AGV and AMR vs. Conveyor Systems: Drive Efficiency With The Best Solution for your Warehouse.

agv and amr vs conveyor comparison blog post header image
agv and amr vs conveyor system comparison blog post header image

Automatic Guided Vehicles (AGV) and Autonomous Mobile Robots (AMR) have existed for years now, offering robotic material handling operations for a multitude of warehouse operations. The industry is well aware of its pros and cons, and supply chain executives are content with placing them within their arsenal of automated warehouse solutions.

The much harder decision when automating is understanding which solution will provide the most benefit, as opposed to if it will at all. In the case of AGVs and AMRs, conveyor systems are tried and true forms of automation that continue to provide exceptional output and return-on-investment. While both solutions differ in engineering and functionality, both exist for the same goal- reliable, stable, and quick movement of items. How do AGVs/AMRs stack up against traditional conveyor systems? Where does one solution shine, while another does better in a different application?

Century has experience integrating both and understands where and how these systems outperform one over the other. We wanted to share some of our insights so you can evaluate what works best for your warehouse.

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AGV and AMR

AGVs and AMRs are often grouped together, mostly because the operations they perform overlap with each other. The single main difference between the two is its form of sensing and moving throughout the environment. AGVs move by using a sensor that follows a set path (typically a form of sticker or tape on the ground-hence the word “guided” in its name). AMRs move by sensing objects around them, and learning an optimal path (hence the word “autonomous” in its name).

This characteristic defines what operations are typically assigned to an AGV or an AMR. Essentially, AGVs work best at moving cartons and pallets across the facility with little to no variation in its traveling path. AMRs shine in picking operations, where it would not have a set path.

AGV

Effective in moving, tugging, and towing cartons or pallets from a single location to another.

  • Carts
  • Tuggers
  • Lift-Truck
  • Pallet Jack
  • Unit Load

AMR

Assistance in multi-variable operations that require diversion in movement paths.

  • Picking
  • Sortation
  • Inventory Control
  • Sanitization

AGVs and AMRs have seen expanded use over the course of the past year, and most new warehouses are built with the notion that automation will be implemented at some point. According to Research and Markets, United States, Germany, U.K., China and Japan are going to lead the market with an annual demand of more than 200,000 mobile robots (AGV & AMR) by 2026.

To put the cost-effectiveness of an AGV and AMR into perspective, Annual costs for a forklift operator can run up to $50,000. If a forklift has to be operated around the clock, then at least 3-4 drivers are needed. Adding the invest costs of $10,000 for a forklift truck to the personnel costs, the annual costs for one forklift come to over $200,000 (ResearchAndMarkets.com). Depending on the output of the warehouse, operating AGVs and AMRs can save thousands over traditional manually operated lift trucks.

Automated robotic solutions continue to improve as newer technologies are created and adapted. Artificial intelligence (AI), machine vision, voice-to-robotic-pick, and warehouse data-driven learned actions continue to provide added functionality and benefit to AGVs and AMRs (primarily the latter). This makes AGVs and AMRs a forward-facing implementation, as abilities are added to their repertoire of functionality through the advancement of warehouse technologies and software capabilities.

Conveyor

Conveyor systems are the typical solution of any automated operation, offering a continuously moving assembly line to quickly complete the processing and distribution of a package. Conveyors use belts or rollers to move cartons or pallets, powered by motors. Each warehouse that employs conveyors has a specially engineered layout, consisting of a variety of conveyor sections, depending on function.

Conveyor Section Types

  • Infeeding
  • Straight
  • Curved
  • Incline
  • Decline
  • Divert
  • Merge
  • Switch
  • Outfeeding

Conveyors produce the best results when implemented in fast-moving post-production operations such as order fulfillment, product distribution, sortation, and crossdocking. Conveyors are highly customizable, with the number of systems that can be added to the conveyor line spanning from carton forming to in-trailer loading, and everything in-between. Conveyors have proved the test of time as being the main system of reliable and quick movement in a warehouse. There’s a reason they’re still in use for over 100 years. The output rate is unmatched and its simplicity in design help it to easily integrate with other cutting-edge automation solutions.

The Most Important Factor: Your Warehouse

If you were to ask us what system we would use, we would ask “what’s your warehouse like?”. This is the number one question you should ask yourself as you’re exploring solutions. The effectiveness and benefit of these solutions are only relevant if integrated correctly in your distribution center, warehouse or facility.

To simply it even further- think on your answer to this question. Can your operations continue effectively if you install a “bolted-down” conveyor system. If the answer is a definite “NO”, then you’ll most likely benefit more from the use of AGVs and AMRs. A fully engineered conveyor system is not mobile, and if your warehouse has limited space, or needs open lanes for lift trucks to travel in, a conveyor system may not be ideal. That’s not to say it’s impossible to engineer, but an AGV or AMR would be a more realistic solution.

With that in mind, here’s our comparison between AGVs/AMRs and conveyor systems.

The Comparison

AGVs AMRs Vs Conveyor

Key Takeaway

Both systems will complete the task of transporting product across a warehouse, it’s that your operations and facility space will determine which one will work better.

AGVs/AMRs are ideal for warehouses that have:

  • Limited space and cannot install a conveyor system.
  • Extensive pick operations
  • Forklifts transporting the majority of items
  • A healthy output rate (5,000 to 20,000 cartons shipped per day)

Conveyor systems are ideal for warehouses that have:

  • Flexible space arrangements
  • A variety of package types
  • Extensive sortation operations
  • A high-output rate (20,000+ cartons shipped per day)

Both AGVs/AMRs and conveyors can benefit in more ways than one, and in many cases, are both implemented in a facility to maximize distribution operations.

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Ahead of the Trend: The Rise of eCommerce in the Wine and Spirits Industry

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rise of ecommerce in the wine and spirits industry blog header image

Online sales directly to the consumer in the wine and spirits industry used to be a tiny niche, compared to typical distribution methods, but the newest trend, fueled by COVID, is anything but.

In 2020, bars and restaurants shut their doors, leading consumers to make the decision to shop online. U.S. E-commerce sales of alcohol increased more than 80% in value during the pandemic (IWSR). A year later, the sales have plateaued, but are still 15% to 20% higher than pre-pandemic levels. Consumers turned to online shopping because of an external factor, and a surprising number have stuck around after that factor has been eased.

Online liquor stores have seen increases in sales, spurring investor interest. Last February, Uber purchased Drizly for $1.1 billion (Barrons). Consumer interest is certain to increase in eCommerce purchasing as users adopt the buying behavior, and experience the benefits over traditional liquor store visits. Along with Drizly, a few other online liquor stores run in the races, including:

Uptown Spirits

ReserveBar

Thrive Market

Wine.com

Bright Cellars

Nestor Liquor

Minibar

Flaviar

Wine.com

How does this affect the wine and spirits industry? Supply chains will have to accommodate for order fulfillment, that is having the necessary material handling solutions in place to ensure an order gets packed, labeled, and sorted to its end destination. This is quite different from what is typically processed in a wine and liquor distribution operation.

Cartons (usually packed within 6 bottles) are sent to be palletized or loaded in a truck, which makes deliveries to liquor stores, bars, and restaurants. With an online order, each package is customized and can contain a variety of items (kitting).

Wine and liquor warehouses will have to store individual items, accurately pick and pack them, apply a shipping label, and send them to the customer’s doorstep safely and within a few days’ time.

Integrating order fulfillment is a carefully planned and engineered project, but the long-term growth and profits will dwarf the initial investment once implemented fully.

Order fulfillment is one of Century’s specialties. We’ve had experience in the past engineering systems specifically for eCommerce operations, and we’d like to pass along our recommendations on the solutions that are used.

1. Storage and Pick Modules

Managing a fully stocked wine and spirits warehouse can get complicated when a large variety of products are offered. This creates a need for both short-term and long-term pallet storage. Automation in the form of an ASRS (automatic storage and retrieval system) can rapidly retrieve pallets that need to be distributed or store long-term inventory in the most optimal spot within a racking system.

An ASRS uses a crane attached to a horizontal and vertical track, scaling the racking structure, and using extendable forks to handle pallets. The operator terminal provides information on what product is stored where, and the ASRS operates when a retrieve or store command is inputted.

2. Conveyor System

A tried-and-true conveyor system will be the most accurate, simple, and efficient solution for a wine and spirits warehouse. Conveyors are dynamic in the sense that there are hundreds of additional solutions that can be integrated in the layout. Being highly customizable, each conveyor system is engineered according to the layout of the wine and spirits operation.

In the wine and spirits industry, the key to stable operations is ensuring cartons avoid damage. A zero-pressure accumulation conveyor (like this conveyor, manufactured by Hytrol) does not allow cartons to touch, by properly maintaining space between each and stopping the rollers when the accumulation zone is full. This is especially important when fulfilling specific customer orders that may include unevenly sized items.

3. Pack Tables

In order fulfillment, stations are positioned at infeeding operations so that orders can be packaged and sent to a label application. A worker or autonomous robot picks the products and brings it to a pack table. The worker checks to ensure that the order is correct in places in any invoicing documents, and places the items in the package with void-fill.

Pack tables are simple to integrate, and sit aside a main conveyor, so that workers can simply push orders from their tables onto the conveying surface.

4. Print and Apply Stations

Affixing identifiable tags on packages is crucial to ensuring their deliverability. Scanners and sensors across the line depend on a readable tag for it to make it to its destination. Print and apply systems do exactly that. However, there are multiple systems depending on the identification process use and where the box must be marked. Applications can roll-on, wipe over, corner wrap, air blow, and stamp labels.

The direction the box must be scanned also plays a role in a solution selection, but it will outpace manual operations regardless.

5. Sortation

Sortation systems separate products for induction into individual lanes typically associated with an outbound destination. Various types of sortation and conveyor systems are often connected to comprise a fully functioning material handling solution.

The type of sortation integrates highly depends on what product is being moved. For a fragile wine and spirits operation, care must be taken in selecting a stable method of diverting the packages. Sliding Shoe and Narrow Belt sorters are best suited for safely, yet quickly, sending items to where they need to be.

narrow belt sortation
Narrow belt utilizes thin belts so that rising directional skate wheels activate when a package is to be diverted down a destination lane.

sliding shoe conveyor sortation
Sliding shoe uses segmented plastic slats that gently divert cartons to an outfeeding conveyor.

6. Warehouse Management System

The ability to have complete visibility of your warehouse inventory at all times is paramount to operating effectively. A warehouse management system (or WMS) stores vital information such as alcohol percentage, storage location, best-by dates for rotation, and a multitude of SKU data for ordering. A WMS can even offer a best shipping rate selector and presents data with correct state alcohol regulations applied.

Besides being a source of important product information, a WMS can apply that information within your warehouse operations. For example, if the wrong item is picked and placed on an outbound conveyor, the scan tower will read the label and the WMS will recognize it is in the wrong batch, stopping that section of conveyor and sounding an alarm for a worker to remove the incorrect item.

7. Reverse Logistics

Returns are a constant area of disconnect in operations when it comes to order fulfillment. There needs to be a planned intake process to return the items to storage and re-fulfill the order with the correct products.

When returns enter back into a warehouse, they’re put in a separate staging area. Depending on the condition of the item, or whatever the nature of the return is, it may be returned to inventory, sent to another distributor who sells discount items or discarded.

Once a return item has been rescanned in the system, the customer’s order will either be marked as fulfilled (so they can receive their money back) or another order will be placed (in the event they were sent the wrong item, but they still need the correct item sent to them).

Century Systems has extensive experience in integrating warehouse automation systems in the wine and spirits material handling industry. View the video below on a system we engineered and integrated with Fedway Associates.

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7 Efficient Automation Solutions for Wine and Spirits Distribution

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Distributing wine and spirits is a delicate and demanding operation. Warehouses are expected to process, store, and fulfill a massive catalog of products to a wide portfolio of clients, all with their own special requests. An operations employee in a distribution warehouse has their work cut out for them, as the constant supply and demand fluctuates depending on a multitude of factors like seasonality, geography, product timing, and more.

Investing in an automated wine and spirits warehouse solution can absolutely support operations in more ways than one, moving product safely, quickly, and where it needs to be. Evaluating current warehouse operations is certainly a smart move, especially considering the status of the wine and spirits industry now, and in the near future.

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“We believe there is a permanent consumer shift to more online purchases of wine, which will expand with the coming of age of millennial consumers.”

SVB: State of the Wine Industry Report 2021

To help in your evaluation, here are 7 cost-saving and effective warehouse solutions that’ll support your wine and spirits distribution operations.

1. Labeling and shipping costs

Correct labeling of alcoholic beverages is not only important for delivery operations but needed for state alcohol regulations and the associated shipping costs. Recurring mislabeling can incur hefty fees and make distribution a headache. Automated print and apply systems can streamline these processes and lower error rates and are relatively easy to add to a warehouse operation. Labeling machines produce the correct shipping information and apply the label by stamping it as the carton passes by, without the need to pick up or stop the product.

2. Warehouse Management System (WMS)

The ability to have complete visibility of your warehouse inventory at all times is paramount to operating effectively. A warehouse management system (or WMS) stores vital information such as alcohol percentage, storage location, best-by dates for rotation, and a multitude of SKU data for ordering. A WMS can even offer a best shipping rate selector and presents data with correct state alcohol regulations applied.

Besides being a source of important product information, a WMS can apply that information within your warehouse operations. For example, if the wrong item is picked and placed on an outbound conveyor, the scan tower will read the label and the WMS will recognize it is in the wrong batch, stopping that section of conveyor and sounding an alarm for a worker to remove the incorrect item.

3. Direct to consumer wine and spirits shipping

The prevalence of direct-to-consumer (D2C) wine and spirits services continue to grow, with wine clubs, subscription boxes, alcoholic beverage delivery, and other flexible solutions becoming more common with consumers. If you are looking to expand your consumer base, investing in a D2C approach early can prove proliferous in the near future. Order fulfillment automation solutions are versatile enough to fit within any step of your operation, ranging from automatic item picking to shipping label application. The importance of effective packing operations to avoid breakage should also be considered. Careful selection of package erecting, sealing, and void-filling machines are all a part of integrating a wine or liquor order fulfillment warehouse process.

4. Gapping and breakage reduction

An unfortunate truth of the wine and spirits distribution industry is that product breakage can and will happen. All you can do in your warehouse is minimize it. An effective method of doing so is using a zero-pressure accumulation conveyor. These gravity conveyors do no allow products to touch each other, using an array of sensors to properly gap infeeding operations, and stopping when the accumulation zone is full.

To increase product safety, a herringbone (canted rollers) design can be used to avoid product from making contact with side railing and guards. For even more stability, a cascade release function can be implemented, which staggers conveyor zones as product begins to move. This provides a small gap between each product when operations start and stop.

5. Storage solutions for reserves and limited run beverages

Managing a fully stocked wine and spirit storage can get complicated when limited run products and desirables vintages are concerned. This creates a need for both short-term and long-term pallet storage. Automation in the form of an ASRS (automatic storage and retrieval system) can rapidly retrieve pallets that need to be distributed or store long-term inventory in the most optimal spot within a racking system. An ASRS uses a crane attached to a horizontal and vertical track, scaling the racking structure, and using extendable forks to handle pallets. The operator terminal provides information on what product is stored where, and the ASRS operates when a retrieve or store command is inputted.

6. Cross-docking for quick sortation and delivery of non-stored items

Cross-docking is a warehouse operation that processes items, sorts them to the correct location, and sends them right back out for transportation. Packages are introduced and sent to their destination route quickly and efficiently without storing or spending more than 24 hours in a cross-docking operation.

For high-volume wine and spirit warehouses, this method provides extremely effective in getting product to stores or delivering to customers.

7. Flexibility in handling a variety of packaging types

Wine and spirit companies are innovating in specialty packaging types to attract customers in a constantly competitive product environment. Coupled with the growing sales of cannabis, companies are investing a significant amount in resources to ensure their product stands out.

Wine and spirits warehouse distribution operations must be dynamic enough to maintain current clients and attract new ones who have packaging designs that call for special handling. Automation systems, such as conveyors, are manufactured in different dimensions and applications and can be engineered in a warehouse layout to accommodate cartons of varying sizes and fragility.

Century Systems has extensive experience in integrating warehouse automation systems in the wine and spirits material handling industry. View the video below on a system we engineered and integrated with Fedway Associates.

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7 ways to avoid bottle damage in your wine and spirits distribution warehouse

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Product damage is a constant loss factor

The largest source of product loss in a wine and spirits distribution operation is undoubtedly bottle breakage and damage. Human error, product movement, and difficult storage methods can all be factors that result in damages.

In the case of one of Century’s wine and spirits clients, implementing our solutions resulted in a 75% decrease in product breakage. To give an example of how impactful that change is, imagine a distributor processing 30,000 cases a day. Each case, on average, is valued at $100 dollars. If their breakage rate is 1.25%, that’s $37,500 dollars lost on product damage from a total of $3,000,000.

A 75% decrease in the breakage rate would result in a much more manageable loss of $22,500- and that number can lower even more depending on the level of automation. That’s close to $5.5 million saved per year.

If your damage rate is on the higher end, it may be worth your time to evaluate your material handling operations. We have some valuable recommendations on where to look first.

  • Indexing Belt Accumulation
  • Warehouse Control Software
  • Cascading Release Function
  • Skewered Roller Design
  • Telescoping Extendables
  • Robotic Palletizing
  • ASRS

1. Indexing Belt Accumulation

An effective method of preventing product breakage is the use of an indexing belt accumulation conveyor. These powered conveyors do not allow products to touch each other, using an array of sensors to properly gap infeeding operations, and stopping when the accumulation zone is full.

The product can be placed normally on the conveyor, and it’ll automatically speed or slow down zones to achieve safe spacing between each package.

2. Warehouse Control Software

Setting the operating parameters on a system play an important part in preventing product breakage. The software, depending on the system manufacturer, controls conveyor zone functions like speed, braking, idling, and more. When a system is first installed, or being upgraded, these settings are fine-tuned for efficiency and safety and can be easily changed in the future if need be. Warehouse Control Systems are versatile and offer a variety of customized system settings.

3. Cascading Release Function

A cascade release function staggers conveyor zones as the product begins to move. This provides a small gap between each product when operations start and stop. This function helps exponentially with end-of-line operations where a truck is being loaded, and the product is accumulating as it’s being moved from the conveyor to the bay.

Instead of the product pushing against each other, the conveyor can stop and move when space is available, to maintain proper gapping so that product never touches.

4. Skewed Roller Design (Herringbone)

To increase product safety, a skewed roller (herringbone) design can be used to avoid product from making contact with side railing and guards.

Skewed rollers are pointed diagonally inward, keeping cases positioned in the middle of the conveyor. Advancements in the packaging of alcohol mean solutions must accommodate a variety of carton dimensions and material types. Skewed roller designs provide additional flexibility and stability in any automated warehouse operation.

5. Telescoping Extendable

Typically, a warehouse worker picks up packages from an outfeeding source, walks over to the truck, and loads it. Even in this simple operation, it’s where most breakage mistakes occur, as employees can drop or jostle cases.

The solution is to eliminate the extra risk of having the worker walk over to the truck. A telescoping extendable conveyor attaches to an outfeeding source and can be operated so it extends into and out of the trailer as the worker loads. This allows for a much more stable operation and minimizes product damage by conveying the product directly to the worker, who places it into the trailer. Extendables can be simple skateroller conveyors on mobile casters or powered units such as the Adjustoveyor.

6. Robotic Palletizing/Depalletizing

For warehouses that use pallets, robotic palletizing solutions automatically handle and can build or deconstruct pallets. A wide variety of robots and end of arm tooling can accommodate most carton sizes and complex layer build configurations for pallets.

The speed and stability of robotic palletizing greatly outpace that of manual pallet building and even lift trucks. For further automation, completed pallets can be conveyed from a robotic cell to an inline stretch wrap operation, replacing tedious manual wrapping.

7. Automatic Pallet Storage

In warehouses that store a high volume of products, stacking pallets is a common sight. The issue is when pallets are being stacked over two high. This creates stress for cartons on the bottom of the supporting pallet, which could compress cartons, cause leakage, or topple the stacked pallets. The risk extends further when considering possible operator error in the action of stacking, such as dropping the pallet from too high or placing it unevenly.

Reducing breakage during storing and retrieving is best achieved by the usage of an ASRS (Automatic Storage and Retrieval System). An ASRS is a rack-supported structure with a track-mounted crane that can be programmed to navigate itself to a racking space to either remove or place a pallet. The advantages are clear, stacking does not need to be used, an automated crane is exponentially more accurate and stable than a forklift, and warehouse space is regained (as racking allows higher stacking, and the aisle for the cranes are thinner than typical racking structures).

Century Systems has extensive experience in integrating warehouse automation systems in the wine and spirits material handling industry. View the video below on a system we engineered and integrated with Fedway Associates.

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