June 24, 2024 - PalletOne Inc.

If you are thinking about warehouse automation, you are not alone. According to experts, the uptake of warehouse automation is still only in the early stages, even as automation solutions continue to fly off the shelf. For example, one research firm projects the warehouse automation market to increase from $19.27 billion in 2023 to $21.9 billion in 2024 at a compound annual growth rate (CAGR) of 13.6%. Other analysts predict a 15% CAGR through 2028.To be clear, automation offers many attractive benefits. Unfortunately, as McKinsey notes, companies investing in automation often fail to get “their money’s worth.” A comprehensive planning and implementation methodology, including consideration of your whitewood pallets, is critical to project success. Failure to analyze options with your pallet provider during the earliest phase can result in a need for high-priced custom pallets to avoid performance issues.The compelling benefits of warehouse automationNowadays, supply chains are impacted by a shortage of workers and warehouse space, and warehouse automation is the obvious solution. Automation can help operators navigate labor availability and productivity constraints while improving worker safety, storage capacity, and fulfillment speed.One of the primary benefits is the reduction in labor costs, as automated systems can handle repetitive and physically demanding tasks that would otherwise require a large workforce. This lowers labor expenses and minimizes the risk of workplace injuries and associated costs.Automation also improves accuracy in inventory management and order fulfillment, reducing errors that can lead to customer dissatisfaction and returns. Using technologies such as automated storage and retrieval systems (AS/RS), conveyors, and robotics, warehouses can operate continuously with minimal downtime, ensuring faster and more reliable order fulfillment.Moreover, many warehouse automation solutions enhance scalability and flexibility, allowing businesses to quickly adapt to changes in demand without needing significant manual adjustments. Additionally, automation provides valuable data insights through real-time tracking and analytics, enabling better decision-making and continuous operations improvement. Ultimately, warehouse automation leads to increased throughput and improved customer satisfaction and empowers businesses with a stronger competitive edge in the market. But don’t forget to consider your whitewood pallets!Considerations for wood pallets in automated systemsExperts stress that automated systems lean heavily on consistency…including that of your pallets. Here are the main things to monitor:Structural Integrity: Your whitewood pallets must be free of damage. Missing or broken deck boards, particularly bottom ones, are cited by experts as the leading cause of disrupted system performance. Deck boards should provide a flat surface to avoid problems related to automated palletization and stacking.Dimensional Consistency: Pallets must have uniform dimensions to work seamlessly with automated systems. Variations in size or off-square (diamond-shaped) pallets can hinder automated system functionality.Weight Capacity and Stiffness: Pallets must support the weight of the loads without bending or breaking. Many automation systems have a limited clearance tolerance for pallet deflection or bending, dictating the need for a stiff pallet.Cleanliness: Pallets should be clean and free of debris, dirt, or residual slip sheets and pallet wrap. Automated systems can malfunction if they encounter foreign materials, and dirty pallets can affect the cleanliness of stored products.Ensure robust system performance by specifying new pallets or the accurate sorting of used palletsOperators can ensure their automation functions as intended by specifying new pallets from vendors with strict quality controls. This can eliminate risks of disruption.While recycled or used 48x40s can be used in many systems, a rigid sorting process is required to ensure that pallets being inducted into the system meet the required tolerances. Sorting can be a manual operation, although some leading companies are now automating their pallet sorting process for empty pallets and pallets received under load.Automated pallet sorting systems combine machine vision, AI, conveyors, and robotics to provide a rapid, consistently accurate sorting process within a small warehouse footprint. For example, a distribution center may recover the best-quality pallets in its automated system, while lower-quality pallets might be used to fill retail orders.Automation is being rapidly adopted. However, we are still in the early stages of market penetration. If you are one of the many companies considering pallet handling automation, include pallet quality in the conversation. Feel free to reach out to the national sales team at PalletOne. We’re happy to share our insights with you.

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