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.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
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.