Today's whiz-bang automated handling systems may be revolutionizing your DC operations, but they're also running up your power bill. Here are some ways to ease the pain.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Under pressure to meet the demands of omnichannel fulfillment and a rising tide of e-commerce orders, many warehouses have turned to automated material handling systems as a way to boost accuracy, cut labor costs, and speed up fulfillment. Equipment such as automated storage and retrieval systems (AS/RSs), conveying systems, lifts, and shuttles can go a long way toward helping DCs achieve those objectives.
The solution comes with a steep price, however. Automated facilities may see their electric bills climb to meet the increased energy demands of running these powerful machines.
In response, facilities are seeking out new ways to optimize energy consumption while keeping the pedal to the metal on fulfillment speed, according to Markus Schmidt, president of Swisslog Warehouse & Distribution Solutions, Americas. But what can they really do in this regard? We decided to ask the experts for some advice. What follows are their five top suggestions for ways to hold down your power costs.
1. Plug into the IoT. Intrigued by the notion of the Internet of Things (IoT) but haven't yet found a reason to take the plunge? This may be just the excuse you're looking for. The IoT, essentially a network of connected devices that communicate with one another automatically, can provide a big assist to DC managers looking to reduce their energy consumption. To begin with, it can supply vital data on a facility's energy usage patterns, which users can then analyze with an eye toward identifying savings opportunities. For example, by attaching power-usage sensors to individual pieces of material handling equipment, users can monitor energy consumption throughout their facility in real time, Schmidt said. Armed with this information, they can track changes in energy consumption for every room, aisle, drive, and motor in the building, identify inefficiencies, and make adjustments.
Another way to use the data is by analyzing it for purposes of integrated energy management control. In this approach, users set a baseline level of energy consumption for each machine, then manage their operation so multiple devices share their combined power "budget" in the most efficient way. For example, two sensors can communicate and delay the start of one machine by a few seconds in order to minimize the peaks in power draw that occur when two machines start up simultaneously, said Samuel Schaerer, controls development manager with the Swisslog Warehouse & Distribution Solutions Technology Center.
2. Recuperate and recharge. Energy "recuperation" is another strategy for cutting the amount of electricity required to run large material handling systems, according to Swisslog. Just as hybrid automobiles recharge their batteries by braking at stoplights, AS/RS cranes, miniload cranes, shuttle systems, and conveyor lifts can generate their own electricity. They do this by using their motor as a generator, creating electricity from friction when braking. The electricity they generate can then help power the unit itself or even be shared with others.
Energy recuperation offers considerable potential for savings. For example, AS/RS cranes can cut their energy draw as much as 20 percent by powering their horizontal motion using the electricity recuperated by their own downward vertical motion, according to Swisslog. Likewise, shuttle systems can cut their power consumption by 20 percent by timing the acceleration of one shuttle to occur at the same time that another shuttle hits the brakes.
3. Slow down and lose the weight. Automated conveyor systems consume the most electricity while they are running at high speed, so facilities can save serious money by automatically throttling down the systems during off-peak periods, a Swisslog analysis shows.
One way to capture those savings is by installing photo eyes that determine when a section of conveyor is idle, then send that signal through an IoT network to a central controller, the company said. Particularly effective in large-scale systems with thousands of feet of powered conveyors, these systems can save significant power by switching off certain conveyor zones—or even a specific motor on a single roller—when not in use.
Another way to cut the amount of electricity consumed by mobile material handling systems is to put the machines themselves on a diet. In recent years, some manufacturers have redesigned equipment like automated guided vehicles (AGVs) and AS/RS stacker cranes using lightweight materials, slashing 20 to 30 percent of the vehicles' weight without compromising their load-carrying capability, said Swisslog. Compared with their heavier brethren, these lightweight machines draw far less power from onboard batteries or the facility's grid.
4. Use smart software to save volts. Heating and lighting are the top two energy drains in warehouses. As a result, the path to power savings usually begins with a few basic steps like installing efficient LED lighting, adding skylights to capture natural daylight, installing loading dock seals and shelters, and adding building insulation.
Once they've completed those steps, managers can squeeze some additional savings out of their operations through the smart use of software. One way to do this is by automating the controls for various building functions, said Norm Saenz, managing director at the consulting firm St. Onge Co. For example, they might use a warehouse control system (WCS) to automatically turn off equipment when it's not in use.
In facilities that use electric vehicles, software such as lift-truck fleet management systems can play a big role in energy conservation efforts. Among other applications, managers can use these systems to collect data on battery charging patterns and power consumption, which they can then mine for energy-saving opportunities, Saenz said. For example, the data might show that switching to quick-charging equipment would help avoid the power peaks caused when all of the fleet's vehicles try to recharge at the same time.
5. Soak up the sun. Many industry professionals took notice when UPS Inc. announced plans to install $18 million worth of solar panels on facilities around the country—a move the company estimates will cut each building's power bill in half. Drawn by such promises, an increasing number of warehouse and distribution facilities are adding solar panels to their vast expanses of flat roof.
And it's not just facilities located in the South. Although it was once thought that solar panels only paid off in sunny desert locations, that's simply not the case, said Richard Murphy Jr., president and CEO of Murphy Warehouse Co., a family-owned logistics service provider based in Minneapolis. The technology actually works in any environment—from Arizona to Minnesota—because solar panels function most efficiently when they're cold, he said.
Along with helping trim a DC's electric bill, solar panels can generate extra savings when a facility hooks them up to industrial batteries that store backup power. Among other benefits, having a reserve power supply on hand might allow a company to avoid buying costly diesel generators for emergencies, Murphy said.
Alone or together, these five creative strategies are helping managers minimize their DCs' power consumption. The steps require some effort, to be sure, but the payoff can be huge. By giving them a try, managers can not only trim their electric bills, but also "green up" their operations. On top of that, they stand to achieve a quicker return on investment on the automated equipment that is fast becoming essential to meeting today's demands for lightning-fast distribution and fulfillment.
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 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.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.