How to achieve manpower reduction in logistics warehouses? Explanation of five solutions to be introduced

In logistics warehouses, the increase in the volume of handled parcels due to the expansion of e-commerce sites, among other factors, is coupled with concerns about labor shortages resulting from a declining workforce. This has led to a growing demand for manpower reduction initiatives. Achieving manpower reduction not only addresses the issue of labor shortages but also brings various benefits such as reducing the risk of accidents and stabilizing operational quality. In this article, we will introduce the benefits, challenges, and solutions that should be introduced to achieve manpower reduction in logistics warehouses.

What is Manpower Reduction in Logistics Warehouses?

Manpower reduction in logistics warehouses refers to the process of reviewing logistics operations, reducing unnecessary tasks, and consequently decreasing personnel. Often, it involves advancing mechanization and systematization, such as the introduction of robots, to reduce human involvement in processes and promote manpower reduction. In recent years, there has been remarkable progress in technological advancements such as IoT and AI, leading to increasing interest in manpower reduction through digitalization and automation utilizing these technologies.

The difference between manpower reduction in logistics warehouses and factories

While often grouped together under the umbrella term 'manufacturing and logistics industry,' there is a notable difference between manpower reduction in warehouses within logistics and factories in manufacturing, primarily stemming from the presence or absence of production lines. Factories typically have production lines, whereas logistics warehouses primarily handle tasks such as storage, retrieval, and inventory management, without engaging in actual production activities. Consequently, the equipment and methods required for manpower reduction differ between the two.
However, there are factories that also handle shipping operations, and in such cases, manpower reduction efforts related to shipping processes would be similar to those in logistics warehouses.
For detailed explanations on manpower reduction in factories, please refer to the following article.

The Benefits of Achieving Manpower Reduction in Logistics Warehouses

By achieving manpower reduction in logistics warehouses, the following five benefits can be obtained.

Alleviation of Labor Shortages

A significant benefit of manpower reduction is the alleviation of labor shortages. Currently, Japan is experiencing a decline in the working-age population, a trend expected to continue in the future. In the logistics sector, in particular, securing manpower has become increasingly challenging due to labor conditions and remuneration. The need to sustain and grow businesses with fewer personnel has never been greater. Advancing manpower reduction by reducing tasks performed by humans can contribute to alleviating labor shortages in this context.

Reduction in Accident and Injury Risks

In logistics environments, there are many tasks involving risks, such as handling heavy loads or picking items from high places, which pose risks of accidents and injuries. By automating and reducing manpower in tasks involving risks, such as through the introduction of material handling equipment, it is possible to improve employee safety and working conditions, thereby reducing risks.

Potential for Stable Work Efficiency Independent of Workers

When tasks are performed by manpower, variations in skills and experience levels among individual workers can lead to differences in operational efficiency and productivity. This can also result in issues of individualization. Furthermore, there is a risk of production delays due to factors such as absenteeism, sick leave, or turnover among workers.
Advancing manpower reduction reduces dependency on factors such as the skills and circumstances of workers, leading to more stable production. The fact that machines can continue to operate without rest also contributes to stabilizing operations.

Enhancement of Productivity

Tasks performed by machines generally exhibit higher productivity per unit of time compared to those performed by manpower. Additionally, machines can operate continuously for 24 hours, thus demonstrating higher productivity than manual work over extended periods. Furthermore, replacing manual tasks with machinery allows for easy adjustment of operating rates based on production conditions, such as operating at full capacity during peak periods and reducing operation during off-peak periods.

Stabilization of Work Quality

Errors are inevitable in tasks performed by manpower, no matter how careful one may be. Fatigue from long hours of work can lead to an increase in errors and a decrease in work quality. Advancing manpower reduction and reducing tasks involving human intervention can reduce human errors, leading to the stabilization of work quality.

Common Challenges in Advancing Manpower Reduction in Logistics Warehouses

While there are various benefits to advancing manpower reduction in logistics warehouses, there are also challenges to consider when proceeding with these initiatives.

Cost-related Challenges

The main challenge lies in securing the necessary funds for the 'initial investment cost' and 'maintenance expenses' associated with the facilities that bring about manpower reduction. While it is possible to advance manpower reduction by streamlining workflows without changing existing facilities, achieving fundamental manpower reduction is often difficult. Therefore, it is necessary to promote mechanization and systematization. However, when aiming to automate the entire process of a warehouse, large-scale facility introductions are required, which can incur costs on the scale of hundreds of millions of yen. Additionally, facilities require regular maintenance, and repair costs may be incurred in the event of breakdowns.

Worker Training and Education

With the introduction of new facilities and changes in workflow, education to adapt to these changes becomes necessary. This may involve learning how to operate machinery and systems, which can potentially impose a burden on employees during the implementation phase.

There is a possibility that the cost-effectiveness may not align.

As mentioned earlier, cases involving the introduction of large-scale facilities may incur installation costs in the range of hundreds of millions of yen, with the potential for not necessarily achieving commensurate effects. It is important to calculate and compare the effects of manpower reduction, cost savings, and productivity improvements against the costs of facility introduction and maintenance in advance.

Key Points for Advancing Manpower Reduction in Logistics Warehouses

When advancing manpower reduction in logistics warehouses, it is important to focus on the following two points:

Clearly defining the challenges and objectives at the site.

Firstly, it's important to clearly define the challenges in the logistics environment and the objectives of manpower reduction. If the challenges and objectives are unclear, there's a risk of introducing facilities unnecessarily into areas where they are not needed, leading to unnecessary costs. Therefore, caution is necessary.

Conducting validation after implementation

It is also important to conduct validation after the introduction of facilities. Assessing factors such as the extent of productivity improvement, the effectiveness of cost reduction through manpower reduction, and whether the quality of operations is being maintained or improved helps in approaching optimal operational methods.

The Five Solutions to Implement for Achieving Manpower Reduction in Logistics Warehouses

Below,
we introduce five representative solutions for achieving manpower reduction in logistics warehouses.

Automated Warehouses

An automated warehouse is an automation system that centrally manages and automates the processes from the receipt of delivered goods, storage, to retrieval using a computer system. It consists of stacker cranes for handling pallet racks, storage/retrieval equipment, control devices for managing hardware aspects, and inventory management systems. By coordinating with production instruction systems and storage/retrieval systems to issue storage/retrieval instructions, the scope of automation can be expanded, leading to further manpower reduction.

Automated warehouses come in various types such as pallet type, bucket type, and free-size type, and it's important to choose the appropriate type based on the application.

For more detailed explanation about automated warehouses, refer to the following article.

AGV (Automated Guided Vehicle) and AMR (Autonomous Mobile Robot) are detailedly explained in the following two articles.

Introduction of AGV and AMR

AGV (Automatic Guided Vehicle) and AMR (Autonomous Mobile Robot) are solutions for automating transportation processes in logistics facilities. AGV travels while carrying or towing items and moves along predetermined routes guided by magnetic tapes or QR codes. AMR estimates its own position using mapping capabilities via laser SLAM, enabling autonomous movement even in narrow spaces such as warehouses or factories. Compared to AGVs, AMRs have higher obstacle avoidance capabilities, do not require guided tracks on the floor, and offer the advantage of rapid deployment.




Furthermore, as a recent trend, there is a 'shelf transport system' where AGVs and AMRs transport goods to workers along with the shelves. This system helps to further reduce the workload of workers and achieve additional manpower reduction. For more details about the shelf transport system, refer to the following article.

Warehouse Management System (WMS)

A Warehouse Management System (WMS), also known as WMS (Warehouse Management System), refers to a system that supports the management of locations, inbound/outbound, and inventory of products and parts within a warehouse.

It includes functions such as inbound management, inventory management, outbound management, inventory counting, and document/label issuance. The benefits include reduction of human errors, real-time inventory accuracy, streamlining and standardization of operations, and reduction of labor costs.

For more detailed explanation about Warehouse Management Systems, refer to the following article.

Picking Robot Implementation

A picking robot is a robotic system that performs picking tasks by retrieving necessary items based on picking lists (shipping instructions or invoices) and transporting them, replacing the need for human intervention. Recent technological advancements have enabled robots to automate picking processes, even for items with varying shapes, sizes, and weights, which were previously considered challenging.

Introducing picking robots can lead to a reduction in labor and effort for workers, contributing to labor-saving automation. Additionally, it helps minimize errors in picking tasks and facilitates the standardization of operations.

For detailed information on picking robots, please refer to the following article.

Picking Robot Implementation

Picking robots are automated robots that perform the picking tasks by following picking lists such as shipping orders or invoices, retrieving the required items, and transporting them, replacing the need for human intervention. Recent technological advancements have enabled robots to automate the picking process for items of various shapes, sizes, and weights, which were previously considered challenging.

Introducing picking robots can reduce the labor and effort of workers, leading to manpower reduction and minimizing errors, thereby achieving standardization of operations. For more detailed information on picking robots, refer to the following article.

To achieve labor saving in logistics, use LOGITO.

The 'LOGITO' provided by Daiichi Jitsugyo is a solution service aimed at companies in manufacturing and warehousing industries, among others, to automate logistics. We offer optimal proposals for automating every process in the logistics field, including unloading, inspection, depalletization, and conveying. We provide comprehensive support from introduction to aftercare, ensuring peace of mind in operation.

Case Study of Labor-saving Measures in Logistics Operations

At YKKAP, where there were various types of parts in the internal logistics center and the conventional shelves were insufficient to store them, leading to storage in places other than pallets or shelves, the distance traveled by workers increased, resulting in decreased operational efficiency and physical strain. To address this, a trial automation system was introduced to streamline and standardize operations. Following instructions from the upper-level system, AGVs automatically transport designated shelves to the workstations, and at the workstations, the entrance of the shelves for inbound and outbound operations is illuminated by the PPS (Projection Picking System) to guide the workers. As a result, workers no longer need to walk long distances, reducing operational inefficiencies and physical strain. Furthermore, standardization of picking operations has progressed, making it possible for anyone to perform the tasks.



The following document provides detailed explanations on how to achieve logistics automation and other related topics, so please feel free to check it out if you are interested.