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.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”