When it outgrew its main production and distribution facility, Mydibel, a Belgian producer of frozen potato products, built an automated high-bay warehouse with a state-of-the-art storage and retrieval system.
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 Walloon region of Belgium may be known to history for its battlefields, which include Waterloo and the World War I sites of Mons and Liege, but it is also the Idaho of Europe—in other words, it's an area ideally suited for growing potatoes. The region's "frites" are world-renowned. Legend holds that American servicemen stationed there in World War I called them "French" fries after the language spoken in the region and then brought a taste for the potato treat home with them.
Today, one of Belgium's leading providers of cut potato products is Mydibel. The family-owned company produces some 225,000 tons of potato products annually, shipping fries, hash browns, potato wedges and flakes, and more than 700 stock-keeping units (SKUs) of products to 120 countries worldwide. The company doesn't just process potatoes; it grows them as well, cultivating a significant share of the potatoes it sells.
The business has enjoyed tremendous growth in recent years—the kind of growth that's great for the bottom line but tends to put a strain on the back-end operations. By 2011, Mydibel had outgrown its main production and distribution facility in the Southern Belgian city of Mouscron and had resorted to renting four outside warehouses. But that arrangement was proving both costly and inefficient. "The problem was, we had to transport product back and forth between the facilities, and we did not have good visibility with all of the movement," says Fabian Leroy, Mydibel's maintenance and project engineer. On top of that, he says, the company was running up against the limitations of its warehouse management system (WMS), which could not be modified to accommodate the changes that were needed.
In order to consolidate all of those operations under one roof, the company began drawing up plans for the construction of a highly automated warehouse at the production site in Mouscron. Space was limited at the Mouscron property, however, which meant Mydibel would have to find ways to maximize the available footprint. It contracted with SSI Schaefer Systems to provide it with an automated storage and retrieval system (AS/RS) located in a large high-bay freezer. In addition to its Orbiter AS/RS, Schaefer supplied conveyors, shuttle systems, controls, and its Wamas warehouse management system to direct the distribution operations.
TATER TOWER
In keeping with the goal of maximizing space, the new AS/RS is a deep-lane system designed to provide very dense storage, holding significantly more than the drive-in pallet racks located in the facility's existing storage areas. Not only has that allowed Mydibel to consolidate the former satellite operations in one place, but it has also reduced the company's cooling and electricity bills by minimizing the size of the area that requires refrigeration.
Today, the storage and retrieval processes unfold with minimal human intervention. As pallets of finished products arrive from the plant's processing and packaging areas, automatic readers scan their bar codes to determine whether they should go to a freezer with conventional racking, mobile racks, or the Schaefer AS/RS until ready to ship. Most finished goods are sent to the automated storage system, while goods that require client-specific packaging typically are directed to the conventional warehouse, where they're stored in drive-in racks and other pallet racks.
The pallets destined for the automated section are next measured and inspected to make sure that they meet the size and quality standards for pallets used within the system. Occasionally, products arrive in the staging area either without pallets or loaded onto pallets that aren't suitable for use in the AS/RS (although they might be perfectly adequate for shipping). These are loaded onto slave pallets for their sojourn in the AS/RS. The slave pallets are reserved for internal use and remain in the facility.
A chain conveyor then transports the pallets to the AS/RS, which is contained within the newly constructed rack-supported high-bay freezer building. The temperature in the high bay is maintained at minus 24 degrees Celsius (minus 11 degrees Fahrenheit), so pallets pass through an air lock first in order to transition to the ultra-chilled environment. To reduce the risk of fire, a low oxygen level is maintained in the racking.
The AR/RS contains five aisles that are 93 meters (305 feet) long. Eleven levels of deep-lane storage racks are arrayed along the aisles and stand 32 meters (105 feet) high. The racks are designed to hold 32,000 Euro pallets (a Euro pallet measures 800 by 1200 millimeters—about 31.5 by 47.2 inches). The system is also designed to accommodate wider industrial-sized pallets that measure 1000 by 1200 millimeters (approximately 39.4 by 47.2 inches). It can hold 25,600 of the larger pallets.
The deep-lane system stores pallets packed tightly together in long rows that run perpendicular to the aisles. Mydibel's system can hold 11 Euro pallets in each lane. Most of the racks (with the exception of those on the far left and far right) allow for pallets to be accessed from either of the adjacent aisles. In most cases, each lane holds pallets of a single SKU from the same production batch, with one aisle used for depositing pallets and the adjacent aisle used for removing them. This helps assure that in most instances, the first pallets to enter the system are the first to be retrieved.
Five storage and retrieval cranes travel up and down the aisles. Each crane carries an Orbiter transfer car that's used to move products in and out of the lanes. An Orbiter can transport a load weighing up to 1,360 kilograms (about 3,000 pounds). Once it reaches the assigned location, the transfer car undocks from the crane to carry the pallet to its destination on rails mounted within the lane. It uses light sensors and an incremental encoder to determine the position to place the pallet in, which is typically next to the most recently inducted pallet.
The Orbiter transfer car then returns to re-dock with the crane and prepare for the next move. The cars recharge while stationed at the crane, which means they don't require a cable to move down the lane as many similar systems do.
When products are required for orders, the cranes and transfer cars retrieve the pallets and take them to a lift that lowers the pallets to a conveyor that transports them to shipping. The slave pallets are removed automatically and returned to their origination point.
The shipping department contains a buffering system with 11 lanes that can hold nine pallets apiece. The WMS uses these buffer lanes to build truckloads. Two material shuttles gather the pallets for transport to truck lanes for actual loading.
A PRODUCTIVE DESIGN
Combined, the five cranes and their Orbiters can store up to 52 pallets per hour and retrieve 126 pallets per hour. Both material flows are controlled by the Wamas WMS. The system can run one flow first and then the other, or run both functions simultaneously.
The WMS continuously tracks the location of products within the AS/RS. Cameras are located within the system to allow for visual inspection throughout, and computer displays show managers which positions are occupied and which are available for product storage.
The swift automated system has proved to be more productive than previous manual systems while requiring only half the labor. This allows Mydibel to deploy its work force more effectively. On top of that, the dense storage has reduced product damage and eliminated the need to store products off site. That alone saves the costs of two to three trucks and the drivers that were previously needed to ferry products back and forth to the satellite locations.
Best of all, using automated equipment for storage and retrieval means fewer people have to work in the sub-zero temperatures. And that should warm the hearts of frites lovers from Waterloo to London to Munich and beyond.
As the Trump Administration threatens new steps in a growing trade war, U.S. manufacturers and retailers are calling for a ceasefire, saying the crossfire caused by the new tax hikes on American businesses will raise prices for consumers and possibly trigger rising inflation.
Tariffs are taxes charged by a country on its own businesses that import goods from other nations. Until they can invest in long-term alternatives like building new factories or finding new trading partners, companies must either take those additional tax duties out of their profit margins or pass them on to consumers as higher prices.
The Trump Administration on Thursday announced it may impose “reciprocal tariffs” on any country that currently holds tariffs on the import of U.S. goods. That step followed earlier threats to apply tariffs on the import of steel and aluminum beginning March 12, another plan to charge tariffs on the import of materials from Canada and Mexico—now postponed until early March—and new round of tariffs on imports from China including a 10% blanket increase and the elimination of the “de minimis” exception for individual items under a value of $800 each.
Various industry groups say that while the Administration may have legitimate goals in ramping up a trade war—such as lowering foreign tariff and non-tariff trade barriers—applying a strategy of hiking tariffs on imports coming into America would inflict economic harm on U.S. businesses and consumers.
“This tariff-heavy approach continues to gamble with our economic prosperity and is based on incomplete thinking about the vital role ethical and fairly traded imports play in the prosperity,” Steve Lamar, president and CEO of The American Apparel & Footwear Association (AAFA) said in a release. “Putting America first means ensuring predictability for American businesses that create U.S. jobs; affordable options for American consumers who power our economy; opportunities for farmers who feed our families; and support for tens of millions of U.S. workers whose trade dependent jobs make our factories, our stores, our warehouses, and our offices function. Sweeping new tariffs — a possible outcome of this exercise — instead puts America last, raising costs for American manufacturers for critical inputs and materials, closing key markets for American farmers, and raising prices for hardworking American families.”
A similar message came from the National Retail Federation (NRF), whose executive vice president of government relations, David French, said: “While we support the president’s efforts to reduce trade barriers and imbalances, this scale of undertaking is massive and will be extremely disruptive to our supply chains. It will likely result in higher prices for hardworking American families and will erode household spending power. We encourage the president to seek coordination and collaboration with our trading partners and bring stability to our supply chains and family budgets.”
The logistics tech firm Körber Supply Chain Software has a common position. "The imposition of new tariffs, or the suspension of tariffs, introduces substantial challenges for businesses dependent on international supply chains. Industries such as automotive and electronics, which rely heavily on cross-border trade with Mexico and Canada, are particularly vulnerable,” Steve Blough, Chief Strategist at Körber Supply Chain Software, said in an emailed statement. “Supply chains that are doing low-value ecommerce deliveries will have their business model thrown into complete disarray. The increased costs due to tariffs, or the increased costs in processing time due to suspensions, may lead to higher consumer prices and processing times.”
And further opposition to the strategy came from the California-based IT consulting firm Bristlecone. “Tariffs or the potential for tariffs increase uncertainty throughout the supply chain, potentially stalling deals, impacting the sourcing of raw materials, and prompting higher prices for consumers,” Jen Chew, Bristlecone’s VP of Solutions & Consulting, said in a statement. “Tariffs and other protectionist economic policies reflect an overarching trend away from global sourcing and toward local sourcing and production. However, despite the perceived benefits of local operations, some resources and capabilities may simply not be available locally, prompting manufacturers to continue operations overseas, even if it means paying steep tariffs.”
The Google-backed humanoid robot maker Apptronik on Thursday announced it had raised $350 million in venture funding to fuel the deployment of its “Apollo” model and to scale up operations, accelerate innovation, and hire more staff.
That innovation push will be specifically aimed at expanding Apollo’s capabilities, enabling it to address a wide range of applications in industries like logistics and manufacturing, as well as eldercare and healthcare.
Texas-based Apptronik is also scaling up manufacturing of Apollo units to fulfill growing orders across priority verticals—including automotive, electronics manufacturing, third-party logistics providers (3PLs), beverage bottling and fulfillment, and consumer packaged goods.
The “series A” venture round was co-led by B Capital and Capital Factory, with participation from Google. It follows $28 million in previous funding. Apprtronik was founded in 2016 at the University of Texas at Austin’s Human Centered Robotics Lab.
“With Apptronik, we see a world in which humanoid robots play a vital role in addressing societal challenges—from assisting with disaster relief and elder care to supporting space exploration and medical advancements. Industry leaders like Mercedes-Benz and GXO Logistics are already seeing the real-world impact of Apptronik's technology,” said Howard Morgan, chair and general partner of B Capital.
Warehouse automation orders declined by 3% in 2024, according to a February report from market research firm Interact Analysis. The company said the decline was due to economic, political, and market-specific challenges, including persistently high interest rates in many regions and the residual effects of an oversupply of warehouses built during the Covid-19 pandemic.
The research also found that increasing competition from Chinese vendors is expected to drive down prices and slow revenue growth over the report’s forecast period to 2030.
Global macro-economic factors such as high interest rates, political uncertainty around elections, and the Chinese real estate crisis have “significantly impacted sales cycles, slowing the pace of orders,” according to the report.
Despite the decline, analysts said growth is expected to pick up from 2025, which they said they anticipate will mark a year of slow recovery for the sector. Pre-pandemic growth levels are expected to return in 2026, with long-term expansion projected at a compound annual growth rate (CAGR) of 8% between 2024 and 2030.
The analysis also found two market segments that are bucking the trend: durable manufacturing and food & beverage industries continued to spend on automation during the downturn. Warehouse automation revenues in food & beverage, in particular, were bolstered by cold-chain automation, as well as by large-scale projects from consumer-packaged goods (CPG) manufacturers. The sectors registered the highest growth in warehouse automation revenues between 2022 and 2024, with increases of 11% (durable manufacturing) and 10% (food & beverage), according to the research.
The Swedish supply chain software company Kodiak Hub is expanding into the U.S. market, backed by a $6 million venture capital boost for its supplier relationship management (SRM) platform.
The Stockholm-based company says its move could help U.S. companies build resilient, sustainable supply chains amid growing pressure from regulatory changes, emerging tariffs, and increasing demands for supply chain transparency.
According to the company, its platform gives procurement teams a 360-degree view of supplier risk, resiliency, and performance, helping them to make smarter decisions faster. Kodiak Hub says its artificial intelligence (AI) based tech has helped users to reduce supplier onboarding times by 80%, improve supplier engagement by 90%, achieve 7-10% cost savings on total spend, and save approximately 10 hours per week by automating certain SRM tasks.
The Swedish venture capital firm Oxx had a similar message when it announced in November that it would back Kodiak Hub with new funding. Oxx says that Kodiak Hub is a better tool for chief procurement officers (CPOs) and strategic sourcing managers than existing software platforms like Excel sheets, enterprise resource planning (ERP) systems, or Procure-to-Pay suites.
“As demand for transparency and fair-trade practices grows, organizations must strengthen their supply chains to protect their reputation, profitability, and long-term trust,” Malin Schmidt, founder & CEO of Kodiak Hub, said in a release. “By embedding AI-driven insights directly into procurement workflows, our platform helps procurement teams anticipate these risks and unlock major opportunities for growth.”
Here's our monthly roundup of some of the charitable works and donations by companies in the material handling and logistics space.
For the sixth consecutive year, dedicated contract carriage and freight management services provider Transervice Logistics Inc. collected books, CDs, DVDs, and magazines for Book Fairies, a nonprofit book donation organization in the New York Tri-State area. Transervice employees broke their own in-house record last year by donating 13 boxes of print and video assets to children in under-resourced communities on Long Island and the five boroughs of New York City.
Logistics real estate investment and development firm Dermody Properties has recognized eight community organizations in markets where it operates with its 2024 Annual Thanksgiving Capstone awards. The organizations, which included food banks and disaster relief agencies, received a combined $85,000 in awards ranging from $5,000 to $25,000.
Prime Inc. truck driver Dee Sova has donated $5,000 to Harmony House, an organization that provides shelter and support services to domestic violence survivors in Springfield, Missouri. The donation follows Sova's selection as the 2024 recipient of the Trucking Cares Foundation's John Lex Premier Achievement Award, which was accompanied by a $5,000 check to be given in her name to a charity of her choice.
Employees of dedicated contract carrier Lily Transportation donated dog food and supplies to a local animal shelter at a holiday event held at the company's Fort Worth, Texas, location. The event, which benefited City of Saginaw (Texas) Animal Services, was coordinated by "Lily Paws," a dedicated committee within Lily Transportation that focuses on improving the lives of shelter dogs nationwide.
Freight transportation conglomerate Averitt has continued its support of military service members by participating in the "10,000 for the Troops" card collection program organized by radio station New Country 96.3 KSCS in Dallas/Fort Worth. In 2024, Averitt associates collected and shipped more than 18,000 holiday cards to troops overseas. Contributions included cards from 17 different Averitt facilities, primarily in Texas, along with 4,000 cards from the company's corporate office in Cookeville, Tennessee.