It’s December, and the peak season for retailers is officially in full swing. For fulfillment centers across the country, this means a massive surge in orders, increased pressure on operations, and the looming challenge of meeting customer expectations. Ready or not, peak season is here, and it’s bringing with it a whole host of challenges.
The peak season scramble: More than just labor shortages
Peak season can feel like a chaotic scramble, even for the most seasoned fulfillment managers. Of course, labor shortages are a major pain point. High turnover rates, increased absenteeism, and competition for seasonal workers can leave fulfillment centers understaffed and overwhelmed. But it’s more than just finding enough workers; it’s about optimizing your existing workforce and having the technology in place to support them.
Here’s a breakdown of some of the key challenges that go beyond just needing warm bodies:
- Increased order volumes: The sheer volume of orders during peak season can put immense pressure on every stage of the fulfillment process. This can lead to bottlenecks, shipping delays, and inventory management issues.
- Maintaining accuracy: With increased volume and pressure, the risk of errors rises. Picking the wrong items, packing them incorrectly, or mislabeling packages can lead to returns, replacements, and unhappy customers.
- Meeting customer expectations: Today’s customers expect fast and accurate deliveries, especially during peak season. Retailers need to offer competitive shipping options, provide real-time order tracking, and handle returns efficiently to meet these expectations.
- Handling new SKUs: Peak season often brings an influx of new products and packaging variations. This variability can be a major challenge for both manual and automated systems. Traditional robotic automation often requires downtime to reprogram and retrain the system for new SKUs, which disrupts operations.
- The “Gripping Challenge”: Finding the right way for robots to pick up a variety of items with different shapes and sizes is a make-or-break consideration for any automation solution.
Automation to the rescue: A Q&A with an OSARO expert
To shed light on how automation can help retailers navigate these challenges, we sat down with Adi Dalvi, VP of sales at OSARO, and an expert in the challenges faced by retailers during peak season. Since Adi’s frequently in contact with managers of fast-paced fulfillment centers, we had a few questions for him.
Companies are clearly struggling to keep up with peak season. Is the answer simply “more robots”?
While robots can definitely help with labor shortages, it’s not just about having more robots; it’s about having the right robots. At OSARO, we believe automation should be seen as a solution for every day, not just peak seasons. Our robotic solutions can help optimize operations year-round, not just during peak times.
What’s the biggest misconception you see about automation in the warehouse?
Many people think automation is solely about replacing human labor. But it’s really about optimizing operations and augmenting human capabilities. Our robots can take over repetitive, labor-intensive tasks, freeing up employees to focus on more complex and rewarding jobs. This leads to increased efficiency, productivity, and employee satisfaction.
We see a lot of variability in the products and packaging we need to handle, especially during peak season. Can your robots adapt to that?
Absolutely! Our robots use advanced machine learning and computer vision to handle a wide variety of items, even in challenging conditions. Our AutoModel technology allows the robots to adapt to new SKUs and packaging variations on the fly, without requiring downtime or human intervention.
Can you give me an example of how that works in practice?
Certainly. We have a customer who uses our robots for kitting. They recently asked if they could use those same robots to process kits for a completely different customer, with different products and packaging. Thanks to AutoModel and our multi-tool changer, which allows the robot to select the optimal gripper for each item, the answer was yes. They simply sent us some test products, we validated them in our lab, and now those robots are handling a whole new range of items. This kind of flexibility maximizes ROI and allows our customers to adapt quickly to changing demands.
Speaking of ROI, how can companies ensure they’re getting the most out of their automation investment?
It’s important to consider not just ROI (return on investment) but also COI (cost of inaction). What are the costs of not automating, such as labor, errors, shipping delays, and lost productivity? To maximize ROI, automation systems should be run at or near 100% capacity, which might include running them on multiple shifts. Think of those extra shifts as “free labor.”
If I decide to go with OSARO, what kind of ongoing support can I expect?
We provide comprehensive ongoing support and maintenance to ensure our customers get the most out of their OSARO solutions. This includes remote monitoring, preventative maintenance, and on-site support when needed.
Key takeaways: Is automation right for you?
As you assess your readiness for this peak season and beyond, here are some key questions to discuss with your team:
- What are our biggest bottlenecks during peak season? Are they related to labor shortages, order volume, accuracy, or something else?
- What are the potential costs of not automating? Consider the costs of labor, errors, shipping delays, and lost productivity.
- What metrics and KPIs should we track to measure the success of automation? This could include order fulfillment rate, accuracy rate, cost per order, and employee satisfaction.
If you’re considering a robotics automation provider, be sure to ask them the following questions:
- Can you provide case studies or testimonials from other retailers who have used your solutions during peak season?
- How does your technology integrate with our existing WMS and other systems?
- What is your pricing model and what are the total costs of ownership?
Ready to take the next step? Don’t let peak season get the better of you. Contact OSARO today to learn more about how our AI-powered robotics solutions can help you conquer the rush and achieve a successful peak season.
