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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.