How to start integrating automation in your distribution center

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how do I start automating my warehouse blog header image

Venturing into the world of distribution center and warehouse automation poses many questions, a burning one being “Where do I start?”

It’s critical to select a solution that checks off all your operational improvement boxes but doesn’t run up against parameters that you need to maintain. For automation to perform as best as it can, careful preparation and engineering must be done, among a few other tasks.

  • Identify inefficiencies
  • Evaluate existing systems
  • Consider demand futures
  • Warehouse capabilities
  • ROI analysis
  • Internal coordination
  • Assemble a project team

Century wants your warehouse automation operation to perform as well as possible, no matter what it is. Our recommendation is to complete a few or all the steps below before you begin.

Identify inefficiencies

Is there an obvious weak point in your warehouse that automation could solve? Or has it been a while since you’ve looked at efficiency reports or commenced in continuous improvement? It’s important to understand the current challenges your warehouse faces and validate that the automation solution you’re researching will solve most of those issues.

Another component to this point is predicting the operational outcome of the integration. Will your other manual operations be able to seamlessly accommodate for the increased processing rate? Evaluate potential impacts the system may have on other areas of your warehouse and adjust accordingly.

Evaluate existing systems

Updating older equipment that’s already a part of your operations is the simplest way to increase output and bolster distribution. The typical lifespan of most systems varies, but it may be time for an improvement solution if it’s over 15 years old.

Even if the solution still operates well, the advancement of material handling technology has increased drastically, and a newer, more modern application can outperformance the current system and provide additional functionality.

Consider demand futures

What are the predictions for the future of the industry (or industries) you primarily supply distribution services for? Is there an expectation for growth? If so, can your current operations realistically sustain satisfactory output? Consider the direction your company is heading in and apply automation in a way that’s flexible.

For example, there might be an exception in the future to handle products that have unique dimensions. Is the automation solution you’re researching able to transport smaller or larger products? Maintaining a dynamic, forward-thinking mindset and applying it to warehouse automation applications will benefit future expansion.

Warehouse capabilities

Every warehouse is different and has varying limitations and specifics. It’s important to understand this critical point, as some solutions may not offer optimal benefits if it won’t integrate seamlessly in your warehouse layout.

Keep in mind, many warehouse automation systems are designed with this mind. Mezzanines can be used to suspend conveyor lines in the air, while ground operations can continue unhindered below. Narrow aisle racking and autonomous lift trucks can be implemented to decrease the footprint of a storage structure. Robotic solutions like AGVs and AMRs come in multiple shapes and sizes and can move freely throughout a building without having to be “bolted down” in a static position.

When working with your engineers or an integrator, carefully examine the warehouse layout (typically a CAD drawing) and familiarize yourself with both limitations, and room for expansion.

ROI analysis

Price varies greatly depending on the automation solution used. Understand that it will pay itself back in time but know that the return-on-investment timeframe will be longer the more costly a system is. Take into account the system rates of the solution, what your current daily output is, and calculate the profits from the increase. Ensure that your ROI is financially viable and within your criteria.

Internal coordination

While you may be the main operations or warehouse executive, a good leader understands that they can’t possibly be aware of every oversight in their organization. It’s important to connect with other key individuals to gain a perspective on the warehouse challenges they encounter. Some of these departments may include:

  • Staffing
  • Maintenance
  • Transportation
  • Material suppliers
  • Third-party supply chain partners
  • Procurement

Scheduling a meeting to inform them of your automation initiative may bring about some pain points that the solution could solve or identify additional parameters that can be kept in mind as a solution is created.

For example, a maintenance lead may suggest a system that can be serviced easily or might have some insights about the warehouse that should be considered as an automation project commences.

Assemble a project team

Spearhead an effort to acquire resources to begin development. Depending on who’s employed at your organization, your team would ideally include engineers and project managers.

Alternatively, you can contact an automation integrator who will manage all aspects of the project. Here at Century Systems, we offer full-service automation engineering capabilities. Our team of engineers, project managers, account executives, fabricators, and installers see to it that your project is completed, from cradle to grave. Send us a message or give us a call to have a quick consultation with an automation expert.

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Warehouse automation trends that will dominate in 2022

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warehouse automation trends 2022 blog header image

2021 has proved to be a year of unforgiving supply chain challenges. From shortages in raw materials and important electronic components to understaffed operations and demand congestion. What trends in warehouse automation have been developed to avoid supply chain disturbances in 2022?

If there has ever been a time to consider warehouse automation, it would be now. Many DCs and warehouses have experienced an increase in demand, whether it be for products, or in clients. Adversely, the required labor needed to accommodate has subsequently dried up. Positions have gone months unfilled, leaving warehouses to turn to higher incentives for applicants or forms of automation that would eliminate the need for such positions. A growing trend among warehouse staffing is to maximize productivity by equipping employees with technology, and the knowledge to utilize them.

2022 automation trends MHI quote 1

1. Co-op automation

Voice-to-pick

Humans and machines working together, and not as counterparts, can eke the most efficiency out of warehouse operations. Voice-to-pick solutions, when combined with a robotic pick module, benefits when a human operator can continually pack orders, and use voice commands to operate a pick solution for the next order.

Wearables

Employees can be equipped with a plethora of devices to boost accuracy and productivity. Tablets running WMS software can be outfitted with wrist or armbands, so employees can always have both hands free. Enabling on-the-go access to inventory and order information keeps operators on-task, instead of having to access a static terminal.

2. Developments in warehouse automation technology

As new technology becomes more developed and available, so does the functionality of specialized solutions. Every warehouse is different, which means unique material handling challenges are posed for solutions provides to tackle. A few automation systems that have seen continued usage and advancements in 2021, and are expected to be major focuses in 2022 include:

  • 5G connectivity adaption
  • Warehouse distribution drones
  • Climbable pick robots
  • WMS automation integration platforms
  • Micro-fulfillment
  • Advances in machine vision
  • Electric standard (UL and ISO) revisions
2022 automation trends MHI quote

Century is constantly keeping up with new trends and technology, all in an effort to engineer the absolute best in efficiency systems for our clients. Our firsthand experience of the stressors has provided us with the insights to recommend scalable and dynamic warehouse solutions. 2021 has been unkind to all facets of the supply chain, and new warehouse technology and processes are in place to make sure there’s not a repeat in 2022. Get in touch with one of our automation experts and re-engineer the efficiency of your warehouse.

3. A focus on domestic supply chain partners

Supply chain turmoil, while affecting all involved, greatly disrupted those using overseas resources. Port congestion, expensive container prices, sky-high shipping fees, and the Delta variant have strangled international lines. In response, companies are searching closer to home for materials and services, avoiding such headaches in the future.

While outsourced partners may be cheaper up-front, eliminating loss and inefficiencies associated with overseas supply chains may prove fruitful after an extended period of using a domestic partner. 2022 will show how many companies decide to make the flip.

4. ScaaS (supply-chain as a service)

While not an entirely new idea for 2021, the expectation is that 2022 will see more users of SCaaS platforms. Essentially, SCaaS follows the footsteps of SaaS (software-as-a-service) by offering users supply chain functions through an external company. While full-service third-party logistics companies exist, SCaaS solutions strive to provide services for every step, from sourcing, manufacturing, transportation, procurement, reporting, and more.

With more and more companies strapped for staffing and adequate resources, enrolling in a tailored SCaaS platform can alleviate some of those operational pressures. Warehouse flexibility should be a key implementation goal as the new year inches closer.

5. DTC eCommerce disruptors

The explosive and continued growth of eCommerce continues to lead companies to invest in online shopping. For example, Shopify, a leading eCommerce platform grew 110% YOY in the first quarter of 2021, achieving a total revenue of $988.6 million. Industries that typically see a majority of sales via traditional brick-and-mortar channels have dipped their toe into direct-to-consumer sales, such as the alcohol industry, with companies like Drizly experiencing significant demand for home-delivery services. This boom has turned many eyes to new customer behaviors, and 2022 will see many larger organizations adopting DTC eCommerce warehouse automation systems as an additional revenue source.

In summary, the major focus for 2022 is FLEXIBILITY. Ensuring operations can scale quickly due to outside stressors like demand increases and staff shortages is the next step in continuous company improvement. 2021 was the year of reactivity, a learning lesson that hit hard and continues to sting. 2022 will be the year of proactivity- building up resources to avoid losses, establishing high-performing automation, and closely adapting to target consumer behaviors will separate the organizations that will thrive, from the ones that will remain stagnant or even worse, fail.

10 Warehouse Ideas for Outstanding Continuous Improvement

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warehouse continuous improvement blog header

The job of a continuous improvement professional is a multi-variable logistical nightmare, and typically they’re juggling multiple processes and implementation projects at once. A warehouse, whether used for manufacturing, storage, distribution, order fulfillment, or all four, is an integral point of the supply chain where many continuous improvement and operational excellence professionals (like yourself) focus on.

Century Conveyor Systems has over 40 years of working with warehouse operations and understands where streamlining tactics can be administered. Here are our 10 insightful ideas to generate positive warehouse performance.

1. Real-time warehouse visibility

Real-time visibility into warehouse operations through HMI (human-machine interface) will give you valuable control and insight into day-to-day product movement. Allowing warehouse employees detailed error notification, showing the status in all areas of the system, and providing remote access to all control stations located on a system are just three of the major benefits of an HMI.

Adding or updating an HMI program to any automated system immediately begins to increase productivity within a facility, and HMI programs give the warehouse employees a much easier approach to operating an automated system effectively.

2. Evaluate communication channels

How do your warehouse workers communicate with each other (if, at all?). A growing solution that many warehouses are adopting is providing communication methods for employees. This could be as simple as walkie-talkies or as integrated as a voice-to-pick system that prompts employees on picking operations.

Effective communication also extends to project managers. While the typical array of emails, video meetings, and phone calls are here to stay, ERP solutions can integrate direct messages based on specific projects, timelines, and areas of focus. SAP and Oracle are common platforms, but more focused ones like Jira can be implemented as well.

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3. Effective waste reduction

Environmental awareness should be an area of continuous improvement for any warehouse. Whether it’s distribution or manufacturing, waste is a byproduct of the operation and must be disposed of or repurposed quickly and effectively.

The most common form of waste disposal is a baler, which typically compresses packaging refuse (like corrugate or plastic). For operations that produce a larger amount of waste, a trash conveyor can move waste into a baler, so all workers must do is move their trash to the line as it automatically takes it away.

4. Maximizing warehouse space usage

Warehouse space is extremely precious-ensuring there’s room for storage, order fulfillment, loading, maintenance, employees, and office space- all while following building codes, is no easy feat. If space is at a premium, but additional systems will need to be implemented in the future, a few capacity-saving solutions can provide some leeway.

  • Inclined and spiral conveyors
    • Suspended conveyor sections above the warehouse floor.
  • Mezzanine structures
    • Walkways and platforms suspended above the warehouse floor.
  • Narrow-aisle racking
    • Special forklifts can be used to access pallets in these lanes
  • ASRS
    • Automated cranes travel within narrow-aisle racking structures to retrieve pallets
  • Shuttle system
    • Items are held in compartments within a complete racking structure, eliminating aisles completely.

If there are warehouse constraints you’re aware of, it may be time to complete a cost-analysis of keeping existing structures or replacing them with space-saving solutions.

5. Influence performance in partners

Transparency and a reporting cadence among partners are key to ensuring your process improvements extend outside of the warehouse. Whether it’s a third-party logistics company that cross-docks your products, or a trucking broker that provides delivery to retail stores, you should be informed of their performance like they’re your own employees.

Many partners provide data reporting software that’ll integrate into your WMS or send automatic updates via an internal portal or email. Review this data and ask questions on any discrepancies, sharing thoughts on where improvements could be made. Fostering open communication and knowledge will benefit both you and your partners and generate performance across the entirety of the supply chain.

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6. Reduce manual labor redundancy

Repetitive manual tasks within a warehouse can be a significant profit drain, especially when finding reliable labor is difficult. Although a more expensive upfront cost, automating such tasks quickly pays itself back and outpaces manual operations in every aspect.

As an example- manual box erecting requires at least one employee (more if it’s a 24-hour warehouse) to simply fold and form boxes all day. An automatic case erector can replace inefficient repetitive laborers, and far outpace their output and associated costs. There are many automated solutions, and each has different benefits and functionality. Century can help you navigate and engineer a system that’ll boost every aspect of your continuous improvement efforts. Let us know about what you’re working on, and we’ll be happy to share our experience.

7. Spur team collaboration

A term you may have heard before, a kaizen process is the idea that employees from all levels of a company can collaborate together to provide insights and skills in the pursuit of incremental improvement.

Every employee works on a specific touchpoint in your warehouse and most likely has deeper knowledge on whatever they manage the most. In this sense, they can provide expanded details that when rectified, can impact the overall process positively.

For example, a maintenance director may know which systems experience the most downtime, and why. Opening lines of communication and collaboration between different departments can solve inefficiencies that wouldn’t have been recognized otherwise.

8. Integrate a powerful WMS platform

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 batch number, storage location, inventory quantity, and a multitude of SKU data for ordering. A WMS can even offer the best shipping rate selector and presents data with specific handling information (like weight and dimensions).

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.

9. Follow supply chain technology developments

As a continuous improvement professional, you should be aware of new developments in supply chain and warehouse technology. Solutions are becoming more nuanced in the sense that there is very specific functionality it provides, which could offer a potent process improvement if applied correctly.

The best way to stay up to date is by setting up a collection of RSS feeds that gathers news and press release articles from industry-leading websites. RSS.app is a great RSS program to start with. Checking your feeds on a daily basis keeps you in the know and allows you to be a proactive supply chain executive.

10. Establish and compare KPIs

Most importantly, before any continuous improvements are implemented, benchmarking has to be done to validate the cost-benefit and efficacy of your strategies. Identify the implementation points in the warehouse and compare output rates over a certain timeframe.

Coordinate with an engineer or plant manager on the system rates of any solutions used, and set goals on where you’d want those rates to be. Many reporting platforms offer KPI settings to collate data around a preselected criterion. Fine-tune these settings to identify inefficient warehouse touchpoints and explore solutions on what would solve them, while maintaining a positive ROI.

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The Lifesaving Importance of a Responsive Medical Device Distribution Operation

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medical device distribution blog header post

If the pandemic taught us anything, it’s that distribution operations for medical devices and equipment MUST be poised to accommodate for fluctuations in demand and in supply chain shortages. A multitude of factors can cause important distribution of key medical items to slow:

  • Manufacturing material shortages
  • Shortages in unskilled labor
  • Distribution that cannot handle significant demand
  • Additional safety protocol and procedures
  • Local government enforced restrictions
  • Use of manual operations where automation could be integrated
  • Outdated or ineffective inventory management systems
  • Inaccurate item storage and replenishment

Ensuring stable operations and quick delivery of medical products is paramount to the health and safety of its users, and the integrity of the company providing the distribution. Hospitals and practices are depending on their shipments to treat their patients, and an ineffective distribution system simply won’t cut it.

Dynamic inventory visibility

The first step to updating medical device and equipment distribution is always knowing the status of inventory items. Warehouse visibility is critically important for fulfilling orders, tracking output rates, and replenishing stock.

A warehouse management system (WMS) like SAP or Oracle. These platforms provide insight into inventory, quality procedures, production supply, delivery and transportation specifications, and labor management. The WMS collects data throughout your warehouse by utilizing process touchpoints, like an order manifest or a shipping label scan, to accurately track and provide details on all movements.

Depending on the solutions integrated within a facility, program integrations can be added to provide additional functionality. For example, Hytrol provides their Pivot software, so that their systems can more easily communicate and provide data to the entirety of the WMS.

It’s important to accurately have a grasp on the daily ongoings of every warehouse operation, and before investing in any automation, having full visibility of your operations is a must.

Reliable and quick order fulfillment

With medical devices and equipment, the time when an order is manifested, to when it ships out should always be analyzed for continuous improvement. What manual operations do you currently employ that could be automated? Essentially, every link in an order fulfillment process has an equivalent automated solution that will greatly outpace manual labor.

With medical devices and equipment, the time when an order is manifested, to when it ships out should always be analyzed for continuous improvement. What manual operations do you currently employ that could be automated? Essentially, every link in an order fulfillment process has an equivalent automated solution that will greatly outpace manual labor.

  • Box forming- case formers and erectors, robotic arm formers
  • Box sealing- case sealers, tapers
  • Movement and picking of items- conveyors, shuttles, AGVs/AMRs
  • Print and Apply- Automatic shipping label printers and applicators
  • Sortation- Sorter conveyors and shuttles
  • Palletizing- Automatic robot-arm palletizers/depalletizers
  • Storage- canted racking systems, ASRS units
  • And much more

System downtime avoidance

System downtime is a constant threat to a continuously profitable operation. The importance of proper maintenance and ongoing support is paramount to keeping orders shipping on time and clients satisfied. Unplanned downtime can cost companies up to $250,000 per hour, with 82% of businesses experiencing at least one system outage over the past three years (source).

In the medical devices and equipment vertical, unexpected downtime should be prevented at all costs, considering the importance of the contents being handled. Before a new solution is engineered and installed, plan a routine maintenance schedule. This may include technicians visiting your site a few months out of the year to do a check-up and replace anything that may be worn or broken. It’s also good practice to maintain a parts supply, in the event a critical part fails, and an immediate replacement is needed

Automation for sterile environments

In the wake of the pandemic, various companies have fortified their approach to employee safety and facility cleanliness. In a distribution facility for medical devices and equipment, where sanitization is a necessary step in the supply chain, automation can integrate as well.

AMRs (autonomous mobile robots) have recently been implemented with sanitization functionality. Tooling is switched out for bacteria-killing UV lights, or a disinfecting spray. Autonomous floor cleaning robots are also common, providing reliable, routine cleaning while forgoing the need for an employee to operate a cleaner manually.

Flexible warehouse engineering

Warehouse distribution processes can experience a significant downward trend of output efficiency by a variety of outside factors if future-focused automation options aren’t accounted for in the engineering phase. When selecting a solution, always ensure that your engineer leaves room for future systems to be installed or additional functionality for existing systems (retrofitting)

Consider the trajectory of your business. Are you expecting a new product line or special handling process (such as cold storage) to be integrated in the future? Careful evaluation should be practiced, as warehouse space is precious.

Century Systems has had experience with engineering distribution systems for medical devices and equipment companies (here’s a case study on a past client of ours), and we understand the importance of reliable and stable output rates. All of our projects are designed to be as efficient, turnkey, and results-driven as possible.

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10 Tips on How to Implement Powerful Automation for Wholesale Distribution

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10 powerful automation solutions for wholesale distribution blog header image

Operating a wholesale distribution process is a complex series of moving parts. Each organization has a mix of inventory and typically involves itself in the process of purchasing, storing, and selling products to end buyers like retailers or other wholesalers. With the number of items wholesalers handle daily, it’s no surprise that many invest in automated solutions to enhance operations.

“Product availability and quality is a key element, together with a delivery service that is accurate and efficient is a driving force for businesses.”

Sedat Kaan Hendekli
Head of Operations at JJ Foodservice
Source: BetterWholesaling.com

The burning question is, what automation works best for the wholesale industry? We’ve compiled a list of 10 automation applications that we’ve experienced integrating in the past for some of our wholesale clients.

1. Robust inventory management system

The ability to have complete visibility of a wholesale operation at all times is paramount to effective distribution. A warehouse management system (or WMS) stores vital information such as scan dates, storage location, supply quantities, and a multitude of SKU data for ordering. Depending on the manufacturer, automation systems can integrate with a WMS and provide even more functionality and reporting data.

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 the conveyor and sounding an alarm for a worker to remove the incorrect item.

2. Robotic palletizing for redistribution

For wholesalers who use pallets, either robotic palletizing solutions automatically build and break a pallet. 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.

3. Rapid order fulfillment

Delivery expectations have greatly increased in recent years, primarily due to the prevalence of same or one-day shipping offerings online. Those expectations have extended to wholesaler clients, whose operations must match a competitive wholesale e-commerce landscape. Much like adjacent markets (third-party logistics, for example), automating order fulfillment is key to satisfying customers, while also offering an edge over the competition who don’t have quick shipping incentives.

A tried-and-true conveyor system is best suited for order fulfillment. Depending on the size of the warehouse it’s installed in, and the product being transported, a conveyor system can include a variety of automation:

  • Pack Tables
  • Carton Forming
  • Carton Sealing
  • Label Printing and Application
  • Destination Sortation
  • Loading Assistance

4. Automation-aided picking

For most wholesale operations, an inventory boasting thousands of different products and items is normal. Order picking is usually where inefficiencies are identified, as manual labor is greatly outpaced by a variety of automation solutions.

  • ASRS
    • An ASRS (Automatic Storage and Retrieval System) 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.
  • AMR/AGV
    • Automated Guided Vehicles (AGV) and Autonomous Mobile Vehicles (AMR) both provide a multitude of functions, typically moving items from one area of the facility to another, absent of human interaction. The difference between the two is in the way it senses the environment. AGV’s move by using a sensor that follows a set path (typically a form of sticker or tape on the ground). AMRs move by sensing objects around them, and learning an optimal path. In this sense, both have applications that one or the other is better suited to.
  • Shuttle Systems
    • For the best of both worlds, a shuttle system utilizes pick robots within a racking structure. When an order is being fulfilled, the robot navigates to the compartment where the item is held, retrieves it, and brings it to the worker’s pack station or an item dispenser receptacle.

5. Flexible packaging

It goes without saying that a massive catalog of products varying in weight and size would need packaging solutions just as versatile.

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.

We go in-depth on carton packing solutions in our 3PL Automated Box Packing Solutions for Powerful and Profitable Order Fulfillment post.

6. Reliable 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.

Wholesalers supply a diverse range of customers from all over, so quick, and accurate diverts are required to keep items moving and heading to the right destination. Selecting the correct type of sortation system is where the most thought should be put, as it all matters on the dimensions of the product being moved.

7. Effective pallet handling

Pallets can be cumbersome to transport throughout a warehouse, so offering simple solutions to warehouse workers to decrease human touchpoints with pallets can prove effective.

  • Pallet conveyor
  • Pallet flow rails
  • Pallet lifters
  • Pallet positioners
  • Gravity racking
  • Tugger and dolly attachments for AGVs

8. Maximize warehouse space

Wholesale warehouse space is extremely precious. Ensuring there’s room for storage, order fulfillment, loading, maintenance, employees, and office- all while following building codes, is no easy feat. If space is at a premium, but additional systems will need to be implemented in the future, a few capacity-saving solutions can provide some leeway.

  • Inclined and spiral conveyors
    • Suspended conveyor sections above the warehouse floor.
  • Mezzanine structures
    • Walkways and platforms suspended above the warehouse floor.
  • Narrow-aisle racking
    • Special forklifts can be used to access pallets in these lanes
  • ASRS
    • Automated cranes travel within narrow-aisle racking structures to retrieve pallets
  • Shuttle system
    • Items are held in compartments within a complete racking structure, eliminating aisles completely.

9. Accurate 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).

10. Forecast planning and optimization

Warehouse automation continues to improve as newer technologies are created and adapted. Artificial intelligence (AI), drones, machine vision, voice-to-robotic-pick, and warehouse data-driven learned actions are just a few examples of what’s on the horizon.

The wholesale industry is only going to grow, and understanding the current constraints of your warehouse, and the projected sales volume per quarter should be your guiding logic as to what automation can be implemented, and when.

Century Systems has had experience engineering systems for the wholesale industry (here’s a case study on a past client of ours), and we understand the importance of reliable and stable output rates. All of our projects are designed to be as efficient, turnkey, and results-driven as possible.

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

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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

rise of ecommerce in wine and spirits industry blog header image
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

wine and spirits warehouse solutions for distribution blog post

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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