Today's whiz-bang automated handling systems may be revolutionizing your DC operations, but they're also running up your power bill. Here are some ways to ease the pain.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Under pressure to meet the demands of omnichannel fulfillment and a rising tide of e-commerce orders, many warehouses have turned to automated material handling systems as a way to boost accuracy, cut labor costs, and speed up fulfillment. Equipment such as automated storage and retrieval systems (AS/RSs), conveying systems, lifts, and shuttles can go a long way toward helping DCs achieve those objectives.
The solution comes with a steep price, however. Automated facilities may see their electric bills climb to meet the increased energy demands of running these powerful machines.
In response, facilities are seeking out new ways to optimize energy consumption while keeping the pedal to the metal on fulfillment speed, according to Markus Schmidt, president of Swisslog Warehouse & Distribution Solutions, Americas. But what can they really do in this regard? We decided to ask the experts for some advice. What follows are their five top suggestions for ways to hold down your power costs.
1. Plug into the IoT. Intrigued by the notion of the Internet of Things (IoT) but haven't yet found a reason to take the plunge? This may be just the excuse you're looking for. The IoT, essentially a network of connected devices that communicate with one another automatically, can provide a big assist to DC managers looking to reduce their energy consumption. To begin with, it can supply vital data on a facility's energy usage patterns, which users can then analyze with an eye toward identifying savings opportunities. For example, by attaching power-usage sensors to individual pieces of material handling equipment, users can monitor energy consumption throughout their facility in real time, Schmidt said. Armed with this information, they can track changes in energy consumption for every room, aisle, drive, and motor in the building, identify inefficiencies, and make adjustments.
Another way to use the data is by analyzing it for purposes of integrated energy management control. In this approach, users set a baseline level of energy consumption for each machine, then manage their operation so multiple devices share their combined power "budget" in the most efficient way. For example, two sensors can communicate and delay the start of one machine by a few seconds in order to minimize the peaks in power draw that occur when two machines start up simultaneously, said Samuel Schaerer, controls development manager with the Swisslog Warehouse & Distribution Solutions Technology Center.
2. Recuperate and recharge. Energy "recuperation" is another strategy for cutting the amount of electricity required to run large material handling systems, according to Swisslog. Just as hybrid automobiles recharge their batteries by braking at stoplights, AS/RS cranes, miniload cranes, shuttle systems, and conveyor lifts can generate their own electricity. They do this by using their motor as a generator, creating electricity from friction when braking. The electricity they generate can then help power the unit itself or even be shared with others.
Energy recuperation offers considerable potential for savings. For example, AS/RS cranes can cut their energy draw as much as 20 percent by powering their horizontal motion using the electricity recuperated by their own downward vertical motion, according to Swisslog. Likewise, shuttle systems can cut their power consumption by 20 percent by timing the acceleration of one shuttle to occur at the same time that another shuttle hits the brakes.
3. Slow down and lose the weight. Automated conveyor systems consume the most electricity while they are running at high speed, so facilities can save serious money by automatically throttling down the systems during off-peak periods, a Swisslog analysis shows.
One way to capture those savings is by installing photo eyes that determine when a section of conveyor is idle, then send that signal through an IoT network to a central controller, the company said. Particularly effective in large-scale systems with thousands of feet of powered conveyors, these systems can save significant power by switching off certain conveyor zones—or even a specific motor on a single roller—when not in use.
Another way to cut the amount of electricity consumed by mobile material handling systems is to put the machines themselves on a diet. In recent years, some manufacturers have redesigned equipment like automated guided vehicles (AGVs) and AS/RS stacker cranes using lightweight materials, slashing 20 to 30 percent of the vehicles' weight without compromising their load-carrying capability, said Swisslog. Compared with their heavier brethren, these lightweight machines draw far less power from onboard batteries or the facility's grid.
4. Use smart software to save volts. Heating and lighting are the top two energy drains in warehouses. As a result, the path to power savings usually begins with a few basic steps like installing efficient LED lighting, adding skylights to capture natural daylight, installing loading dock seals and shelters, and adding building insulation.
Once they've completed those steps, managers can squeeze some additional savings out of their operations through the smart use of software. One way to do this is by automating the controls for various building functions, said Norm Saenz, managing director at the consulting firm St. Onge Co. For example, they might use a warehouse control system (WCS) to automatically turn off equipment when it's not in use.
In facilities that use electric vehicles, software such as lift-truck fleet management systems can play a big role in energy conservation efforts. Among other applications, managers can use these systems to collect data on battery charging patterns and power consumption, which they can then mine for energy-saving opportunities, Saenz said. For example, the data might show that switching to quick-charging equipment would help avoid the power peaks caused when all of the fleet's vehicles try to recharge at the same time.
5. Soak up the sun. Many industry professionals took notice when UPS Inc. announced plans to install $18 million worth of solar panels on facilities around the country—a move the company estimates will cut each building's power bill in half. Drawn by such promises, an increasing number of warehouse and distribution facilities are adding solar panels to their vast expanses of flat roof.
And it's not just facilities located in the South. Although it was once thought that solar panels only paid off in sunny desert locations, that's simply not the case, said Richard Murphy Jr., president and CEO of Murphy Warehouse Co., a family-owned logistics service provider based in Minneapolis. The technology actually works in any environment—from Arizona to Minnesota—because solar panels function most efficiently when they're cold, he said.
Along with helping trim a DC's electric bill, solar panels can generate extra savings when a facility hooks them up to industrial batteries that store backup power. Among other benefits, having a reserve power supply on hand might allow a company to avoid buying costly diesel generators for emergencies, Murphy said.
Alone or together, these five creative strategies are helping managers minimize their DCs' power consumption. The steps require some effort, to be sure, but the payoff can be huge. By giving them a try, managers can not only trim their electric bills, but also "green up" their operations. On top of that, they stand to achieve a quicker return on investment on the automated equipment that is fast becoming essential to meeting today's demands for lightning-fast distribution and fulfillment.
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.