Efficiency and Cost Cutting with Goods to Person Systems

Efficiency and Cost Cutting with Goods to Person Systems

Technology has transformed how goods are transported and tracked in logistics and supply chain management. Customers demand a fast, efficient, and cost-effective supply chain, which is why the supply chain industry has seen the rise of Goods to Person (GTP) technology.

GTP technology is a revolutionary concept in logistics and supply chain management that has transformed the delivery process by bringing goods directly to the pickers rather than the other way around. In this blog post, we explore Goods to Person (GTP) technology in more detail and discuss how it can help solve many problems supply chain professionals face. This innovative technology presents numerous benefits to supply chain and logistics professionals, enabling them to simultaneously handle more orders and reduce costs. This blog post will explore the benefits of using GTP technology and how it can help businesses increase efficiency and reduce operational costs.

The Rise of Goods to Person (GTP) Technology

Goods to Person (GTP) technology has been around for quite some time but has continued to gain traction in the logistics and supply chain industry. This technology has revolutionized how goods are transported and delivered, providing numerous benefits to supply chain professionals.

GTP technology uses automated systems to bring goods directly to the pickers rather than requiring pickers to travel across the warehouse to retrieve the goods. This technology allows quicker and more efficient processes, resulting in faster delivery times.

The Benefits of Goods to Person (GTP) Technology

GTP technology provides numerous benefits to logistics and supply chain professionals. For instance, it helps to eliminate the need for manual handling, thereby reducing the risk of workplace injuries. Additionally, GTP technology improves accuracy and reduces the time to pick and pack products, ultimately leading to efficient and cost-effective supply chain solutions.

Moreover, GTP technology reduces the time wasted walking through warehouses. Because the machine can do the heavy lifting, workers can be utilized for other essential tasks, such as quality control or customer service. As a result, GTP technology helps supply chain companies improve productivity, cut costs, and increase profitability.

Improved Efficiency in Picking and Order Fulfillment

Traditionally, the picking process in warehouses and distribution centers has been a manual task where workers walk around the warehouse searching for products. This process can be time-consuming and can lead to errors that result in delays and misplaced orders. GTP technology automates the picking process, allowing workers to remain in one place while products are brought to them. The result is improved efficiency in picking, eliminating errors, and speeding up order fulfillment.

Cost Savings in Labor

GTP technology dramatically reduces the number of workers needed to handle products. With GTP technology, workers can take more orders quickly, saving labor costs. In addition, the technology can work 24/7 without needing breaks or rest, reducing the cost of shift work.

Increased Safety

GTP technology eliminates the need for workers to move around the warehouse or distribution center, reducing the risk of accidents and injuries. Providing a safer and more secure working environment reduces the risk of legal action or compensation claims.

More Efficient Use of Warehouse Space

GTP technology maximizes the use of warehouse space by storing products in compact carousels, shelves, and bins, optimizing the use of space and increasing storage in smaller areas. Companies can save on rental space, reduce their carbon footprint, and reduce their environmental impact by reducing their warehouse size.

Improved Productivity and Customer Satisfaction

With GTP technology, companies can handle more orders in a shorter time, leading to improved productivity, faster order delivery, reduced customer waiting time, and improved customer satisfaction. Improved customer satisfaction can lead to increased orders, repeat business, and higher revenue.

Integrating GTP Technology with Other Transport Solutions

GTP technology can be easily integrated with other transport solutions like automated guided vehicles (AGVs) and automated storage and retrieval systems (ASRS) to provide even better results. By integrating GTP technology with other transport solutions, suppliers can streamline their supply chains and accelerate the delivery of products altogether.

Moreover, GTP technology can be integrated with other technologies, such as Radio Frequency Identification (RFID) tags, picking modules, and warehouse management systems (WMS) to fully optimize the supply chain delivery process.

The Future of GTP Technology

GTP technology is relatively new in the logistics and supply chain industry and is still evolving. However, experts predict that it is one of the most promising technologies in the industry. Automated technology will likely play a more significant role in supply chain management due to its effectiveness in reducing costs and increasing productivity.

What Does This Mean For Me?

Goods to Person (GTP) technology has revolutionized warehouse and distribution center operations, reducing operational costs, improving efficiency, and increasing worker safety. By providing advanced solutions for the picking and transporting of products in warehouses and factories, GTP technology is changing the way supply chain processes work. The benefits of GTP technology are numerous, including increased accuracy, reduced risk of workplace injuries, increased productivity, cost savings, and, ultimately, faster delivery times. Companies implementing GTP technology into their supply chains stand the best chance of maintaining a sustainable competitive advantage in the market as technology continues to evolve.

GTP is only one of the myriad of technologies that ABCO Systems offers as a Systems Integrator for warehouse automation. Download our GTP infographic that summarizes the various aspects of GTP technology. You can also see this technology in person by scheduling a visit to our Showroom and Training Center.

GOODS TO PERSON Infographic

Image courtesy of Exotec

The Perks of Investing in Warehouse Automation in 2023 for Tax Benefits

The Perks of Investing in Warehouse Automation in 2023 for Tax Benefits

As a supply chain or logistics professional, we know you’re always looking for ways to boost efficiency, cut costs, and stay competitive. Did you know that there are tax benefits to investing in warehouse automation? Warehouse automation refers to using automated systems and software to improve the efficiency and productivity of warehouse operations. This technology includes automated storage and retrieval systems, conveyor systems, sortation systems, and robotics. Thanks to recent tax code changes, 2023 is an ideal time to upgrade your operations with automated solutions. Here’s what you should know about how investing in warehouse automation can streamline your operations, reduce labor costs, increase accuracy, and reduce your tax burden.

What are the benefits of investing in warehouse automation in 2023?

One of the key benefits of investing in warehouse automation in 2023 is the availability of bonus depreciation. First, let’s define bonus depreciation. Essentially, this is a tax incentive for businesses to invest in capital assets like equipment, machinery, and technology. This bonus allows you to deduct a more significant portion of the asset’s cost in the year it is placed in service, thereby reducing your taxable income. Plus, you can claim bonus depreciation in addition to standard depreciation, resulting in even more significant write-offs that can help you realize a faster ROI on your automation investment.

Why is this so important now?

In 2023, bonus depreciation rates will be at their most generous, thanks to the Tax Cuts and Jobs Act passed in 2017. You’ll be able to deduct 100% of the cost of most assets (including automation technology) in the year they are placed in service. The property must be new and utilized in the business to qualify for bonus depreciation. Used property and property that has been previously leased do not qualify for bonus depreciation. In addition, the property must have a recovery period of 20 years or less, including the equipment’s cost in the year it is placed in service, rather than depreciating it over several years.

How significant are these benefits?

The tax benefits of bonus depreciation can be significant. For example, if a business invests $1 million in warehouse automation in 2023, it can deduct the full amount of $1 million in the year it is placed in service. This can result in a substantial reduction in the business’s taxable income for the year, which can, in turn, lower its tax liability. The tax savings can be used to reinvest in the business, pay down debt, or distribute to shareholders. This rate will start to decline in 2024 and then phase out over the next few years. So, timing is key if you want to maximize your tax savings by investing in warehouse automation.

What other benefits are there to warehouse automation?

In addition to the tax benefits, investing in warehouse automation can provide numerous operational benefits for your business. Warehouse automation can increase productivity by streamlining processes, increasing efficiency, reducing manual labor, improving order accuracy, and increasing inventory management capabilities, thereby saving money in areas such as labor costs and inventory management. With advanced technologies like machine learning and AI, you can also gain valuable insights into your operations and make data-driven decisions that improve your overall supply chain performance.

Can you give me an example?

For example, an automated storage and retrieval system can locate and retrieve products more quickly and accurately than a worker can manually, increasing order fulfillment rates and customer satisfaction. A conveyor system can transport products more efficiently and safely than workers, which can reduce the risk of workplace injuries and accidents. By investing in warehouse automation, businesses can also reduce their dependence on human labor, which can be helpful in times of labor scarcity or economic uncertainty.

What about the upfront costs?

Still, you may be wondering about the upfront costs of automation. While it’s true that significant up-front investments are often required, keep in mind that tax incentives and long-term cost savings can make the ROI more attractive than you might think.

So, what do I do now?

Investing in warehouse automation now can provide great bonus depreciation tax benefits for your business, but it’s also important to consider other factors. Whether you’re looking to cut labor costs, reduce errors, or gain valuable insights into your operations, automation can be a game-changer for your supply chain. By taking advantage of tax incentives and evaluating your options carefully, you can make the most of your investment and position your business for success in the years ahead.

When considering an investment in warehouse automation, you should carefully evaluate your needs and goals. ABCO Systems can assist you and your team in assessing the current and future production requirements, inventory management needs, and workforce capabilities. We will help you understand the costs and benefits of different types of automation solutions, such as the upfront purchase price, maintenance costs, and potential energy savings. Consider consulting with tax advisors to ensure you take full advantage of available tax incentives. ABCO Systems will ensure you get the best equipment to meet your needs. [wpforms id=”6481″]

Drop us a note for more information on Automation solutions for your Warehouse.

Unlock the Full Potential of Your Warehouse with Automation

Unlock the Full Potential of Your Warehouse with Automation

Automation is a powerful tool for streamlining warehouse operations. It can help you save time, money, and labor while improving accuracy and reducing risk. But it’s not without its challenges. Implementing automation requires careful planning, integration with your existing systems, expertise in the technology, and sometimes a significant investment of capital. That’s why it’s so important to work with a systems integrator when implementing any type of automated system.

A systems integrator is a company that specializes in helping organizations plan, design, build, implement, and maintain automated solutions for the warehouse. A good systems integrator will take the time to understand your business needs and goals before designing an integrated solution tailored to your specific requirements. In addition, they can provide ongoing technical and operational support to ensure that your automation is consistently running at its best.

Systems Integrator

Finding the right systems integrator for you may take some time and research. Look into their portfolio of projects they’ve completed in the past and ask for references from other clients. You’ll want to make sure they have the expertise and experience necessary to successfully integrate your chosen automation solutions. Once you’ve found a systems integrator that works for you, they can help you:

Top Automation Systems Integrator

With the help of a systems integrator, you can unlock the potential of automation for your warehouse and gain a competitive edge. That’s why it’s so important to take the time to find the right partner for your project. Invest in a systems integrator now and reap the rewards for years to come.

ABCO Systems offers over 50 years of experience in all areas of material handling and warehouse distribution automation.  As a Systems Integrator, we pride ourselves on being able to match the needs of our customers with the best solution for their workflow and budget. We retain longstanding relationships with partners who offer cutting-edge technology and innovation for all aspects of product movement. Whether you are just getting started with automation or are looking for new ways to increase productivity and efficiency, you can trust the ABCO Team to help you address your challenges and attain your goals in warehouse automation.

Send us a note below and find out how the ABCO Systems Team can help you find the best automation solutions for your business.

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Choosing the Right Robotics Solution for Your Warehouse

Choosing the Right Robotics Solution for Your Warehouse

Robotics has the potential to revolutionize the distribution industry, improving efficiency, accuracy, and speed of operations. This article will explore the current state of robotics in distribution, the benefits and challenges of implementing these technologies, and the potential future of robotics in the industry.

Current State of Robotics in Distribution:

Robotics is already being used in a variety of roles within the distribution industry. These include tasks such as order picking, packing, sorting, and transportation. Some distribution centers have implemented fully automated systems, while others have adopted a hybrid approach, using robotics to complement the work of human employees.

One example of a company that has successfully implemented robotics in its distribution operations is Amazon. The company uses a variety of robotic systems in its fulfillment centers, including Kiva robots for order picking and transportation and Pegasus robots for sorting packages. These systems have allowed Amazon to improve efficiency and speed of operations, leading to faster delivery times for customers.

Benefits of Implementing Robotics in Distribution:

There are several benefits to implementing robotics in distribution operations. These include:

  1. Increased efficiency: Robotics can work 24/7 without breaks, allowing for uninterrupted operations. In addition, robots can perform tasks with high accuracy and precision, reducing the need for rework and correcting errors.
  2. Improved accuracy: Robotics can help reduce the risk of errors in tasks such as order picking and packing, leading to higher levels of customer satisfaction.
  3. Reduced labor costs: By automating tasks that are currently performed by humans, companies can reduce labor costs.
  4. Increased speed: Robotics can help speed up operations, leading to faster delivery times for customers.

Challenges of Implementing Robotics in Distribution:

There are also several challenges to implementing robotics in distribution operations. These include:

  1. High upfront costs: Implementing robotics can be expensive, with the cost of purchasing and installing the systems being a significant barrier for some companies.
  2. Lack of skilled labor: There is currently a shortage of skilled workers who are able to program and maintain robotic systems. This can make it difficult for companies to find the personnel needed to implement and maintain these systems.
  3. Complexity of operations: Distribution centers often have a high level of complexity, with a wide range of products being stored and shipped. This can make it difficult to implement robotic systems that are able to handle the diversity of tasks required.
  4. Limited adaptability: Robotics systems are not currently able to adapt to changes in operations as easily as human workers. This can make it difficult to respond quickly to changes in demand or shifts in the market.

The Future of Robotics in Distribution:

Despite the challenges, the future of robotics in distribution looks bright. As technology continues to improve and costs decrease, more and more companies will likely adopt robotics in their operations. In the future, it is possible that fully automated distribution centers will become more common, with robots taking on an even wider range of tasks.

Robotics has the potential to revolutionize the distribution industry, improving efficiency, accuracy, and speed of operations. While there are challenges to implementing these technologies, the benefits and potential for growth make it an attractive option for many companies. As technology continues to improve, we will see increasing adoption of robotics in the distribution industry.

ABCO Systems offers years of expertise and insight into product flow to help you navigate any challenges you may face in the design and implementation of automation and robotics in your warehouse distribution. We maintain relationships with the top robotics and automation solutions suppliers to help you find the right solution for your unique situation. CLICK for more information or a consultation on how we can help you increase efficiency and productivity in your warehouse.

 

*Image depicts robotic solutions from Addverb Technologies on display in the ABCO Systems Showroom and Training Center.

4 Easy Ways to Automate

4 Easy Ways to Automate

As we enter December, you may be thinking about automation, but is it too late to implement automation in time for the upcoming Holiday Season? We all want to be able to meet and exceed the needs of our customers as well as make the best use of our labor force but think that implementing automation at this stage would be way too difficult and costly.  Think again.

ABCO Systems offers you an early holiday gift with our new white paper on 4 Easy Ways to Automate.  Click the box below to download and learn how you can easily implement an automation solution now that is scalable for future growth.