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.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."