Adopting automation for a circular economy is ‘the new black’


3d rendering robot working with tablet in factory

AS THE world faces urgent environmental crises, from resource depletion to growing waste generation, the need for sustainable practices within supply chains has never been greater.

Traditional, linear production models – characterised by extracting raw materials, producing goods, and discarding them after use – lead to substantial energy and material waste.

This not only depletes finite resources but also strains the environment’s capacity to manage the waste we produce.

In Malaysia alone, a staggering 39,078 tonnes of solid waste is discarded daily, equivalent to approximately 1.17kg per person, according to the Solid Waste Management and Public Cleansing Corporation (SWCorp), as reported in The Star on Jan 2, this year.

The warehouse, often overlooked as a significant contributor to environmental impact, is emerging as a key player in the transition to a more circular economy.

Increasingly, warehouses are turning to automation as a solution to optimise operations, reduce waste, and lower energy consumption.

Improved ergonomics reduces waste

Automation minimises waste in product handling and transport by improving accuracy and efficiency across the warehouse.

C:fakepathLoh Hao TorngC:fakepathLoh Hao Torng

Unlike manual handling, automated systems operate with minimal error margins, ensuring goods are moved, sorted and stored with care.

This precision reduces the likelihood of mishandling, which can result in damaged products, especially in sectors dealing with fragile or high-value items like electronics or pharmaceuticals.

Warehouse management systems (WMS), often considered the “brains” of the warehouse, offer real time data and analytics that enable better decision-making.

By optimising packaging materials and utilising smart inventory capabilities, WMS can help prevent overstocking and spoilage – particularly essential in sectors like food and pharmaceuticals.

Optimised spaces, less energy needed

Traditional warehouse operations often require significantly larger land space to accommodate inventory and manual handling processes, leading to a larger footprint, increased construction costs, and higher ongoing operational expenses.

For example, warehouses with manual storage systems and forklifts need wider aisles, which necessitates a greater amount of space, while an automated warehouse can operate with narrower aisles, requiring only 25% of the space of a traditional warehouse.

Larger traditional warehouses also consume significant energy to operate – powering lighting; heating, ventilation and air conditioning (HVAC) systems; material handling equipment; and security systems.

This is especially significant for traditional cold chain warehouses, where cooling and refrigeration demand high energy consumption.

Take, for instance, the Automated Storage and Retrieval Systems (ASRS), which offers a solution to both space and energy challenges.

By maximising vertical storage, ASRS can increase storage density and save up to 75% of floor space.

Designed to function autonomously and with energy-saving properties, ASRS can also function lights-out and cut consumption by up to 15%, contributing to further energy savings.

Furthermore, with proper maintenance and software updates, ASRS typically have a longer lifespan than a manual racking system.

Minimising the physical footprint of warehouses also reduces the need for industrial expansion into ecologically sensitive areas, as exemplified by the pressures faced by sites like Gunung Kanthan, Perak – where the risk of industrial encroachment into such pristine limestone ecosystems highlights the importance of sustainable land use in industrial planning.

Empowering the workforceWhile automation is a powerful tool for driving efficiency and a circular economy, it is essential to recognise the human element that underpins its success.

To maximise the benefits of automation, organisations should prioritise equipment maintenance and workforce development.

Proper maintenance ensures peak performance and extends equipment lifespan, while training and development programmes equip the workforce with skills needed to operate, maintain and optimise these systems.

This shift allows the workforce to transition from repetitive manual tasks – such as carrying, picking, and sorting – to higher-value, strategic roles, fostering innovation and efficiency within the organisation.

By providing employees with the necessary training, companies can empower them to embrace automation and leverage its potential, including increased safety, technical skills and data analysis skills.

This makes logistics providers like Swisslog key players in promoting sustainable practices throughout the supply chain.

By offering innovative automation solutions and providing expert training and support, these providers can help businesses reduce their environmental impact, improve operational efficiency, and contribute to a more circular economy.

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