How Does Warehouse Automation Reduce Costs?

Warehouse automation can help improve accuracy, efficiency and reliability, and save labour costs. Most warehouse operations need to pay high labour costs. According to inbound logistics data, 65% of the warehouse’s operating budget belongs to labour costs. The annual expenditure for a warehouse with 100 employees is nearly $4 million. With this in mind, it makes sense for logistics companies to consider using automated warehouse processes.

How does warehouse automation work?

Warehouse automation works by automatically collecting data and controlling inventory. The warehouse control system uses the necessary hardware equipment and software systems to coordinate all operations. Here is how to achieve:

Warehouse-automation-丨Avidbots丨ChinaDivision
Warehouse-automation丨Avidbots丨ChinaDivision

1. Barcode label:

Barcode labels are the basis of warehouse automation. Warehouses track items through them. Barcode labels can accurately capture data and eliminate errors in tracking or shipping items. The use of barcodes helps inventory tracking, restocking planning, improving picking efficiency, traffic optimization, and reducing stock-outs.

2. Inventory Management System (IMS):

Check inventory levels, product information, and storage locations in real-time, thereby providing companies with high-level inventory control.

3. Automatic storage and retrieval system (AS/RS):

AS/RS consists of machines that move up and down on optimized aisles to retrieve or place items. They provide improved inventory control and item tracking. They can also ensure that the warehouse is better arranged vertically and horizontally, thereby saving inventory.

The key elements of AS/RS include storage and retrieval machines, automated guided vehicles (AGV), frame structure, and warehouse control system software (WCS). All these components work together to receive, place, pick up, pack, and ship items along an optimized route.

4. Hardware equipment:

Use the necessary hardware to help retrieve data from barcode labels and monitor activities, otherwise, warehouse automation will not be possible. Commonly used devices are portable data terminals, stationary computers, bar code scanners, rugged tablet computers, and label printers.

How to Find Wholesale Suppliers?

Are you struggling to find a suitable wholesale supplier?

Did you know that there are more than 330 thousand wholesale suppliers in the world? And the top 50 suppliers generate only 25% of industry revenue.

The difficulty of finding a suitable wholesale supplier can be imagined!

DONT WORRY! This article will provide some ways to inspire you. These tips can not only help you find the right wholesale supplier but also help you clear your mind.

How-to-Find-Wholesale-Suppliers丨ChinaDivision
How-to-Find-Wholesale-Suppliers丨ChinaDivision

Contact the manufacturer

This is the most straightforward and easy way for us to find wholesale suppliers. If you have a product you want to ship, you can call the manufacturer and ask it to provide a list of wholesale distributors. Then you can contact these wholesalers to inquire about the availability of dropshipping services and information about opening an account.

Since most wholesalers ship products from various manufacturers, this strategy will enable you to quickly source select products in the niche markets you are exploring. After several contacts with leading manufacturers, you will be able to quickly find excellent wholesalers in this market.

Use Oberlo

Oberlo can help you easily import supplier products directly into Shopify and ship them directly to your customers.

  • Import products from suppliers
  • Fulfill orders automatically
  • Inventory and price auto-updates
  • Product customization
  • Pricing automation

Use Google search

Google search can find more high-quality suppliers, but there are some rules to keep in mind:

  • You’d better search extensively. The performance of wholesalers in marketing and promotion is not optimistic, and they will definitely not be among the best in the search results for “Wholesale Supplier for Product X”. This means that you may need to look at many search results (perhaps hundreds) to find the wholesaler’s website.
  • Don’t draw conclusions through their website. Some wholesalers are now notorious for using the 90s style website design. Therefore, although a good website may indicate a good supplier in some cases, many legitimate wholesalers have a recommended homepage. Don’t let bad design scare you away.
  • Use a lot of keyword modifiers. Wholesalers do not perform extensive SEO to ensure that you find their website, so you may need to try various search queries. Don’t just stop at “[product] wholesalers”. Try to use modifiers such as “distributor”, “dealer”, “bulk”, “warehouse” and “supplier”.

Attend trade fairs

Trade fairs allow you to establish contacts with all major manufacturers and wholesalers. This is a good idea to establish contacts and investigate your products and suppliers. But this method is only effective when you have selected market segments and/or products, and it is not feasible for everyone. However, if you have the time and money to attend, it is a good way to get to know the manufacturers and suppliers in the market.