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Success Knocks | The Business Magazine > Blog > Editorial > The Future of 3rd Party Warehousing: Embracing Automation
Editorialmanufacturing

The Future of 3rd Party Warehousing: Embracing Automation

Jason Morris
Last updated: 2024/10/21 at 12:33 PM
Jason Morris Published
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The Future of 3rd Party Warehousing
Image Credit - iStock Vanit Janthra
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Alright, so as quarter 4 comes into motion here in 2024, you’re looking into ways of the future for your warehousing operations. Third-party warehousing is rapidly evolving with the introduction of advanced automation technologies. Many 3PLs of various sizes and specialties are starting to adopt anywhere from single-robot machines that can assist dock workers to fully automated warehouse solutions. Major companies have already begun adopting the “Fully Automated Solution” in their warehousing. This means that products arrive from a container onto a pallet, and once they are received in the warehouse, they are not touched by a human operator until the product is picked. Maersk has a fully automated 3PL center in Melbourne, Australia, and Café Amazon has an automated coffee production warehouse in Thailand. 

Contents
Let’s take a look at some common technologies today for warehousing automationAGV’S (Automated Guided Vehicles)Cost and Types of AGVsChoosing the Right Level of AGV IntegrationCompanies Offering AGV SolutionsAutonomous Mobile Robot (AMR)Basic AMRs: Things to Consider Standard AMRs for Pallet Transport VS. Auto Pallet MoverCompanies offering AMRs for Pallet TransportAbout the Author

Let’s take a look at some common technologies today for warehousing automation

AGV’S (Automated Guided Vehicles)

Automated Guided Vehicles (AGVs) are gaining popularity in fast-paced, high-volume warehouse environments such as e-commerce fulfillment and distribution centers. Among the various AGVs, forked AGVs for pallet handling are becoming a game-changer for 3PL warehouses.

These advanced forklifts are guided by a central controller or computer within the warehouse, which coordinates their tasks much like a manager would with a dock worker. When a pallet needs to be picked from a specific aisle, the central controller communicates with the AGV, providing instructions for the task. 

AGVs are equipped with a range of navigation methods and sensors to facilitate precise movement, safety, and handling. The sensors allow the vehicles to navigate the warehouse autonomously while detecting obstacles for safe operation.

Cost and Types of AGVs

AGVs can range significantly in price, with costs typically falling between $45,000 and $200,000+ depending on the type and capabilities. There are two primary categories commonly used in warehouses:

  1. Automated Pallet Movers: Base model price range ($20,000 – $50,000)
    Automated pallet movers are more affordable and designed to perform simple tasks like transporting pallets across the warehouse. They operate primarily at ground level, moving pallets that are already on the floor. Since they lack complex lifting capabilities, their role is to handle horizontal transport rather than vertical stacking or picking.
  1. Autonomous Forklifts: Base model price range ($50,000 – $100,000 plus)
    Autonomous forklifts resemble traditional forklifts in their functionality, capable of picking up pallets from various heights, placing them on racks, or loading them into trucks. These machines can perform a broader range of tasks, including picking, sorting, and transporting palletized freight. Their versatility makes them suitable for more complex operations, but they come at a higher cost due to their additional components and capabilities.

Choosing the Right Level of AGV Integration

Deciding which AGV solution fits your warehouse needs depends on the level of automation you’re aiming for. Many 3PL companies test the waters by first integrating automated pallet movers to streamline ground-level pallet transport. For those looking to achieve full warehouse automation or handle a specific manufacturing product line, investing in autonomous forklifts may be more beneficial. While the initial cost and backend infrastructure required for autonomous forklifts are substantial, they can significantly improve productivity and reduce manual labor in facilities that handle a high volume of goods.

Companies Offering AGV Solutions

Here are some leading companies that provide AGV solutions for warehousing:

  • Swisslog
  • JBT Corporation
  • Seegrid

Autonomous Mobile Robot (AMR)

AMRs are typically known for handling smaller parcels or boxes, rather than transporting full pallets. This makes them ideal for tasks such as order picking, sorting, and moving goods across various areas of the warehouse. 

An Autonomous Mobile Robot (AMR) can navigate through a warehouse more fluidly compared to an automated forklift, which typically operates on fixed paths or tracks. You can think of an AMR as similar to a robotic vacuum cleaner in your living room. While both are programmed to transport items from point A to point B, AMRs have the flexibility to adjust their routes in real time, avoiding obstacles and adapting to changes in their environment.

Basic AMRs: Things to Consider 

When considering whether or not AMRs are a good investment as a 3PL provider, it’s important to consider the advantages and limitations of this technology. If you have dockworkers regularly carrying smaller boxes and notice that it is disrupting workflow from more high-level demands, then adding a few basic model AMRs to the mix might make sense. AMRs can be ideal for dynamic warehouse environments with frequent layout changes or diverse product handling. However, basic model AMRS are suited for smaller loads and have limitations with larger, heavier items. With the higher cost than other technologies, it’s important to assess whether AGVs or Standard AMRs would be better suited for your warehouse layout. Basic-level AMRs are often used in facilities that have conveyor belt systems where the AMR transports small items or a few at a time. 

Basic AMRs for Light Duty Tasks (simple transport of smaller parcels)

Cost range: $10,000 – $30,000 per unit

Standard AMRs for Pallet Transport VS. Auto Pallet Mover

Standard Automated Mobile Robots (AMRs) for pallet transport are designed to autonomously navigate warehouses and can handle heavier loads much like an Auto Pallet Mover can. These robots come with advanced sensors and AI to optimize their paths and interact well with other warehouse systems. Auto Pallet Movers are typically more specialized machines focused on moving pallets along fixed routes, often in a linear or repetitive manner. 

Auto Pallet Movers are often more cost-effective and simpler to implement for specific tasks, making them suitable for operations with less variability in pallet handling needs. Both technologies enhance efficiency in logistics, but the choice between them depends on the dynamics of the warehouse environment.

Companies offering AMRs for Pallet Transport

Several companies offer Automated Mobile Robots (AMRs) for pallet transport or larger loads within the $30,000 – $75,000 cost range. Here are a few common ones. 

  • Fetch Robotics
    • Product: Freight500 and Freight1500
    • Description: These AMRs are designed to handle heavy loads, with the Freight 500 supporting up to 500 kg (1,100 lbs) and the Freight 1500 up to 1,500 kg (3,300 lbs).
  • MiR (Mobile Industrial Robots)
    • Product: MiR500 and MiR1000
    • Description: The MiR500 can carry loads up to 500 kg, while the MiR1000 is capable of handling 1,000 kg. Designed for transporting pallets and heavy materials autonomously.

There is no question that the shift toward automation in warehousing is becoming more pronounced. The adoption of technologies like AGVs and AMRs are becoming very common and certainly allows 3PL providers to optimize their workflow significantly. Keep an eye out for newer start-ups that now offer other fascinating technologies for 3PL Warehousing. This includes drones for inventory inspection, climbing robots that replace forklifts by picking boxes in racking, and robotic arm pickers that consolidate freight out of tractor-trailers onto the warehouse floor. 

With 3PL industry leaders like Maersk starting to ramp up with fully automated warehouses, now is the ideal time to explore these innovations to stack against the competition. Investing in the right automation technologies can streamline processes, reduce labor costs, and position your warehouse for future success. Embrace the automation wave, and ensure your operations remain competitive in an ever-evolving logistics landscape. 

About the Author

Derick McQuaide serves as a Business Development Executive at Accurate Trailers, a Miami-based drayage carrier operating in South Florida.

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