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.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.