Integrating new equipment into an existing operation can be a challenging and frustrating endeavor. Here are seven tips for keeping your project from turning into a nightmare.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
If you've been around the industry for a while, you've probably heard (or perhaps lived through) a retrofit horror story or two. Maybe a legacy warehouse management system (WMS) had trouble "talking" to a new piece of equipment. Or maybe existing equipment was damaged during the process of "cutting in" to make room for the new. Or maybe no one paid enough attention to how all the pieces of automated equipment would work together as a single system.
How can you avoid having your own retrofit project end up like a bad dream? We asked several industry experts for their advice. What follows are their tips on how to make your systems integration project run smoothly.
1. Start with a deep dive into your own operations. Before you even begin to think about the solution, be clear about the specific business problem you're trying to solve. It's not unusual for companies to go about things backward, according to Jay Moris, chief marketing officer at systems integrator Invata. "I think some people get very enamored with the bright and shiny automation that looks cool and high-tech," he says. "Then they try to find ways to fit their business into that shiny, pretty box, and it just doesn't work."
It's also important to collect good order and inventory data and develop solid growth projections, according to Mark Steinkamp, director of solutions development for the systems integrator Intelligrated. This will help ensure you select equipment that's able to keep up with both current and future demand.
In addition to collecting the necessary order data, be sure you provide your integrator with up-to-date information on your current material handling systems, advises Steve Brandt, vice president of business development and customer service for systems integrator Dematic. That's particularly true if you've made modifications to your systems after the original install, he says. Otherwise, your integrator is going to end up drafting a plan for connecting the old and new equipment based on outdated information, and costly rework will be needed later on.
2. Beware of having "too many cooks." If you're connecting equipment from two or more vendors, make sure that all of the teams are working together and that someone is in charge of the overall project. Otherwise, you risk having a situation where each vendor is focusing only on its own "island of automation," with no one paying attention to the whole archipelago, so to speak.
For example, if you're creating a new packaging line using equipment that produces boxes on demand, someone has to decide how the conveyors will feed into the equipment and make sure the scanner's programmable logic controller (PLC) can communicate directly with the WMS. These details might not occur to someone who's focused solely on one part of the installation.
3. Consider the "ripple effects." It's not enough to simply select a new piece of equipment; you also have to consider where it should be physically located and how it will fit into the overall flow of the operation, says Jason Denmon, apparel and specialty retail industry leader at the distribution consulting and design engineering firm Fortna. "When I think about logical flow, I first of all ask, does it fit without being too jammed in?" he says. "Does it cause congestion? Does it cause too much travel time for employees as they move to and from their work area? Does it logically fit into the flow of operations, as it goes from step one to step two to step three?"
Thinking about the logical flow also means considering the "ripple effect" on equipment and processes both upstream and downstream, Denmon says. Even if it appears that a new piece of equipment will fit into the operation nicely, further investigation might reveal that, say, the added volume from the new area will quickly overwhelm capacity downstream. To avoid this type of problem, Denmon recommends mapping out the new operation in detail before proceeding with any installation.
4. Don't ignore the software. A key part of that mapping exercise should be determining how the different software and controls will communicate with one another. It is this piece of an integration project that often turns out to be the most complex and expensive, says Bob Babel, vice president, engineering and implementation, for Forté Industries, a planning, design, and integration firm owned by Swisslog. "If a WMS is talking to one WCS (warehouse control system) for a pick-to-light system and another for a sortation conveyor, and now another for print-and-apply [equipment], it gets very complicated," he observes.
According to Moris, the work involved in making sure the various pieces are talking to one another can cost as much as the rest of the project put together. He recalls one proposed project where the numbers were all falling into place—that is, it appeared that the labor, material, and space savings would easily offset the cost of the new equipment—until the cost of integrating the system with the company's WMS was factored in. "And then the financial justification just went right out the window," he says.
Babel also notes that companies may be able to simplify communications among multiple pieces of equipment by "elevating the WCS or warehouse execution system" into an integration layer between the different equipment's controllers and the WMS.
5. Prepare to be disrupted. Consider yourself forewarned: In most cases, it's impossible to integrate a new piece of equipment without disrupting existing operations to some degree, says Greg Meyne, design manager for the systems integrator and consulting firm enVista. "As early as possible, the integrator and the end user should go through a step-by-step scheduling process that covers when and where a particular disruption is going to happen and what needs to be done to adjust to it," he advises.
One area that's particularly prone to disruption is a facility's storage area, Meyne says. Many times, the new equipment will be placed in a section of the DC that previously was used for storage. In such cases, the customer should have a plan for where to house those stored goods during the project as well as how to access them during that period.
Disruption is also likely to occur when the new equipment is connected to the old equipment. To reduce the impact of that disruption, the connection can be scheduled for off-shift hours, such as on a weekend or a holiday, Meyne says.
Disruptions and delays may also arise if an installer accidentally damages equipment during the "cut-in," or insertion, process. For this reason, Brandt recommends having spare parts on hand for both the old and new equipment.
6. Beware of the vague test plan. Drafting a comprehensive test plan that lays out specific steps, defines metrics for success, and identifies a fallback solution in case the new equipment doesn't run to specification can lead to a smoother implementation. According to Meyne, it is wise to first run a virtual test of the software. "Have the WCS and WMS communicate to a virtual server to make sure all communication protocols are working prior to going on-site," he suggests.
Next, Meyne recommends running a site test of just the mechanical equipment to make sure that items are being inducted, merged, sorted, and stored correctly. Only then should you marry the two pieces together.
Brandt suggests running at least one test shift that simulates conditions at full volume with all, or close to all, personnel present. This will reveal any flaws and give you a chance to correct them before the system goes live.
7. Don't send your integrator home too early. Finally, just because you've had several successful test runs, don't assume that you can go live without a hitch. According to Brandt, some quirks may not show up until after a system starts to run at full volume. For this reason, it's important for your integrator to stick around after the implementation. For less complex jobs, the integration staff may only need to be there for a shift or two. More complex integrations may require the team to remain on the site for a couple of weeks.
Brandt has one other piece of advice: "An additional thing to consider if you're a retailer and doing a mid-summer implementation is to bring back your integrator on Black Friday when volumes peak."
While it may seem wasteful to pay the integrator for a couple of extra days or weeks, Brandt says there can be value in doing so, even if the implementation turns out to be flawless. Instead of troubleshooting, the integration team could be put to work training your staff on the system's new functionalities and offering tips that can help them make better, smarter use of the new equipment.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
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.