Is Artificial Intelligence (AI) simply a buzzword – or is there more to it? Is AI already deployed in real-world scenarios, or does it remain something for the future? An interview with Markus Klug, Team Leader, Data Analysis & Simulation, at SSI SCHAEFER IT Solutions, sheds light on the issue. Additionally, he provides insight into the SSI SCHAEFER plans to start leveraging AI in its projects.
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The Fourth Industrial Revolution and the Internet of Things are hot topics at the moment. Both have become determining factors in the industrial processes that not only have a significant effect on the production of goods, but also on logistics. The complex, interconnected systems that have come into being between production and storage can no longer be handled without modern, high-tech solutions. As digitalisation has increased, intralogistics has become a technology driver.
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Asia. The largest continent on Earth and home to over 60 % of the world's population. This figure alone signifies the relevance of this part of the world for the global economy. Since the global financial crisis in 2008, the entire Asian economy has benefited from strong growth. Even countries that were comparatively little affected, like Indonesia, Vietnam and the Philippines, record annual growth rates of 5 to 7 %. The same goes for India and Thailand. The only exceptions are Singapore and China, whose projected growth rates are lower.
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You will definitely have heard of this invention but won’t have related it to logistics: the self-driving car! It is mostly associated with the stubby Google car or adventurous YouTube videos from Tesla customers.
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Robotics and automation are vital aspects of digital transformation – and human-robot collaboration (HRC) has a pivotal role to play. HRC entails people and machines working not simply alongside each other, but actively cooperating. Contrary to popular belief, automation will not replace humans in the long run. Instead, robots will relieve people of monotone and strenuous activities. In particular, machines can efficiently perform tasks that are potentially unhealthy or very difficult, which will ultimately protect employee well-being.
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Online sales are rising rapidly across Europe. Consumers are very willing to make purchases over the Internet. In 2016, the volume of trade transacted over electronic channels grew by 15 percent year-on-year, to a total of 530 billion euros in a market with a total population of 500 million. And studies* have shown that buying and selling via online platforms continues to grow.
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The traditional boundaries between physical and digital retail are blurring. Worldwide, customers are increasingly making use of the ability to buy from anywhere, at any time. And they expect rapid, reliable delivery – to their home, or to a designated pick-up point. There must also be an effective way of managing returns. Altogether, these needs and expectations can only be met with powerful, state-of-the-art intralogistics.
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Ines and Max are sitting in the warehouse control center monitoring the operating states of the material flow systems on the screens that surround them. The visualization does not show any incidents, everything appears to be running smoothly. In fact, it looks like today is going to be a pretty boring day...
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The starting point: A sudden increase of orders and a broken pallet led to major delays in the warehouse. In the example of Ines and Max, there are a number of ways in which the system can take action.
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Warehouse management systems find routes that will minimize the distance covered between storage and picking points. Parameters can be adjusted to apply various strategies that will boost efficiency levels while still ensuring that goods are handled correctly.
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Computers can be used to quickly process and analyze large volumes of data in complex settings. Self-learning machines can recognize and remember patterns, and then react as we would when new situations with similar patterns arise, provided that we have defined the ideal result.
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With conventional storage systems, only a single – albeit important – aspect of the system is shown: the purely technical situation. Traditional visualization systems are not capable of meeting the current and future requirements of an intralogistics system and are therefore no longer adequate sources of information upon which to operate an installation. Other important aspects, such as the material flow or the comparison of key performance indicators (KPIs), are not usually considered in sufficient detail.
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The SAP logistics suite already goes back a long way. Logistics processes were first covered in the R/2 ERP software up to the early 1990s, before being developed in the R/3 software when Warehouse Management (WM) and Transport Management (TRM) were introduced in their own modules as part of the ERP. This marked the launch of the first-ever embedded warehouse management and control system. WM is still maintained as an embedded module in the era of S4/HANA, although SAP will stop providing official support by the end of 2025. However, there is a delimited workaround available in the meantime with “Stock Room Management” that can be used beyond 2025.
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Everything has a limited lifespan, including intralogistics systems. While steel and iron are less susceptible to the ravages of time, control and IT systems are rather more exposed to the effects of advancing years. Even processes themselves grow long in the tooth and require an overhaul to bring them back to cutting-edge relevance. We call this "retrofitting" – in other words, turning old into new.
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Artificial intelligence, Industry 4.0, big data – just some of the buzzwords we hear every day in relation to intelligent, digitally networked systems. As well as the availability of the overall installations, the issue of security is becoming ever more prominent when it comes to the IT components. Protecting the integrity and confidentiality of the data stored on the IT systems is of particular importance.
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New and increasingly demanding market requirements mean that companies are facing increasing pressure to improve their performance. This pressure also causes extra challenges for intralogistics, such as constantly growing quantities of goods that need to be handled during warehouse operations or additional tasks that need to be carried out in the warehouse, as well as short delivery times.
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The name "Leonardo" is most commonly associated with the multi-talented Leonardo da Vinci, who 600 years ago used his wide range of skills to develop pioneering inventions and make groundbreaking discoveries[i].
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Nowadays, timely service for customers with intralogistics solutions goes far beyond the provision of spare parts and the maintenance of systems. Every day, customers are confronted with new challenges in their business environment which need to be dealt with as quickly as possible; this is made all the more essential due to e-commerce and the rapid shortening of delivery times.
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Social media, streaming services, and search engines – more and more services and systems are benefiting from the advantages of cloud computing. With the increasing complexity of IT and software infrastructures within and between companies, professional cloud solutions can help with the development of efficient and flexible company processes.
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Supply networks are unique in that they are incredibly complex and are made up of a large number of interdependent partners. When attempting to design supply networks that are as efficient as possible, the aim is to create a solution that keeps little to no materials in stock during the intermediate stages.
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Digitalization is on the rise also finding its way into warehousing. Unlike most Industry 4.0 images suggest, this (r)evolution is not always achieved via automation. Digitalization also involves illustrating and controlling intralogistical processes in a software while executing processes manually. This task can be easily assumed by WAMAS, the warehouse management system by SSI SCHAEFER.
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Everybody is talking about climate protection. Discussed in-depth in society and linked to global campaigns, the topic of sustainability is also increasingly becoming a decisive criterion in logistics to ensure whether the offered solutions are viable. This is nothing new for SSI SCHAEFER as the topic corresponds to the long-term view on Green Logistics that was firmly engrained at an early stage. This is part of our Think Tomorrow. philosophy according to which we plan logistics solutions that are tailored to our customers’ needs and continually optimized with a view towards long-term criteria - this is the basis of our success.
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Sustainability in CSS – Predictive Maintenance
How Digitalization Revolutionizes Customer Service and Guarantees Sustainability
An activity is carried out efficiently and effectively when it comes easy and follows clear processes. In order to meet these requirements, as part of the ergonomics@work!® program, we implement special picking stations designed to motivate employees, promote peak performance and significantly improve ergonomics at the work station. Movements such as lifting and carrying are assisted with ergonomic pulling and pushing. This means optimization of workflows and work heights. The goal is to create “feel-good work stations” that feature intuitive operator guidance using intelligent communication and display systems. The solutions are specifically tailored to the customer’s needs.
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SSI SCHAEFER returnable containers
75-80% space saving by ecological returnable containers
Maxing out all possible savings and protecting the environment – this characterizes our nesting containers. These containers are in fact space-saving miracles and ensure a decisive performance increase. Whether by tilting the bail arms of our conical reusable containers or a mere 180 degree turn of the EUROFIX boxes – nesting containers save up to 75% of volume because they can be simply stacked into one another when empty.
Learn more about how SSI SCHAEFER increases efficiency in manual or semi-automated processes with our AGV portfolio.
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A new compact “C” assembly group is now available, completing the range of proven SSI Exyz storage-retrieval machines from SSI SCHAEFER. SSI Exyz C automates the pallet rack processes in existing buildings in heights of up to 13.5 m. Without any need to upgrade floor slabs or perform extensive modifications - implementation during ongoing operation is also possible. Learn more about the energy-efficient solution.
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Intralogistics systems are becoming larger and larger and increasingly complex. Today’s computing power of a modern warehouse IT infrastructure is breaking new ground in terms of size and complexity, thus reaching dimensions that would have been unimaginable just a couple of years ago. In the following article Markus Klug, Team Leader Data Analysis & Simulation, explains how SSI SCHAEFER enables sustainable logistics with and through IT.
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In the area of SSI Integrator Business, SSI SCHAEFER applies a product-based approach to supplying the market. Our day-to-day business involves delivering intralogistics components to a general contractor. How this business sector works and the role that SSI SCHAEFER plays is explained by Arnold Lanz, Vice President of Hub Development & Integrator Business.
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Interview with Dr. Armin Vogel: how sustainable plastic containers are produced and used in logistics over the long term.
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The ‘Internet of Things’ or commonly known as IoT is becoming more deeply embedded in our day-to-day lives at work and beyond. Especially in the logistics industry the term has become a household word, as logistics constantly face new challenges due to globalization and the increasing competitive pressure.
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When planning a new logistics building – and for retrofits too – green building and sustainability factors gain in importance. SSI SCHAEFER offers several green solutions. Moreover, the company offers further services from energy consulting and planning, certification and monitoring, and subsidy consulting. Johannes Zimmermann, Director Construction Management at SSI SCHAEFER, provides deeper insights in the following interview.
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Wie bestehende Lagerlösungen effizienter und transparenter gestaltet werden können, erklärt Felix Lütkebomk, Leitung Produktsektor Dynamische Systeme bei SSI SCHÄFER.
Digitalisierung, Automatisierung, Industrie 4.0 und Smart-Logistics sind Schlagwörter, die in vielen Unternehmen diskutiert werden. In der Intralogistik gibt es bereits viele Beispiele für eine gut umgesetzte Digitalisierungsstrategie. Dort, wo die Lagerung und Kommissionierung von Artikeln allerdings nicht das Kerngeschäft eines Unternehmens sind, findet man immer noch jahrelang gewachsene Strukturen mit manuellen Buchungstätigkeiten, geringer Transparenz und ohne jegliche Vernetzung. Um Lager und Logistik entsprechend zu digitalisieren, für die Zukunft zu rüsten und gleichzeitig wettbewerbsfähig zu bleiben, bieten sich nachträgliche, schrittweise Anpassungen und Modernisierungsmaßnahmen als flexible Lösung an.
Das richtige Maß zwischen Standardisierung und Individualität
Volatile Märkte, unvorhersehbare Umwelt- und Gesellschaftsereignisse wie auch nahezu unplanbare Nachfrageschwankungen in Zeiten von steigender Digitalisierung und wachsendem E-Commerce machen Flexibilität zur Grundvoraussetzung und Priorität. „Individualität um jeden Preis“ heißt das allerdings nicht, weder im privaten Leben noch in den Lager- und Logistikprozessen und entsprechender Software. Das richtige Maß an Individualität und Standardisierung bestimmt die Zukunftsfähigkeit.
Manual picking methods in material handling have always been physically demanding. In addition, the aging demographic and decreased physical ability of older employees put further strain on operations. For these reasons, ergonomics plays a central role in the development of logistics systems. Ergonomic workplace design is also critical for younger employees, in order to avoid damage to health and to minimize sick leave. This is why SSI SCHAEFER develops solutions for innovative storage systems and high-performance conveying systems with the guiding principle of healthcare.
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Efficient use of storage space
How we deal with lack of space, high energy costs and rising property values with an individual and adaptable rack system
Mr. Frank Matysiak, Head of System Planning at SSI Schaefer, explains how the appropriate rack solution can solve typical warehouse challenges, and how SSI Schaefer provides customers with individual and future-oriented support in finding the most suitable racking system.
The new hazardous goods container by SSI SCHAEFER meets the special safety requirements for transporting solid dangerous substances.
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Was im Einzel- und Großhandel sowie in der Modeindustrie nahezu Normalität ist, bestimmt nun auch die Pharma- und Kosmetikindustrie immer mehr: E-Commerce in Form von Versandapotheken. Ein erhöhtes Gesundheitsbewusstsein bei Verbrauchern und der Trend zur Selbstmedikation führen zu einer stärkeren Nachfrage nach rezeptfreien Produkten und apothekenüblichen Beauty- und Pflegeprodukten, welche oftmals im Internet bestellt werden. Aber auch Online-Bestellungen von verschreibungspflichtigen Produkten rücken immer mehr in den Fokus – mit Null-Fehler-Toleranz. Insbesondere auch aufgrund der aktuellen COVID-19 Situation steigt die Nachfrage über alle Arzneimittel hinweg enorm. Dabei variiert die Bedeutung des E-Commerce weltweit. Vor allem in Europa wird noch von sehr großen Steigerungen ausgegangen. In Zukunft wird insbesondere ein ganzheitliches Zusammenspiel zwischen Hersteller, Großhändler, stationärem und Online-Handel entscheidender.
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The initial situation for Robert and "Freizeit Handels GmbH" was extremely tricky, when they reached the joint decision to make changes to stock handling and therefore also to warehouse management: Due to the rising demands and constantly increasing throughput, the same work required comparatively greater effort than before. The increasing costs of storage began to eat into additional profits. However, this is now water under the bridge and the customer – with Robert at the helm – appears thoroughly delighted with the results of this decision.
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Java programmer for complex warehouse logistics software and proud mother of twins. Does not work? Sure, it does! I am telling you about my everyday experiences, not only in my professional, but also in my family life. These small insights illustrate the compatibility of family and work. It shows how both worlds cross over and co-exist and reveal points in your life, where you feel like you are hitting a wall.
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Valid Material Master Data as a Basis for More Efficient Material Flow Processes
When it comes to innovative warehouses and logistics centers, SSI SCHAEFER is a strong partner who delivers and realizes solutions from a single source on demand. Its extensive and at the same time high-end products lay the foundations for complete customized solutions. A complete solution by SSI SCHAEFER generally also covers the migration of a considerable amount of data to the IT systems, which are installed with the new warehouse. SSI SCHAEFER has the required expertise to migrate data into a new system in coordination with the customer and advises the warehouse operator regarding the significance of valid data and its benefits for a sustainable and efficient warehouse operation.
Deriving Recommended Courses of Action from Valid Material Master Data
‘Data is the new oil’. This now widely used quote was coined by Meglena Kunevas back in 2009. With regard to oil, certain developments such as combustion engines or specialty chemicals were required in order to make full use of this precious resource. Similar considerations apply to the warehouse, where data runs all ongoing processes. But it takes more than just data. Only if the quote is extended with ‘...but information is the new gold’, can the circle be successfully closed. Ultimately, the goal is to derive actions from data on the basis of information.
No matter whether it is due to rapid growth, supply bottlenecks or absence of employees – the importance of flexibility in small parts storage becomes apparent in cases of unforeseen events. How do you ensure delivery capacity, even in dynamic times? If automation is the solution, what measures can be implemented in a small parts warehouse with only minor investment? How flexible and scalable are these systems?
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