PAGE 1

The Future is Now: A Comprehensive Guide to Warehouse Automation

PAGE 2

The Tipping Point for Warehouse Labor.............................................04

Warehouse Automation 101 ...............................................................06

Where We Can Impact Your Process ..................................................07

Make Way for Robots to Deliver Tomorrow’s Promise ....................09

The Undeniable Upside ........................................................................11

Table of Contents

PAGE 3

The economy is growing stronger, with more American jobs being added every month.

However, warehouses across the country are struggling to find labor, which is impacting efficiency.

Amid this complex economic reality, an exciting solution is emerging that promises to

revolutionize the way we look at warehouse operations. Welcome to the world of robotics

and automation in the warehouse.

It can be scary, we understand that. How can a machine take my job? This common fear

among hardworking American laborers isn’t unfounded, it’s just misunderstood.

We believe in warehouse automation because it improves the lives and jobs of

everyone involved in warehouse operations – from the laborers to the foreman to the

company owner.

Did you realize that the following are just a few of the ways your company might benefit

from warehouse automation?

• Improve order accuracy• Accurate inventory updates• Become more efficient

Automation is still in its infancy, so there is much to learn and understand about the

automation process. We have compiled this guide to walk you through all aspects of

robotics and automation as it relates to your employees, your warehouse and

your business.

Introduction

• Employees can perform value added tasks• Close the labor shortage gap

PAGE 4

Automation does not replace workers, it simply liberates workers to perform more value

added tasks while forming a synergy between the human and robot, as they accomplish

given duties side by side.

It’s not just a labor shortage, those working in warehouses are stretched too thin,

increasing the rates of turnover and effectiveness.

The national average for job turnover is 42%, but in a warehouse setting, that number jumps up to 64%.

The Tipping Point for Warehouse LaborThe Current State of the Workforce & Where it’s Going

ACCORDING TO OPEX, THE UNEMPLOYMENT RATE IN THE WAREHOUSE INDUSTRY IS -16%.

That’s correct, negative 16%, meaning that there are significantly more jobs than there are workers, or even applicants. This is an area an ARV could pitch in.

PAGE 5

With Automation and robotic platforms completing tasks with minimal human labor, you

can effectively mitigate any risk for injury, and improve safety protocol, which in return

will optimize the integrity of the process.

Applying automation and robotics to repetitive tasks effectively allows workers to

transition to other value added tasks. Automating these tasks are where we’re seeing

more and more robots implemented, improving efficiency and quality.

It’s a win-win for everyone.

All of this can’t be cost-efficient, right? Well, not quite, according to PayScale.

The average cost of a human employee, per month, is over $5,000.

On the flipside, a robot will cost you an average of just $2,000 per month, saving you $36,000 annually per employee.

PAGE 6

We pride ourselves on approaching each operation with an agnostic outlook, which in

return allows us to clearly provide the customer with the RIGHT solution, as each process

has a high degree of variance.

• TRADITIONAL LABOR: the standard, normal

human interacting and completing a labor process in a

warehouse, such as picking a product or filling an order.

• AUTOMATION: an autonomous vehicle or robot

completing a task without any human interaction from

A to Z. We classify this as full autonomy.

• COBOTICS: when a robot and a human work

cooperatively to complete a process.

• CO-BIOTICS: when multiple, different robots on

different platforms and a human work together to complete

tasks. This is unique in that you are using two robots on two

differing technical platforms i.e. different software, but still

able to engage with each other.

An Introduction to Automation in Warehouses Nationwide

Warehouse Automation 101

PAGE 7

How does Automation apply to me? In running your business you understand the

burden of labor costs, and are constantly looking to improve efficiency and increase

revenue stream. Automation will alleviate most previous pain points, and allow for

a lost cost, high impact operation.

Here are just a handful of the many areas that automation may work in and

benefit your warehouse operations:

— pallet handling and pallet transportation

— automated storage and retrieval systems

— packaging, stretch wrapping, etc.

— conveyor systems to assist manufacturing

— mobile machinery to execute tasks (forklifts, pallet jacks,

robotic haulers, etc.)

— inventory automation

— barcode scanning

— workplace safety

In discussing kinds of robotics solutions, automation is described by the processes the

individual robots are capable of performing. Today, we have robots that perform these

most common warehouse jobs:

• Pallet movers • Pallet builders • Pickers • Floor cleaners

• Barcode scanners• Inventory data• Back-office functions

Types of Robots that Make Automation Possible

Where We Can Impact Your Process

PAGE 8

At NITCO, we currently work with four robotics companies who manufacture and develop

AMRs (Autonomous Mobile Robots) for all of these functions. Each specializes in different

types of robots, but all work to improve warehouse functionality and autonomy.

BALYO ROBOTICS: A robotics company based out of Massachusetts,

Balyo Robotics manufactures robots that aid in materials handling. Tasks

like pallet moving, transport of large products, and even storage

solutions can be automated with a Balyo robot.

LOCUS ROBOTICS: Another Bay State robotics brand, Locus has

developed a multi-bot picking system that significantly improves

e-commerce fulfillment productivity, helping workers pick faster

and more accurately.

UNIVERSAL ROBOTS: They dub their robots “collaborative robots,”

but Universal has developed a series of robotic arms that assist in a

variety of tasks one would find in a warehouse. The robots can fully

mimic the movement of a human arm, making them a perfect

solution for picking, placing, or testing autonomation.

MINUTEMAN MAX RIDE 20 ROBOSCRUBBER: The Max Ride 20

RoboScrubber powered by BrainOS® represents the next generation

of robotic floor care. Brain’s advanced vision-based A.I. system enables

the robot to navigate complex, real-world environments. The machine is

designed to work safely and efficiently alongside employees and can still

be used manually for ad-hoc situations.

FETCH ROBOTICS: Fetch Robotics is taking material handling to the

next level with its “On Demand” philosophy by using AMR’s to handle the

heavy loads. The Fetch Cloud Robotic platform allows customers to scale

and control all operations with the click of a button. With no

infrastructure changes required, the Fetch platform allows end users

to control material flow, mitigate employee risk for injury, and increase

the efficiency of their operation.

PAGE 9

NITCO Automation

Our promise to you is to deliver the appropriate product to the right application to

ultimately deliver dramatic savings in the three critical components of Labor, Energy, and

Space. We feel that we have aligned ourselves with cutting edge partners that are proven

and tested. Our strategic partnerships effectively allow us to impact your operations in a

variety of capacities. We appreciate your continued interest and support of NITCO

Automation and look forward to earning your business.

Make Way for Robots“Delivering Tomorrow’s Promise…Today”

PAGE 10

CONTACT US TODAY for friendly, straightforward advice that is customized to your specific needs.

Why Automation is the Way of the Future

The Undeniable Upside

We have already outlined the many areas of warehouse functionality that can and will

benefit from warehouse automation. They are:

• Workplace safety • Cost savings

But, did you know there are also ways companies can take the automation process one

step further, making work an incentivized process that employees can enjoy. We believe

in the “gamifaction” of the warehouse which will turn the interaction of robots and

humans in the warehouse into a collaborative game. Our overall goal is to make the

warehouse and work environment a safe and welcoming space that intersects human

labor with automation. With automated robots, the future of warehouse operations is

closer than you think.

• Efficiency improvements• Customized solutions