In a recent episode of The Automation Insider, host Joe McGrath sat down with Ryan Chesterfield, founder of Auto-FC, to discuss an often-overlooked but crucial component of warehouse automation: data readiness. Whether you’re integrating robotics, optimizing workflows, or implementing new software, having clean, structured, and accessible data is the foundation for success.
What is Data Readiness?
Before a warehouse can complete the concept and design phase, or successfully implement automation, it must ensure that its data is structured, accurate, and accessible—this is data readiness. It involves having clean, well-organized information about inventory, orders, warehouse layouts, and system integrations to support automation. Without this foundation, even the most advanced robotics or software solutions can fail due to missing, outdated, or inconsistent data.
Why Data Readiness Matters
Chesterfield highlighted a key reality: over 80% of warehouses still operate with manual processes. Data is often incomplete, outdated, or scattered across multiple systems. Without well-structured data, automation efforts can quickly turn into costly failures. For instance, a warehouse that doesn’t understand its inventory dimensions could send 30 totes instead of three—wreaking havoc on operations.
A well-known case study from Harvard Business Review illustrates this risk: When Target expanded into Canada, errors in unit conversions and item dimensions caused major disruptions, ultimately contributing to the retailer’s failure in that market.
Common Data Issues in Warehouses
- Poor Data Hygiene – Item dimensions, weights, and inventory levels may be incorrect, leading to errors in automated systems.
- Disconnected Systems – ERP, WMS, and WES solutions often overlap, creating confusion about where data should be housed and managed.
- Slow Data Processing and Latency – Automation systems work in milliseconds, but if IT infrastructure delays data retrieval, whether due to server bottlenecks, outdated architecture, or poor system integration, it can create major inefficiencies. Latency issues can slow down operations, causing backups in automated workflows like sortation, labeling, and replenishment.
- Lack of Real-Time Visibility – Without accurate, real-time data, operators struggle to make informed decisions, leading to inefficiencies and errors.
How to Ensure Data Readiness
- Get IT Involved Early – Many automation delays stem from last-minute IT involvement. IT teams must be part of the conversation from day one to ensure data flows efficiently.
- Invest in Data Validation—Tools like Cubiscan technology and inventory drones can help ensure data accuracy.
- Understand System Overlap – ERP, WMS, and WES functionalities are increasingly converging. Choosing the right system for the job can prevent inefficiencies.
- Plan for Flexibility – Automation can reduce flexibility, so businesses must map out edge cases and ensure their systems can adapt to peak demand and unexpected scenarios.
- Bring in an Expert– Partnering with a consultant like Auto-FC and Hy-Tek can help businesses assess their data readiness and develop a roadmap for automation. These experts provide deep industry knowledge, ensuring that data is structured correctly and that automation solutions align with operational goals.
Final Takeaways
Warehouse automation isn’t just about investing in robots or software, you must also ensure your data is structured, accurate, and accessible to optimize your operations. By focusing on data readiness first, businesses can avoid costly mistakes, streamline automation implementation, and maximize efficiency.
Joe McGrath emphasized that automation alone won’t fix operational inefficiencies, it all starts with having the right data and systems in place. “Automation is only as good as the data feeding it. If you’re still relying on paper-based processes or outdated system integrations, you may not be ready, or not ready for a high level of automation. The goal here is to automate and get data set first,” he noted. Companies should digitize processes first, optimize data management, and then explore automation solutions that align with their business needs.
For more insights on automation and warehouse optimization, check out The Automation Insider wherever you get your podcasts.
