Buying a conveyor is just the beginning of a long and expensive relationship. But there are plenty of things you can do to keep your long-term costs in check.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
My own introduction to the concept of "total cost of ownership" came when I was a teenager. I had my eye on a used '67 Mustang with an asking price of $750, which was roughly the amount I had saved from an after-school job. But when I approached my father with the plan, I got a cold dose of reality. With a car, he explained, the initial purchase price is just the tip of the iceberg. You also have to factor in the costs of gas, insurance, repairs, new tires, and more. Clearly, my $750 wasn't going to stretch far enough.
Unfortunately, many buyers of conveyor systems have the same frame of reference that I did as a 16-year-old would-be car owner. They see only the sticker price. But with conveyors, like cars, the initial purchase is only the start of a long and expensive relationship, says Boyce Bonham, director of systems development at Hytrol Conveyor Co. Buyers also have to take into account installation costs as well as ongoing expenses like energy, preventative maintenance, and repairs.
Although there's no way to avoid these costs altogether, there are still things conveyor buyers can do to minimize the pain, says Bonham, who has extensive experience helping clients stretch their equipment budgets. In many cases, it's a matter of making smart decisions at the outset, when they design the system and choose its components—controls, motors, gearboxes, power transmissions, and the like.
If you're planning to buy a conveyor, what should you look for? Bonham offers the following tips for choosing conveyor models and components that will save you money over the long term.
Conveyor design and controls
Of all the costs associated with operating a conveyor system, the biggest component is energy, says Bonham. That's why he advises buyers to make design decisions with energy efficiency in mind. That might mean, for example, choosing a 24-volt DC-powered unit over a less-efficient AC unit—a move that would produce energy savings of up to 50 percent. Choosing energy-saving components may add a little to the initial purchase price, Bonham says, but the buyer will recover that initial "upcharge" many times over.
Another way to save on energy bills is to have the conveyor built with decentralized drive units spread throughout the belt as opposed to choosing a centralized drive, he says. Using decentralized drives allows a conveyor section to shut down temporarily when there's no payload. That alone can save another 10 to 20 percent in energy costs, and that's just the half of it. Because the units aren't running continuously, there's less wear and tear on components, which translates to lower maintenance costs. And since most of these conveyors are built with modular sections, they're less costly to install.
The speed of the conveyor you select will also have a big effect on operating costs. Simply put, the higher the speed, the more expensive the unit will be to operate. That's why it pays to make sure you're buying only as much speed as you'll actually need.
Of course, that can be tricky if you're choosing your conveyor with future needs in mind. In that case, you may want to consider a variable speed conveyor. Variable speed models give growing operations as well as operations that experience wide fluctuations in throughput volume the ability to change the settings according to their needs. Users can simply run the conveyor at lower speeds during non-peak periods, saving substantially on both energy costs and component wear.
If your operation uses conveyors in a variety of widths, choosing systems that use common components could save you a lot of money. Just as Southwest Airlines flies only one type of aircraft to keep parts and maintenance costs to a minimum, conveyor users can keep a lid on costs by using, say, pulleys and bearings that are common to all models. An added benefit is that they'll need less space for storing parts and components. "Everyone's space costs something," notes Bonham.
He adds that another way to keep conveyor maintenance costs in check is to choose models with parts that are easy to replace. "Years ago, for instance, you had to shut down a conveyor to replace a photo eye," he says. Nowadays, conveyors are available with photo eyes that just snap into the wiring harness while the conveyor is running.
Motors
Conveyor motors today come in three basic types: standard, energy efficient, and super efficient. Selecting a super-efficient motor can cut energy use by 3 percent or more, which can easily add up to thousands of dollars of savings over the unit's lifetime.
"Super efficient motors have a very minimal upcharge in the initial cost, but tremendous savings over the life of the system," Bonham says.
Plus, the more efficient the motor is, the better it will stand up to wear and tear. In other words, not only does a super-efficient motor use less energy, but it also has a longer life expectancy than its less efficient counterparts.
Gearboxes
The choice of gear box also affects energy consumption. For example, a worm gear box has an efficiency rating of 50 to 90 percent, depending on how it's applied. In comparison, a helical bevel gear box has an efficiency rating of 95 to 98 percent.
Choosing a more efficient gear box gives conveyor owners the options of using a lower-horsepower motor to accomplish the same task or using the same horsepower motor to run a longer section of conveyor. There's another benefit as well: A more efficient gear box operates with less wear and tear, resulting in a longer life. All of this can add up to energy savings of 8 to 10 percent.
Power train components
Chains and sprockets are the default choice for power transmission in conveyor systems. If you go with chains and sprockets, Bonham says, consider using low-maintenance chains to help control costs.
However, there are more cost-efficient options. One is to replace the chain with a timing belt and sprocket. An even better alternative is to use a direct drive power transmission system. Not only are direct drive units more efficient, but they have no parts to replace, which eliminates the need for maintenance and parts storage altogether.
Many solid returns
As for what kind of payback buyers can expect from choosing energy-efficient components, that's hard to say. Conveyor usage patterns vary widely from one operation to the next, making it difficult to attach a number to the potential returns.
But Bonham stresses that they'll recoup every penny and more. Most users will see a solid return on investment within two to three years, he says, with the prospect of a much bigger payoff over time.
According to Arvato, it made the move in order to better serve the U.S. e-commerce sector, which has experienced high growth rates in recent years and is expected to grow year-on-year by 5% within the next five years.
The two acquisitions follow Arvato’s purchase three months ago of ATC Computer Transport & Logistics, an Irish firm that specializes in high-security transport and technical services in the data center industry. Following the latest deals, Arvato will have a total U.S. network of 16 warehouses with about seven million square feet of space.
Terms of the deal were not disclosed.
Carbel is a Florida-based 3PL with a strong focus on fashion and retail. It offers custom warehousing, distribution, storage, and transportation services, operating out of six facilities in the U.S., with a footprint of 1.6 million square feet of warehouse space in Florida (2), Pennsylvania (2), California, and New York.
Florida-based United Customs Services offers import and export solutions, specializing in remote location filing across the U.S., customs clearance, and trade compliance. CTPAT-certified since 2007, United Customs Services says it is known for simplifying global trade processes that help streamline operations for clients in international markets.
“With deep expertise in retail and apparel logistics services, Carbel and United Customs Services are the perfect partners to strengthen our ability to provide even more tailored solutions to our clients. Our combined knowledge and our joint commitment to excellence will drive our growth within the US and open new opportunities,” Arvato CEO Frank Schirrmeister said in a release.
And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.
One of the biggest targets for innovation spending will artificial intelligence, as supply chain leaders look to use AI to automate time-consuming tasks. The survey showed that 41% are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control, and 26% for labor optimization.
Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third – 35% – said they’re largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.
“Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage,” Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco, said in a release. “Now’s the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping, and receiving to optimize your operations and unlock true efficiency.”
Among the survey’s other top findings:
there was essentially three-way tie for which physical automation tools professionals are looking to adopt in the coming year: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%).
professionals tend to select a proven developer for providing supply chain innovation, but many also pick start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
there’s room to grow in partnering with 3PLs for innovation: only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
Volvo Autonomous Solutions will form a strategic partnership with autonomous driving technology and generative AI provider Waabi to jointly develop and deploy autonomous trucks, with testing scheduled to begin later this year.
The announcement came two weeks after autonomous truck developer Kodiak Robotics said it had become the first company in the industry to launch commercial driverless trucking operations. That milestone came as oil company Atlas Energy Solutions Inc. used two RoboTrucks—which are semi-trucks equipped with the Kodiak Driver self-driving system—to deliver 100 loads of fracking material on routes in the Permian Basin in West Texas and Eastern New Mexico.
Atlas now intends to scale up its RoboTruck deployment “considerably” over the course of 2025, with multiple RoboTruck deployments expected throughout the year. In support of that, Kodiak has established a 12-person office in Odessa, Texas, that is projected to grow to approximately 20 people by the end of Q1 2025.
Women are significantly underrepresented in the global transport sector workforce, comprising only 12% of transportation and storage workers worldwide as they face hurdles such as unfavorable workplace policies and significant gender gaps in operational, technical and leadership roles, a study from the World Bank Group shows.
This underrepresentation limits diverse perspectives in service design and decision-making, negatively affects businesses and undermines economic growth, according to the report, “Addressing Barriers to Women’s Participation in Transport.” The paper—which covers global trends and provides in-depth analysis of the women’s role in the transport sector in Europe and Central Asia (ECA) and Middle East and North Africa (MENA)—was prepared jointly by the World Bank Group, the Asian Development Bank (ADB), the German Agency for International Cooperation (GIZ), the European Investment Bank (EIB), and the International Transport Forum (ITF).
The slim proportion of women in the sector comes at a cost, since increasing female participation and leadership can drive innovation, enhance team performance, and improve service delivery for diverse users, while boosting GDP and addressing critical labor shortages, researchers said.
To drive solutions, the researchers today unveiled the Women in Transport (WiT) Network, which is designed to bring together transport stakeholders dedicated to empowering women across all facets and levels of the transport sector, and to serve as a forum for networking, recruitment, information exchange, training, and mentorship opportunities for women.
Initially, the WiT network will cover only the Europe and Central Asia and the Middle East and North Africa regions, but it is expected to gradually expand into a global initiative.
“When transport services are inclusive, economies thrive. Yet, as this joint report and our work at the EIB reveal, few transport companies fully leverage policies to better attract, retain and promote women,” Laura Piovesan, the European Investment Bank (EIB)’s Director General of the Projects Directorate, said in a release. “The Women in Transport Network enables us to unite efforts and scale impactful solutions - benefiting women, employers, communities and the climate.”
Oh, you work in logistics, too? Then you’ve probably met my friends Truedi, Lumi, and Roger.
No, you haven’t swapped business cards with those guys or eaten appetizers together at a trade-show social hour. But the chances are good that you’ve had conversations with them. That’s because they’re the online chatbots “employed” by three companies operating in the supply chain arena—TrueCommerce,Blue Yonder, and Truckstop. And there’s more where they came from. A number of other logistics-focused companies—like ChargePoint,Packsize,FedEx, and Inspectorio—have also jumped in the game.
While chatbots are actually highly technical applications, most of us know them as the small text boxes that pop up whenever you visit a company’s home page, eagerly asking questions like:
“I’m Truedi, the virtual assistant for TrueCommerce. Can I help you find what you need?”
“Hey! Want to connect with a rep from our team now?”
“Hi there. Can I ask you a quick question?”
Chatbots have proved particularly popular among retailers—an October survey by artificial intelligence (AI) specialist NLX found that a full 92% of U.S. merchants planned to have generative AI (GenAI) chatbots in place for the holiday shopping season. The companies said they planned to use those bots for both consumer-facing applications—like conversation-based product recommendations and customer service automation—and for employee-facing applications like automating business processes in buying and merchandising.
But how smart are these chatbots really? It varies. At the high end of the scale, there’s “Rufus,” Amazon’s GenAI-powered shopping assistant. Amazon says millions of consumers have used Rufus over the past year, asking it questions either by typing or speaking. The tool then searches Amazon’s product listings, customer reviews, and community Q&A forums to come up with answers. The bot can also compare different products, make product recommendations based on the weather where a consumer lives, and provide info on the latest fashion trends, according to the retailer.
Another top-shelf chatbot is “Manhattan Active Maven,” a GenAI-powered tool from supply chain software developer Manhattan Associates that was recently adopted by the Army and Air Force Exchange Service. The Exchange Service, which is the 54th-largest retailer in the U.S., is using Maven to answer inquiries from customers—largely U.S. soldiers, airmen, and their families—including requests for information related to order status, order changes, shipping, and returns.
However, not all chatbots are that sophisticated, and not all are equipped with AI, according to IBM. The earliest generation—known as “FAQ chatbots”—are only clever enough to recognize certain keywords in a list of known questions and then respond with preprogrammed answers. In contrast, modern chatbots increasingly use conversational AI techniques such as natural language processing to “understand” users’ questions, IBM said. It added that the next generation of chatbots with GenAI capabilities will be able to grasp and respond to increasingly complex queries and even adapt to a user’s style of conversation.
Given their wide range of capabilities, it’s not always easy to know just how “smart” the chatbot you’re talking to is. But come to think of it, maybe that’s also true of the live workers we come in contact with each day. Depending on who picks up the phone, you might find yourself speaking with an intern who’s still learning the ropes or a seasoned professional who can handle most any challenge. Either way, the best way to interact with our new chatbot colleagues is probably to take the same approach you would with their human counterparts: Start out simple, and be respectful; you never know what you’ll learn.