Help: I need automation technology - now what?

How SMEs can get started without a group budget.

Automation? Digitization? That's expensive, time-consuming and only feasible for large corporations. That's how many small and medium-sized enterprises (SMEs) think when it comes to modern intralogistics. But today, solutions are also available that are tailored to the needs of SMEs and, for example, grow with them as required. Getting started is easier than expected and the potential is quickly tangible.

Around 80 percent of SMEs still work with manual processes. This means high personnel costs, more errors and little transparency. At the same time, the requirements for delivery times, order complexity and data availability are increasing. Customers expect error-free processes despite staff shortages. The cost curve also only goes in one direction. "Digitalization plus automation ensures competitiveness. It replaces routines and significantly increases efficiency and effectiveness," says Joachim Kieninger, Director Strategic Business Development, Element Logic Germany.

Flexible instead of deadlocked
"Many SMEs are hesitant. They are afraid of investing in a dead end or making a decision in the wrong technology," observes Kieninger. There are solutions that are tailored precisely to the needs of SMEs. Systems such as AutoStore can be introduced step by step. "This keeps the investment manageable. The first results are quickly noticeable - such as shorter picking times and fewer shipping errors," emphasizes Kieninger. Some people believe that too much automation leads to a loss of flexibility. What happens if the product range changes or the order situation fluctuates? Kieninger dispels these concerns: "Modern systems offer precisely this flexibility. They adapt instead of blocking."

Concrete strategies
There is no need for a complete reorganization. A process analysis shows where there are problems - for example, during order peaks or bottlenecks. SMEs are best advised to start with a simple, partially automated solution. This can be expanded later. Operations continue. It is important to plan with partners who understand the requirements and plan with budget, time and resources in mind. Monitoring success - such as ROI - is also part of this. A business case with KPIs creates transparency and strengthens the argumentation, both internally and with other stakeholders. This turns a supposedly big step into a calculable process with concrete added value and manageable effort.

WMS as the key
"Most SMEs still work with paper lists or use simple ERP functions for the warehouse. This leads to inefficient processes, time-consuming onboarding and a lack of overview. We have noticed that companies want more transparency and less dependence on individuals," explains Christoph Wulff, Head of Business Development at S&P | Element Logic. A WMS creates exactly that: clear workflows, a central database and the digital basis for automated processes. "Our customers are often surprised at how much the burden on employees is reduced and how predictable material flows become," adds Wulff.

‍Remove internalblockades
Internal hurdles are usually the problem with digital transformation. There is often a lack of support from management. Departments do not pull together. Investments fail due to internal resistance or uncertainty as to whether the effort is worth it. As a result, savings and sales potential remain untapped. Added to this are data protection issues and IT security. There is also a lack of time to deal with the issue in a structured way. Everyday life dominates. Wulff knows the stumbling blocks: "The will is there, but there is a lack of IT expertise and strategic vision. Digitization happens on the side - without clear goals or measurable benefits. The fear of an "IT project monster" is also an obstacle. However, modern software does not require months of effort. "The standard implementation of an AutoStore, including basic functions, can be completed within a week. It is preconfigured, modular and cloud-capable - ideal for a resource-saving start," says Wulff.

Change begins in the mind
Established structures, a lack of responsibilities, Excel lists, media disruptions and isolated solutions slow down the introduction of new tools. As a result, progress is stagnating. But it is precisely this initial situation that offers great opportunities. A well-configured WMS ensures structured processes, facilitates data exchange and makes forecasting possible. But technology alone is not enough. The real challenge lies in changing the way people work. "Employees are skeptical about change. They act on the basis of experience rather than systems. Digitalization must not be an end in itself, but must solve specific problems. The benefits must be tangible for everyone," Wulff sums it up.

Start gently
Element Logic recommends implementing digitization and automation in small steps. A clearly defined project makes the start easier. It is crucial to involve the most important key users right from the start. They act as multipliers and promote acceptance in the warehouse. Change management plays a central role. "A lot is technically possible - but if you don't get the employees on board, you will fail," emphasizes Wulff. Open communication, clear goals and practical training are crucial. This is how teams gain confidence in dealing with new systems.

Waiting is not an option
"Digital technologies are not the privilege of large corporations. SMEs with small budgets can also benefit - often even faster. Those who fail to act will lose out. Technically and in terms of personnel. After all, digital processes are often a decision criterion for skilled workers," Kieninger summarizes. The good news is that there are solutions specifically for SMEs. They can be scaled, financed and introduced at short notice. You don't need a ten-year master plan. A first, well-planned step is enough.

Quote from Stefan Spänhoff, Managing Director of the logistics and service center J. W. Zander GmbH & Co. KG West in Bochum. "The demands on our logistics were constantly growing and the ERP could no longer keep up. A specialized WMS was the logical consequence. Today, thanks to numerous key figures and a high level of transparency, we can control, plan and track much more precisely. This would be inconceivable without WMS. The collaboration was solution-oriented from day one. We had the feeling that they understood what makes us tick and provided needs-oriented advice. Looking back, the decision to use a WMS was an important milestone - today our entire business benefits from it."

To summarize:

Challenges:‍

• Fear of rigid systems.
• Insufficient experience with automation technology.
• Lack of internal project management.
• Investment fears and technological uncertainty.
• Lack of support within the company.
• Structural deficits.

Solution approaches:

• Start with small, scalable solutions.
• Partial automation instead of complete conversion.
• Use cloud solutions.
• A WMS creates structure and transparency.
• Involve change management and key users.
• Making success measurable with KPIs and business cases.

Special edition of f+h Focus SME on how small and medium-sized companies can get started.