In the latest episode of The New Warehouse Podcast, Jim Shaw, President and Co-Founder of Zion Solutions Group, joins the show. With over 25 years of experience in the warehousing and logistics industry, Jim discusses his journey from his early days at UPS to eventually co-founding Zion Solutions Group, a company specializing in optimizing supply chain logistics. Rooted in deep industry experience and guided by his values of faith, family, and meaningful work, Jim offers a unique perspective on today’s warehousing challenges. Tune in to the episode for an in-depth look at Jim’s background and insights that could reshape how you think about supply chain optimization.

Tackling Warehouse Efficiency and the Labor Equation

Jim candidly addresses the multi-faceted challenges warehouses are currently facing. “How do I store more in less space? How do I use fewer people to get more out the door while maintaining my quality? And the biggest problem we’re seeing is labor,” he says. These concerns span various sectors, from retail to healthcare, and Jim suggests that the solution lies in “intelligent change.” He says it’s about “meeting the customer where they’re at, what problems they need solving,” whether that involves simple gravity conveyors or advanced robotics.

Justifying Warehouse Automation

Jim discusses the dilemma many warehouses face when considering high-end automation and robotics. “they may need some sortation, but their rates don’t qualify for the higher level sortation today,” he explains. Jim advocates for a more deliberate approach, cautioning against rushing into flashy, expensive solutions that may not serve immediate needs. “We’re looking for long-term meaningful partnerships… It’s not turning away work. It’s just more of an education process,” he notes, emphasizing the importance of starting with traditional material handling that can grow into more advanced systems. Jim adds, “Ultimately, you have to put your head on your pillow at night and feel good about how you solve a problem for a customer and did you do the right thing.”

Navigating the Investment Horizon in Warehouse Automation

Jim delves into the complexities of deciding how far ahead to plan when considering investments in automation and robotics. “I don’t know that there’s a right answer because every company has a different perspective,” he notes. According to Jim, businesses with their own distribution and fulfillment can potentially look at an extended investment period based on a clear understanding of their product’s future. For companies that don’t have a long-term commitment, like 3PLs, “the more flexible the automation, the more flexible the technology that you’re putting in,” advises Jim.

Jim underscores the importance of partnering with trusted integrators or OEMs to navigate these decisions. “Find a partner that you can trust. Put your trust in that has your best interest in mind,” he says. In an environment where technology is rapidly evolving, Jim suggests a cautious approach, especially for more risk-averse companies. “You can be a fast follower… we spend it like it would be our money. If I was putting my money in my check and writing it, we take that pretty seriously because you can cripple somebody’s supply chain and ruin their business if you make wrong decisions.”

Key Takeaways on Warehouse Automation

• Jim emphasizes the importance of “intelligent change” to address current challenges in warehouse efficiency, including labor and space constraints.
• A deliberate approach to automation is crucial; rushing into high-end, expensive solutions may not always serve a warehouse’s immediate needs.
• Flexibility is critical for long-term investments in automation, especially for companies without a long-term commitment to distribution and fulfillment, like 3PLs.

EP 429: Following the Path to Warehouse Automation with Zion Solutions Group