As warehouses look and feel safe, it is so easy for warehouse employees to be lulled into a false sense of safety. Unlike shipyards or construction sites, the potential for life threaten accidents appear limited.
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Every sector has peak seasons where planning and preparation need to happen. In the supply chain, major events and peak seasons such as 11.11 Singles Day, Black Friday or festive season shopping means large volume of goods and items are moving in and out of a distribution center.
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It’s that time of the year again when our bank accounts take a hit as we go on the hunt for festive bargains. Businesses promote their best deals of the year and many of us find it impossible to resist, driving us to order vast amounts of selected lines in a very small period of time.
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The warehouse labor market is evolving. Three Positive Changes from Automation.
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Operating one with additional requirements can further complexities that companies need to manage as they ensure product quality and adhere to regulations. For many manufacturers, retailers, and third parties, these complexities continue to be a challenge as the market expands.
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It is well acknowledged within the industry that of all the products, grocery is more challenging to manage. Not only are there many more items per order as compared with electronics, apparels, toys or books, the demand placed on e-groceries is also higher. The products they have to handle are often bulkier and heavier, the margins are lower compared to other consumer products and some are perishables where losses are incurred due to product damage or product expiry. On time reliable delivery is therefore critical in ensuring customer satisfaction.
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Across the region, dedicated cold storage facilities are being planned. With growing demand for refrigerated space to store a multitude of products, ranging from pharmaceuticals to perishables, it would seem to be a wonderful business opportunity for companies to consider.
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Not knowing can be a nightmare, but all too often, it’s the case in a manual environment. Couple that scenario with multiple manual facilities, and you have double the frustration. Without a system in place, it is difficult to track inventory and even more so to accurately forecast what’s needed to fulfill orders in the pipeline. With a warehouse management software (WMS) solution, inventory accuracy and traceability is a given. However, there are several features that you need in order to ensure a smooth operation.
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The emergence of Internet and mobile technology is changing the way we live and shop. From Brazil to Vietnam online shopping is gaining traction. The rise in millennial spending power is accelerating the pace.
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The Warehouse Management System (WMS) is the backbone of modern logistic distribution.
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Rack collapse has occurred in less spectacular fashion across the region in warehouses from storing of fast moving consumer goods to spare parts. What are the causes? How can we take preventive measures? As installations become increasingly higher and larger, it has become even more important for us to understand the causes and take preventive measures as the repercussions of a rack system failure are very serious, with the risk of personal injury or even death both for the warehouse operators as well as their customers.
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E-commerce has taken the world by a storm. eMarketer estimates that business-to-consumer (B2C) e-commerce sales of products and services will hit US$2.36 trillion by 2018, an increase of 91% over 2013. More than a third of the sales will be generated in Asia, as more new buyers come online.
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Since the first conveyor belts were installed in mines over 100 years ago, they have become essential to modern manufacturing and material handling. Henry Ford revolutionised mass production when he incorporated powered conveyor belt in the assembly line at the Ford motor plant in Detroit in 1913. It helped to speed up the assembly of individual units, making it possible for Ford to produce cars faster and more cheaply than ever before.
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The unique thing about time is that we all need it, but regardless of how much material wealth we have—we can’t buy it.
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Anyone who has tried to manage order processing for B2B and B2C from a single DC can appreciate the complexity. Requirements for B2B of B2C order fulfilment are so different.
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If you’re a mid-size or smaller company, you may be operating a manual or man-to-goods warehouse. And like any category of companies, while operating a manual warehouse has benefits such as flexibility and accessibility, it also comes with its own set of challenges.
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The Internet of Things (IOTs) is changing the way we live and work. With smart aircons, lights and vacuum cleaners, which can be remotely controlled from the mobile, you can come home after a day at work to a cool, clean place.
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SSI SCHAEFER enjoyed a growth of almost 25% in 2011, with all markets performing to or above budgets, the company’s 2 factories ran at 100% capacity producing a total of 38,000 metric tons of steel.
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Easily the most widely used storage equipment in the industrial world, pallet racking system can be found in most warehouses and manufacturing facilities. By stacking up pallets in an organized and efficient manner, it ensures goods stored within the warehouse are readily accessible.
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While profits have traditionally been the top concern for businesses, safety and sustainability have become mainstream issues of focus for companies. However, both of these goals are achievable with reusable packaging. Now more than ever, manufacturers and distributors should examine how warehouse safety can be improved by utilizing reusable plastic packaging and pallets.
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How time flies. We are approaching the end of yet another year. I like to pause to reflect on the past – where we were and how we have developed since as an industry in Asia.
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After much hesitation, companies in Asia are beginning to adopt automation in the warehouses. While some automation in the warehouse to improve the order pickers’ lot may seem like a no brainer, as order picking is time consuming, Asian operators have preferred to rely on manpower.
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At the start of the New Year, it is a time honored tradition to crystal ball gaze. Since we can’t claim to be soccer experts we shall leave prediction for the FIFA World Cup to those who know better and keep our piece to what we know best. Here’s our take on what we expect to see for our industry this New Year.
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You can’t manage what you don’t measure may be an old management adage but it rings true even today. What quantifiable measures should DCs track?
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Intelligent solutions for individual shopping carts
The rapidly growing sector of online retailing places a high demand on intralogistics for grocers. Constant cost restraints, the growing demand for order today and deliver today, along with the need for higher process efficiencies, mandate companies apply the dynamics of e-grocery to their supply chain.
HUMAN CREATIVITY AND ANALYTICAL AI — A SUSTAINABLE COMBINATION
Artificial intelligence (AI) is opening up new possibilities for us in both the private and industrial spheres.
For years the standard warehouse systems remained the same – the racks are aligned vertically, and pallets, cartons or totes are transported by storage and retrieval machines or lifts to the front of the warehouse for retrieval.
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The sharing economy is gaining ground, as owners are putting their excess capacity to good use, whether they are cars or rooms. So successful is the business model that the word uberization, after pioneering car sharing platform Uber, has been incorporated into the modern lexicon. Collins Dictionary defined uberization as the adoption of a business model in which services are offered on demand through direct contact between a customer and supplier, usually via mobile technology. The logistics industry could well be next.
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It is proven that automated storage and order picking systems both improve storage and operating processes in Distribution Centres, while also delivering substantial savings.
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Goods to Person picking system, at SSI SCHAEFER Singapore Tech Center
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Where do traditional IT systems and state-of-the-art AI differ?
Conventional IT systems are rule-based and correspond with static messages. In other words, we define functions and decision trees that machines then implement.
Plastic containers play a critical role in moving materials from A to B. However, most plastics are insulators, and do not readily conduct electricity.
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One of the biggest challenges in warehouse management and operations is effective use of floor area. Since warehouse operation is increasingly more complex in the digital age, it is important that storage areas take up as little floor area as possible but also maintain an effective storage and retrieval system.
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Ask any warehouse manager, “what is the most difficult cost to control?” and the answer will invariably be manpower. Manpower costs form the largest chunk of a warehouse’s operating expenses. With the recent spike in wages across the region, from Cambodia to China, that percentage can only increase.
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Automated vertical lift modules (VLMs) were developed in the 1980’s specifically for small to medium parts storage rather than the lighter commercial applications of the vertical carousel.
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With its sleek design and clean lines, the vertical lift emanates positive vibes. Unlock it and you find trays upon trays stacked up in layers right to the top. With the touch of a button, the automated storage system designed on the tried-and-tested Ferris wheel principle swings into action.
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It is a challenge confronting warehouse managers everywhere: How can you improve your warehouse efficiency?
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SSI Schaefer’s Weasel® automated guided vehicle (AGV) was presented with the IFOY Award 2016 in the “Intralogistics Solutions” category on the first day of the CeMAT exhibition in Hanover.
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Since the fiery explosion at the warehouse in Tianjin on 12 August graphic images have been flashed across the world. The fire and subsequent blasts which destroyed scores of lives and property, and tossing a toxic mix of dangerous chemicals into the air, has also raised multiple questions: How did it happen? Why did it happen? Who is responsible? What chemicals were involved? How much chemicals did the warehouse have to cause the kind of damage which could be seen from outer space?
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The pharmaceutical industry is subjected to a web of rules and regulations governing the patenting, testing, safety, efficacy and marketing of medicines. Keeping track of the developments can be a challenge.
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Distribution centres (DCs) are scaling up in size with some of the largest of on-line fulfilment centres being over 1 million sq. ft. Trying to navigate these behemoths is a struggle without the requisite automation. From rumblings on the Internet from disgruntled staffers, we gathered that some order pickers have had to walk over 15 kms. in a single shift. They have our sympathies. It is exhausting and not terribly productive.
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Promotional sales, discount codes, loyalty cards, and free shipping are the latest trends in retailers vying for e-commerce consumer spend. However, there is another opportunity even of greater importance to get right—customer experience.
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Technology is always evolving, which drives change both in what consumers purchase and how they receive their purchases. Technology also drives change in the logistics industry, especially over the past few decades.
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Storing small parts or products can be challenging, especially when the number of SKUs a company has to store run into the thousands. Thankfully, a comprehensive range of shelving systems supported by software is now available to meet different requirements and price points to help companies store and organise small parts for easy retrieval.
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The e-commerce boom is the biggest factor driving growth. E-commerce sales have spiked, whether it is Asia, America or Latin America, while same store sales have remained largely stagnant.
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In the case of Industry 4.0 (or the Fourth Industrial Revolution, as it is more commonly known outside Germany), it is legitimate to ask how much is genuine innovation, and how much is simply clever marketing.
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We have heard all about it – how e-commerce is changing the face of retail. As online shopping takes off, shops are emptying out and malls are experiencing lighter footfalls.
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What are the qualities of robots that have made so valuable to man? How are they being harnessed to help our industry work faster and smarter?
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Global food losses (wastages) have remained high. It is estimated that a third of the world’s food produce is lost through improper handling. For emerging economies like India, Indonesia and China, the figure is even higher. In few other sectors do we see waste on such a scale.
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Earthquakes occur far more regularly than you realise: There is at least one earthquake somewhere in Asia everyday. Thankfully most passed without any incident, because they were small, occurred deep beneath the earth’s surface or in some remote corner of the region. But once in a while a nasty one strikes causing widespread death and destruction.
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While we are all too familiar with how the Amazons and Alibabas have changed the face of retail, less known is e-commerce’s impact on the distribution centre (DC). As retailers shift to a multi-channel marketplace it is changing the DC, from the location to order picking to the choice of technology.
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Daunting though it may be rack reconfiguration may be necessary with changes in product and SKU mix or with expansion in businesses. What was suitable when the racking system was first configured no longer applies and continuing to use it without making necessary changes may result in less than optimal warehouse performance.
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Gone are the days when warehouses are cavernous buildings in obscure locations of interest only to people who work in them. Today warehouses are hot attracting the attention of many, from young entrepreneurs to industrial property giants.
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Fast and efficient, the shuttle system is a welcome addition to the modern warehouse. This innovative technology increases speed, accuracy and throughput in warehouses and distribution centres quite significantly.
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So what can we expect for 2016? Here are some thoughts on what this year will bring for the economies within Asia and the impact on the industry we are in.
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While TV home shopping has some similarities with e-commerce, the requirements are quite different. E-commerce fulfilment is complex as companies have to wrestle with multiple products pick to very small orders, with delivery made within tight timelines.
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Since the global boom of smartphones and smart devices, e-commerce and online shopping has been on a steady rise; and it’s slowly changing the way people purchase goods and the way they are distributed from Distribution Centres to customers. This poses a big challenge for warehouses as the movement of goods to and from warehouses become more rapid.
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‘You Can’t Manage What You Can’t Measure’ is an old management adage, but it still rings true today. It is almost standard practice for companies to measure sales, customer service and financials. What about a warehouse? A warehouse performs a critical function whether it is part of a company’s operation or a profit centre, and it should be subjected to scrutiny.
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As ergonomics seems to go hand in glove with another ‘e’ word, expensive, the mere mention of the word is sufficient to strike fear in the hearts of some warehouse executives. It doesn’t have to be that way. Ergonomics is a science concerned with understanding the interactions among humans and other elements of a system, such as jobs, machines/tools, environments and organisations. Put into practice, it contributes to human safety, security, comfort, and the maintenance and improvement of health. .
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I’m into my fourth decade in Asia and the region has continued to excite me with its dynamism. With almost continuous growth over the last 50 years, this continent of 4.4 billion people has become richer faster than any other region of the world. And we have every reason to expect it will continue this upward trajectory. There may be the occasional blips, like the 1997 Asian Crisis. But as the crisis reveals, Asia has the tenacity and the capacity to pull through and forge ahead.
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However you choose to look at it, the online retail market is big and getting bigger. Whether you are in US, Europe or Asia, annual online retail sales are in the billions, and growth is in double digits. According to a recent Forrester Research forecast sales in Asia’s top five online retail markets – China, Japan, South Korea, India and Australia – could more than double in five years to US$858 billion in 2018.
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With more food products and other perishable goods entering the country, the importance of cold storage providers has never been greater. With that comes the need for these providers to expand their facilities, and improve existing ones, to further serve their customers’ needs. Despite the increased costs that expansion entails, we are still seeing new facilities go up around the country, and equipment upgrades, like added racking, in existing ones.
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Online retail sales are expected to buck the trend because of the confluence of new technologies, new entrants and new consumer demands. With annual sales totalling US$3 trillion globally, and growing in strong double digits, it has huge implication for retail.
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The challenges facing the industry require tailor-made solutions for complex material flows in production-related warehouses. Holistic concepts, which can be represented by manual, partially automated, or fully automated systems, are essential for intralogistics processes.
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The Enterprise Solutions business segment at SSI SCHAEFER is defined as the logistical control instrument between warehouse, transport, and customer. In short, it is about sustainably and holistically fulfilling customer requests. EVP Enterprise, Hannes Neubauer, explains how this works in practice and what is behind these intelligent solutions.
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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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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 wide range of modular, scalable automation solutions by SSI SCHAEFER covers the steadily growing requirements for goods handling in the healthcare and cosmetics industries. Modern piece picking robots with integrated scan functionality ensure efficient picking as well as precise identification and verification of products to conform with regulations for tracking and tracing.
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Warehouse automation has many advantages: It increases efficiency and speed in order processing and, compared to purely manual processes, reduces costs and the susceptibility to errors. However, sometimes concerns are raised whether full automation is necessary in a particular case.
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In 2007 we saw the launch of the iPhone, heralding a new digitalera. Since then, our personal lives have undergone dramatic change.We are always connected, and able to communicate with the rest of theworld anytime and anywhere, generating huge volumes of data.
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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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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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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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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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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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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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Erect the racks than wrap the skin around them, and what do you get? Right, a warehouse!
Known as a rack supported warehouse, it uses the racking system as the primary structural support. With no conventional structural columns, the walls and the roof are fixed directly onto the rack structure.
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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