machine to the despatch process to cut down on manpower requirements, but in all likelihood significantly greater savings can be made if the entire operation is reviewed. Bearing in mind the budget available an experienced solutions integrator should be able propose a solution which meets the needs of a business both now and in the future.