8 Key Points to Consider Before Investing In Goods-to-Person Warehouse Solutions

In the ever-evolving world of warehousing and distribution, companies are continuously seeking innovative solutions to boost efficiency and reduce costs. One such innovation is goods-to-person (GTP) systems, which aims to revolutionize the way products are picked and moved within a warehouse. That being said, implementing GTP may not be the best option for just anyone, so here are the 8 key points you should consider when trying to decide.

1. Evaluate Current Warehouse Operations

Start by assessing your current warehouse operations. Identify pain points such as bottlenecks, high labor costs, and accuracy issues in order fulfillment. A detailed analysis of these challenges will provide insight into whether a GTP system can address them effectively.

Key Questions:

• Are manual picking processes causing delays?

• Is labor availability a concern?

• Are picking errors impacting customer satisfaction?

2. Analyze Order Volume and Diversity

GTP systems are particularly beneficial for warehouses handling high volumes of orders with a diverse range of products, such as e-commerce/retail/food & beverage industries. These systems excel in environments where quick and accurate order fulfillment is crucial

Key Questions:

• What is your average order volume?

• How diverse is your product catalog?

• Do you experience significant order spikes during peak seasons?

3. Assess Space Utilization

Space efficiency is a critical factor in warehouse operations. GTP systems can significantly improve space utilization by optimizing storage and reducing the need for extensive aisle space.

Key Questions:

• Is your warehouse space limited or expensive?

• Can current storage configurations be optimized?

• Would improved space utilization lead to cost savings?

4. Consider Scalability and Flexibility

Businesses need to adapt to changing market demands. GTP systems offer scalability and flexibility, allowing you to expand or reconfigure operations without substantial disruptions.

Key Questions:

• Do you anticipate significant growth or changes in product lines?

• Is your current system adaptable to future needs?

• Would scalability give you a competitive edge?

5. Evaluate Total Cost of Ownership (TCO)

While GTP systems can entail a high initial investment, it's crucial to consider the total cost of ownership, including maintenance, labor savings, and productivity gains.

Key Questions:

• What are the upfront costs versus long-term savings?

• How much can you save on labor costs?

• What is the expected return on investment (ROI)?

6. Review Technological Integration

GTP systems rely on advanced technologies such as robotics, conveyor systems, and warehouse management software. Ensure your existing infrastructure can integrate seamlessly with these technologies.

Key Questions:

• Do you have the technological infrastructure to support GTP systems?

• How compatible are GTP systems with your current software?

• What level of technical expertise is required for implementation and maintenance?

7. Benchmark Against Industry Standards

Comparing your operations to industry standards and competitors can provide a benchmark for evaluating the potential benefits of GTP systems.

Key Questions:

• How do your current operations compare with industry leaders?

• Are your competitors using GTP systems, and what benefits are they experiencing?

• Would GTP systems help you meet or exceed industry standards?

8. Consider Employee Impact and Training

Implementing GTP systems will impact your workforce. Assess the potential effects on employee roles, job satisfaction, and the training required to operate new systems.

Key Questions:

• How will GTP systems change employee responsibilities?

• What training programs are necessary for a smooth transition?

• Will automation improve job satisfaction and retention?

Conclusion

Investing in goods-to-person warehouse solutions can offer significant benefits, including increased efficiency, reduced labor costs, and improved space utilization. However, it's crucial to conduct a thorough analysis of your current operations, order volume, space utilization, scalability needs, total cost of ownership, technological infrastructure, industry benchmarks, and employee impact. By addressing these factors, you can make a well-informed decision on whether GTP systems are the right investment for your business.