5 Signs it’s Time to Switch from Manual to Automated Sorting

TL;DR

Many companies say they made the switch from manual to automated sorting, but few explain why. This blog explores 5 operational challenges that drive this transition, and when automation becomes the logical next step for warehouses. 

Everyone talks about Automation, but no one explains why

If you read enough warehouse automation case studies, you’ll notice the same story again and again:

“The company replaced manual sorting with an automated sorting system, improving throughput, efficiency, and productivity”

But what exactly was wrong with manual sorting in the first place?
Manual sorting isn’t necessarily inefficient: for many businesses, manual processes work perfectly for years. The question isn’t whether it’s good or bad, but when a warehouse’s operations outgrow what manual processes can handle.

Let’s explore what manual sorting is, when it can become challenging, and how automation can change the overall process.

What does manual sorting look like?

Manual sorting is kind of exactly what it sounds like. Picking, identifying, and sorting items by hand, which typically looks like this:

1. Orders are received
2. Workers walk through the warehouse picking items a few orders at a time
3. Each item is manually identified/scanned
4. Workers place items into the correct destination
5. Orders are moved to packaging/shipping

Manual sorting operations often use picking trolleys that can hold 4, 6, or 8 ‘destinations’. In other words, warehouse workers push the trolley throughout the warehouse collecting items for only 4, 6, or 8 orders at a time.

For smaller businesses, this process is perfectly suitable. For example, companies with relatively low amounts of daily orders and/or smaller product ranges can operate efficiently without the need for automation.

That’s why so many warehouse success stories you may read begin with manual sorting. It’s often the right fit for companies who are in their earlier stages of growth. But what happens when your business begins growing in success and becomes increasingly complex? Will manual sorting still be the right fit?

When does manual sorting become challenging?

As a business’ success grows, so do their demands. Receiving thousands of orders daily and expecting to meet ‘next day shipping’ expectations just isn’t always possible with manual labour. Let’s explore some of the main causes for operations getting too complex.

1. High order volumes with few items

Since COVID, there’s been a significant shift toward online shopping which resulted in a trend of higher numbers of orders with fewer items. The convenience of finding each unique item you need in the same (online) place is undeniable. Think about it, when have you found a camping tent, ballerina costume, and dog toy in the same store?

This can also be problematic for B2B sorting. More specifically, stores with brick-and-mortar locations which require a continuous flow of fresh items to stock their shelves. What happens when you reach the threshold of stores where manual sorting no longer fulfils requirements? Once a business grows to a certain extent, fully relying on manual sorting sometimes just isn’t fast enough.

Additionally, instead of only sorting through large retail orders (containing hundreds of the same item), warehouses often need to sort thousands of individual customer orders containing 1-3 unique items.

Sorting 2,000-3,000 individual customer orders a day is a lot more difficult than sorting 100 large retail orders, even if the total number of items ends up being similar, which could be the point where automation comes in…

2. Excessive travel time reduces warehouse efficiency

Manually picking orders also becomes increasingly inefficient as the number of orders increases.

Imagine this: Order #1 needs one white T-shirt, so you walk across the warehouse to collect it and sort it with the rest of the order back at your station. Next, you see that Order #2 also needs one white T-shirt, so you walk all the way across the warehouse again.

Instead picking items one-by-one per order, imagine picking over 100 in one trip and sorting them afterwards.

This is called batch picking and it’s one of the biggest operational changes companies make. Rather than picking one order at a time, multiple orders are picked together in a batch and are then sorted into individual customer orders.

3. Increased risk of human error

The more items and orders there are, the more room for mistakes (cause we’re only human!).

Workers may struggle with sorting similar-looking products into different destinations, where things can easily get mixed up. Additionally, making hundreds of repetitive decisions a day can quickly get tiring. Sometimes it’s natural for things to go wrong, especially when operations grow increasingly complex.

This is where automation can help by bringing consistency. For example, Hachette Book Group implemented automated sorting and reached a 99.96% order accuracy using EuroSort’s automated sorter, helping improve their customer satisfaction. Read the full case study for more details about their warehouse transformation.

4. Peak season bottlenecks in manual sorting

Many warehouses experience peak busy periods during Black Friday, the holiday season, and other promotional periods. Suddenly receiving a rush of orders within a small timeframe can quickly cause a bottleneck and disrupt workflows.

Manual sorting can’t always keep up with the pace of incoming orders. For example, before installing their automated Dual Split Tray Sorter, it would take Hachette Book Group around two weeks to process an order during the peak seasons, like Black Friday.

Automated sorting systems, on the other hand, can handle peak seasons without a sweat. Depending on the specifications, a EuroSort system can sort around 25,000 items per hour, and since every solution is fully customisable, throughput can be scaled up or down to meet your operational needs.

5. Warehouse labour shortages

Finally, one of the biggest challenges of manual sorting is finding enough workers. There is tough competition between warehouses to find affordable but quality labour.

If all warehouses in an area are searching for working staff, at some point there’ll be a limited number of workers available. As the competition to find these workers rises, so do the wages other warehouses are willing to pay them, making labour not only difficult to find but also too expensive for operations to run.

Automated sorting reduces the need for manual labour, lowering operation costs and allowing warehouses to offer more competitive wages to attract employees.

So, how does automation change the process?

Instead of workers hand-sorting items every step of the way, automated sorting systems standardise the repetitive parts of sortation. Items are automatically identified, transported, and sorted to the correct destination with minimal manual labour.

We’ve explored five key reasons why manual sorting eventually reaches its limits. Here’s a brief overview of how automation can address each of these challenges:

1. From too many orders, to everything under control
   Once a business expands to a size that manual sorting can no longer efficiently handle, automated sorting picks up the pace effortlessly
2. More efficiency while traveling throughout the warehouse
   Implementing an automated sorting system allows for batch picking, eliminating the need for workers to endlessly walk throughout a warehouse to pick orders individually
3. More automation, higher percentage of order accuracy
   Automated sorting brings more consistency and thus less room for mistakes, because let’s face it, human error is natural but inevitable!
4. Peak seasons are managed like any season
   Sudden fluxes in busyness have minor impacts on a warehouse’s productivity and no longer pose the threat of a bottleneck
5. Reduced labour shortages
   Automated sorting reduces the need for manual labour, lowering labour costs and allowing companies to offer more competitive wages to warehouse workers

Introducing automation into a warehouse helps manage processes that are too complex for manual labour. It creates a process that’s predictable, repeatable, and reliable to handle the growing volumes of orders.

Additionally, automation can solve common warehouse recruitment problems, such as training the right employees to learn the sorting process. This process can be incredibly time-consuming, whereas learning how to operate an automated sorting system can be done within an hour.

As discussed in our recent warehouse logistics podcast, decisions about automation shouldn’t be made based on chasing new technologies, but based on operational challenges.

A good example of this is Transfer Multisort Elektronik (TME), who before automation picked items one order at a time. After installing EuroSort’s Cross Tray Sorter, TME switched to batch picking to fulfil multiple orders simultaneously. As a result, they reached higher productivity rates, streamlined workflow, and built an operation that could handle their growing demands.

So, rather than changing what employees do, automated sortation changes how items move through the warehouse.

Struggling to remember all this information? We got you! Here’s a quick table to help you remember the key differences between manual and automated sorting:

Manual sorting isn’t outdated, warehouse operations are just evolving too quickly

Manual sorting remains the right solution for many businesses, however, sometimes their demands grow too quickly for their warehouses to operate accordingly.

When this happens, automation is a tool worth considering implementing. Transitioning to automated sortation helps warehouses process higher order volumes with increased speed, accuracy, and consistency as their demands continue to grow.

If your operation is reaching the point where manual sorting is becoming more of a bottleneck rather than a benefit, it may be time to explore the next step.

Think you’re ready to make the change? Get in touch with our team to discuss how an automated sorting system can support your operation.

FAQ

1. When does manual sorting stop being efficient?

Manual sorting works well for many businesses, but as order volumes, product range, and customer expectations increase, it can be difficult to maintain speed and accuracy. This is usually the point where businesses explore warehouse sorting automation.

2. Does automated sorting replace warehouse workers?

Not necessarily. Automated sorting is designed to handle repetitive tasks, allowing warehouse workers to focus on other tasks such as quality control, processing exceptions, and maintaining an organised warehouse.

3. How do I know if my warehouse is ready for automated sorting?

Every warehouse is different. The right solution for yours depends on your daily order volumes, product ranges, available floor space, and future growth plans. If you’re experiencing bottlenecks, low throughput, or other common struggles, EuroSort’s team can help find you the right automated sortation system.