Dusty shelves, misplaced inventory and manual labor are quickly giving way to more dynamic and productive warehousing environments.
In fact, the industry as a whole is in the middle of a technology and automation revolution that’s been a long time coming—and nudged even further along by the global pandemic, ensuing supply chain disruptions and a persistent labor shortage.
Combined, these factors drove more companies to replace age-old logistics and fulfillment processes with those driven by technology, automation, artificial intelligence (AI) and robotics, among other advancements. From autonomous mobile robots (AMRs) that move goods around the warehouse floor to robotic arms that can handle heavy lifting to artificial intelligence (AI)-enabled route optimization software, the supply chain world is literally awash in advanced solutions to age-old problems.
With so much AI-enhanced software, advanced automation systems, robotics and mobility being introduced—and now being put to the test and proven out as integrated solutions in many operations—warehouse and DC managers are digesting what all of these new solutions could mean for their operations.
The editorial team of Modern Materials Handling is here to help. For this year’s Virtual Summit, Modern designed sessions to help warehouse and DC operators take the next step to make sure their facilities evolve into well-oiled machines that can tackle both the “now” and manage what the future brings. Here are the topics being presented at the 2024 Virtual Summit and a peek at what is covered in each presentation.
Keynote
More choices, more chances to be wrong… How to fit automation to your operations
Presenter: Bryan Jensen, chairperson and executive vice president of St. Onge Co.
and chair of the MHI Board of Governors
It’s one thing to invest in different types of automation, but getting the different parts to work well together and support an operation’s collective goals takes some extra effort. In his keynote, Bryan Jensen, EVP at St. Onge Company, discusses some of the challenges companies face as they start their automation journeys and offers up some sage advice on how to make those trips a little easier and more effective.
Jensen kicks off the keynote by discussing why companies need automation and the role the e-commerce boom is playing in the evolution. “E-commerce has continued to rise. In fact, it has not backed off at all,” says Jensen. “Retail brick-and-mortar sales have gone up to a greater degree than e-commerce and has gone up from its highs in 2020, but both are still up.”
He also emphasizes that e-commerce presents a “more complex distribution environment” that’s driven a greater demand for labor. Jensen then walks attendees through the different types and levels of automation currently available on the market—all focused on helping companies streamline operations. He rounds out his keynote with some first steps that companies should take as they evaluate their automation needs.
“The key is really identifying the segments of your business that have different characteristics and solving for each piece of that automation puzzle,” Jensen recommends. “Once that’s done, then you can logically place those pieces together to allow for the most effective order assembly process possible, both from a quality and a quantitative perspective.”
Software
WMS and the future of AI in warehouse & DC management
Presenter: Howard Turner, director, supply chain execution systems, St. Onge Co.
Warehouse management systems (WMS) have long been workhorses of the productive warehouse, where the software coordinates all facets of inventory management, order fulfillment and DC operations. Companies use it to track an item from the moment it arrives until it’s shipped back out, ensuring optimal stock levels and preventing costly stockouts and overstocks.
In this session, Howard Turner, director, supply chain execution systems at St. Onge Co., discusses the role of WMS in the modern warehouse and how more AI and machine learning (ML) are being infused into these solutions. These advanced technologies basically give WMS more “superpowers” that basic solutions don’t possess—namely intelligent controls.
Data will also play an important role in this new evolution of WMS, which will need to be fed accurate data to ensure the best possible outputs. “Make sure that data accurately reflects what’s actually happening on the warehouse floor,” Turner advises. “This allows you to establish a strong foundation and realize the true benefits of these advancements.”
Finally, Turner tells companies to put some time and effort into the preparation phase, where attention to detail, a clear vision and a corporate-wide strategy all go a long way in helping organizations establish a clear business case for their WMS solution investments.
Automation
What’s your automation level? Low, medium or high?
Presenter: Norm Saenz, partner, managing director, St. Onge Co.
Improving capacity utilization, speeding up order cycle times and picking more lines per hour are all core priorities. For help, many of these organizations are turning to automation, robotics, AI and other advanced technologies. And as the labor shortage drags on, the number of companies taking this route continues to increase—all with an eye on balancing human workforces with the power of automation.
As a partner and managing director at St. Onge Co., Norm Saenz has his finger on the pulse of current and future automation trends. In this session, he discusses how companies are at different “levels of automation” right now and dives into the technologies, mechanization and automation that he’s seeing in the marketplace today.
This year, Saenz says it’s the companies facing labor recruiting and retention issues that are most interested in automation. “We’ve seen companies having to use a lot of temporary labor, which for some can comprise up to 80% of their workforces,” Saenz explains. “Automation can help relieve that pressure, particularly during higher-volume peak periods.”
Storage density and real estate costs are also driving demand for more automation. “You can get a lot more in a building with automation,” says Saenz. Before you can start seeing these types of results, however, companies need to clean up their item master data.
“If you don’t already have the item dimensions, weight, units per case, cases per pallet, and pallet dimensions, start collecting it now,” he recommends. “You’ll want to have all this data prepared so that you properly profile your business and apply the right growth projections and plan for the future.”
Robotics
Presenter: Dwight Klappich, vice president, fellow, Gartner
Two years ago, 40% of companies had no plans to use robots. That number has since been whittled down to 8% according to the third-annual Intralogistics Robotics Survey from Peerless Research Group (PRG), MHI and The Robotics Group.
To gauge how companies are using and plan to use robotics in their operations, the three organizations produced the survey through PRG. A lot has changed since the survey was first conducted in 2022, at which point many companies were just beginning to test the waters of intralogistics robotics.
Dwight Klappich, research VP at Gartner, discusses the survey in his presentation, noting that 23% of respondents were using robotics in 2022. Fast-forward to 2024 and 46% of companies have plans to use robots. This is a significant jump in a short period of time, and it proves the undeniable value that comes from having robots perform increasingly complex tasks in the DC or warehouse.
Klappich puts context around the survey findings and weaves in supporting data from Gartner’s recent survey that found strong investment plans (92%) and a movement away from “a single-robot platform doing a single task” to more holistic robotics/heterogenous fleets deployed and delivered as integrated solutions.
August 2024 / Modern Materials Handlingmmh.com
The need to fulfill orders cost efficiently, coupled with the rising cost of warehouse labor, has driven the market for smart, robotic picking solutions. The hope is that robotic arms and grippers—powered by vision and AI—can effectively manage the high variability associated with e-commerce fulfillment.
In this presentation, Irene Zhang, senior analyst at Interact Analysis, delves into trends in the picking robots market, highlights the key barriers to adoption and gives attendees tips for picking the right solution.
Zhang also singled out the three key growth drivers for robotic picking, which are growth of static manipulation roles (due to more warehouses); improved unit economics (due to declining robot costs, rising labor costs); and technology improvements (due to improving pick rates, declining error rates).
“Improved picking rates combined with lower error rates accelerates the realization of ROI,” Zhang explains, noting that the market is growing rapidly and is expected to grow even more by 2030, at which point Interact Analysis predicts the market will be valued at nearly $7 billion. “The U.S. is expected to account for the largest share of robotic picking revenue by 2030,” she adds, “driven primarily by higher labor costs.”
Mobility & AIDC
Mobility & AIDC: Benefits of accurate data at the front line
Speaker: David Krebs, executive vice president, enterprise mobility, VDC Research
Warehouse and DC managers are facing a lot of automation decisions right now, with mobility and automatic identification and data capture (AIDC) technologies continuing to rise above the rest in terms of demand and popularity.
Many argue mobility tools are absolute essential pieces of the modern supply chain puzzle. With nearly all (90%) of warehouse/DC facilities now using mobility technology in some form, mobility will become more valuable to fulfillment workflows and throughput efficiencies.
In this session, David Krebs, EVP, enterprise mobility, at VDC Research, explores the current advanced state of mobile technology solutions, including device trends, wearables, RFID/real-time location tracking, machine vision, voice solutions and other innovations. He says these automation technologies have “matured significantly” in terms of cost, accessibility and their ability to integrate with other solutions.
Krebs says VDC is keeping a close eye on the data collection tools that support warehouse operations, as well as the variety of warehouse communication and mobile computing tools that enable orchestration of labor and material workflows.
“These are certainly exciting times when it comes to data capture technology, mobile computer technology and sensor technology in warehouse and supply chain environments,” he adds.
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