3 REASONS WHY SMEs SHOULD INVEST IN SMART WAREHOUSE

Surviving in the market is not easy, keeping up with customers’ needs is even more difficult for small and medium enterprises. With a limited investment capital, and Industry 4.0 trend, investing in automation solutions in industrial manufacturing processes is indispensable for businesses to break out in today’s fierce market. Smart warehouse solution is a wise investment choice that small and medium enterprises cannot ignore.

Reasons why SMEs should invest in a smart warehouse

Overview of the current smart warehouse market

Smart warehouse or automated warehouse is no longer a strange name for every manufacturing enterprise. In parallel with the development of the economy, customers’ expectations are gradually changing about the characteristics of orders as well as service requirements. This requires a new warehouse that is more agile, responsive, and optimized for human and technological productivity.

In developed countries, many traditional warehouses or outdated distribution centers are gradually dying out, replaced by the application of a smart warehouse in many different fields such as  mechanical engineering, food processing, pharmaceuticals, consumer goods, electronic components, logistics, etc. According to a report by researchandmarkets.com, in 2021, the Asia-Pacific region accounts for a significant revenue share of the smart warehouse market. The growth of the smart warehouse market in this region is due to the significant increase in technology adoption across all industries to increase productivity and improve customer experience. Furthermore, the demand for automation solutions to transition to smart manufacturing towards building a smart factory, improving productivity, efficiency and accuracy is also growing across the region.

Many businesses around the world have been implementing smart warehouse solutions into industrial production processes

In Vietnam, in order to catch up with the development trend of the market in the region and the world, manufacturing enterprises have been turning to automation of industrial production processes. Specifically in the process of storing and managing goods, many large enterprises in Vietnam have been applying automated warehouse systems, especially in the field of F&B production. Currently in Vietnam, only large enterprises have switched to automation at certain stages, not many small and medium enterprises have participated in digital transformation, but in the future, automation will be being applied in manufacturing industries and automated warehouse will be the trend in the future, when businesses are aware of the business advantages that automated warehouse bring. 

#Reason 1: Reduce labor dependency with smart warehouse

Currently, the problem of labor is always a challenge not only for large enterprises but also for small and medium sized enterprises. Faced with an aging workforce (especially for warehouse positions) and the preference of young workers for this industry becomes scarce as they have better opportunities in other more dynamic positions.

Moreover, the scarcity of human resources along with the low profitability of small and medium sized enterprises make these enterprises have to allocate a large amount of labor costs for these positions.

Therefore, the most effective way to reduce dependence as well as costs on labor is to use automated warehouse solutions that directly reduce the need for manual labor. Smart warehouse solutions are also ergonomically designed and integrated with modern automation technologies such as AS/RS systems, robots, smart transportation technology, etc. to help workers reduce repetitive work that is prone to injury as well as improve a safer working environment.

Kardex Remstar Shuttle smart warehouse helps reduce dependence on workers

#Reason 2: Optimize current space with smart warehouse

For small and medium sized enterprises, they often do not have their own warehouse due to low inventory, leading to lower business profits compared to large enterprises, making them unable to afford a large investment to buy or rent a floor space to store goods.

So, instead of investing in risky investments in building or buying more warehouse space, optimize your business’s existing floor space with automation – which is a smart solution that both optimizes space and saves a significant amount of money.

Compact storage in the Kardex Remstar automated storage and retrieval device (AS/RS) is a smart warehouse management solution that small and medium sized businesses cannot afford to ignore, with a variety of options to suit suit the needs of every business in a variety of sectors such as Vertical Buffer Modules, Vertical Lift Modules, Vertical Carousel Modules or Horizontal Carousel Modules — all provide massive space saving benefits. By utilizing floor-to-ceiling storage (vertical space is overused in warehouses) can save up to 85% of floor space.

Kardex Remstar Megamat smart warehouse optimizes floor space up to 85%

For instance, the equivalent amount of inventory held in 120 bays of static shelving can be condensed into two Horizontal Carousel Module smart warehouses (66% space savings), two Vertical Carousel Module smart warehouses (75% space savings), a single Vertical Buffer Module smart warehouses (75% floor space savings) or a single Kardex Remstar Vertical Lift Module smart warehouse (85% space savings).

Furthermore, the value of floor space restored after the application of a smart warehouse to goods storage will depend on the purpose of the business using it. That portion of reclaimed space can be used for reinvestment, expand production capacity, hold more inventory, add assembly processes, or can even be leased back to generate more revenue, reclaim faster investment.

#Reason 3: Increase customer experience efficiently with smart warehouse

Currently, customers are becoming more and more demanding, customer expectations are also gradually changing in terms of order characteristics as well as higher service requirements. Therefore, small and medium enterprises want to compete in the market, increase brand value faster and optimize business costs then focusing on increasing customer satisfaction is a smart and smart business solution that businesses need to focus on.

It can be said that increasing customer experience is a factor in customer retention, loyalty and brand development of the business in a sustainable way. Small and medium enterprises need to focus on improving service better in all processes, including the processes of storage and inventory management may not seem important, but it is an important factor to bring fast service to customers and help businesses break through faster in the market.

The fast and accurate picking speed of the Kardex Remstar automatic warehouse helps the product supply process to be quick, to better meet customer needs.

The integration of many technologies such as transportation technology, robots, picking technology, smart warehouse management software, etc. in warehouse 4.0 has helped to reduce errors and speed up the completion process to deliver a better experience and improve customer satisfaction. Therefore, investing in smart warehouse solutions not only solves the problem of labor and operating costs, but also increases the customer experience better.

Autotech Vietnam - The official distributor of the world's leading smart warehouse system Kardex Remstar

Autotech Machinery JSC. is a leading industrial machine manufacturing company in Vietnam, we are building a prestigious brand not only in the field of automation but also with our Partners – Customers.

With the slogan “Passion & Success”, we always strive to innovate, live fully with passion, to bring customers satisfaction not only because of high quality products but also in the dedication, enthusiasm in customer service and professional working style.

Autotech is always ready to provide quality automation products and accompany customers in many projects

Increasing customer satisfaction is one of the core values ​​that Autotech is pursuing. Currently, Autotech Machinery has been and continues to expand its product portfolio to bring the best automation solutions to meet all the needs of business customers. That is why Autotech decided to cooperate and be the world’s leading supplier of Kardex Remstar smart warehouse systems. A world-leading smart warehouse system will be a great choice for businesses, especially those in industrial production.

Read more about Kardex Remstar products distributed by Autotech in Vietnam: https://www.auto-tech.vn/home-new/en/autotech-distributor-kardex-remstar/

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Contact Autotech experts to get professional advice for your factory & business.

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