Many companies seek innovative solutions to enhance accuracy, efficiency, and cost-effectiveness in today's dynamic business landscape. Thanks to Autonomous Mobile Robots (AMRs), various industries have been able to automate tasks formerly prone to human error. This blog post will uncover how adopting AMRs can benefit businesses by reducing error-related costs.
In an ideal logistics world, employees would operate order fulfilment processes flawlessly and with no errors. The harsh reality, however, is that mistakes are inevitable and can significantly cost businesses time, money, and in some cases, reputation. Studies suggest that the average error rate in warehouses or distribution centres ranges between 1%-3%, compromising a company's profitability by 13%.
The root cause of error-related costs
Before evaluating how technology can reduce or eliminate inaccuracies, it’s essential to understand why and where such blunders occur. One common human error in logistics happens during manual picking and packing. This is simply the selecting of incorrect or damaged items, mistaking quantities, or damaging packaging. In the best case, the mistake might get detected before the order leaves the facility. The potential loss in this situation could be time or the need to employ extra workforce.
However, if the order gets delivered to the customer without taking measures to rectify the fault, the consequences are more significant. Companies must pay additional expenses, including customer refunds, return process costs, and shipment. They also have to deal with dissatisfied customers, who may lose trust in the company’s credibility because of wrong or damaged products. Ultimately, organisations pay the price for errors instead of reaping profits.
Fortunately, businesses can have more optimised and responsive workflows by incorporating AMRs, like our arculee, in distribution centres, production facilities, and warehouses. They are incredibly versatile, speeding up the picking process and guiding associates through tasks such as picking and packing, inventory management, and the efficient sorting of items. Companies that deploy these robots see minimal faults, increased productivity, and drastically diminished costs.
Fewer mistakes, greater productivity
AMRs can reduce error rates in several ways, optimising the order fulfilment processes to enhance accuracy and efficiency. Some of them are listed below:
- On a primary level, Autonomous Mobile Robots use their advanced sensors and maps to determine and navigate through efficient pathways and reach the correct picking station. With this capability, employees only have to worry about collecting the right items and confirming the pickups.
- When AMRs integrate with a Warehouse Management System (WMS), they receive real-time instructions and updates regarding inventory, orders, and task priorities. It heavily reduces the chances of miscommunication that can lead to a potential fault.
- When robots take over repetitive tasks in warehouses and distribution facilities, workers experience mental and physical relief. It allows them to use their time more effectively by focusing on important tasks, which helps them maintain performance throughout the day. As a result, employees are more dedicated and focused, leading to a reduction in error rates.
In conclusion
Many industries are adopting Autonomous Mobile Robots (AMRs) to improve their workflows and reduce errors and costs. This trend is expected to continue, leading to more efficient and successful operations. Automation, including the use of AMRs, is critical to the future of logistics, enabling a more reliable and error-free world.
