2023 Warehouse Solutions

utilize

Dyna Pallet stacking frames turn your warehouse pallet into a stackable rack within seconds.

Infinite sizes available with custom made racks. Custom engineered per application.

Warehouse Management

Will warehouse automation replace humans?

Read any article on automated warehouse vehicles, and it’s pretty easy to see there is a lot of hype. Although automation in automated guided vehicles (AGVs) and autonomous mobile robots (AMRs)—my specialty—have come a long way, they are not replacing all warehouse workers.

There is a fair amount of automation hype but automation and various technologies like AGVs impact workers. Companies that manufacture this increasingly sophisticated equipment must consider the social impacts.

AGVs are getting smarter

AGV technology has advanced since the 1950s. The state of the art is being pushed by sensor technology, such that today’s vehicles do more than simply follow a line on the floor. Technology has advanced to a point where rigid infrastructure is no longer needed to tell the vehicle where it is or understand how to get from point to point. That has advanced, and it continues to advance.

In the world of AGV and AMR, there’s a bit of bleed over between the two. AGVs path-follow exclusively, meaning—if you take it all the way back to the earliest of AGVs—they just follow a line in the floor. The newest version of AGVs, don’t do that by any stretch of the imagination, but the concept is the same: Follow some form of guide or instruction to take you from point A to point B. AMRs, on the other hand, path-plan; they work from a blank sheet of paper and can take whichever

path they determine is best to get where they need to go.

Sensor technology is at the point where the vehicles don’t necessarily need to be accurate to the millimeter range. Most are down to plus or minus 20 mm, which is quite good. AMRs are typically plus or minus 50 mm, which isn’t great, but the sensor tech is now allowing us to see where we’re going. So rather than driving to a specific, designated X and Y (and a Z in some cases) coordinate to pick a pallet—which requires a fair degree of accuracy—today’s AMR can now “see” what they want and drive up to it—no coordinates required.

Fear not... humans still needed

Several years ago, AGVs were sold exclusively on ROI, which meant that even though it was pure, horizontal transport—pick a pallet and drop a pallet—it was sold based on how many people (forklift drivers) you could displace from the workforce. AGVs were too expensive to justify otherwise. But that calculation is changing.

Automated guided vehicles (AGVs) in warehouses and distribution centers have come a long way. What does this mean for the human labor force that used to do those jobs?

Early on, companies had to accept an ROI of two to three years. Now, when you start talking multiple shifts, ROI is easily accomplished in far less time. Adding to that ROI are increased

THE BEST MATERIAL LIFT, AND WE CAN PROVE IT.

100% DUTY-CYCLE MOTOR (MILLION+ CYCLES)

HEAVY-DUTY COMPACTED WIRE ROPE

INDUSTRIAL-GRADE

U.S. SOLID STEEL FRAME

RUGGED HELICAL GEARBOX

THESE ARE JUST A FEW OF THE REASONS WHY OUR VRCs OUTPERFORM THE INDUSTRY. GO TO CUSTOMINDPROD.COM TO LEARN MORE.

capabilities. As the sensors are updated and the ability for the onboard computers to do tasks that weren’t possible 10 years ago, AGVs can now perform all kinds of applications. We move further away from just simply replacing fork truck drivers and into cobotic applications. Robots and AGVs are part of picking solutions and integral to the rapid ecommerce intralogistics growth.

However, although AGVs and AMRs are replacing human workers for some types of jobs, we’re a long way from a computer’s ability to think through the challenges of day-to-day intralogistics operations. The jobs that will go away will be the low-hanging fruit for automation. Those are pointto-point transport of goods from the end of an aisle to the dock door, and from the dock door into the truck.

So, human pickers will be here; they’re not going anywhere in the short term. Currently, there isn’t a way to automate that function in a way that is more financially viable, particularly in the fastmoving consumer goods market, which operates on thin margins. You still need people.

Every year there’s a huge number of forklifts sold. But the number of AGVs sold is less than 1 percent of the forklifts sold (but climbing), so by no means are AGVs and AMRs taking over. Although there was resistance to this technology early on, even unions are starting to warm to the technology a little bit. Because of the labor market, they may have no choice. The current labor shortage may

be causing some operations to look a little more closely at automation to fill in for the workers they can’t get.

The other side of this equation is that kids coming out of school probably don’t want to drive forklifts and might not even consider warehouse work at all. In that respect, the warehouse industry is no different than the manufacturing industry. Whether it’s driving a forklift all day or spinning lug nuts onto wheels, those jobs are giving way to automation. Instead, the interesting career work for those just out of school or for those whose jobs are being replaced by automation will be the ability to work behind a computer writing code, programming AGVs, or maybe sitting in an office driving a forklift remotely. The warehouse industry needs to be doing the same kind of public relations work as manufacturing: Today’s modern warehouse is a far cry from what it was 20 years ago.

Technology will continue to advance. Our goal should not be to just look at the ROI of replacing manual jobs with automation, but instead to look for ways to move people who had those jobs into positions that are more fulfilling, better paying, and in the long run add more value to the company and society.

PERFECT ADVERTISING OPPORTUNINITY FOR YOU!

MHNetwork has the following unique advertising opportunities... you still have time....

October 2023 - Staffing your warehouse!

Deadline: September 15th

All warehouse operations are different. We will take a look at some warehouse operations and how they balance warehouse personnel with automation technology. What is the right balance?

November 2023 - Warehouse Productivity Deadline: October 16th

In this issue we look at how your operations flow. From inventory coming in the door, picking products, bagging and mailing the orders and then shipping it to your customer.

Don't miss out and contact Kip Krady NOW! 563 557-4493 or email kip.krady@MHNetwork.com

John Hayes is Owner of No Risk Automation, a 2014 Supply and Demand Chain Executive Pros to Know, and a widely-respected thought leader regarding automation in the materials handling industry.

One of the most

ADAPTABLE and CONFIGURABLE generixgroup.com

Faster time to market

Improved configurability & scalability

Improved reliability

Improved security

Warehouse Efficiency

Is your warehouse truly ready for robotics and automation?

data. Data serves as the ultimate informant about operational nuances, and our unique three-step data analysis strategy, bolstered by AI and a team of design engineers, guides us to the most fitting solutions. Occasionally, this translates to full automation, at times partial automation, and often, it entails enhancing existing setups. Each approach hinges on a 24-month ROI calculation, with our average being 17 months.

Navigating the Automation Landscape

In the contemporary landscape filled with buzzwords and trending topics like robots, RaaS, and automated guided vehicles, prominently featured in trade publications, customers now find themselves more perplexed than ever. The questions loom large: which technology should be adopted, when should it be implemented, how can technology be scaled effectively, what's the cost implication, and what kind of return on investment (ROI) can be expected?

Amid the allure of a fully automated warehouse, where robots pick products and place them onto automated guided vehicles bound for the shipping area, where a second set of robots packs and stacks them, the concept seems undeniably alluring. Yet, the reality is that not all warehouses are primed for this high-tech transformation. In fact, embracing such technology prematurely might inadvertently hinder operational efficiency.

These insights stem from our hands-on experience. As a pioneering material handling systems integrator, we have successfully executed over 500 projects for industry giants in retail, e-commerce, and distribution over the past 27 years, resulting in a wealth of knowledge.

The Crucial Role of Data Analysis

Before delving into the realm of automation solutions, or any solutions for that matter, our starting point rests on delving into our clients'

In the data realm, we embrace the philosophy that more is better. We hunger for insights on building layout, inventory reports, granular product movement data, and every iota of item information we can amass.

Don't misconstrue our sentiment; our fascination with automation is unwavering. Nevertheless, its deployment demands precision timing and meticulous execution. Missteps in this arena could lead to bottlenecks within the fulfillment process or substantial cost burdens. Furthermore, when introducing automation or material handling equipment, the primary question arises—where will it fit? The universally acknowledged scarcity of floor space underlines the significance of each square foot. Consider a scenario: if we reconfigure your facility and provide 10,000 to 20,000 square feet of additional floor space, priced at $300 per square foot, the savings on a replacement cost basis comes to $3 million to $6 million respectively.

Vertical Potential: The Z-Axis Revolution

Distribution centers have excelled in optimizing floor space, yet the same cannot be said for their vertical space. Here at LD Systems, our thought leader, Bob Sutphen, unveiled the "Z-UP" concept. While geometry lessons recall the x and y axes, the Z-axis, the often-forgotten third dimension, proves pivotal. The Z-axis signifies the vertical space within your facility.

Given the preciousness of floor space, ascending vertically can magnify storage capacity twofold or more within your warehouse or distribution center. This cost-effective strategy avoids leasing or acquiring additional structures and, in isolation,

elevates productivity, safety, and storage potential. A fraction of the cost mentioned above.

Prior to diving into the realm of robotics, automated guided vehicles, or AS/RS systems, we suggest a preliminary examination of your current layout and space utilization, encompassing the Z-axis. Only then should your company's data be combed through to make wise choices. If automation stands as the logical next step, then embrace it wholeheartedly!

Embracing the Automated Revolution

As a Material Handling Products System Integrator, our solutions revolve around three main principles: optimizing space utilization by 20% to 60%, increasing productivity by 20% to 60%, and improving order accuracy to a staggering 99.9%, all while guaranteeing an equipment ROI within 24 months.

Currently, we are immersed in automating a leading Master HVACR Distributor. Their journey started in 2019, after moving to a new building. Their previous vendor misjudged storage needs by a substantial 50%. Our intervention encompassed the addition of storage units, conveyors, two mezzanines, and a vertical lift. In totality, we doubled their item-carrying capacity, almost doubled storage, and redoubled throughput. The integration of self-driving forklifts followed, culminating in our ongoing endeavor to automate their facility and increase their shipment volume by a remarkable 120%.

For deeper insights into our several of our projects, visit www.ldslc.com.

Empowering Progress with Automation

If you've visited PROMAT or MODEX over the past years, the spectrum of automation options was everywhere. From on-demand packaging and autonomous forklifts to robotic pick arms and AS/ RS systems, the pickings were ripe.

Recently, a 2023 automation study surfaced, revealing that surveyed companies were poised to revamp or embed various automation equipment. The quartet of pocket sortation, A-frame picking technologies, robotic picking, and automated guided vehicles emerged as the leaders of this movement, align with what we notice.

Pay-Per-Pick and RaaS: Innovative Payment Approaches

In sync with the rapid rise in fulfillment automation's popularity, innovative financial models have emerged. Notably, Robots-as-a-Service (RaaS) and Pay-per-pick have gained prominence.

RaaS represents a business strategy wherein robotics companies lend their robotic assets through subscription-based arrangements. As the allure of robotics surges, a growing number of companies recognize RaaS's merits in risk mitigation and adaptable resolutions for their clienteles.

This model frequently sidesteps upfront costs, relying on contracts spanning one to multiple years, facilitating seamless adaptation to evolving needs and automation trends. Given non-ownership of equipment, the onus of maintenance and uptime rests on the manufacturer.

Pay-per-pick resonates with RaaS but takes a distinct route. In this pricing model, users are billed according to the volume of items handled by a robot. This proves especially advantageous in scenarios like warehouse automation, where charges are intricately linked to a robot's efficiency in processing items.

This model offers flexibility, ensuring effortless scalability. Similar to RaaS, upkeep and guaranteed uptime fall to the manufacturer.

Closing Thoughts

While the adoption of automation is surely a game-changer, warehouses and DCs should do their due diligence before making decisions. As our CEO often says, “you make business decisions based on data, shouldn’t you do the same with your warehouse?” No truer words can be spoken.

The good news is you have all the data you need to make informed decisions on how to best maximize space, increase productivity, improve safety, and reduce order errors. It’s just a matter of knowing how to extrapolate and analyze the data.

LD Systems is a world-class Systems Integrator, having orchestrated over 500 automation projects. Our track record underscores our knack for leveraging technology across industries to surmount productivity hurdles.

Rob Railis at LD Systems If you’re in need of warehouse optimization or thinking about fulfillment automation visit www.ldslc.com/contact/

Nucor Warehouse Systems offers true end-to-end solutions from rack manufacturing and integration services to support from other Nucor businesses including insulated panels, overhead doors, metal buildings and mezzanines.

Nucor Warehouse Systems is solving the most complex challenges for our customers every day with well over $1B in integration projects built across North America. By connecting our material handling expertise with broader resources, Nucor Warehouse Systems is ready to help you take on tomorrow’s challenges today.

is your

Warehouse Systems

warehouse solutions partner.

Warehouse Automation

Exploring drone implementation in the warehouse industry

every type of automation tool possible to improve efficiency. Some companies, like Amazon and Walmart, are already experimenting with drones for product delivery.

But drones can also be used inside the warehouse. Here are four main ways drones are already being used to support the warehouse industry.

1. Inventory Management

The warehouse industry presents a huge opportunity for new technology solutions to boost productivity and provide businesses with competitive advantages. Many companies in this sector have been implementing solutions like robotics, RFID tags, and automated picking systems. Another innovation is warehouse drones.

Drones are one of the latest automation trends aimed at reducing costs and improving efficiency in the warehouse. But how does this technology work, and what are its benefits? Here’s what you need to know about drone implementation in the warehouse industry.

Four Ways Drones are Being Used in the Warehouse Industry

Today’s warehouses are bigger and more complex than ever. As the demand for eCommerce products skyrockets, the average size of a warehouse has ballooned to accommodate consumer preferences. The typical warehouse is around 50,000 square feet. But they can reach as big as 4 million square feet. Warehouses have grown up as well as out. Some have mezzanines that use their vertical space, and others have narrow aisles to maximize shelving.

What these warehouses all have in common is that they are large, busy, and often congested. It’s no wonder warehouse owners are considering

Proper inventory management is critical in the warehouse industry. It is the process of accounting for, ordering, and organizing product stocks to ensure items on hand are in good shape (i.e., not damaged or expired) and of sufficient quantity to fulfill anticipated needs. But manual inventory control can be prone to human error and costly in terms of labor and potential mistakes.

Drones are being used for inventory management for the following tasks:

• Stocktaking

• Inventory audits

• Cycle counting

• Item searches

• Buffer stock maintenance

Instead of having workers go around the warehouse counting items and scanning barcodes by hand, drones can perform these tasks automatically. Drones can confirm that the correct items are where they should be, keep track of your stock levels, and search for items that are listed as out of stock or missing.

2. Inspections

Any business environment that gets constant use, like a warehouse, will also be prone to wear and tear. A broken shelf, dislocated stair rail, or cracked flooring can create a serious safety hazard. A damaged piece of equipment can stall operations and cost the company time and money.

Traditionally, detailed inspections in the warehouse would be done in person, with a manager walking through the aisles examining key equipment, racks, floors, walls, and ceilings. Drones can automate and speed up this inspection process. For example, a drone can fly through the warehouse to capture visual data that managers can review later. Even better, artificial intelligence solutions can take an initial pass at that data and identify potential areas of concern.

3. Indoor Intralogistics

Warehouses are busy facilities that often need to relocate small items from one area to another. Drones can assist with these intralogistics tasks. For example, a drone can transport a machine part to the area of the warehouse where a repair is taking place. Drones can also move small products for fulfillment activities. However, the gripping, payload, and navigation capabilities of today’s drones remain limited. These types of applications will certainly expand in the future.

4. Surveillance and Security

As mentioned earlier, warehouses can be massive buildings. Many of them are full of expensive equipment and products, making them attractive targets for thieves. Having security measures in place is essential. Fortunately, drones can fly through a warehouse 24/7 and provide a live feed that security staff can watch from a central location. Alternatively, AI-enabled software can analyze the video footage produced by a drone to alert owners to any unusual activity.

Benefits of Using Drone Technology in the Warehouse

Here are just a few of the benefits of using drone technology in the warehouse:

1. Improved Cycle Counts

The manual and repetitive inventory counting is a common checks and balances process in a warehouse. But it’s time-consuming and prone to human error. Drones can make this job faster and more accurate by flying through the warehouse with an RFID reader that collects real-time data.

2. Lower Operations Costs

It’s costly to hire and pay workers for things like manual inventory counts. You can reduce these costs by automating the process using drones.

These solutions can also lower your costs when they help you avoid machinery breakdowns or serious accidents on the warehouse floor.

3. Better Safety Records

Drones can take dangerous and repetitive tasks off of a worker’s shoulders, improving overall workplace safety. For example, a drone can alert management of serious safety hazards. It can also reach products on high shelves, so workers don’t have to make the climb.

4. Seamless Inventory Searches

Searching for products during the picking process is one of the most time-consuming and costly activities in a warehouse. A drone camera can perform these searches seamlessly and report back to human workers.

How Warehouse Drone Technology Works

We’ve all seen toy drones that end up in a neighbor’s tree. So, will your warehouse drones get lost in the storage racks or, worse, crash into workers below? Ideally not. Similar to autonomous mobile vehicles (AMVs), these more sophisticated drones are equipped with navigation technology that allows the unit to avoid obstacles.

Drones can also be equipped with sophisticated sensors and readers to detect RFID tags, temperatures, and other items. In addition, software algorithms are used to deliver the insights that make these solutions useful for businesses.

There’s a lot of fascination with drones because they have a cool factor. Beyond being fun toys and scary military weapons, drones also have a lot of uses in the warehouse environment. Using sensors, cameras, and the right processing equipment, drones can help improve efficiency in many areas and boost your warehouse’s overall results.

In 2005, Newcastle Systems, Inc. was the first U.S. company to introduce mobile powered industrial carts to support supply chain applications, bringing leading-edge efficiencies to the market. The company has continuously pioneered new technology developing the first swappable lithium battery system for industrial applications in 2016, as well as the most ergonomic mobile carts available. A privately-owned, Massachusetts-based company, it serves some of the largest retailers, manufacturers, and distributors in the world to help to increase supply chain efficiency by consistently doubling employee productivity while reducing costly labeling errors by over 92%.

West Point Rack is one of the fastest growing companies in the industr y. Our customers recognize quality products, dependability of service and competitive pricing.

Our Primar y Goal is to suppor t our dealers, satisf y their customers, earn trust and be the “ Vendor of Choice” for rack products and racking systems

We of fer a full line of light duty, intermediate duty, heav y and extra heav y duty cantilever racks. We provide multiple configurations of a wide variety of stacking racks. Our structural pallet racks can be configured for a wide range of applications West Point Rack h as the products that generates solutions for your storage needs

We also of fer specialty products such as bar cradle trucks, drum racks, hand car ts and other specialty transpor t and storage products. Give us a call at 866. 245. 3630. We may have what you need Look forward to hearing from you