Customers today want equipment that's greener, more versatile, and more efficient than the machinery offered in the past. Manufacturers have responded with an array of new models and accessories.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
There's nothing like a downturn to accelerate a trend. For some time now, distribution center operators have been looking to their conveyor suppliers to help them do things like achieve higher throughput and accuracy, handle a greater variety of packages and other conveyable products, and conserve energy. Those demands have been driven by pressures faced by the DCs themselves to fill orders faster, ship orders that are complete and error-free (or face chargebacks), and generate faster turns.
William J. Casey, president of SI Systems, which specializes in piece and case picking automation on the order fulfillment side of its business, says much of what customers are seeking is based on their drive to reduce inventories and accelerate inventory turns. The growth of Internet sales has led to greater demand for automated or semi-automated piece picking, he adds.
When it comes to trends on the demand side, three in particular stand out, says Ken Ruehrdanz, market development manager for Dematic. First, he says, companies are looking to modernize and upgrade existing systems. Second, they're interested in adopting solutions that are more energy efficient. And third, they're asking for systems that can convey a wider variety of products, such as very lightweight goods and polybagged products.
Control issues
Ruehrdanz and others in the industry also report that they're fielding more requests for equipment that offers higher throughput and accuracy. "Essentially, that's about controls," he says, referring to the electronic devices that monitor and manage everything from conveyor speed to maintenance. "Control technology has to drive the air out of the system—the gaps between loads," Ruehrdanz adds. "We can design systems so that they actually run at a slower speed but offer a higher rate of throughput."
Tim Kraus and Kevin Klueber, product managers for Intelligrated, say their company is doing much the same thing. "We're keeping throughput up by keeping machine speeds at a minimum and improving handling and predictability," says Kraus. He adds that controlling the actual speed of the conveyor extends machine life, reduces energy use, and minimizes noise. By employing technology that reduces gaps, improves predictability, and eliminates errors such as side by sides, those goals can be achieved, he says.
John Clark, director of marketing for TGW, says his company is also focusing on controls. Improved controls, he says, provide greater visibility into the operation of a customer's system and enhance the customer's ability to manage it. "They make the conveyor smarter," he says. He adds that enhanced controls help accelerate return on investments in conveyors because the resulting improvements in throughput, accuracy, and energy efficiency can reduce power and labor costs.
Handle with care
Another trend noted by several companies was the emerging demand for conveyors that can handle a greater variety of goods. A spokeswoman for Intelligrated writes, "There has been a trend in the industry for [material handling equipment] systems to handle pieces rather than cases. This results in a demand on the [equipment] providers to improve small carton handling on all types of technologies used throughout a system, the goal being to reduce the number of non-conveyables without sacrifices to system throughput or capital investment budgets."
Klueber notes that the technological challenges have been further complicated by changes in packaging. "We have to handle more and more diverse products and carton types," he says. "The range of conveyables continues to expand." These include smaller and lighter cartons and polybags, which historically have proved a challenge for conveyors.
Conveyor makers have responded with adaptations that include segmented belt conveyors, which can handle polybagged items better than traditional long belts can, and sliding shoe sorters that turn light goods carefully before diverting them to the designated lane.
Get more from what you have
Not all buyers are focused on new equipment, however. Many DC managers, even from some of the nation's largest and best capitalized companies, have focused on getting more out of existing systems before investing in new equipment. Michael Bozym, director of engineering for HK Systems, says, "We've devoted a lot of effort to the aftermarket. With capital so tight, even big customers are looking for small cost projects that will improve throughput or reduce damage."
Ruehrdanz says, "There is a continued requirement to upgrade existing material handling or conveyor systems. Customers are asking if there is a way to go back in and upgrade controls and maybe make some mechanical upgrades. There are a lot of installed systems, and customers want to get the most out of them."
The decision whether to upgrade older equipment or invest in new systems can be a challenge. "A lot of automation technology investment happened 20 years ago," says Kraus. As a result, a large number of facilities are wrestling with that decision today, he explains. Kraus says Intelligrated is in the process of completing system audits for several customers to aid with those determinations.
Whatever adaptations or investments DC operators make, energy conservation is likely to appear near the top of their priority lists. "There is much more sensitivity toward designing systems with energy-efficient controls and technology," Ruehrdanz says. That has led to the development of both mechanical and control technologies that reduce energy use, including low-voltage motor-driven rollers and controls that can idle conveyor segments when no products are detected.
Finally, conveyor makers, like other players in the material handling equipment industry, continue to invest in their own operations to boost efficiency and control costs. For instance, Bozym reports that HK Systems has implemented lean principles in its own operations. "We've found ways we can execute jobs more efficiently and cost effectively," he says. "[That allows us to] offer goods at a more competitive cost."
Who's who in conveyors?
Here's a brief roundup of what some of the leading companies have been up to lately, plus a listing of several other leading service and equipment providers.
AmbaFlex is a manufacturer of specialty conveyors, including spiral conveyors, flexible conveyors, and dynamic accumulators used in distribution as well as in packaging, bottling, and printing lines.
Beumer Group says its acquisition of Koch Holding, a Czech Republic-based company, strengthens its position in tubular belt conveyors. Beumer Corp., the group's North American arm, serves the United States, Canada, Mexico, Central America, and the Caribbean.
Dematic has expanded its Technical Support Call Center services. The added capabilities include self-service access to the technical support database and a new alert monitoring service. The self-service pOréal is available to Dematic customers with a support contract.
The new alert monitoring service uses software connected to the user's system to monitor activity and equipment in the system and report any anomalies in operation or equipment status to the Dematic Technical Support Call Center.
HK Systems has introduced the MB-100 Multi-Belt Sorter, a unit designed to handle and sort a variety of products into high-density after-sort divert lanes or work stations. The company says the MB-100's sortation rates can exceed 100 packages per minute for packages ranging from 6 to 36 inches in length and weighing up to 75 pounds. The transfers and diverts can be relocated when product sizes or field situations change. HK Systems says the new sorter is suited for the food and beverage, media, retail, postal, wine and spirits, manufacturing, and pharmaceutical industries.
Hytrol Conveyor Co. has introduced its Extenda Pusher, an accessory for systems where mounting space is minimal but products require 90-degree sortation. It has throughput rates of up to 50 cartons per minute and is available in four stroke lengths. The device mounts to units with overall conveyor widths of 18, 24, 30, and 36 inches. Proximity sensors for both extend and return signals allow users to adjust the stroke length.
Hytrol has also introduced an addition to its E24 motor-driven roller conveyor family. The company says its E24 Timing Belt Transfer, which sorts up to 40 cartons a minute, increases productivity by providing improved throughput.
Intelligrated says it has made advancements throughout its standard conveyor and sorter product line in response to demands from customers for equipment that can handle lightweight and delicate items previously considered to be non-conveyables. To maintain gapping, orientation, and carton integrity, Intelligrated has integrated improvements such as close-center roller conveyor and minimum diameter belt conveyor for carton control and software tools to minimize jams, eliminate side-by-side inefficiencies, and reduce the potential for product fall-through.
The company also recently added Crisplant tilt-tray and cross-belt sortation solutions to its product line as a result of its 2009 acquisition of FKI Logistex. In addition, Intelligrated has launched an expanded OnTimeParts operation, which offers more than 50,000 replacement and upgrade parts for material handling equipment.
Jervis B. Webb has introduced a new friction-drive conveyor system as an alternative to overhead and inverted power and free conveyors. The company, a subsidiary of Daifuku Co., says the heavy-duty model can move loads of up 2,500 pounds and the light-duty model can move goods as light as 250 pounds. Friction conveyor offers a smooth continuous flow of products and can travel up to 240 feet per minute. In addition, Webb offers variable frequency drives, which allow speeds to be adjusted.
Knapp Logistics Automation, which focuses on warehouse and DC automation, designs, manufactures, and installs integrated material handling and software solutions. Knapp specializes in semi- and fully automated order fulfillment and assembly systems focused on high-speed/high-volume "each" picking.
Ralphs-Pugh, a manufacturer of conveyor rollers and components, has introduced its Green (E) Series conveyor rollers. The new rollers with ABEC-1 Precision Bearings are now available with eco-friendly biodegradable grease. This new lubricant is a high-grade, high-performance grease that provides low-temperature starting torque. It also offers a long life over a wide range of working temperatures while eliminating the environmental concerns associated with petroleum-based lubricants.
SI Systems is a systems integrator that supplies branded automated material handling systems for manufacturing, assembly, order fulfillment, and distribution operations.
SSI Schaefer offers products for warehousing, materials handling, transport, and storage, including a wide variety of modular designed conveying systems.
TGW is an integrated logistics solutions and material handling equipment provider for both large and small companies. Its expertise is in the planning, design, implementation, and lifetime service of integrated logistics solutions to enhance a company's supply chain operations.
This article has been revised and expanded since it was originally published.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."