A New Wave of Automation in Cold Storage
“Think Tomorrow” is the guiding principle of the SSI SCHAEFER Group, a global provider of solutions for every area of intralogistics. TK Report, the German trade magazine for the deep-freeze industry, spoke with Dirk Werthmann, Senior Project Engineer Logistics in the Market Sector Production Logistics at SSI SCHAEFER. The conversation focused on what matters most when designing end to end intralogistics projects, the specific challenges of deep freeze operations and how automation, robotics and artificial intelligence are reshaping warehouse environments.
Mr. Werthmann, what specific demands does the food industry place on intralogistics?
The product range in supermarkets keeps expanding, which means the number of stock keeping units we manage is growing. You can see this throughout the entire supply chain, starting with the producers. In the past they handled mostly full pallets, but today many are shifting to layer picking because retailers are ordering smaller quantities from their suppliers, especially for products with lower demand. Retailers also expect store-friendly picking and efficient processes, and these expectations shape the requirements we receive.
What does that mean in practical terms?
Two things: producers are asked to pick more, and retailers need sequencing in their distribution centers. This drives up costs, and our task is to balance that with the right level of automation. Layer picking is relatively straightforward to automate and performs very well in terms of return on investment. The more advanced and technically complex systems for fully automated retail picking are also gaining traction around the world. In the grocery sector we are seeing a strong wave of automation among major retail chains, driven by rising labor costs and a significant labor shortage.
How broad is your product portfolio? What do you offer?
SSI SCHAEFER positions itself as a one stop shop. Customers receive everything they need for an automated intralogistics solution from a single source. We manufacture a large share of our components in-house, which allows us to respond flexibly to customer requirements. For components we do not produce ourselves, we rely on carefully selected partners. We place great value on ensuring that every component integrates seamlessly into our system and software environment, which is essential for high availability. We also offer construction services for automated warehouses, including foundation work and the construction of walls and roofs for high bay warehouses. Where it makes sense, we take on additional building work related to the project. Our experienced civil engineers support both the sales and implementation phases. This is particularly valuable for small and medium sized companies because building a high bay warehouse is not something they do often. Our goal is to make the entire project as efficient as possible and support the investment as a whole. This is especially relevant in the deep-freeze sector, which is very mid-market focused and places higher demands on building claddings and overall construction.
What service offerings do you provide?
It starts in the sales phase with system design. We analyze the customer’s data and identify the system that fits best. From there we develop a tailored intralogistics solution that we continue to validate throughout the project. We follow a certified IPMA project management approach, ensuring the project is guided professionally from start to finish. We also have our own site managers on the ground during construction.
What happens once the system goes live?
A typical project takes about two years to complete. After that, we transition into service. Our goal is to support customers from go-live to the end of the system’s lifecycle. Spare parts can be ordered through our webshop. We also provide comprehensive maintenance and repair services to ensure uptime at all times. Customers who want to handle certain maintenance tasks themselves can take part in our targeted training programs to ensure they perform them correctly and at the desired quality level. When it comes to system modifications or expansions, our service team provides full support as well.
Do you have examples from the deep-freeze industry?
One example is a German manufacturer of Maultaschen, who received a new system from us that went live last year. Another notable project is Aviko Deutschland in Rain am Lech, where we replaced the controls and IT of the existing system and built a new high-bay warehouse next to it. Beyond Germany, we have completed numerous deep-freeze projects around the world. For Innnes, the leading distributor and importer of premium food in Iceland, we delivered an innovative combination of automated and manual systems across three temperature zones for dry, chilled and frozen goods. For United States Cold Storage in Minooka, Illinois, we implemented a system for their 3PL operations. We are active in Asia as well, for example with a major warehouse for spring roll specialist TYJ in densely populated Singapore.
Which markets do you serve, and where are your core regions?
The DACH region is our core market, but we are active worldwide with 80 operational subsidiaries across six continents and seven production sites. Every region has sales and service teams. This local presence is very important to us because it enables communication on an equal level in the local language and allows us to develop solutions that fit the customer’s specific needs.
Your WAMAS software portfolio is known for strong warehouse performance. What sets it apart?
SSI SCHAEFER has grown steadily over the years and continually expanded its software expertise. In 2008 we acquired Salomon Automation, which laid the foundation for our in-house WAMAS software portfolio. WAMAS is a powerful warehouse management system made up of well aligned products, modules and solutions. Our global IT team now includes more than 1,000 specialists who continuously enhance our software.
You also offer SAP’s warehouse management system. How do the two systems differ?
If a customer prefers SAP and feels comfortable in that environment, we can deliver systems with SAP EWM thanks to our certification. We follow the customer’s lead. However, for very high-performance systems such as automated picking solutions, SAP can reach its limits. WAMAS is often the better choice because it is specifically designed for SSI SCHAEFER’s intralogistics solutions.
Your WAMAS entry level solutions target small and medium sized businesses. What characterizes this offering?
We developed modules that can be implemented very quickly. These are standardized modules with predefined processes. This reduces the time and effort needed for development and results in solutions that are very competitive in terms of cost. For companies that do not require highly customized processes, this is an ideal and very cost-effective option.
Maintaining the cold chain is essential in deep-freeze logistics. What solutions have you developed for this?
A cold storage warehouse operates similarly to an ambient warehouse, but there are special processes where our experience allows us to deliver tailored solutions. Picking, for example, is often done in rooms above freezing to make it more comfortable for staff. Our systems monitor how long products remain in this warmer area and ensure they are returned to the freezer before the time limit is reached. They also ensure that items are not removed again until the required waiting time has passed.
Why are automation and robotics indispensable in intralogistics today?
Customers are driven by rising cost pressure and an increasingly severe labor shortage. We see this in Germany and in nearly every developed market. With fewer workers available, companies rely more heavily on automation. At the same time, expectations have grown. As mentioned earlier, producers used to pick very little, but that has changed. In one of our current projects, a customer received an automated layer picking solution from us. Retail picking now also needs to be store friendly, meaning the items must be placed on roll containers in the exact order in which they are stocked on the shelves in the store. This requires one hundred percent sequencing, which brings very specific requirements. Our automation solutions account for all of this. Pallets are built virtually in our software based on the customers’ rules. The picking robot then assembles them with precision, arranged not only in store order but also optimized for volume and stability.
Mobile racking for deep-freeze warehouses offers quick visibility and high storage capacity, making it the ideal entry point into automation.
How will artificial intelligence transform warehouse operations?
AI is a major focus for us. At SSI SCHAEFER we established our own AI start up called Supply Brain. One area of development is real time analytics for workforce planning based on expected order intake and historical order data and throughputs. Another approach is self-learning slotting strategies for A, B and C movers to create more efficient warehouse operations. AI can continuously improve this slotting to support optimal storage and retrieval strategies. Predictive maintenance is another important field. The goal is to reduce costs while ensuring high system availability. Instead of performing maintenance on fixed cycles, the system initiates maintenance only when needed. It also helps detect issues early to prevent unplanned downtime. These three areas are the current focus of our start up, but I am certain that we will see many further applications in the near future that will advance intralogistics with the help of AI.
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