DC automation strategies are increasingly intelligent and flexible, combining the newest technologies with tried-and-true conveyors for optimal performance.
Victoria Kickham, an editor at large for Supply Chain Quarterly, 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 Supply Chain Quarterly's sister publication, DC Velocity.
Demand for high-tech material handling equipment is on the rise as more companies seek to automate their distribution centers (DCs), but there’s still plenty of room for tried-and-true systems, especially conveyors and sorters. As DCs automate to accommodate growing e-commerce volumes, industry experts say flexibility and the integration of different technologies are often at the heart of a company’s automation strategy.
Omer Rashid, vice president, solutions design, for contract logistics specialist DHL Supply Chain, says demand for customized solutions is driving many of today’s automation projects, and he refers to a growing “tool belt” of options that include both traditional “bolted to the ground” equipment like conveyors and more flexible robotic technology, such as autonomous mobile robots (AMRs). In high-volume operations, where the return on investment in traditional systems tends to be high, companies are increasingly looking at ways to integrate both types of technologies.
“In some cases, [robotics are] replacing conveyors because of their flexibility, but at the same time, we haven’t seen the demand for conveyance go down,” Rashid explains, adding that equipment makers are advancing how the technologies work together, especially for picking. “In general, there is an automation tool belt that has expanded and gotten much bigger. Ultimately, having flexibility in whatever solution you put in may seem like a buzz phrase, but it’s necessary.”
It’s what’s happening in the market, he says.
Here’s a look at how demand for conveyors and sorters is shaping up in 2021, and how systems are advancing to meet changing needs.
CONVEYOR DEMAND RISES
The first few months of 2021 saw double-digit increases in demand for conveyor equipment, according to the Conveyor Equipment Manufacturers Association (CEMA), which tracks orders and shipments of bulk and unit-handling conveyor equipment monthly. Booked orders for conveyor equipment rose 24% and shipments rose 38% year over year in January, followed by a 35% increase in orders and a 39% increase in shipments in February, the group said. Booked orders for March declined year over year but were up 28% consecutively, and monthly shipments increased 63% compared with a year ago.
The statistics reflect the growing demand for both traditional and integrated material handling projects. Chris Slover, vice president of sales for systems integrator Fortna, says more and more conveyor systems are being designed to integrate with robotic picking technologies—where a conveyor system may deliver products to a robotic picking arm, for example—and even with competing technologies such as AMRs. Depending on the operation, clients may use conveyors in one part of a DC, AMRs in another, for example.
“Where you can integrate systems and use robotics—AMRs as an example—we are seeing a rise in that for sure,” says Slover, adding that many companies are looking for ways to be free of bolted-down technology where possible but still utilize more traditional systems where they work best—especially in high-throughput applications.
Slover points to advances in conveyors and sorters that allow for handling a wider array of items at varying speeds, as one example. He also notes the growing popularity of motor-driven roller (MDR) systems, in which the conveying surface is powered by independently driven motors, in zones, and that allow for the buffering or accumulation of products. MDR systems are typically quieter, more energy efficient, and easier to implement than traditional conveyor systems, he explains. They are also more expensive, but, as with most technology, the cost is coming down over time.
For many companies, the sheer volume increases they’ve seen in the past year are making cost less of an obstacle as they strive to get orders out the door even faster.
“Labor availability and the move to e-commerce [have] put [more] emphasis on … order picking and fulfillment,” Rashid adds. “Conveyance, sortation, robotics—we see an acceleration of that as a result.”
EQUIPMENT GETS SMART
The next big breakthrough in conveyor technology is likely to come in the control aspects of the systems, particularly in how the conveyor functions in relation to warehouse execution systems (WES) running in a facility. Slover says the application of artificial intelligence (AI) and machine learning to the “smarts” of a conveyor system will help optimize flows, drive even more efficiency, and improve productivity.
“How am I controlling the conveyor? That’s where I think you’ll see the most innovation,” he says.
Slover uses the example of global positioning system (GPS) technology and mapping software to illustrate his point. Drivers don’t need to consult paper maps for the best route to a given destination when they have programs like Google Maps or Waze at their fingertips to intelligently set them on the most efficient path. A box on a conveyor may benefit from the same kind of technology.
“There may be ways that the control system itself can reroute and avoid potential traffic jams, for example, or [create] a more intelligent release of work to the conveyor—or smooth out the flow of the system itself,” Slover explains, adding that such advances could help companies avoid “overautomating” to get a better return on their conveyor assets.
Rashid agrees that advances in software are likely to be the biggest changes ahead—changes that enable even greater flexibility in designing the right system for the job.
“Those advances will allow us to build bespoke solutions that are ultimately flexible for our customers’ business needs,” he says. “More and more, we’re partnering with our customers who are looking at their business one, three, five years out, and they need to look at different alternatives. Customers ask ‘My volume could go in one of three directions—what solution will give us the ability to satisfy those in a cost-effective way?’ We’re helping them build a roadmap.”
The more tools available to create the map, the better.
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.