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.
Handling cases of beverages is never easy. That's because liquid-filled cases are heavy to lug around and if dropped, can quickly create a sticky mess. In addition to being hard on the back, manual processing and sorting often result in less-than-stellar order accuracy rates, especially for operations that ship multiple cases to a variety of customers.
That's why Horizon Beverage of Norton, Mass., was determined to make some operational changes when it recently moved to a new distribution center. "We had capacity issues in the old building, and our error rates were high," says Michael Epstein, the company's executive vice president and chief operating officer.
After mulling its options, the company decided on a solution that would address all of its pain points: accuracy, product damage, and ergonomic woes. It would partially automate its operations.
REAPING THE BENEFITS OF REPEAL
Horizon began its business life as Brockton Wholesale Beverage at an auspicious time—the day after prohibition ended in 1933. The company has grown steadily ever since, acquiring its current name, Horizon Beverage, in 1998. Fourth-generation descendants of the founder now run the company.
Today's Horizon Beverage is a wholesaler of beer, wine, and spirits throughout Massachusetts and Rhode Island. It also runs a brokerage operation in New Hampshire, Vermont, and Maine, which are all "control states" that regulate alcohol wholesaling.
Wholesale distribution for the company covers a wide range of customers throughout the Bay and Ocean states. "We ship to the smallest VFW, the largest nightclubs, stores, restaurants, and even Fenway Park. If you have a liquor license, we can deliver products to you," says Epstein.
Horizon Beverage moved to its new 600,000-square-foot temperature-controlled facility in Norton, which is 35 miles south of Boston, last year. (The company also has a 100,000-square-foot facility in western Massachusetts.) The new site, from which Horizon ships full pallets, full cases, and mixed cases of beverages, is a far cry from its predecessor. For example, the new building features roller conveyors and a sliding shoe sorter (both from Intelligrated) that now do most of the heavy lifting. Labels and voice picking technology also help boost accuracy.
To design the material handling systems for the new facility, Horizon Beverage turned to Carlstadt, N.J. -based integration firm W&H Systems. "W&H has experience in the wine and spirits [trade], and that is why we chose them," says Epstein.
Epstein praises W&H for its willingness to work with Horizon to smooth out rough spots in the flow, such as tweaking conveyor inclines and turns to assure gentle transport and minimize the potential for bottle breakage. The integrator also arranged to have the conveyors' rollers positioned closer together to reduce vibration and jarring, he says.
LIFTING THEIR SPIRITS
Today, distribution is a smooth-running operation at the Norton site. Forklifts whisk full-pallet orders and keg products to the shipping docks, while the remaining items are gathered from seven pick areas. (About 80 percent of the products shipped daily from the DC are selected in case- or less-than-case quantities.)
Six of the selection areas are located in three, two-level pick modules. Here, full cases are selected using printed shipping labels. Each label lists the location where a case is stored within the pick module. The worker assigned to the module pulls a case from that storage slot and manually affixes the shipping label to the carton. He then lifts the case onto a takeaway conveyor that runs through each level of the module.
The seventh pick area, known as "bottle pick," is designed for assembling mixed cases of products for customers who want less-than-full-case quantities of particular stock-keeping units (SKUs). The majority of these items are liquors and spirits, though a small percentage of wines are also selected within the bottle pick area. Voice technology from Lucas Systems directs picking. Workers receive computer-generated instructions over their headsets, then place the bottles into mixed-SKU cartons.
Epstein jokes that this is actually the second "pick-by-voice" system his company has used. In the old facility, a supervisor would stand at the end of the aisle with a written manifest in his hand. He would speak over a hand radio to workers in the aisles, who would select needed items as he read them off. "It was like using horses instead of cars," Epstein quips in comparing the two "technologies."
The full cases selected in the six modules combine with cases coming from the bottle pick area in a seven-to-one merge. They then enter the sliding shoe sorter. The sorter has small blocks, known as shoes, which can move across the conveying surface. When a carton reaches its divert destination, the software directs the shoes to slide, gently redirecting the case down a divert lane. The sorter at Horizon has nine divert lanes. Eight of these feed down to outbound shipping doors.
The ninth sorter divert sends cases through a pop-up sorter to a palletizing area. Once cases go through the initial sorting, wheels in the conveyor surface rise up to direct them to one of four palletizing stations. When a case reaches the assigned station, a computer relays instructions to workers regarding where to place it on a waiting pallet.
The cartons that divert from the sliding shoe sorter to the eight outbound docks are floor loaded onto the company's fleet of 50 beverage delivery trucks, where they join full pallets brought directly from the storage areas. Horizon also has three tractor-trailer trucks that it uses for longer hauls, some transfers to its western Massachusetts facility, and occasional inbound freight.
BETTER FLOW
All together, the facility ships about 30,000 cases of beverages a day, with 25,000 of them passing through the sorter. The automation has led to higher throughput in the new building compared with Horizon's previous DC. The gentle handling has also reduced breakage levels. Epstein says that work is now performed at a controlled, steady pace compared to the often-hectic environment in the old building.
"It's a much more pleasant work environment now, and we can do more in less time," says Epstein. "We had problems with a lot of errors when we did manual sorting, but the automated sorting takes that away."
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.