Material Handling | 2019 PLI Report

MATERIAL HANDLING MARKET AND PRODUCTION LINE INTELLIGENCE

Overview EPTDA was founded as the European Power Transmission Distributors Association in 1998 in Marbella, Spain, on the initiative of a group of power transmission and motion control (PT/MC) industrialists who believed in bringing together PT/MC distributors and manufacturers on one unique platform. It has since become the largest organisation of PT/MC distributors and manufacturers in EMEA and is one of the most powerful and respected B2B executive platforms for the industry worldwide.

EPTDA’s mission is to strengthen its members in the industrial distribution channel to be successful, profitable and competitive in serving customers to the highest standards. The association takes great pride in its values which focus on being a premier community for qualified members through open dialogue and mutual respect; acting with integrity, honesty and fairness; and ensuring continuous growth and learning.

EPTDA continually strives to develop relevant tools for its members, helping them stay competitive in a constantly evolving marketplace and business environment.

As part of the development of tools and resources for members, this document is designed to add value to their commercial understanding of specific markets and production line processes. This document, on the Materials Handling industry, follows the success of the first report in 2016 on the Soft Drinks industry, the second in 2017 on Confectionery and most recently, the Automotive industry in 2018.

Purpose of this document The purpose of this document is to provide distribution management and their sales forces with market and production line intelligence on the material handling industry, primarily in warehousing and fulfilment centres. This document explores trends, identifies products used in moving products from point to point, clarifies key challenges and considers the opportunities and how they can be capitalised.

This document has been divided into three parts:

1. Industry Overview

Page 4—9

This first section provides an introduction and overview to the material handling industry and gives key background information, market intelligence and major players within the industry. It has been organised as follows: a. Definition, segments within the industry and market share b. Market size and coverage c. European sales data and evolution d. Current and future market trends e. Overview of challenges f. Key demographics g. Key producers in the materials handling industry h. Major machine builders

2. Production Line Intelligence

Page 10—23

This section illustrates several examples of material handling processes so as to provide an understanding of what is involved and where the opportunities lie. Key customer challenges, major product groups, typical maintenance and improvement projects are identified throughout the line, as well as highlighting potential areas of commercial opportunity for the distributor.

3. Use of this Document

Page 24—25

The opportunities within the material handling sector, both for MRO and OEM distribution are significant – an estimated minimum ‘scale of opportunity value’ (SOV) of 750 million€ has been estimated as available for distribution in the aftermarket. The final section proposes how the document could be used and provides open-ended questions that can be asked to prospective customers in order to reinforce the knowledge gained in parts one and two and to maximise the available opportunities.

3

PART ONE

Material Handling Industry Overview Definition, segments within the industry and market share

Market size and coverage

Material handling is the movement, protection, storage and control of materials and products throughout manufacturing, warehousing, distribution, consumption and disposal. This is normally within the confines of a single building or location, before the materials are then transported elsewhere. Further to this, material handling includes the protection, storage and control of those materials, products or services, using fluid or mechanical power and automated systems.1 Material handling is therefore an essential component and process for the movement of goods for many industries and service businesses.

Material handling is integrated within industries such as food and drink, automotive and pharmaceutical. However, the major growth is within the warehousing and stock management of goods for global companies such as e-commerce site Amazon, Allegro in Poland and Alibaba in Asia. As well as national players and logistics centres in food storage, major supermarkets and online retailers. It is in this area on which this document focuses – that is, on the handling of goods (post-production) in warehousing, distribution hubs, fulfilment centres and postal services.

In 2017 the global material handling equipment (MHE) market was worth over 112 billion€ and is expected to exceed 142 billion€ by 2022 with a CAGR of 5.5%. Driving this growth is the increase in production capabilities from rising demand for sophisticated automated systems, such as real-time inventory management, picking accuracy and safer operations. All of which enable manufacturers and warehouses to load and transfer at higher speeds, reduce labour costs and improve order fulfilment efficiency.2 In 2015, Europe held the largest market share of the global material handling market, however China has since overtaken – now representing almost half the market (41%). Despite this, the European market still represents 34%, with the next largest market share at 19% by North America.3 As a key driver of the material handling industry, it is of no surprise that the e-commerce sector generates almost 20% of the industry revenue but it is also heavily prominent in the automotive and electronic sectors for the storage and transportation of goods once they have left the production line as well as in the food industry especially in the growth of cold storage.

Material handling equipment and application4 Material handling

Application

Product

Storage equipment & AS/RS systems

Transport (vehicles & transfer)

Robotics & AS/RS systems

3rd party logistics (3PL)

Racks

Automated guided vehicles

Conveyor belts

Systems

E-commerce

Stacking frames

Hand, platform & pallet trucks

Stackers

Robotics

General merchandise

Shelves, bins & drawers

Order pickers

Reclaimers

Automated retrieval

Food retail

Mezzanines

Pallet jacks

Elevators

Conveyors

Food & beverage

Unit load

Side loaders

Walkie stackers

4

Bulk material handling equipment

Durable manufacturing

Global market share for material handling equipment in 2017, by region5 3% Oceania

3% Central / South America

Global Automated Material Handling Equipment (AMHE) market share in 2016, by type6

1% Africa

Other AGV 6%

North America

9%

19%

Asia Volkswagen Group

37%

Robotic Systems

40%

Conveyor Systems

21%

34%

27%

Europe

AS/RS

Global material handling equipment revenue share in 2015, by end use7 Robotic systems

Other

Robotic systems make up over a third of the equipment and are used to continuously assemble, pick, pack and place products in an efficient and timely manner to reduce human error.

These systems are heavily used in packaging, automotive and manufacturing industries which can be explored further in their respective EPTDA Production Line Intelligence Reports.

Chemical

E-commerce

10%

4%

19%

Aviation 12% 16%

Automated storage and retrieval system (AS/RS) AS/RS make up over a quarter of the automated materials equipment and are complex devices. They enable manufacturers to operate a seamless process of ordering and logistics management reducing human involvement and inevitably cutting expenses both in the short and long term.

Automotive

12%

Food & Beverages

13%

Pharmaceutical

14%

Semiconductors & Electronics

Conveyor systems Conveying systems are the third most popular automated systems equipment and are used to move bulk material from one place to another. Available in many forms – from pneumatic, vibrating and vertical – they are used to support many industries. This sector is expected to dominate the global market over the next few years.

Typically, the handling of smaller goods will see greater use of manpower over conveyor and robotic or automated systems.

Despite this, adoption of automated material handling equipment (AMHE) is expected to be seen in 25% of all material handling processes in factories and warehouses by 2022.8

5

European sales data and evolution Production value of transportation & storage in 2016, in million euros, by region9

214.0

208.1

200

222.6

France

United Kingdom

160

164.2

46.4

42.9

79.9

40

50.3

80

64.1

120

81.7

Production value of transportation

240

Belgium

Poland

Norway

0 Germany

Italy

Spain

Netherlands

Switzerland

Country

The European Logistics industry, which includes transportation as well as material handling, generates over 900 billion€ each year. Fuelled by Europe’s increasing urbanisation, GDP growth and demand for e-commerce to be located closer to customers, it is currently one of the biggest industries within Europe.10 Of this, warehousing, terminal and contract logistics has a market share of just over 50%.11

Companies strive to locate their warehouses, fulfilment and distribution hubs within the ‘Blue Banana’ zone so to be able to reach customers as quickly and as readily as possible.12 More recently, a second belt known as the ‘Golden Banana’ or ‘European Sunbelt’ – covering the coast between Valencia and Genoa – has seen the increasing development of logistical and materials handling centres.13

Cities with highest production value of transportation and storage tend to fall across the European area known as the ‘Blue Banana’ – featuring densely populated and wealthy cities.

Composition of material handling, lifting & storage equipment in Europe, in 201614 Storage & equipment Software & automation

8% 14%

78%

Material handling & lifting equipment

6

The Blue and Golden Banana arcs of Europe

Key demographics

Current and future market trends The rising awareness of high performing automated handling equipment and its benefits is enticing companies to replace the use of traditional human techniques. Optimising their systems not only increases productivity but enables the users to control these automated systems remotely, offering features such as precise operational capability, real-time inventory control, order picking accuracy and safer operations.

In addition, competition forces companies to find ways of keeping production costs low and as sustainable as possible.

Material handling equipment and systems offers a solution to this challenge by improving operational efficiency and bettering the order-to-delivery process.

For example, with the increase in urbanisation, industries in power and mining have turned to material handling equipment and systems such as large conveyors, in order to respond to this growth.16 It is expected therefore that with the increase in urbanisation, so will the increase in demand for material handling solutions.

Material handling technology is constantly being advanced with rising synchronisation between different systems expected to result in the development of machine-to-machine co-ordination and communication.17 This will help warehouses and fulfilment centres to optimise workflows and to reduce downtime of machinery or equipment through the detection of malfunctions.

Research and development has also seen material handling equipment that is smaller, yet more efficient, so that technology is less expensive to install and easier to operate, whilst also offering a solution to maximising utilisation of available space – an increasing premium across Europe.18

19.6

15 13.2

10

5 14.2

Increasingly, retailers are also seeing age groups being more willing to buy ‘big ticket’ items online now than fi ve years ago, for example cars.14 This could see material handling equipment and systems becoming more and more integral to industries that have previously been less impacted by the demands of the digital and e-commerce sectors.

20

14.7

Whilst Generation X (born between 1966 – 1981) have greater disposable income than Millennials (born between 1981 – 1996), Millennials were found to make more online purchases than other age groups, with 45% admitting that they prefer to purchase online due to the ability to compare products and for convenience.

Production value of material handling equipment in the EU in 2016, in billion euros, by sector15

Production value of materials

With increasing demand for e-commerce and the digitalisation of the retail sector, whereby advances in technology, logistics and payments are paired with the rise of internet, mobile access and consumer demand for convenience, there is increasing need for speed and accessibility to products and services. Material handling systems are one of the ways in which manufacturers and courier services are able to respond to this demand.

0 Cranes & lifting

Industrial trucks

Continuous handling equipment

Packing & storage

Sector

In response to this premium cost, warehouses are bringing in engineering expertise, of a variety of sizes, to modernise, extend, develop and create new conveying systems that make the most of available space.

Speed is also a crucial factor for the development of new technologies in material handling. In UPS’s flagship facility centre in Cologne, it takes, on average, 15 minutes for one item to move from entry to final loading point.

One way to improve speed is through the installation of robotics and automation (AS/RS). Industry 4.0 and the Internet of Things (IoT) applied to material handling will see smoother order picking and real-time tracking whilst making efficient use of space for storage.

For example, fixed systems of interconnected conveyors which cross long distances, whilst also being able to sort dozens of packages every second. Additionally, articulated robotic arms are used to sort and pick out a variety of goods.19 Sensor technology is increasingly being used throughout the material handling process as it becomes more and more affordable. It can be used for detailed shipment tracking to provide consumers transparency in real time (from sorting, picking and packing, through to delivery). 20 Plastic pallets are identified as offering greater benefits over traditional wooden pallets due to durability, safety and light weight for transportation. It is also estimated that the move from wooden to pallet could see overall costs of transporting goods or materials reduce by 35%.

Plastic pallets are less likely to break or suffer misalignment than wooden pallets and therefore do not require as frequent replacements. As such, plastic pallets are particularly popular in industries such as dairy, pharmaceutical and beverages. 21 7

Overview of challenges As the world speeds up, so do the demands of the customer.

This paired with increased online sales climbing every quarter is putting pressure on the industry to ship the goods faster, as demonstrated by Amazon’s ‘Prime’ service whereby goods are delivered the very next day.

As equipment becomes increasingly sophisticated and more automated, warehouses and fulfilment centres become even more reliant on continuous support and maintenance. This is both an opportunity and a challenge for maintenance-oriented service companies, to be able to prove they have the capability to meet expectations and help with improving efficiency.

Storage Due to a scarcity of prime warehouses in Europe, it has led to a series of bidding wars where space is priced at a premium.23 Online retailers have responded to this by adding smaller warehouses (up to 2,500 sqm) to their logistics networks, enabling them to provide quicker delivery services.

Although smaller in scale, this has led to the increase in warehousing facilities being set up throughout Europe in order to speedily meet customer demand.

As this demand increases for property, so do the prices for renting or purchasing land to house these distribution or fulfilment facilities. Therefore, manufactures look to find other areas within the process for cost-cutting, or turn to innovative material handling equipment so to meet greater demand with tighter deadlines.24

As a result, warehouses are now found in a variety of shapes and sizes – from the ultra-large to smaller centres where space is at a high premium.

These smaller warehouses, in order to keep footprint as small as possible, will either construct their material handling process in a vertical fashion, which in turn requires greater mechanical power transmission. Or, they will rely on automated processes to maximise the available space, where manual input is kept at a minimum.

In contrast, the ultra-large warehouses, typically national players such as Zalando in Mönchengladbach, Germany, Morrisons in Sittingbourne, England, or Amazon in Dunfermline, Scotland, will operate on a much wider scale. 25, 26 Instead they are less heavily reliant on automated processes, with greater emphasis on a the human workforce.

Recycling As government bodies and industries begin to implement stricter regulations on recycling, such as the withdrawal of single-use plastic, the material handling player will need to respond accordingly.

In addition, as the end-user of the materials or goods being handled, become increasingly aware of the environmental impact of their purchases, the process of material handling becomes another area in which manufactures must consider their environmental strategy.27

European leaders in logistics and e-commerce28, 29 Top ten logistics companies in terms of revenue Value Rank (as of 2017)

8

Company

Primary Business Geography

Top ten retailers in terms of revenue Value Rank (as of 2017)

Company

Primary Business Georgraphy

1

Deutsche Post DHL

Germany

1

Schwarze Gruppe

Germany

2

Deutsche Bahn AG

Germany

2

Aldi

Germany

3

Keuhne + Nagel Intl. AG

Switzerland

3

Carrefour

France

4

SNCF Group SA

France

4

Tesco

United Kingdom

5

La Poste

France

5

Edeka

Germany

6

UPS Europe NV

Belgium

6

Rewe

Germany

7

The Royal Mail Holdings

United Kingdom

7

Amazon

Unites States

8

DSV A/S

Denmark

8

E.Leclerc

France

9

Dachser SE

Germany

9

Les Mousquetaires

France

10

XPO Logistics Inc.

United States

10

Auchan

France

Key machine & system builders30 Large warehouses will often use multiple system builders. The top ten global materials handling equipment systems in terms of revenue are ranked as such: Value Rank Company (as of 2017)

Primary Business Geography

Vanderlande Industries BV | www.vanderlande.com Providers of logistic process automation at airports and for postal services, Vanderlande Industries move 10.1 million pieces of luggage per day on its baggage handling systems.34

Murata Machinery Ltd | www.muratec.net Also known as Muratec, Murata Machinery operate in logistics and automation, machine tools and sheet metal machinery. 35

1

Daifuku Co. Ltd.

Japan

2

SSI Schaefer

Germany

3

Dematic

United States

4

Vanderlande Industries BV

The Netherlands

5

Murata Machinery Ltd.

Japan

TGW Logistics Group | www.tgw-group.com

6

Honeywell

United States

7

TGW Logistics Group

Austria

8

Buemer Group

Germany

TGW Logistics develop supply chain technologies, products and turkey solutions for material handling, intralogistics and warehouse automation. 37

9

Fives Group

France

10

Swisslog AG

Switzerland

Other significant players in the industry

Honeywell | www.honeywellaidc.com A multinational group that produce a variety of commercial and consumer products, including solutions for transportation and logistics and systems for distribution and postal facilities.36

Buemer Group | www.beumergroup.com Buemer create design a variety of systems, including airport baggage handling, postal and warehousing. They also operate in the food and beverage sector.38

•

Knapp | www.knapp.com | Hart bei Graz, Austria

Fives Group | www.fivesgroup.com

•

Egemin Automation | www.dematic.com | Zwijndrecht, Belgium

Fives Group supplies multi-sector machines and key process equipment for industrial materials and intralogistics. 39

•

Witron Logistik + Informatik GmbH | www.witron.de | Parkstein, Germany

Swisslog AG | www.www.swisslog.com

•

Kardex AG | www.kardex.com | Zurich, Switzerland

•

Elettric 80 | www.elettric80.com | Viano, Italy

•

Stöcklin Logistik AG | www.stoecklin.com | Aesch, Switzerland

•

Flexlink AB | www.flexlink.com | Gothenburg, Sweden

A global company and a member of robotics supplier KUKA, that designs automated solutions for logistics and healthcare industries.40

Daifuku Company Ltd. | https://www.daifuku.com/ Daifuku specialises in conveying, storage, sorting, picking and controls, specifically for the material handling industry. In 2017, Daifuku reported sales of over 400 billion yen.31

SSI Schaefer | www.ssi-schaefer.com Operating across six continents, SSI Schaefer primarly develop storage, conveyor and logistics systems, as well as waste management technology.32

Dematic | www.dematic.com Dematic build automated system solutions for warehouses, distribution centres and production facilities.33

9

PART TWO

Material handling process - Market Intelligence Introduction This schematic describes the typical process used for material handling in a warehouse, detailing the six key stages: receiving, putting away, storage, manual sorting & picking area or automatic sorting & packing areas, and dispatch.

Cleanliness and health and safety •

This process, whilst being typical, does not represent all material handling. This is because actual plant processes may vary according to the type of material handling and plant scale and facility. For example, warehouse operations are considerably different to those of air baggage handling. However, the key stages described here will be common to most types of facilities and there will be similarities that can be seen across all segments of the material handling industry.

Depending on the type of material being handled, parts must be able to withstand the varying environments e.g. cold storage or goods that must be kept sterile

•

Security system controls for electrical and pneumatic parts e.g. Safety of Machinery Standard ISO13849-1, due to be reviewed in 2020

•

Ionisers are vital to remove the significant risks of static electricity frequently present in various points of the process

•

Electronic intelligence in machines requires that workers are educated and trained about the safety of operating material handling equipment and systems

This section also highlights the key customer challenges specific to material handling. It describes the key product categories used in the process and typical projects in maintenance, repair and overhaul that are often undertaken in such a plant. Key sales opportunities are identified in relation to products and maintenance projects that are supported by distributors with real technical expertise.

Key challenges and themes The following are key challenges that are often found within material handling. Supporting the schematic, additional key challenges relative to specific stages of the production process are identified.

10

Cold stores •

Equipment throughout the process has to be automised due to extreme conditions. For example, in some cases equipment must be able to function in up to minus 40 degrees celsius

•

Due to the harsh environments, parts need to be selflubricating, or even adapted from lubricated to hardened plastic (PU) which can cope better with the cold and not require lubrication at all

Speed and accuracy

Industry 4.0

•

The ability to transport goods and materials at speed is vital to the operation of most facilities, especially online retail centres

•

Industry 4.0 is the practise of interconnected devices communicating with one another, providing human interfaces with real-time data

•

Once storage capacity reaches 18,000 europallets (without conveying systems) processes should move to automisation and see up to 520 pallets moved per hour

•

Industry 4.0 will see more efficient use of materials, selfmonitoring and network connectivity, and thus less downtime of machinery

•

For example, replacing forklift trucks with internal conveyor systems so to improve speed and accuracy of pallet storage per day

•

This enables manufacturers to move away from reactive maintenance i.e. repairing equipment once broken – to preventative maintenance i.e. maintaining, repairing or replacing on a schedule – and also to predictive maintenance i.e. using algorithms and monitoring systems to predict when operations require maintenance

•

With the use of sensors, real-time data and the Internet of Things (IoT), reliable predictions can be made about the status of material handling equipment and systems, so that repairs happen before a critical incident happens, thus reducing downtime and associated costs

Types of material handling •

Depending on the type of goods or materials being handled, there will be different storage and system requirements

•

Goods that require a 48-hour, 24-hour or 4-hour turnaround will have varying needs e.g. food or building supplies may require a faster turnaround from receipt to storage to dispatch, than that of sporting equipment or clothes

After market warranty •

When system builders supply systems to retailers or logistics providers they often include exclusive warranty in the initial sytem purchase within the first two to three years

11

Material Handling Process Process Explaining the process

RFID

ners

scan

atch

Disp

Hig

Fire safety guard RFID scanners

Receiving 1. Receiving Goods or materials are received by the warehouse from delivery trucks at loading and unloading bays – sometimes with an integrated truck bed chain-driven conveyor. Goods are scanned by an RFID reader either manually or at automated points along the conveyor system.

2. Putting away After being unloaded from delivery bays, the goods are transported along conveyor systems to their allocated storage space. This can either be automated through conveyor and warehouse management systems or scanned using handheld devices before being transported manually by hand or by industrial trucks such as forklifts. This is to ensure the journey of goods are tracked throughout the warehouse process before being allocated to correct and/or vacant storage spaces.

12

Putting away

3. Storage The materials or goods are transported according to warehouse capabilities and requirements for storage until later required.

High-level storage, such as multi-tier racking uses a mixture of manual and automated retrieval systems (ASRS) to place goods and materials into storage. Stacker cranes for palletized loads typically operate up to heights of 30-40m. This is ideal for large warehouses requiring optimum use of available space, as well as catering to a variety of environments e.g. cold, clean or other harsh environments.

Low-level storage is typically operated by manual putting away and retrieval. The goods are picked up from conveyor systems by workers in the warehouse and registered with handheld RFID

Process

Palle t

iser

Auto mat pack ic sortin ing g area &

gh-level storage

Automated storage

Sorting & picking area

Low-level storage

Storage scanners before being placed in low-level storage solutions.

These are easily accessible in person or with the aid of forklift trucks or robotic pickers.

Automated storage provides warehouse with compact storage solutions, from mobile shelving fitted with a tracking system that identifies where goods are stored and how to access them when required. These systems are so compact that manual retrieval is often not possible, with serious impact when goods are unable to be retrieved due to machine malfunction or downtime.

4. Manual sorting & picking area Having been retrieved from storage, the materials are manually sorted and prepared for dispatch. This may include packaging and labelling goods for onward delivery.

5. Automatic sorting & packing area Larger warehouses, or those with automatic systems in place, will transport goods from storage to the dispatch area. These processes are very similar to the receiving and putting away stages, but in reverse. As with manual sorting, automated systems are used for packaging and labelling.

6. Dispatch Similarly to receiving, materials or goods are moved from conveyor systems to trucks. This can be done either by manual transportation of goods e.g. forklift trucks, or through integrated truck bed conveyors.

13

Material Handling Process Receiving Explaining the opportunities and projects Key criticial projects within the receiving and putting away areas have been highlighted along the schematic to make it easy to identify which areas of the process have most opportunity.

Other typical product groups to look for in the process include: •

Truck bed conveyor - unloading of goods from delivery trucks is increasingly being conducted by chain-driven conveyors embedded in the floor of the truck. This removes the need for forklift or manual input and increased automisation possibilities

•

Speed of the material handling process is often influenced by the weight of the materials or goods being handled. For example, heavy-weighted goods and materials, especially when being moved vertically, will be transported utilising chain-driven conveyor. In contrast, lighter goods in horizontal positions will typically move along a belt-driven conveyor

Receiving – Key product groups

Receiving – Critical projects

• Conveyor systems – flat-top conveyors, conveyor belts • Roller chain • Conveyor power belts • Drives • Multi-ribbed belts • Gear motors – rightangled, parallel • Invertors

• High replacement of telescopic boom conveyors due to surface wear on belt. SOV: 60k€ for repair and 1.5m€ for replacement • Timing belts for power transmission are changed every 3 – 4 years. SOV: 70k€ per line • Replacement cost of refurbishment of conveyor power belts. SOV: 5 - 30k€ every 3 – 4 years • In food and beverage application maintenance of robotic palletiser and actuator/valve replacement.

SOV: 10k€ • Maintenance of belt-tracking units. SOV: 5k€ per line, with an annual saving of 15k€

• Palletising – deepgroove ball bearings, bearing units • Sensors • Special timing belts • Synchronous and asynchronous motors • Timing belts • Linear guides and drives

Truck bed conveyor

RFID scanners

Receiving 14

Putting away

Putting away – Key product groups • Aluminium profiles • Frame – steel/galvanized, painted or powder-coated • Drives – motor directly placed on shaft • Frequency converters • PU/PVC Conveyor Belts – depends on requirements e.g. oil-resistant, FDV-compliant, temperature

• Roller conveyor without drive • Laterally-driven roller conveyor • Rollers - plastic, aluminium or steel • Hinge bands – plastic, steel or stainless stell • Modular linked belt – used in most new systems for longer conveyor lines with curves • Standard roller chain

• • • • •

Sensors – light and scanners Air preparation FRL Centring units Stopper cylinders Belt-tracking units

Putting away – Critical projects • Conveyor belts have high MRO requirements. SOV: up to 25€ per square metre, with additional costs for welding • Advantage of modular link belts are that they are very flexible, and easy to exchange, reducing minimal downtime • Automisation capacity of up to 520 storage pallets per hour

• Chain in automation of pallets storage has a 3 – 5 year life span, with guides and sprockets replaced at the same time. SOV: approximately 50€ per metre of chain • Where water and cleaning agents are used to a large extent, especialy in food/beverage industries, roller bearings and motors are replaced. SOV: up to 25k€ per annum

Fire safety guard

Putting away **Please note that all figures represent the Scale of Opportunity value (SOV).

15

Material Handling Process Storage Explaining the opportunities and projects Key criticial projects within the storage and sorting & picking areas have been highlighted along the schematic to make it easy to identify which areas of the process have most opportunity.

Please note that storage facilities may include a combination of automatic or manual equipment. Typically, automatic storage will be implemented for large scale sites and warehouses.

Storage – Key product groups

Storage – Key bearing product groups

• Bearings [ see key bearing product groups table] • Belts and timing belts • Couplings – metal bellow, backlash free, clamping elements, chain, gear, elastic [for system closure], precision u-joints • Standard conveyors • Modular systems for pallet-storage based on EU pallets • Labelling & printing – pneumatic cyclinders and valves

• Auto-lubrication plain bearings [PTFE cover] • Bearing units • Cam followers • Condition-monitoring systems [Industry 4.0 ready] • Pillow blocks

• High-resolution sensor bearings [Industry 4.0 ready] • Rollers

High-level storage

Low-level storage

Storage

16

Sorting & picking

Storage – Critical projects • High-level/vertical storage is in increasing usage with special chain/belt applications e.g. linear motion guides and open-end timing belts • Replacement of standard chain with self-lubricating roller chain for use in cold storage. There may be up to 2.5km of chain and associated sprockets c. 85k€ • Replacement of deep-groove ball bearings, gear motors/reductors and guide profiles. SOV: 400k€ • Use of open-end timing belts and with long-length steel core for moving stacker cranes to the picking rack or pallet location. SOV: 25 – 40k€ • Replacement of linear motion belts. SOV: between 75 – 140k€ • Single-point lubrication with centralised system up to 80€ per point • Some storage facilities have roller workshops onsite due to regular maintenance requirements

Automated storage Manual picking area

Sorting & picking area **Please note that all figures represent the Scale of Opportunity value (SOV).

17

Material Handling Process Automatic sorting & packing Explaining the opportunities and projects Key criticial projects within the automatic sorting, packing area and dispatch have been highlighted along the schematic to make it easy to identify which areas of the process have most opportunity.

Sorting, packing & dispatch – Key product groups • Aluminium profiles • Frame – steel/galvanized, painted or powder-coated • Drives – motor directly placed on shaft • Frequency converters • PU/PVC Conveyor Belts – depends on requirements e.g. oil-resistant, FDV-compliant, temperature

• • • •

Roller conveyor without drive Laterally-driven roller conveyor Rollers – plastic, aluminium or steel Hinge bands – plastic, steel or stainless steel • Modular linked belt – used in most new systems for longer conveyor lines incorporating curves • Roller chain

• Sensors, light and pneumatic scanners • Air preparation FRL • Centering units • Stopper cylinders • Belt-tracking units

Sorting, packing & dispatch – Key product groups • Gear motors - rightangled, parallel • Invertors • Linear guides

• Roller conveyors – O-rings, link belts, roller drives, pulleys • Visioning systems

• Standard chain and toothed chain • Synchonrous and asynchronous motors

Key pneumatics product groups • Actuators - pneumatic and electric • Control valves • Fieldbus operating systems • Grippers

• Pressure-relief valves • Safety products • Static control systems i.e. ionisers • Vacuum cups and ejectors

Key bearing product groups • • • •

Spherical roller bearings Strut ball bearings Deep-groove ball bearings Auto-lubrication [PTFE cover]

• Top-line ball bearing systems • Bearing units • Pillow blocks • Cam followers

Palletiser

Automatic sorting & packing area 18

Dispatch

Sorting, dispatch & packing area – Critical projects • Annual replacement of chain for roller conveyors.

SOV: 50k€ • Maintenance of roller chain. SOV: 2k€ • Timing belts for power transmission are changed every 3 – 4 years. SOV: 70k€ per line • Replacement cost of refurbishment of conveyor power belts. SOV: 5 - 30k€ every 3 – 4 years • Major overhaul projects for belts, v-belts, elasticated belts. SOV: 500k€

• Maintenance of PVC conveyor and elasticated thin belts for circular sorters. SOV: between 300 - 400k€ • Replacement of round belts, O-ring belts and extruded kevlar core belts with integrated guides in linear sorters.

SOV: up to 350k€ • Elasticated profile belts for gapping, induction and merging. SOV: 600k€

Sorting, dispatch & packing – Critical projects • Conveyor belts have high MRO requirements. SOV: between 25 – 300€ per square metre, with additional costs for welding • Advantage of modular link belts are that they are very flexible, and easy to exchange, reducing minimal downtime • Automisation capacity from 520 storage pallets per hour

• Chain in automisation of pallets storage has a 3 – 5 year life span, with guides and sprockets replaced at the same time. SOV: 50 – 75€ per metre of chain • Where water and cleaning agents are used to a large extent, especialy in food/beverage industries, bearings and motors are replaced. SOV: up to 25k€ per annum

RFID scanners

Dispatch **Please note that all figures represent the Scale of Opportunity value (SOV).

19

Material Handling - 'Putting it all together' Process Material handling process – ‘Putting it all together’

Palle ti

ser

RFID

ners

scan

Auto mat pack ic sortin ing g area &

tch ispa

D

High-level storage

Automated storage

Sorting & picking area

Low-level storage Fire safety guard RFID scanners

Receiving

Putting away

750m€

20

Storage

The approximate value of aftermarket sales in the material handling industry

Key issues Material handling process – Case studies Annual replacement per customer

End of product case studies – annual replacement per customer

Product group:

SOV:

• • • •

2 – 6k€ 4 – 20k€ 5 – 25k€ 6 – 15k€

Timing belts Support rollers Roller chains V-belts

Opportunities to add value

Product:

SOV:

• Standard conveyor chain for glass storage and packaging • Standard conveyor chain for bottle transportation postproduction • Gear boxes for food storage facilities

10k€ 60 – 70k€ 8 – 15k€

• Using automatic lubrication systems for cost reduction can result in cost savings of up to 30% • Condition monitoring is used to monitor and keep track, in real-time, the status of stages along the process and identify parts that may need maintenance or repair (Industry 4.0) • Align with suppliers to provide training to support reduction of cost of ownership.

SOV: 5 – 10k€ per session

Proportion of replacement products in the process line Chain

Couplings

Couplings Drive

Drive - motors & gearboxes Couplings

Drive 5%

5%

Rollers & bearings

5%

Chain 5%

35%

Pneumatics

20%

Low-level

Belts 5%

Chain

Rollers & bearings

25% 20%

5%

High-level 25%

15%

30%

20%

Belts

General

Belts

25%

5%

25%

Pneumatics

High-level storage

25%

Low-level storage

Pneumatics

Low-level Horizontal Fast-moving E-commerce driven

Rollers & bearings

High-level Automated Weighted Cold-store 21

Material Handling Process Other applications of material handling and postal services, which contain similar elements from the Whilst warehousing is a predominant sector within material warehousing schematic, but will differ in order, scale and handling, there are other segments and industries that Materials Handling - Postal Services extent of automation. material handling plays aProduction significant Line role Schematic in. The following schematics showcase the processes within baggage handling

Postal Services

Receiving and sorting

Large parcel sorting

Dispatch

Baggage Handling

In transit and storage

22

Security inspection

Baggage claim

Key elements of conveyor systems Conveyor systems are featured heavily throughout the material handling process with various capabilities depending on the conditions and requirements of the warehouse, site or facility.

The below diagrams illustrate the six most common types of conveyor systems and their applications.

Chain conveyor

Roller conveyor

Transports pallets up to 1.5kg along the conveyor in a transverse direction.

Transports pallets up to 1.5kg along the conveyor in a longitudinal direction.

Accumulating roller conveyor

Transfer units – turntables

Similar to the roller conveyor, accumulating roller conveyors transport pallets along the conveyor in a longitudinal direction, whereby each pallet has an individual drive and control logic for precision speed control.

Turntables, lift tables and 4-way turntables are examples of transfer units using mounted conveyor modules that can change the direction of pallets by 900 and at speeds of up to 250 unit loads per hour.

Transfer carriage with lifting device

Pallet destacker/stacker

Transfers horizontal loads with chain, roller conveyor or telescopic forks for lighter loads.

Automated dispensing or collection of empty pallets to and from a conveyor system.

Control devices

Electric monorail

Control devices such as light or barrier sensors and mechanical devices are used to automatically determine the load capability of a particular section of conveyor and detect when a pallet passes along.

Whilst most conveyor systems are traditionally floor-based, overhead hangers can be used to maximise floor space, such as creating room for additional storage space and greater movement throughout the warehouse or facility for workers.

23

PART THREE

Using this document to develop business The following provides the reader of this document, either General Management or Sales Team, with some template questions to help to generate revenue from this Production Line Intelligence overview and so develop business in the material handling industry.

For many of these questions you may already know the answers. Others might be used on a regular basis when you visit customers and prospects in other industry sectors. It is meant as a resource to act as a prompt and reminder allowing your business to fully capitalise on this market intelligence and production information.

There are three parts that deal with: 1. Preparing (before any visit takes place) – this provides questions to think about and address before attending the company’s site. This further breaks down into two sections being: a. Detail of the company itself b. The people to be seen and which department 2. The meeting – questions to ask during the meeting to understand the needs, requirements and potential sales opportunities in the prospective customer 3. The follow up – questions to ask or to reflect on, at the end of the meeting or afterwards

Preparing – before the visit The 'Material Handler'

The people to meet

•

What are you visiting?

•

Who are you going to see?

– A manufacturing plant that has to store its postproduction goods in warehousing?

•

What is their role or speciality (facility manager/ maintenance/repair/mechatronics/purchasing)?

– A warehousing facility that stores post-porduction goods ready for dispatch to the end user?

•

What do you know about them already? (hint: search LinkedIn)

What do you already know about:

•

What is your initial summary as to the main challenges they face in relation to purchasing the types of products you can supply?

•

– The size and throughput?

– Its scale in terms of capacity, pallet load, speed, output etc.?

– The stages of the material handling process it has (loading and unloading bays, putting away, storage, picking, packing and/or dispatch)?

General •

– Exploratory

– Do the system suppliers provide after market warranty service?

24

•

How old is the facility?

•

How many people do they employ?

•

Do they have inhouse maintenance engineers?

•

Who decides on purchasing?

•

Does this company have other facilities in your region/ territory?

What are your primary objectives for the meeting – what do you want to achieve?

– Presentation – Breadth of service •

What are the fall-back objectives if the primary objectives is unachievable?

•

What is your proposed agenda?

•

What kind of questions will you ask (in relation specifically to who will be seen)?

•

What is your plan for follow ups to this meeting (further meeting/proposal/meeting with other people)?

•

What kind of support material do you need to take with you?

The actual meeting 'material handling facility' (If not already known, any of the preparation questions above can be asked during the meeting to establish warehouse or site type, size, capacity, age, type, as noted).

The facility •

What sort of plant or facility is this (end of production, food storage, online fulfilment centre, major warehouse)

•

What are the processes used from receipt to dispatch?

– Receiving

•

Do you have existing projects carried out in relation to maintenance or energy management etc?

– Are existing partners – suppliers or distributors – assisting?

•

– Putting away

What are the key maintenance/industrial supplies objectives for the facility?

– Storage

The most utilised products

– Picking/packing

•

– Dispatch

What parts do you particularly utilise most on an annual basis?

•

What type of storage facilities do you have and maintain (high-level, low-level, automatic, manual)?

– What are the issues/challenges you have with getting those parts?

•

Where are your rollers repaired or do you have your own rollers workshop?

•

How much of the process is reliant on manual input or automation?

– Do you expect this to change in the near future?

Maintenance, planning and issues •

What sort of regular maintenance does the plant undergo?

•

What is the estimated annual spend on that maintenance?

• •

•

What are your main concerns in relation to type of production parts that you need to maintain and improve the line (e.g. bearings, mechanical power transmission, pneumatics, etc.)?

•

Where is the process most prone to failure or maintenance problems?

Suppliers •

What do you value most in relation to a supplier like us?

What are your main issues in relation to maintenance?

•

What are the ‘bottlenecks’ in the process that affect speed or reliability?

What kind of support do you look for from your distributor in relation to planned maintenance?

•

What is your biggest current problem with your parts suppliers?

– What are your main issues in relation to maintenance?

– How do you like your supplier partners to assist?

– What are they caused by?

– Are there on-going projects to deal with this?

•

What are the next steps?

– Can we come back with a proposal to help you with some of this?

– Are you using partners – suppliers or distributors – to assist you in this process?

The follow up •

What were the main points you learned from the visit?

•

How will you complete these?

•

How are you going to store this information?

•

What other types of follow up will you undertake and why?

•

How are you going to use this information?

•

Who in your business do you need to share this information with?

•

What are the next steps you need to take and when?

– What have been the success stories?

– How can these be replicated?

•

How will you ensure that these follow ups are completed?

25

Acknowledgements Acknowledgements and a sincere thank you to the following manufacturer members of EPTDA for the generosity of the technical and commercial information and advice that they have supplied and which has given real authority to the document.

Also to a number of technical experts from distributor members of EPTDA operating in this sector, who have provided the concrete examples included in the text and without whose contribution the document would lack its operational and commercial relevance and power for distributors.

Finally to the individual members of the EPTDA Know Your Market Committee and particularly to its Task Group, who have freely given their advice, guidance and inputs throughout the process of producing this document.

Authored by:

Disclaimer: The costed examples contained in this document are illustrations taken from real practice. They are, however, not predictions of future value achievable from various projects that can be undertaken in this sector. The authors, contributors and EPTDA do not accept any liability for any commercial decisions that may be taken as a result of these examples.

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