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."
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.