DCs need automation, and they need it now. Conveyor manufacturers are responding with solutions designed to get systems and equipment up and running faster than ever before.
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.
Accelerating e-commerce volumes are pushing retailers, e-commerce fulfillment companies, and others to get orders out the door faster than ever before, and that often means implementing new or enhanced conveyor systems in their DCs to help speed and streamline fulfillment. Today’s fast pace of business is leaving little time for lengthy, complex equipment installations, however, increasing the need for out-of-the-box solutions that can reduce prep time and allow end-users to respond to accelerating volumes quickly.
“What we’re seeing in the market is a need to get systems ramped up very quickly,” explains Tim Kraus, product manager at conveyance and parcel automation solutions company Intralox, which serves customers in a range of industries, including logistics, food, and consumer packaged goods. “There’s a real focus on getting these systems designed, installed, and running live as quickly as possible.”
It’s a tall order, but the conveyor industry is stepping up with products, technologies, and other solutions designed to do just that. Modex 2022, the logistics and material handling industry trade show held in Atlanta this spring, provided the backdrop for companies to showcase some of their newest offerings, which include everything from pre-engineered control systems to faster product delivery platforms—all of which are aimed at providing low-hassle, high-value solutions for tackling those growing e-commerce demands.
Here’s a look at some time-saving solutions companies were touting in Atlanta earlier this year.
A PUSH TOWARD “PLUG AND PLAY”
Intralox is offering up its pre-engineered, pre-wired advanced sorter controls (ASC) as one option for meeting accelerating demand in short order. The machine control solution is available with the company’s e-commerce package sorters, which are designed to convey a variety of package types, including polybags, cartons, boxes, and large or irregular-shaped items. The pre-engineered control system eliminates the need for a systems integrator to design and install a complex system from scratch; instead, the integrator can perform a few simple configuration steps—via an interface provided with the ASC—so that the sorter is up and running immediately. The ASC also includes a built-in field bus so integrators can add devices and functionality to a system—without the extra cost, risk, and time traditionally associated with such projects.
The solution not only reduces project development time but also accelerates the go-live schedule for the end-customer, according to Kraus, who says the ASC program represents a growing trend in material handling system design.
“Anything you can do in the factory, before the system ships, to make it more plug-and-play and reduce the need for high-skilled labor is extremely valuable [from a scheduling standpoint]—many companies have focused in that direction,” Kraus explains. “With e-commerce and the need to ramp up facilities really quickly, that trend has just accelerated.”
Kraus says the underlying technology in the company’s ASC is not new; the difference is in providing a ready-to-go packaged solution.
“This provides some real value in terms of startup time and reduced risk for the systems integrator and the end-user,” he explains. “It dramatically reduces engineering [and] installation—and it gets the sorter up and running really quickly.”
Swiss material handling solutions providerInterroll Worldwide Group, which makes products for unit-load handling systems, internal logistics, and automation, is emphasizing the benefits of plug-and-play solutions via its “platform” modules, which offer pre-engineered conveyance systems that can provide a “more tailored mass approach” to the market, according to Barry Miller, the company’s vice president of sales and service for the United States. As one example, Interroll’s modular conveyor platform (MCP) comes in three standard widths, with a choice of energy-efficient drive solutions that allow users to combine pieces and parts to create a system that fits their needs. The modules are pre-assembled, which makes on-site installation faster and easier than traditional systems, Miller adds. The MCP includes independently adjustable side guides, adjustable supports, and integrated electrical conduits that can accommodate add-on components, for instance. Adjustability allows end-users to expand the system to meet future needs.
“Everyone wants something special and unique,” Miller explains, adding that Interroll’s customers are looking for a swift installation as well, especially for e-commerce–related projects. The platform approach allows the company to address those conflicting demands and get projects off the ground quickly, he says.
ADDING CAPACITY FOR QUICK DELIVERY
Some companies are focused on a more back-to-basics approach to helping customers get conveyor projects done quickly: speeding the delivery process. Arkansas-basedHytrol Conveyorhas introduced its Preferred Delivery Program (PDP), an effort designed to get its low-voltage E24 conveyor system into customers’ hands faster, according to Mitch Smith, the company’s vice president of business development. The 24-volt conveyor system deploys quickly and is a good solution for both established and startup e-commerce businesses, which have been strong growth sectors, along with parcel and third-party logistics service providers, Smith adds. The Jonesboro, Arkansas-based company added a second manufacturing facility in Fort Smith, Arkansas, last January, allowing it to expand the E24 line and speed manufacturing and shipping processes. A portion of the E24 products are part of the program, with more to be added in the future.
“The new facility is really helping our company meet growth demands—especially [those] driven by e-commerce business,” Smith says, emphasizing customers’ desire for shorter project timeframes over the past two years in particular. “This specialized delivery program is a way [for us] to offer our popular E24 products to customers that need equipment fast.”
Hytrol isn’t alone. Earlier this year, Intralox expanded its U.S. operations with a 310,000-square-foot facility at Tradepoint Atlantic, a 3,000-acre logistics center in Baltimore County, Maryland. The facility increases Intralox’s East Coast footprint by 70% and represents the Louisiana-based company’s third expansion in the region over the past three years. The growth is being driven by logistics industry demand, specifically the need for systems tailored to parcel, postal, e-commerce, and distribution customers, according to the company.
Industry leaders say they expect consumer buying habits and labor market forces will sustain those trends.
“The pandemic effect has changed the math, and it’s much easier to justify automation,” especially in last-mile facilities, Kraus says. “Part of that is increased order volume, and the other part is reduced availability of labor. Those two effects have increased demand, absolutely.”
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.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.