James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
When food-service distributor Gordon Food Service (GFS) began planning for the construction of its fourth distribution center a few years back, it decided early on that the DC would be automated. GFS's other three distribution centers take considerable advantage of material handling automation. When it came to the new facility in Shepherdsville, Ky., the distributor decided to follow the same course to ensure an efficient and cost-effective operation. In GFS's eyes, automation would be critical to increasing throughput, optimizing cube utilization, and keeping close track of pallets.
The question was how to go about it. The 300,000-square-foot center, which was being built to serve customers in Kentucky and Tennessee, as well as parts of Indiana, Illinois, Arkansas, and Missouri, would be a high-throughput operation, handling up to 5,000 incoming pallets per day. Furthermore, its handling requirements would be relatively complex. As is typical of grocery distribution centers, the building would have separate sections to hold dry, chilled, and frozen products—approximately 10,000 stock-keeping units (SKUs) in all. That meant that the system would have to be set up to accommodate the flow of thousands of pallets each day into not one, but three separate storage areas (ambient, refrigerated, and freezer storage).
There were other challenges as well. For example, the automation plan for the Kentucky facility would have to provide a way to handle waves of inbound pallets quickly within the small footprint allocated to receiving. It also had to be capable of managing storage positions within the automated storage and retrieval system (AS/RS) to ensure that stock positions were not depleted. Furthermore, the system had to make provisions for the disposition of the empty pallets created as workers selected products to fill orders. On top of that, the company wanted to make sure that any automated system would be cost-effective to maintain as well as easily adaptable for future needs.
A matter of coordination
The decision to break ground on a fourth distribution center in 2004 was prompted by the company's rapid growth. Headquartered in Grand Rapids, Mich., GFS is the largest family-owned and -operated broad-line food-service distributor in North America. GFS delivers about 16,000 national brands and private-label products to more than 45,000 customers, which include restaurants, hotels, health care institutions, colleges and universities, and businesses both in the United States and Canada. Besides its wholesale distribution business, it operates more than 120 GFS Marketplace stores in Florida, Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, and Tennessee.
As it set about the task of designing the new facility, GFS came up with a plan for a unique AS/RS system with its own "intelligence" to expedite the put-away of incoming products. To execute that plan, the food-service distributor turned to German company Viastore Systems GmbH. GFS contracted with Viastore to provide not only the automated storage and retrieval (AS/RS) technology, but also the material flow control (MFC) software needed to run the system.
The software Viastore developed oversees the inbound receiving operation and interfaces with the host warehouse management system (WMS). Basically, the MFC optimizes pallet movement, integrates all sub-systems, and provides command history, system status, and system diagnostics—all in real time. It also contains a special mathematical algorithm designed to minimize AS/RS moves. The complex algorithm in the MFC also requires the AS/RS machines to scan all storage positions in the DC on an hourly basis to ensure that pallet locations at the ends of the aisles are not depleted.
Before installing any automated equipment in the Kentucky center, Viastore took it for a virtual test drive by conducting a simulation. Using actual order data from one of the company's other distribution centers, it ran tests to model the system's capabilities and prove that, even in worst-case scenarios, the system could still meet throughput requirements. Simulation was also used to improve and refine the system.
Just take the shuttle
As for the tricky problem of handling waves of inbound pallets rapidly within a small space, Viastore came up with a shuttle car system that allowed GFS to quickly and efficiently transfer pallets from inbound conveyor spurs to the correct storage aisle. Forklift truck drivers off-load pallets from inbound trucks and then take them to an inbound transfer station, which feeds the conveyor spurs.
As an added feature, the shuttle cars are equipped with sophisticated controls to move loads gently, without sudden acceleration or deceleration. By eliminating the risk of a bumpy ride, the shuttle cars have effectively reduced the amount of pallet shrink-wrapping required for load stabilization before put-away. "Compared to our other facilities that utilize chain conveyors with 90-degree right transfers, the shuttle car solution provides a much more smooth and stable transition from the input conveyors to the crane pickup stations," says Kirk Mortenson, DC development manager for GFS. "This fact has enabled us to reduce the number of stretch wrappers from what we originally had planned."
The shuttle cars whisk full pallet loads to the AS/RS system, which consists of nine storage/retrieval machines equipped with double-deep pallet shuttles. The system measures approximately 98 feet high and more than 450 feet long. In the freezer and dry grocery sections of the warehouse, the system ranges between 16 and 17 levels high. In the cooler area, however, it only reaches 12 levels high. The AS/RS contains more than 60,000 unique storage locations.
GFS's warehouse management system determines whether the inbound loads are sent to reserve storage or to pick face locations. The control system on the AS/RS verifies the pallet's size, weight, and product ID and then sends it to a dedicated pick or storage location.
Rapid replenishment
To expedite the picking process, the AS/RS system also features integrated pick levels where workers have access to the pick faces on the two levels closest to the ground. Workers refer to pick labels as they walk the aisles to select cases of products needed to fill orders. Once a worker picks an item, he or she applies a label to the carton and then deposits the box on the outbound conveyor system. FKI Logistex furnished the outbound conveyor system, which has the capacity to ship 185,000 cases per day. The conveyor transports the product cases to a staging area, where the items are then floor-loaded into a truck for delivery via GFS's fleet of refrigerated vehicles.
About 95 percent of GFS's outbound shipments consist of full cases. Selectors pick those cases from pallets placed into the pick location by the AS/RS machines. The remaining 5 percent of the company's outbound shipments are full pallets. When full pallets are needed to fill an order, the AS/RS itself will pull out the skids and route them to a designated shipping spur. The WMS then directs a forklift operator to go to the shipping spur and deliver the pallet to a particular loading door.
The system enhances efficiency by automatically providing for the pick bays to be replenished on a regular basis. To make that happen, Viastore put sensors on its AS/RS cranes to create a "pallet sensing" mechanism. A typical AS/RS with integrated order fulfillment uses photo-eye sensors on every pick face location to signal when product is needed from reserve storage or the inbound area. Viastore's approach, by contrast, was to create a dynamic pallet-sensing system that scans every pick location as the storage/retrieval machines travel by these locations at full speed.
Dynamic pallet sensing has allowed GFS to greatly reduce the amount of field wiring and piping required in its Kentucky warehouse. On top of that, the unique design eliminated the need for more than 10,000 sensors on pick faces, providing more cost-effective automation. "We are very pleased with the 'sensing on the fly,'" says Mortenson. "This has been much easier to troubleshoot and maintain compared to individual wired locations."
Nowadays, when a crane sensor detects an empty bay, it automatically triggers stock replenishment. Oftentimes pallets received into the system are placed right into the pick bay rather than storage. "Putting items directly into pick reduces moves on the crane by eliminating a put-away move and then later, a replenishment move," says Mortenson. "Keeping the pick bays full also [eliminates] the need for picking the product later and enables us to complete the work in a more timely [fashion]."
Trash logic
To accommodate the need to remove empty pallets from the gravity pick faces, the system was designed so that workers can stack empties in the empty pallet returns located periodically throughout the aisles. The storage/retrieval machines take the stacks of empty pallets back to the shuttle cars in the inbound area. To direct that task, Viastore wrote special code into the MFC logic.
In addition, trash chutes have been built into the AS/RS to collect and remove bulky waste materials like cardboard and discarded shrink-wrap. Trash tossed into the chutes is collected in bins at the floor of the high rise. For leaking or damaged product that can't be thrown down the chute, three-foot-high containers are staged on every level of the AS/RS. When these containers need to be emptied, workers can use the control system to request their removal. The containers are transported back out on the pallet conveyor to a specified spur, where the custodians can empty the refuse into a compactor or trash bin.
A unique feature of the automated system installed at the Shepherdsville DC is that its storage/retrieval machines were designed with double-deep telescopic shuttle forks with synchronized chain conveyors on the lift carriages. This innovation has cut cycle times at pickup and drop-off stations in half by eliminating the need to wait for telescopic arms to pick up or drop off full pallets. In addition, the chain-driven mechanism has resulted in a substantial space savings. In fact, the space freed up allowed GFS to add an additional storage level in the building.
As for the technical details, the Viastore solution features Windows server-based technology, the SQL Server database management system, and Wonderware software. A graphical software package, Wonderware enables visualization and system monitoring capabilities. It provides a user interface for workers to monitor AS/R movements and solve problems as they arise.
Exceptional performance
How has the automated system worked out? GFS reports that it's proved to be both reliable and accurate. To begin with, the system runs with minimal interruptions. Since the Kentucky facility opened in early 2006, the automated system has experienced 99.9 percent uptime. In addition, accuracy in replenishment and picking has been close to 100 percent.
"Automation has enabled us to improve our overall performance in the facility and to our customers," says Mortenson. "We are very pleased with the performance of the system both in terms of throughput and uptime," he adds. "The Viastore machines are very fast, and we are able to transfer loads efficiently and move on to the next move."
Roadrunner CEO Chris Jamroz made the move through Prospero Staff Capital, a private equity vehicle that he co-leads with the investor Ted Kellner, buying the stake from Elliott Investment Management L.P.
Kellner, the founder and partner of Fiduciary Management Inc. with over $17 billion in assets under management, and currently CEO of T&M Partners and Chairman of Fiduciary Real Estate Development, is a long-term investor in Roadrunner. Prospero Staff Capital is part of LyonIX Holdings, Jamroz’ investment company with holdings in transportation and logistics, real estate, infrastructure, and cyber security.
"After comprehensively unwinding the prior management's roll-up strategy to get to a pure-play LTL network, Roadrunner now stands as a premium long-haul carrier," Jamroz said in a release. "Today marks the beginning of our growth phase, driven by new capital, strategic investments, and acquisitions. We're committed to organic expansion, as well as pursuing focused and opportunistic M&A to strengthen our market position."
Specifically, loaded import volume rose 11.2% in October 2024, compared to October 2023, as port operators processed 81,498 TEUs (twenty-foot containers), versus 73,281 TEUs in 2023, the port said today.
“Overall, the Port’s loaded import cargo is trending towards its pre-pandemic level,” Port of Oakland Maritime Director Bryan Brandes said in a release. “This steady increase in import volume in 2024 is an encouraging trend. We are also seeing a rise in US agricultural exports through Oakland. Thanks to refrigerated warehousing on Port property near the maritime terminals and convenient truck and rail access, we are well-positioned to continue to grow ag export cargo volume through the Oakland Seaport.”
Looking deeper into its October statistics, loaded exports declined 3.4%, registering 66,649 TEUs in October 2024, compared to 68,974 TEUs in October 2023. Despite that slight decline, the category has grown 6.7% between January and October 2024 compared to the same period last year.
In fact, Oakland’s exports have been declining over the past decade, a long-term trend that is largely due to the reduction in demand for recycled paper exports. However, agricultural exports have made up for some of the export losses from paper, the port said.
For the fourth quarter, empty exports bumped up 30.6%. Port operators processed 29,750 TEUs in October 2024, compared to 22,775 TEUs in October 2023. And empty imports increased 15.3%, with 15,682 TEUs transiting Port facilities in October 2024, in contrast to 13,597 TEUs in October 2023.
A growing number of organizations are identifying ways to use GenAI to streamline their operations and accelerate innovation, using that new automation and efficiency to cut costs, carry out tasks faster and more accurately, and foster the creation of new products and services for additional revenue streams. That was the conclusion from ISG’s “2024 ISG Provider Lens global Generative AI Services” report.
The most rapid development of enterprise GenAI projects today is happening on text-based applications, primarily due to relatively simple interfaces, rapid ROI, and broad usefulness. Companies have been especially aggressive in implementing chatbots powered by large language models (LLMs), which can provide personalized assistance, customer support, and automated communication on a massive scale, ISG said.
However, most organizations have yet to tap GenAI’s potential for applications based on images, audio, video and data, the report says. Multimodal GenAI is still evolving toward mainstream adoption, but use cases are rapidly emerging, and with ongoing advances in neural networks and deep learning, they are expected to become highly integrated and sophisticated soon.
Future GenAI projects will also be more customized, as the sector sees a major shift from fine-tuning of LLMs to smaller models that serve specific industries, such as healthcare, finance, and manufacturing, ISG says. Enterprises and service providers increasingly recognize that customized, domain-specific AI models offer significant advantages in terms of cost, scalability, and performance. Customized GenAI can also deliver on demands like the need for privacy and security, specialization of tasks, and integration of AI into existing operations.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”