Simulation technology is making it easier to see how well a new or upgraded conveyor system will meet long-term demands and accommodate evolving business needs.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
As warehouses and distribution centers continue to go high-tech, the tools used to design them are following suit with advances that make it easier for companies to predict how their operation will evolve to meet changing business demands over time. Conveyor simulation technology offers a case in point, shifting from a tool that simply shows how a conveyor system will work into one that can help companies plan the best system to meet peak service demands, ever-later order-cutoff times, and the staffing requirements to handle such changes. The software programs used to simulate conveyor system design today use advanced algorithms and data analytics to produce those results, and experts say the added use of sensors and Internet of Things technology is evolving to help produce real-time replicas of physical systems (think "digital twin" technology) that can provide organizations with even more productivity-enhancing data.
"Today, a customer can expect to see a lot more [from conveyor simulation] than just 'does the system work?'" explains Luther Webb, vice president, data science at material handling solutions provider Trew LLC. "[We have] more advanced modeling written in advanced code form. Today, [in a simulated design] the customer is looking at various formulas built into a model, and those formulas are interacting with each other."
The end result is a dynamic model of conveyor technology that is helping organizations maximize throughput and minimize labor costs.
"When you think about warehousing, it's about space, equipment, labor, and controls," says Michael Wohlwend, managing principal at material handling systems integrator Alpine Supply Chain Solutions. He adds that companies must maximize those four assets in order to ensure their warehouse or DC runs as efficiently as possible. "We're using [conveyor] simulation software to look at how you are going to optimize all of those things," he adds. "Our customers are asking us for designs that will help them improve overall throughput and reduce overall labor costs."
CHANGING TO MEET EVOLVING NEEDS
Systems integrators and equipment suppliers use conveyor simulation technology to develop and present solutions to customers, a mission that has not changed much since the technology first entered widespread use in the 1990s, Webb and others say. But customers are looking for more than just proof that a system works, and thanks to technology advances, today's software programs allow engineers and designers to deliver that information. Today's customers seek three key benefits of conveyor simulation, according to Webb: confidence that a proposed system will do the job; the ability to evaluate a proposed system's performance under changing conditions; and the ability to test and adjust operations, particularly staffing levels, as needs change.
"We talk about the customer's long-term expectation for the model" when working on a new project, explains Webb, adding that a customer may want to prove that a concept will work under specific conditions or test how it will respond to peak [volumes] or other complex situations in the warehouse or DC. "[Customers] also may want a model of the system that they can use long term to test daily scenarios. For example, they may want to run through the model every night with the next day's orders [to get answers to questions like]: Will I finish early? Do I need more people?"
The advent of "agent-based modeling" techniques is helping customers respond to those more complex and unpredictable environments, Webb and others add. Traditionally, engineers and system designers have used discrete-event modeling, which simulates the operation of a system as an individual series of events and times, and is ideal for processes that are predefined and in which interactions are basically linear, Webb explains. In contrast, agent-based modeling allows system designers to model the actions and interactions of separate processes in the system and how they will interact with each other. This allows designers to model and see unexpected behaviors as the agents interact with and influence the system, he adds. Companies using warehouse execution systems (WES), which connect disparate warehouse systems and functions in one platform, may benefit from such advances. Webb cites the order-release and picking processes as examples.
"As order releases are optimized based on a set of rules, the picking agent [software] will optimize based on its own set of rules," Webb explains. "As the models interact over time, you can discover outcomes you did not predict in a linear model."
Wohlwend agrees that advanced software and modeling techniques are making it easier to help customers plan for variations in demand—especially as organizations implement later order-cutoff times and faster delivery options.
"With the new demands from customers—especially for same- or next-day delivery—it requires us to use [more sophisticated] data and simulation tools to create an optimal design," he says.
NEXT UP: DIGITAL TWINS
The growing connectedness of today's warehouses and DCs is driving one of the biggest changes on the technology horizon: the use of digital twins. A digital twin is a virtual replica of a real object—a product, structure, facility, or system, according to technology research firm Gartner Inc., which released a study last year on businesses' use—and planned use—of digital-twin technology. The study found that, globally, nearly half of manufacturing organizations that were implementing Internet of Things strategies in 2018 were using or planned to use digital twins and that the number of firms doing so would triple by 2022. Webb says customers are increasingly interested in ways to use digital twins for conveyor system simulation because they offer a tool that can be used to test scenarios in real time.
"The level of detail we're able to provide is growing, [including] statistical information that can show when [a system] begins to reach challenges and how we can address those challenges," Webb explains. "This makes the concept of the digital twin very interesting to customers."
The Gartner study also showed that by next year, at least half of manufacturing firms with annual revenues of more than $5 billion will have at least one digital-twin initiative launched for either products or assets.
Conveyor system design may be one of them.
"By having a digital twin [of your equipment], it's no longer a stagnant model built for [concept development]," Webb says. "It's living, based on what is in production today—the equipment, processes, people. We can use it in real time."
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.