The global pandemic may have been officially downgraded last year by the World Health Organization but labour shortages in logistics and other industries continue to grow. In 2023, more than 58% of large Canadian organizations faced challenges related to a lack of qualified workers. The high physical demands of logistics jobs, combined with competition from other sectors offering higher wages, have created a challenging environment for logistics managers and supply chain professionals.

As a result, many businesses in the supply chain industry are turning to supply chain automation to fill the gap left by labour shortages, keeping operations lean and efficient.

This post will explore the concept of lean principles and how automation, specifically cobots (collaborative robots) and AGVs (automated guided vehicles), can provide practical solutions to labour shortages in the logistics industry.

The Problem: Labour Shortages in Logistics

Labour shortages are not new to the logistics industry, but they have become more pronounced.

The COVID-19 pandemic created a challenging environment, forcing many workers to stay home, slowing down logistics operations, and overwhelming supply chains. During that time, many of those involved in supply chain jobs chose other careers that would allow them the flexibility of working from home or working in safer environments.

Another factor that has led to a labour shortage is the aging workforce and a lack of younger workers entering the field. By 2030, more than 60 million Baby Boomers will retire, leaving a void greater than the Gen X, Millennial, and Gen Z workforce can fill.

Logistics jobs can be physically taxing and are not as appealing as careers that require technical skills. As a result, the logistics industry is faced with higher turnover rates as employees seek less strenuous work.

These shortages have significant implications. Delays in shipments can disrupt supply chains and increase costs. Decreased efficiency can lead to dissatisfied customers and lost business. Addressing these challenges is critical for maintaining competitiveness and profitability in the logistics sector.

The Solution: Automation with Lean Principles in Mind

As the labor market continues to shrink, companies are looking for solutions to address the shortage of workers. One such solution is automation, which has become increasingly prevalent in industries across the board due to the use of lean principles.

Lean principles emphasize the importance of minimizing waste and maximizing value in all aspects of supply chain management, from production and transportation to distribution and delivery. The goal is to eliminate any operation that is considered waste.

By using automation with lean principles in mind, companies can significantly improve their bottom line by reducing costs and increasing profits. This can be achieved with robotics, artificial intelligence, and software systems. Specifically, automation solutions such as cobots and AGVs can be used.

Cobots (Collaborative Robots)

Collaborative robots (cobots) are revolutionizing the logistics industry. Unlike traditional industrial robots, cobots are designed to work alongside human workers in an industrial setting such as a warehouse space and they respect the principles of lean operations. By integrating this technology, businesses can improve safety since cobots are equipped with sensors and safety features that allow them to work in proximity to humans, reducing the risk of accidents and injuries.

Cobots can be easily reprogrammed and adapted for various tasks, such as picking, packing, and sorting, making them invaluable in a dynamic environment. They improve accuracy, productivity, and efficiency, reducing labour costs.

AGVs (Automated Guided Vehicles)

Automated guided vehicles (AGVs) are a key component in implementing lean principles within a warehouse setting. These automated vehicles are driverless and can transport goods within a warehouse, freeing human workers from time-consuming and physically demanding tasks. AGVs also reduce unnecessary movement, optimizing space utilization and increasing overall efficiency.

While AVGs are not new to the logistics scene, integrating this technology with cobots can cut down on time and labour-intensive handling. AGVs help minimize waste by ensuring materials are moved efficiently, contributing to lean principles of eliminating waste and improving workflow.

When it comes to warehouse automation, automated guided vehicles, or AGVs, have proven to be a game changer. AGVs help streamline workflows and reduce manual transportation tasks, which minimizes waste and enhances efficiency in alignment with lean principles. In all,

Maintaining Lean Principles with Automation

Warehouse automation solutions require a delicate approach as many people may have concerns about job replacement with the technology. Automation should be viewed as a tool to enhance human capabilities rather than replace them.

When implemented correctly, supply chain efficiency can be improved as workers can focus on tasks that require the human touch such as problem-solving and critical thinking. Many positions require personalized customer service skills that cannot be matched by robots.

Automation reduces unnecessary movement of materials and optimizes warehouse space utilization, aligning with lean principles. In addition, automated systems improve accuracy and consistency in order picking and fulfillment, reducing errors and enhancing product quality. Data from automated processes can be continuously analyzed to identify areas for improvement, fostering a culture of continuous improvement.

Contact Lean Supply for Automated Solutions

The future of automation in logistics is promising. Automation is not a replacement for human workers but a powerful tool to empower them and achieve lean excellence. By integrating automation with lean principles, businesses can create a resilient and adaptable supply chain capable of meeting the challenges of tomorrow.

Ready to explore the benefits of automation in your logistics operations? Talk to the team at Lean Supply Solutions. With over 20 years of experience in the logistics industry, we can streamline your business operation with our supply chain management systems.

Contact us today to discover how our expertise can help you implement automation technologies that align with lean principles and drive your business forward.