Closing the “Reality Gap” with Real-Time Execution Across Automated Systems

Is your warehouse investing in automation but not seeing the results it expected?

It's a common theme in many warehouses and distribution centers that are investing capital in solutions and know they need to change the way they operate. Yet, they're not seeing the payoff. It's likely because they haven't effectively closed the "reality gap”.

It's important to note that automation alone won't eliminate inefficiencies. It takes operational awareness and integration across digital and physical solutions to synchronize automated sub-systems. In this post, we'll break down what the reality gap is, why it exists, and how you can overcome it so your facility operates as efficiently and effectively as it can.

The Reality Gap, Defined

Before we get into how to close the reality gap, let's take a few minutes to define it. Broadly speaking, the reality gap is the disconnect between the various systems in the distribution center or warehouse. It's the difference between what software solutions are expected to do and what's actually happening on the floor.

Think of common solutions like Warehouse Management Systems, control systems, and physical equipment. Inventory might be recorded in one location, while it's actually physically elsewhere in the facility. Or, there may be congestion and bottlenecks happening on the floor that software isn't recognizing, at least not immediately. Any delays and information disconnects can ripple through all operations, causing even more bottlenecks and potential business interruption as issues must be identified and resolved.

So, why does the reality gap happen? There are various factors, including data latency, isolated automation, lack of communication between systems, and manual interventions that aren't immediately addressed or reflected in the digital software.

The bottom line is that while automated solutions are nothing new in the modern-day warehouse, any automation isn't truly synchronized unless there's real-time execution across all systems.

Why Traditional Automation Isn't Enough

In the early days of automating warehouses and distribution centers, siloed solutions were the norm — and they were enough. That's not the case any longer.

So, while your facility may have incorporated automated solutions such as conveyors, AS/RS, autonomous robots, sorters and automated palletizers/de-palletizers, there needs to be connectivity that keeps all of these solutions and technologies in coordination with each other and visible in real-time. Otherwise, problems such as an increase in idled equipment, more bottlenecks, inefficient material movement, unwarranted manual labor and increased retrieval queues are more likely to occur.

If your decision-making is lagging too far behind your facility's operational reality, then you have a problem. Remember, automation solves movement, but not necessarily coordination. That's why the traditional automation strategy is no longer effective in the modern-day warehouse or distribution center and interconnectivity is so crucial.

Technologies that Help Facilitate Real-Time Execution

There's a bevy of technology that enables real-time execution, notably software solutions coupled with industrial automation equipment. Software solutions include:

• Warehouse Management Systems (WMS)

• Warehouse Execution Systems (WES)

• Warehouse Control Systems (WCS)

• Equipment Control Software (PLC/SCADA)

• Robotics and Autonomous Vehicle Software

• Visibility & Analytics Platforms

Industrial automation equipment includes:

• Controls Equipment such as PLCs, HMIs, VFDs and more

• Field Devices such as Scanners, RFID readers, IoT sensors and more

Keep in mind that while it's largely the streamlined flow of data that helps facilitate real-time execution, the true value isn't in connecting more data. The true value is transforming live, operational data into actionable insights to enable more immediate decision-making.

When real-time execution is in place, your warehouse or distribution center can respond immediately to changing conditions, enabling continuous decision-making, dynamic routing of materials and better workload balancing. In the ideal situation, real-time execution should share these characteristics:

• Continuous monitoring of movement within the warehouse or distribution center.

• Instant detection of any exceptions.

• The ability to reassign work dynamically so that operations remain efficient.

• The ability to optimize routes automatically.

• The ability to coordinate multiple technologies simultaneously.

Don't underestimate the impact of adjusting within seconds, and not minutes, to any detections on the shop floor. In a world where time equals money, every second counts.

Key Benefits of Closing the Reality Gap

As you might imagine, closing the reality gap can create a significant advantage for your warehouse or distribution center and, in turn, for your customers and partners. Some of these key benefits include:

Increased throughput

This is especially important in today's competitive landscape, where time equals money and labor shortages are real. Closing the reality gap allows your facility to essentially do more with less. Additionally, you'll easily be able to scale to meet demand surges and overcome challenges before they become business disruptors.

Higher order accuracy

Your customers expect to receive the items they order. And when they don't, two things happen. One, they lose trust in your operation and might look to partner with another company. And two, your returns and customer service department is busy cleaning up the mess that your operations made. Neither is ideal. By leveraging real-time data, operations can make faster decisions, improve order accuracy, and increase customer satisfaction.

Reduced dwell time

Dwell time is the time a transport vehicle spends idle on your facility's property. Excessive downtime is bad for business and a major killer of profitability and efficiency. In fact, any time spent idling beyond the necessary window can create a domino effect across your entire supply chain, potentially resulting in financial penalties, operational bottlenecks, safety issues and environmental harm. Real-time visibility of transport vehicles and dwell times enable operations to improve dock utilization, reduce congestion, and increase throughput.

Better overall equipment utilization

As we discussed earlier in this piece, it's no longer enough for automated sub-systems to exist independently of one another. To truly maximize your investment in automation, the sub-systems need to be integrated so they work together. Real-time execution continuously monitors equipment performance and helps distribute work across your various sub-systems to avoid bottlenecks, dwell time and inefficiencies.

Better equipment utilization has other benefits as well. For instance, when workloads are properly balanced, less wear and tear is placed on all systems, extending their lifespan and maintenance intervals and helping your facility truly maximize the return on investment of these systems.

Better labor optimization

As mentioned, there's a known labor shortage in distribution centers and warehouses — and it's unlikely to be solved anytime soon. There are currently more workers leaving this field than entering it, affecting operations and forcing managers to make the best use of the workers they have. Real-time execution reduces the need for manual oversight by enabling automation to make the best decisions for your operations as it learns from the data being collected and processed. This helps centers reassign their workers to higher-value activities, while keeping operations flowing.

Improved inventory tracking and accuracy

Finally, inventory management is another area where many warehouses and distribution centers struggle. This is especially true when physical movement isn't properly recorded in digital systems. However, real-time execution synchronizes inventory updates to the second, so managers can make the best decisions about their inventory status and rest assured that digital records match physical locations and status. This real-time execution helps reduce search time, minimize errors, support better decision-making and give leadership more confidence in their performance.

Start Closing Your Facility's Reality Gap Today

What's does the reality gap look like in your warehouse or distribution center? Is there still a considerable gap or does real-time execution across your various systems already exist? Regardless of your situation, let Daifuku Intralogistics America help you further optimize your automation journey. Though we're perhaps best known for our world-renowned automated solutions, we do so much more. From initial consultations to design, engineering, and manufacturing to installation and ongoing maintenance, we'll manage your project from start to finish.

Take your operation to new heights through automation, closing the gap between planning and execution while enabling real-time visibility, coordination, and productivity across all systems and processes. Contact us today to learn more and set up an initial consultation.

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