James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
When food-service distributor Gordon Food Service (GFS) began planning for the construction of its fourth distribution center a few years back, it decided early on that the DC would be automated. GFS's other three distribution centers take considerable advantage of material handling automation. When it came to the new facility in Shepherdsville, Ky., the distributor decided to follow the same course to ensure an efficient and cost-effective operation. In GFS's eyes, automation would be critical to increasing throughput, optimizing cube utilization, and keeping close track of pallets.
The question was how to go about it. The 300,000-square-foot center, which was being built to serve customers in Kentucky and Tennessee, as well as parts of Indiana, Illinois, Arkansas, and Missouri, would be a high-throughput operation, handling up to 5,000 incoming pallets per day. Furthermore, its handling requirements would be relatively complex. As is typical of grocery distribution centers, the building would have separate sections to hold dry, chilled, and frozen products—approximately 10,000 stock-keeping units (SKUs) in all. That meant that the system would have to be set up to accommodate the flow of thousands of pallets each day into not one, but three separate storage areas (ambient, refrigerated, and freezer storage).
There were other challenges as well. For example, the automation plan for the Kentucky facility would have to provide a way to handle waves of inbound pallets quickly within the small footprint allocated to receiving. It also had to be capable of managing storage positions within the automated storage and retrieval system (AS/RS) to ensure that stock positions were not depleted. Furthermore, the system had to make provisions for the disposition of the empty pallets created as workers selected products to fill orders. On top of that, the company wanted to make sure that any automated system would be cost-effective to maintain as well as easily adaptable for future needs.
A matter of coordination
The decision to break ground on a fourth distribution center in 2004 was prompted by the company's rapid growth. Headquartered in Grand Rapids, Mich., GFS is the largest family-owned and -operated broad-line food-service distributor in North America. GFS delivers about 16,000 national brands and private-label products to more than 45,000 customers, which include restaurants, hotels, health care institutions, colleges and universities, and businesses both in the United States and Canada. Besides its wholesale distribution business, it operates more than 120 GFS Marketplace stores in Florida, Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, and Tennessee.
As it set about the task of designing the new facility, GFS came up with a plan for a unique AS/RS system with its own "intelligence" to expedite the put-away of incoming products. To execute that plan, the food-service distributor turned to German company Viastore Systems GmbH. GFS contracted with Viastore to provide not only the automated storage and retrieval (AS/RS) technology, but also the material flow control (MFC) software needed to run the system.
The software Viastore developed oversees the inbound receiving operation and interfaces with the host warehouse management system (WMS). Basically, the MFC optimizes pallet movement, integrates all sub-systems, and provides command history, system status, and system diagnostics—all in real time. It also contains a special mathematical algorithm designed to minimize AS/RS moves. The complex algorithm in the MFC also requires the AS/RS machines to scan all storage positions in the DC on an hourly basis to ensure that pallet locations at the ends of the aisles are not depleted.
Before installing any automated equipment in the Kentucky center, Viastore took it for a virtual test drive by conducting a simulation. Using actual order data from one of the company's other distribution centers, it ran tests to model the system's capabilities and prove that, even in worst-case scenarios, the system could still meet throughput requirements. Simulation was also used to improve and refine the system.
Just take the shuttle
As for the tricky problem of handling waves of inbound pallets rapidly within a small space, Viastore came up with a shuttle car system that allowed GFS to quickly and efficiently transfer pallets from inbound conveyor spurs to the correct storage aisle. Forklift truck drivers off-load pallets from inbound trucks and then take them to an inbound transfer station, which feeds the conveyor spurs.
As an added feature, the shuttle cars are equipped with sophisticated controls to move loads gently, without sudden acceleration or deceleration. By eliminating the risk of a bumpy ride, the shuttle cars have effectively reduced the amount of pallet shrink-wrapping required for load stabilization before put-away. "Compared to our other facilities that utilize chain conveyors with 90-degree right transfers, the shuttle car solution provides a much more smooth and stable transition from the input conveyors to the crane pickup stations," says Kirk Mortenson, DC development manager for GFS. "This fact has enabled us to reduce the number of stretch wrappers from what we originally had planned."
The shuttle cars whisk full pallet loads to the AS/RS system, which consists of nine storage/retrieval machines equipped with double-deep pallet shuttles. The system measures approximately 98 feet high and more than 450 feet long. In the freezer and dry grocery sections of the warehouse, the system ranges between 16 and 17 levels high. In the cooler area, however, it only reaches 12 levels high. The AS/RS contains more than 60,000 unique storage locations.
GFS's warehouse management system determines whether the inbound loads are sent to reserve storage or to pick face locations. The control system on the AS/RS verifies the pallet's size, weight, and product ID and then sends it to a dedicated pick or storage location.
Rapid replenishment
To expedite the picking process, the AS/RS system also features integrated pick levels where workers have access to the pick faces on the two levels closest to the ground. Workers refer to pick labels as they walk the aisles to select cases of products needed to fill orders. Once a worker picks an item, he or she applies a label to the carton and then deposits the box on the outbound conveyor system. FKI Logistex furnished the outbound conveyor system, which has the capacity to ship 185,000 cases per day. The conveyor transports the product cases to a staging area, where the items are then floor-loaded into a truck for delivery via GFS's fleet of refrigerated vehicles.
About 95 percent of GFS's outbound shipments consist of full cases. Selectors pick those cases from pallets placed into the pick location by the AS/RS machines. The remaining 5 percent of the company's outbound shipments are full pallets. When full pallets are needed to fill an order, the AS/RS itself will pull out the skids and route them to a designated shipping spur. The WMS then directs a forklift operator to go to the shipping spur and deliver the pallet to a particular loading door.
The system enhances efficiency by automatically providing for the pick bays to be replenished on a regular basis. To make that happen, Viastore put sensors on its AS/RS cranes to create a "pallet sensing" mechanism. A typical AS/RS with integrated order fulfillment uses photo-eye sensors on every pick face location to signal when product is needed from reserve storage or the inbound area. Viastore's approach, by contrast, was to create a dynamic pallet-sensing system that scans every pick location as the storage/retrieval machines travel by these locations at full speed.
Dynamic pallet sensing has allowed GFS to greatly reduce the amount of field wiring and piping required in its Kentucky warehouse. On top of that, the unique design eliminated the need for more than 10,000 sensors on pick faces, providing more cost-effective automation. "We are very pleased with the 'sensing on the fly,'" says Mortenson. "This has been much easier to troubleshoot and maintain compared to individual wired locations."
Nowadays, when a crane sensor detects an empty bay, it automatically triggers stock replenishment. Oftentimes pallets received into the system are placed right into the pick bay rather than storage. "Putting items directly into pick reduces moves on the crane by eliminating a put-away move and then later, a replenishment move," says Mortenson. "Keeping the pick bays full also [eliminates] the need for picking the product later and enables us to complete the work in a more timely [fashion]."
Trash logic
To accommodate the need to remove empty pallets from the gravity pick faces, the system was designed so that workers can stack empties in the empty pallet returns located periodically throughout the aisles. The storage/retrieval machines take the stacks of empty pallets back to the shuttle cars in the inbound area. To direct that task, Viastore wrote special code into the MFC logic.
In addition, trash chutes have been built into the AS/RS to collect and remove bulky waste materials like cardboard and discarded shrink-wrap. Trash tossed into the chutes is collected in bins at the floor of the high rise. For leaking or damaged product that can't be thrown down the chute, three-foot-high containers are staged on every level of the AS/RS. When these containers need to be emptied, workers can use the control system to request their removal. The containers are transported back out on the pallet conveyor to a specified spur, where the custodians can empty the refuse into a compactor or trash bin.
A unique feature of the automated system installed at the Shepherdsville DC is that its storage/retrieval machines were designed with double-deep telescopic shuttle forks with synchronized chain conveyors on the lift carriages. This innovation has cut cycle times at pickup and drop-off stations in half by eliminating the need to wait for telescopic arms to pick up or drop off full pallets. In addition, the chain-driven mechanism has resulted in a substantial space savings. In fact, the space freed up allowed GFS to add an additional storage level in the building.
As for the technical details, the Viastore solution features Windows server-based technology, the SQL Server database management system, and Wonderware software. A graphical software package, Wonderware enables visualization and system monitoring capabilities. It provides a user interface for workers to monitor AS/R movements and solve problems as they arise.
Exceptional performance
How has the automated system worked out? GFS reports that it's proved to be both reliable and accurate. To begin with, the system runs with minimal interruptions. Since the Kentucky facility opened in early 2006, the automated system has experienced 99.9 percent uptime. In addition, accuracy in replenishment and picking has been close to 100 percent.
"Automation has enabled us to improve our overall performance in the facility and to our customers," says Mortenson. "We are very pleased with the performance of the system both in terms of throughput and uptime," he adds. "The Viastore machines are very fast, and we are able to transfer loads efficiently and move on to the next move."
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!
Toyota Material Handling and its nationwide network of dealers showcased their commitment to improving their local communities during the company’s annual “Lift the Community Day.” Since 2021, Toyota associates have participated in an annual day-long philanthropic event held near Toyota’s Columbus, Indiana, headquarters. This year, the initiative expanded to include participation from Toyota’s dealers, increasing the impact on communities throughout the U.S. A total of 324 Toyota associates completed 2,300 hours of community service during this year’s event.
The PMMI Foundation, the charitable arm of PMMI, The Association for Packaging and Processing Technologies, awarded nearly $200,000 in scholarships to students pursuing careers in the packaging and processing industry. Each year, the PMMI Foundation provides academic scholarships to students studying packaging, food processing, and engineering to underscore its commitment to the future of the packaging and processing industry.
Truck leasing and fleet management services provider Fleet Advantage hosted its “Kids Around the Corner Foundation” back-to-school backpack drive in July. During the event, company associates assembled 200 backpacks filled with essential school supplies for high school-age students. The backpacks were then delivered to Henderson Behavioral Health’s Youth & Family Services location in Tamarac, Florida.
For the past seven years, third-party logistics service specialist ODW Logistics has provided logistics support for the Pelotonia Ride Weekend, a campaign to raise funds for cancer research at The Ohio State University’s Comprehensive Cancer Center–Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. As in the past, ODW provided inventory management services and transportation for the riders’ bicycles at this year’s event. In all, some 7,000 riders and 3,000 volunteers participated in the ride weekend.