Think there's nothing new in lift truck batteries and associated equipment? Not so. Here are four trends that could have a big impact on how you manage those assets.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Let's face it: Lift truck batteries and associated equipment—such as battery changing, monitoring, and charging systems—aren't the sexiest things in the warehouse. They're not as glamorous as robots or as attention-grabbing as high-speed conveyor systems. As a result, they're often taken for granted.
But these workhorses of the warehouse and DC are especially worthy of attention right now. Several factors—including technology, the economy, the environment, and regulatory controls—are having a notable impact on what buyers of batteries and associated equipment are purchasing and how they manage those assets.
What can you expect down the road? Here are four trends to watch.
1. Companies will adopt more efficient charging systems. Although high-frequency chargers have been available in Europe for years, they're now becoming a hot topic in North America. Most chargers for industrial batteries used here are ferroresonant or silicon-controlled rectifier (SCR) types, but these typically have only a 60- to 80-percent efficiency rate for converting AC current into the DC current needed to charge a battery, explains Steve Spaar, marketing director-Americas for the battery maker EnerSys. They also require large transformers that include costly commodities like steel and copper.
High-frequency charging technology, which uses a different type of switching componentry, doesn't require large transformers. These chargers have an efficiency rating of at least 90 to 92 percent and many are even higher, Spaar says. Fleets that use this technology typically see slightly lower electric bills. Electric utilities like these high "power factor" chargers, and many are willing to give a rebate to the end user for purchasing them, Spaar says. Buyers also can get LEED credit for installing these efficient charging systems.
There's no question that high-frequency chargers are becoming more prevalent, says Dan Dwyer, vice president and general manager of Sackett Systems, a manufacturer of battery handling equipment. "About 80 percent of the systems we've installed this year have some sort of high-frequency chargers involved," he says. For those installations, his company has had to modify the racking configuration in its multilevel battery changing systems because most high-frequency chargers have a smaller footprint and are mounted differently than traditional equipment, he says.
Concerns about electricity costs are encouraging lift truck fleet managers to reconsider not just how but when they charge their batteries, says Arun Patel, president of Access Control Group, a provider of asset management solutions for lift truck fleets. Charging during peak hours when electricity rates are highest, especially during the summer, can raise costs, he points out. By collecting and analyzing battery usage data, managers may find that they don't need to charge every battery at the same time or that some batteries are getting little enough use that they could be charged at night instead, he notes.
2. Regulatory restrictions will increase. Battery charging systems have come under scrutiny in California, where the California Energy Commission has proposed a regulation that would ban the sale of certain types of chargers in the state. The rule would apply to both consumer and industrial chargers.
The commission believes that charging devices that more efficiently convert AC electricity from the power grid to DC electricity stored in the battery will greatly reduce the billions of kilowatt hours of wasted energy generated by battery chargers in California each year. According to the commission's draft proposal, the regulation would require all chargers to shut off the flow of electricity after the battery has been fully charged. It would also set standards for the charge return factor (the amount of energy applied to a battery compared to the amount extracted from it) as well as for the efficiency in converting high-voltage AC to lower-voltage DC, power losses occurring in circuitry during charging, how well a charger synchronizes with the electric utility's 60 Hz cycle, and the amount of power the device draws to keep a battery at full charge. Finally, it would require that the charger draw no power when no battery is attached and the charger is in standby mode.
The proposed standards could make it illegal to sell SCR and ferroresonant chargers, according to Spaar. The commission is expected to issue its proposal this summer; if adopted, the standards could take effect as early as July 2013 for industrial chargers. It's believed that California is the only state planning to regulate chargers, but if the measure should prove successful, then other states might adopt similar rules.
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Looking for a supplier of batteries, charging systems, handling equipment, or monitoring systems? Here are just some of the many companies that offer these products.
3. Battery rooms will get "lean." Lean systems are becoming ubiquitous in manufacturing, and lean processes have been making headway in logistics and warehousing. So why not in the battery room? Lean is all about the systematic elimination of waste. Of the eight wastes that lean processes address, six (transportation, inventory, motion, people, waiting, and defects) exist in battery rooms, says Hal Vanasse, vice president of sales and marketing for Philadelphia Scientific, a provider of battery management systems. "People are happy to throw money at battery rooms, but they do not look systemically at what's going on and how to reduce waste," he says.
Almost any process related to changing and charging batteries can be wasteful and inefficient, Vanasse points out. For example, if you're checking the water levels of batteries that don't need water, then you've wasted time, money, motion, and people. If operators are queuing for battery changes because of poor charging practices or slow watering, then you're wasting time and people. And having more batteries than are needed for the required work produces costly excess inventory. All this waste can add up to tens of thousands of dollars annually, even for a small fleet, he says.
Not surprisingly, Vanasse touts electronic battery management systems as a tool for ensuring that only necessary tasks are done, and in the most efficient way. But he's hoping that the concept of lean itself will catch on with every company that uses industrial batteries, whether they adopt battery management systems or not. "The interesting thing about the lean framework is that it has a feedback mechanism that requires you to measure what you are doing against a plan, then make decisions that will lead to improvement," he explains. "It's systematizing not what we do, but what we should do."
4. Fleet managers will look to get more productivity out of existing assets. There is tremendous pressure on fleet and battery room managers to improve their return on assets, says John Kim, general manager of Aerovironment's Power Systems Business Unit, which supplies battery charging systems and accessories. "Management wants more out of that same piece of machinery and the people who use it," he observes.
Vendors are responding to that pressure by developing new technologies specifically aimed at achieving more with less. Kim's company, for instance, currently has a product under development that will allow users of fast chargers to charge two trucks from a single port. Port Splitter, as the device is called, does "sequence charging," constantly checking the state of charge for two batteries and automatically charging one or the other as needed.
Other vendors have focused on devising ways to give customers better management information. One of Access Control Group's products, for instance, lets forklift fleet managers integrate data from disparate sources like asset management and battery management systems for analytical purposes. "That way, they can combine them in a single view of how the whole mobile asset is working," Patel says. "You need a good picture in one screen that includes information that comes from different sources."
The pressure to improve asset utilization is also behind the rapidly growing interest in electronic battery management systems, says Dwyer of Sackett Systems. "We're seeing an increase in requests for battery management systems software because it helps customers with both operational decisions and capital decisions—for instance, which batteries they need to replace and how much they need to allocate from a budgetary perspective."
Indeed, says Kim, battery management systems that used to be a luxury are now seen as a necessity. Those systems' ability to prolong battery life, which is what drives a battery's total life-cycle cost, makes them worthwhile investments, he says.
Technology is important, of course, but battery owners also are seeking personal advice on how to get more benefit from existing assets, according to Spaar. "Customers now are looking to us not just to sell batteries and charging systems to them; they want us to be more involved in that part of their business," he says. "They want us to be the experts in what we are selling to them and advise them on how to best utilize them."
Robotic technology has been sweeping through warehouses nationwide as companies seek to automate repetitive tasks in a bid to speed operations and free up human labor for other activities. Many of those implementations have been focused on picking tasks, a trend driven largely by the need to fill accelerating e-commerce orders. But as the robotic-picking market matures and e-commerce growth levels off, the robotic revolution is shifting behind the picking lines, with many companies investing in pallet-handling robots as a way to keep efficiency gains coming.
“Earlier in this decade and the previous decade, we [saw] a lot of [material handling] transformation around e-commerce and the handling of goods to order,” explains Josh Kivenko, chief marketing officer and senior vice president at Vecna Robotics, which provides autonomous mobile robots (AMRs) for pallet handling and logistics operations. “Now we’re talking about pallets—moving material in bulk behind that line.”
Kivenko explains that whether items are being packaged and shipped directly to a customer’s home address or moved as finished goods to a shipping bay for store delivery, those items are first moved in bulk in some way, often by human hands and with human-operated equipment. He describes warehouses as chaotic environments in which humans move pallets and cartons in multiple ways—up and down, side to side, from receiving to storage, from storage to shipping, or via cross-docking. Automation can help bring order to that chaos.
“What we’re trying to do is relieve some of the pressure [on the] humans [doing] this work,” Kivenko says of companies that develop pallet-handling robotic technologies. “At the end of the day, we’re trying to automate some of those flows, relieve labor pressure, save costs, and keep the goods flowing.”
But automated pallet handling isn’t right for every situation, so it’s important to understand the warehouse conditions required and the protocols and best practices needed to make it a win. Here are some guidelines for applying pallet-handling robots and gaining the most from your investment.
FIRST, UNDERSTAND THE TECHNOLOGY
Pallet-handling robots fall into four general categories, explains Rich O’Connor, vice president of storage and automation for Raymond West Group, a business unit of lift truck manufacturer The Raymond Corp. They include:
Palletizing/depalletizing robots, which are used to load or unload items onto and off of pallets, usually with the use of a robotic arm for picking and placing. Today, these systems are being increasingly integrated with automated storage and retrieval systems (AS/RS) to further streamline pallet handling in the warehouse, O’Connor explains.
Autonomous guided vehicles (AGVs) and autonomous mobile robots (AMRs), which are used to transport pallets within the warehouse. Often outfitted with lift decks or conveyors, or designed to tug or tow items, these robots move pallets from point A to B within a facility. AGVs, which often follow a marked guide-path or wire in the floor, have been around for many years, but the advent of high-performance guidance and vision systems is allowing them more flexibility today, O’Connor says. AMRs are self-guided vehicles that use software and sensors to navigate their way through the warehouse.
Forklift AGVs and AMRs, which can move products both horizontally, from place to place, and vertically, into and out of storage racks. They come in various styles—including stackers, counterbalanced trucks, reach trucks, and even very narrow aisle (VNA) vehicles for use in densely packed warehouses. These vehicles are more complex than those used only for horizontal transport, O’Connor explains. They must be “highly integrated” into the facility’s warehouse management system (WMS) or warehouse execution system (WES) so that they know precisely where to retrieve and deliver pallets within the facility.
Robotic pallet shuttles, which move pallets into, out of, and within dense storage racking. The Raymond Corp. describes such a system as “a standalone, automated deep-lane pallet storage system that utilizes self-powered shuttle carriages to move pallets toward the back or front in a racking channel. Shuttles are motor driven and travel along rails within a storage lane.”
O’Connor and others say that no matter which of these technologies you’re investing in, it’s important to remember that they are all part of a larger system designed to optimize operations throughout the warehouse.
“The expanding role of all these different styles working together is what’s amazing today,” O’Connor says.
SECOND, ENSURE THE TECHNOLOGY IS A FIT
Kivenko, of Vecna, also emphasizes the importance of pallet-handling robots working in concert, particularly AMRs and AGVs.
“The magic isn’t just that the robots are autonomous and driving by themselves. The magic is multiple robots—when you have a [whole integrated] system [in place],” he says. “[It’s] how the fleet operates autonomously and optimizes itself for continuous improvement. That’s where the exponential gains are. [It’s] not just about automating what a worker does; it’s about automating a system.”
But you can’t install these systems in just any warehouse and expect magic. Kivenko and others point to certain conditions that enable the best robotic pallet-handling outcomes, especially when it comes to transportation-based and forklift-type AMRs and AGVs.
“The robots that I sell are large-load machines with very expensive technology,” Kivenko explains. “They move material, generally, in larger facilities. And in order for them to produce a return [on investment]—because that’s the name of the game here—they have to be higher-velocity facilities.”
He says pallet-handling robots work best in large facilities running multiple shifts, usually more than five days a week. Wider aisles allow the equipment to move more freely through the facility and at higher speeds, to optimize efficiency and productivity. Strong Wi-Fi networks and clean, dry environments also help keep equipment running at top performance.
O’Connor agrees that pallet-handling robots are best suited to facilities with multishift operations, where they can ease labor constraints and boost productivity. And he says many customers are willing to extend the typical two- to three-year ROI period to five years in order to achieve those gains. But there is even more to it than that. O’Connor’s colleague John Rosenberger says customers must first step back and analyze their processes to ensure that, even if they have the right facility for pallet-handling AMRs or AGVs, they are moving material in the most efficient way to begin with.
“Many times, we find that the processes in place [are inefficient],” says Rosenberger, who is director of iWarehouse Gateway and global telematics for The Raymond Corp. He emphasizes the importance of analyzing existing data—from an equipment telematics system or similar—to determine the best path toward automation.
“Do you have congestion zones now?” he asks. “They’ll still exist if you automate [those processes exactly].”
THIRD, MAKE SIMPLICITY A PRIORITY
Another basic rule of thumb when implementing pallet-handling robotics: Keep it simple.
Andy Lockhart, director of strategic engagement for global warehouse and logistics process automation company Vanderlande, says that when designing a pallet-handling robotics system, “you want to minimize the processes you [automate]. When you can create [an automated system] that focuses on one task—for example, AMRs delivering pallets from a high-bay [storage rack] directly to the palletizing cell—you can do that efficiently and effectively. When you ask the AMR to do this and this and this … you are adding risk of failure.”
Lockhart’s colleague Jake Heldenberg advises customers to first test their target processes via pilot programs within the warehouse or DC. Heldenberg is Vanderlande’s head of solution design, warehousing, North America.
“If AGVs or AMRs for pallet handling are interesting [to a customer], the best thing to do is pilot one or two in an existing DC,” he says, explaining that the process can help companies troubleshoot, understand integration timelines, and gauge ROI. But pilot programs can add expense to a project, making it unaffordable for some.
“If that’s the case, then the best advice is work with a vendor who has experience integrating [the technology],” Heldenberg says. “Use their experience to benefit your business. You won’t have the same hiccups and challenges you would with a less-experienced vendor.”
Jeremy Van Puffelen grew up in a family-owned contract warehousing business and is now president of that firm, Prism Logistics. As a third-party logistics service provider (3PL), Prism operates a network of more than 2 million square feet of warehouse space in Northern California, serving clients in the consumer packaged goods (CPG), food and beverage, retail, and manufacturing sectors.
During his 21 years working at the family firm, Van Puffelen has taken on many of the jobs that are part of running a warehousing business, including custodial functions, operations, facilities management, business development, customer service, executive leadership, and team building. Since 2021, he has also served on the board of directors of the International Warehouse Logistics Association (IWLA), a trade organization for contract warehousing and logistics service providers.
Q: How would you describe the current state of the contract warehouse industry?
A: I think the current state of the industry is strong. For those that have been focused on building good client relationships over the years, I think it’s a really exciting time. Coming out of all the challenges of the past few years, I think there’s a lot of opportunity for growth and deeper partnerships. It’s fun to see the automation and AI (artificial intelligence) integration starting to evolve [in a way that’s] similar to what we saw with WMS (warehouse management systems) in the early 2000s.
Q: You are now president of your family firm. Is it an advantage having grown up in the business as opposed to working elsewhere?
A: I definitely believe it was an advantage growing up in the business. Whether it’s working with family or someone else in the industry, there’s always an advantage when you have mentors[to guide] you. I’ve been blessed to have several mentors, some in the industry, others just in life, and I’m thankful that they were willing to mentor me and that I was willing to listen to them.
Q: What are the biggest challenges currently facing 3PLs, and how are you addressing them?
A: Labor and legislation are both tough right now. The two seem to have a lot to do with each other, and it can make it tough to find and retain people. So I think we’ll see more and more automation of processes industrywide.
Q: Third-party service providers often must handle a wide variety of products for a lot of different clients. Does this variety make it difficult to invest in automation and other new technologies?
A: It can make things more difficult when looking at certain automation, but it’s in the “difficult” that a lot of opportunities lie. It would be tough to find a single solution that fits every client’s needs, but there are always opportunities to improve in certain areas. It just takes a bit of vision and commitment, and a willingness to invest in your own long-term success.
Q: As a 3PL, what do you look for when selecting the clients you work with?
A: Quality relationships that will last a long time. When both parties are happy and working together in the same direction, everyone wins.
Q: You’ve been a board member of the International Warehouse Logistics Association since 2021. Why is your involvement with this organization important to you?
A: I think it’s important to understand what’s happening in the industry. IWLA is a great resource for staying up to date and getting a solid education when it comes to the latest logistics trends. I also think it’s important to give back and pass along what we’ve learned to those just getting started in the business. As important as it is to have a mentor, it’s just as important to mentor and help others.
“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”
The Census Bureau said overall retail sales in September were up 0.4% seasonally adjusted month over month and up 1.7% unadjusted year over year. That compared with increases of 0.1% month over month and 2.2% year over year in August.
Likewise, September’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.7% seasonally adjusted month over month and up 2.4% unadjusted year over year. NRF is now forecasting that 2024 holiday sales will increase between 2.5% and 3.5% over the same time last year.
Despite those upward trends, consumer resilience isn’t a free pass for retailers to underinvest in their stores by overlooking labor, customer experience tech, or digital transformation, several analysts warned.
"The 2024 holiday season offers more ‘normalcy’ for retailers with inflation cooling. Still, there is no doubt that consumers continue to seek value. Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals,” Matt Pavich, senior director of strategy & innovation at pricing optimization solutions provider Revionics, said in an email.
Nikki Baird, VP of strategy & product at retail technology company Aptos, likewise said that retailers need to keep their focus on improving their value proposition and customer experience. “Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars,” she said.
Editor's note:This article was revised on October 18 to correct the attribution for a quote to Matt Pavich instead of Nikki Baird.
A real-time business is one that uses trusted, real-time data to enable people and systems to make real-time decisions, Peter Weill, the chairman of MIT’s Center for Information Systems Research (CISR), said at the “IFS Unleashed” show in Orlando.
By adopting that strategy, they gain three major capabilities, he said in a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI.” They are:
business model agility without needing a change management program to implement it
seamless digital customer journeys via self-service, automated, or assisted multi-product, multichannel experiences
thoughtful employee experiences enabled by technology empowered teams
And according to Weill, MIT’s studies show that adopting that real-time data stance is not restricted just to digital or tech-native businesses. Rather, it can produce successful results for companies in any sector that are able to apply the approach better than their immediate competitors.
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” John Sicard, Kinaxis CEO, said in a release.
Specifically, Kinaxis and ExxonMobil said they will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling.
The benefits of that approach could include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
And in the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modelling and evaluation.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”