With hundreds of different beverage products flowing in daily, German bottler Labertaler was having a hard time keeping its head above water. Automated DC systems changed all that.
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.
The rolling hills of Lower Bavaria are known for their natural springs. Nestled in a valley near the town of Schierling is Labertaler, one of Germany's leading producers of natural spring waters and other beverages.
In the U.S., a handful of brands dominate the bottled water market, but it's a different story in Germany. German bottlers face stiff competition, with a wide variety of waters vying for the consumer's dollar. These include mineral water, plain (non-carbonated) water, high vitality water, and flavored waters. And the variety of offerings continues to grow, which means companies like Labertaler must contend with a constantly expanding stock-keeping unit (SKU) base.
Family-owned Labertaler has been a regional bottler in Bavaria since 1949, when it delivered homemade lemonade by handcart. Times have changed, and Labertaler has long since replaced the handcart with modern technology in an effort to improve customer service, process higher volumes, and accommodate 320 different beverage products. Labertaler now boasts a highly automated DC adjacent to its Schierling bottling plant from which it distributes water, juice, and soft drinks produced at the plant as well as both alcoholic and non-alcoholic beverages supplied by other manufacturers. Many of these products are sold through its 150 company-owned beverage stores, branded as Hausler Getränkemarkt. It also distributes beer, juice, and sodas to wholesale customers.
Krones, a German material handling company that specializes in beverages, provided most of the bottling and handling equipment in the production plant, so it was only natural that Labertaler would turn to Krones to design and implement its warehouse systems. The materials handling solution Krones engineered includes automated guided vehicles, high-density automated storage, transfer shuttle cars, and plenty of pallet conveyors to link them all together.
WATER, WATER, EVERYWHERE
Today, the process unfolds with well-tuned precision. Incoming shipments are delivered by truck to a transportation hall located on the DC's ground level. Beverage trucks pull into the building for unloading at eight positions, opening their side doors to give lift trucks access to their contents. The truck drivers carry PDAs (personal digital assistants), which they use to transfer data on their inbound loads to the facility's enterprise resource planning (ERP) system upon arrival.
Adjacent to the open transportation hall is a two-level transport system featuring rail-guided shuttles. The shuttles serve both incoming and outgoing products. Received goods are handled on the lower shuttle, while goods that are ready for loading onto trucks flow out from the upper shuttle system, which operates above receiving and about 10 feet from floor level. The open design allows lift trucks to access the input and output stations of both shuttles from the main floor.
Lift trucks are dispatched to collect pallets from the delivery trucks and ferry them the short distance to the receiving stations of the shuttle. Upon arrival, the lift trucks simply place their loads on the shuttle input positions. A shuttle car then takes the pallet and transfers it to conveyors for transport to the high-bay storage area.
While plastic single-use bottles are becoming more popular in Germany, most beverages are still packaged in reusable glass bottles. These empties, returned from stores and wholesale customers, are unloaded from delivery trucks and transferred to the lower-level shuttle. From there, the empty bottles are raised with a vertical lift and then diverted to an overhead bridge, where they're deposited on a conveyor that whisks them to the adjacent bottling plant.
Once the empty-bottle pallets arrive at the production side of the bridge, a lift automatically lowers them to the first-floor level. From there, one of the facility's eight automated guided vehicles (AGVs) gathers the pallets, four at a time, from the lifts and carries them to temporary storage or bottling operations as needed. The empty bottles are eventually washed and refilled.
Bottling takes place on three lines using local spring water. Two lines handle glass bottles, while the third fills plastic bottles. The bottles are placed into beverage crates, which are then stacked onto pallets, typically 36 crates per pallet. The same AGVs that handle the empty returned bottles also move the filled crates. The pallet loads are taken to a vertical lift, which raises them to the overhead bridge. A conveyor in the bridge, flowing in the opposite direction from the returned bottles, transports them to other conveyors that move them to the high-bay input stations.
WATER TOWER
Local zoning regulations in Schierling restrict the height of Labertaler's high-bay warehouse to 28 meters (about 92 feet). As a result, Labertaler opted for deep-lane automated storage to maximize capacity in a small footprint. Pallets here are packed densely into long channels.
Approximately 400 SKUs find a home in 15,000 high-bay positions that are redundantly spread over 11 levels. Incoming pallets are transferred upon arrival to one of two vertical lifts that move them to their assigned levels. Typically, one lift is used for inbound pallets and the other for outbound, but each lift can serve both functions.
From the lift, each pallet is moved to a transfer car that runs down the middle of each level, perpendicular to the 72 channel lanes. The warehouse management system (WMS), also supplied by Krones, assigns the storage positions dynamically. Once the transfer car reaches the appropriate lane, a small shuttle extends from the car to move product down the lanes, left or right, depending on the product's storage destination. The lanes to the left can hold 11 pallets, while those to the right house products eight positions deep.
The shuttle glides under the pallet and lifts it for transport down the lane. It then ferries its load to the assigned position, measuring the distance within the lane by the length of the extended shuttle cable in combination with lasers. Normally, only one SKU from one production batch is assigned per lane. This arrangement assures that all SKUs are accessible at any time and that there is flexibility to process items on a first-in/first-out basis. Most products stay in the high bay only a few days. All told, the system can handle 310 inbound pallets per hour.
ABOVE AND BELOW
The deep-lane storage system at Labertaler is designed with an access deck near the racking's vertical midpoint. Visitors to the facility are treated to a special-effects show thanks to some creative lighting here. Levels above the deck are bathed in blue light, while those below are washed in red. Labertaler calls it "heaven and hell," and the effect, especially looking down into the depths, is striking.
New products continually move in, while products needed for orders or to replenish the crate picking areas are gathered with the same shuttles for output. The shuttles slide under the loads, lift them up to clear the rails, and return them to the transfer cars. The transfer cars next reload the pallets onto a lift for placement onto an outbound lane. The system can discharge 360 pallets per hour at peak.
Products that will ship as full pallets are conveyed to the dispatch shipping area located in the transportation hall. A shuttle car picks up each load and delivers it to an assigned staging lane. Lift trucks gather the loads and place them onto the appropriate beverage trucks.
MIXED BEVERAGES
Other pallets coming from the high-bay warehouse replenish a crate picking area on the upper floor of the two-level DC (on the floor above the transportation hall). Picking items in crate quantities is a growing trend, as an ever-expanding array of flavors and varieties are being shipped to stores. As a result, mixed pallets now make up the majority of loads.
The crate picking area is divided into four modules. It features 320 different SKUs of products and has one picking slot assigned for each of those SKUs. Four rail shuttle cars move within the modules, one per module, to automatically restock products. Each of the 320 storage locations holds two pallets, so that a fresh pallet is always available for picking. In effect, the system has a capacity of 640 pallets.
While the WMS is capable of dynamically assigning storage locations in the crate pick area (as in the high-bay warehouse), Labertaler has found assigning SKUs to fixed slots to be more efficient. That's because it has a fairly stable SKU base, with items that are selected repeatedly. Plus, in contrast to the high bay, humans are involved in the picking here, and fixed slots make it easier for them to find product and help assure accuracy.
The WMS uses a voice system to provide workers with instructions for selecting crates and building mixed-SKU order pallets onto walkie rider trucks. Approximately 2,800 crates an hour can be selected in the crate pick area. While the warehouse turns its inventory every few days, stock turns even faster in the peak seasons—summer time when demand for water spikes, and holidays such as Christmas and Easter. During these periods, the manufacturing plant operates around the clock, while a second shift is employed in the distribution building.
Once a mixed pallet is complete, the operator moves it to one of the shuttle system's input stations. The shuttle then delivers it to the conveyors for transport to shipping (or if it's not needed immediately for loading, it can be sent to temporary holding in the high-bay warehouse). The shuttle system in the shipping area also has some buffering capability to gather pallet loads from all of the processing areas (bottling, the automated storage system, and the crate pick areas) until everything needed for the shipment has been accumulated and the scheduled truck arrives. Typically, the building can process about 10 truckloads per hour. Labertaler operates its own fleet but also contracts with for-hire carriers when needed.
As for the results? By all accounts, the new system has been a success. Today, the high-bay warehouse and automated systems at Labertaler keep the beverages flowing like, well, water.
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.