Despite the sub-zero temps, no one's complaining about working conditions in the freezer of North America's largest refrigerated warehouse. That's because it's "staffed" by a sophisticated mega-AS/RS that performs virtually all of the work.
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.
Working in a freezer for an eight-hour shift is among the most difficult jobs in the supply chain world. In order to spare workers (and forklifts) from having to toil in adverse conditions—think temperatures that dip to a frosty minus 10 degrees Fahrenheit—a new warehouse in Richland, Wash., is instead relying on an automated storage and retrieval system (AS/RS) from Dematic to handle most of the work. The AS/RS is believed to be one of the largest ever built in a freezer. It offers over 36 million cubic feet of storage capacity and can handle throughput volumes in excess of 250 trucks and 20 railcars a day.
The Richland facility, which opened in July, is owned and operated by Preferred Freezer Services, a New Jersey-based company with 35 refrigerated warehouses in the U.S. and a handful of others in Asia.
As a public warehouse company, Preferred Freezer Services built the facility to serve the needs of a specific group of clients, primarily potato growers in the Pacific Northwest. One of the facility's larger customers is Lamb Weston, a supplier of frozen vegetable products that is part of ConAgra Foods.
The new facility offers 455,000 square feet of refrigerated space, with 312,000 of it dedicated to the automated freezer. The AS/RS within measures 116 feet high and features deep-lane racking served by 15 storage/retrieval cranes. The system provides very dense storage for more than 117,000 pallets of frozen french fries, hash browns, and other frozen products. The steel pallet racks, supplied by Frazier Industrial, also serve as the main structural support for the freezer's roof and walls.
HIGH AND MIGHTY
A majority of the goods handled at the new facility arrive in Preferred Freezer Services' company-owned trucks, rather than vehicles operated by its clients or outside carriers. Preferred Freezer has learned that the more of its supply chain it handles itself, the lower the risk that products will be damaged or will jam up its automated handling systems. Therefore, about 65 percent of incoming goods are transported in Preferred Freezer's trucks.
"We want to make sure we control the flow, so we made the decision to use our own people," says Burnie Taylor, director of major capital projects and general manager in Richland.
The trucks pick up finished goods at production plants located within 50 miles of Richland. The vehicles that transport these goods are equipped with conveyance systems inside the 53-foot reefer trailers. Upon arrival at the Richland facility, they're directed to one of four automated docks, where the pallets are conveyed off the trailers and loaded onto a pallet monorail system for transport to the AS/RS. The monorail consists of hanging carts with roller beds. The pallets simply roll off the conveyor and onto the carts. A scanning system then records each pallet number and captures the load's dimensions to ensure it can be handled by the automated system.
The remaining 35 percent of inbound goods (those not arriving on company trucks) enter the facility via commercial trucks. There are six rail doors in the building and 14 other inbound truck docks in addition to the automated doors. Most of the products not delivered by company trucks are either floor stacked, rest on other pallets, or reside on slipsheets. These have to be manually transferred to slave pallets that are suitable for use in the automated system. The pallets are then loaded onto the monorail for transport to the AS/RS.
The AS/RS is spread out over three separate 104,000-square-foot freezer rooms, with five aisles and cranes per room. It features 18 possible points of entry and exit. Typically, nine are assigned to incoming goods and the other nine to outgoing products, though all 18 can serve either purpose. The monorail usually delivers the pallet to the entry point closest to the assigned storage location, where it is automatically discharged onto pallet conveyors to enter the system. From there, a storage/retrieval crane picks up the pallet and ferries it to the assigned lane, Where a deep lane cart know as the "Supercap Cart" (supplied by Automha) takes over and carries the load down the lane to the next available position.
From two to six pallets are stored in each lane, with most lanes devoted to a single stock-keeping unit (SKU). Product is put away in multiple aisles to create redundancy throughout the warehouse. This assures that all SKUs are accessible when a crane is down for maintenance and provides for easy access to faster-moving products.
"We have a lot of flex built into the system to manage inventories," says Taylor. He adds that customers often have different rotations for their goods. Some rotate stock according to first in/first out principles, while others rotate products based on expiration dates.
Full pallets are retrieved from the system via a process that's essentially a reversal of the entry process. The moles retrieve the goods and then transfer the pallets to the storage/retrieval cranes for transport to output stations. From there, the monorail system picks up the pallets for transport to outbound docks.
In addition, Preferred Freezer builds "rainbow" pallets of mixed goods for customers. For these, the monorail delivers pallets to four picking stations, where a Tygard Claw layer picker attachment on a Crown sit-down lift truck is used to assemble the pallets. It removes a layer from the source pallet and deposits it onto an order pallet, building rows of mixed SKUs in the process. Individual cartons are also picked by hand and added to the order pallets. When a completed pallet is ready to ship, it is conveyed to the docks via either the monorail system or lift truck.
Many of the mixed pallets are picked in advance of shipment to balance workflow. In this case, the mixed pallets enter the monorail system for transport back to the AS/RS, where they're held until the shipment date. They are then picked in the same manner as standard full pallets.
HOT RESULTS FOR A COOL SYSTEM
By allowing the AS/RS to do most of the work in the freezer, Preferred Freezer can assign its human employees to areas away from the cold, such as the dock, where temperatures hover at a relatively balmy 40 degrees Fahrenheit. "When you look at the labor force and being an employer of choice in the freezer business, it is an advantage not to have people needing to access the freezer," says Taylor.
While the AS/RS's bone-chilling conditions would make it quite uncomfortable for people to work there, other factors make it downright inhospitable. This is the first freezer system in the country (and the second in North America) to incorporate a low oxygen environment for fire prevention. Nitrogen is introduced to the atmosphere inside to virtually eliminate any chance of combustion. Furthermore, the new installation is a lights-out system.
At present, operations are continuing to ramp up in the new building, which is expected to house 200 million pounds of inventory by next month (it's designed to hold up to 250 million pounds). When it reaches full capacity, the facility is projected to have a throughput of 2 billion pounds of products a year.
Leaders at American ports are cheering the latest round of federal infrastructure funding announced today, which will bring almost $580 million in Port Infrastructure Development Program (PIDP) awards, funding 31 projects in 15 states and one territory.
“Modernizing America’s port infrastructure is essential to strengthening the multimodal network that supports our nation's supply chain,” Maritime Administrator Ann Phillips said in a release. “Approximately 2.3 billion short tons of goods move through U.S. waterways each year, and the benefits of developing port infrastructure extend far beyond the maritime sector. This funding enhances the flow and capacity of goods moved, bolstering supply chain resilience across all transportation modes, and addressing the environmental and health impacts on port communities.”
Even as the new awardees begin the necessary paperwork, industry group the American Association of Port Authorities (AAPA) said it continues to urge Congress to continue funding PIDP at the full authorized amount and get shovels in the ground faster by passing the bipartisan Permitting Optimization for Responsible Transportation (PORT) Act, which slashes red tape, streamlines outdated permitting, and makes the process more efficient and predictable.
"Our nation's ports sincerely thank our bipartisan Congressional leaders, as well as the USDOT for making these critical awards possible," Cary Davis, AAPA President and CEO, said in a release. "Now comes the hard part. AAPA ports will continue working closely with our Federal Government partners to get the money deployed and shovels in the ground as soon as possible so we can complete these port infrastructure upgrades and realize the benefits to our nation's supply chain and people faster."
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
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.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”