Predictive maintenance takes hold in today's increasingly connected distribution center, where sensors, software, and the Internet converge to improve system visibility and reduce downtime.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Conveyor systems have long been embedded with sensors and connected to remote monitoring systems for maintenance and troubleshooting, but advancing technology is quickly taking things to the next level. Sophisticated sensing technology and Internet-enabled connectivity are delivering more detailed information to the DC floor, allowing organizations to move beyond routine preventive maintenance schedules and into the realm of predictive maintenance, where downtime is minimized, equipment availability is maximized, and productivity can reach new heights.
Conveyor equipment manufacturers and systems integrators are making this possible with solutions that emulate the "smart factory" movement, also known as Industry 4.0, in which automation, data exchange, and other technologies merge to create leaner, more productive manufacturing environments. In the DC, conveyor system solutions that incorporate the same technologies can provide greater visibility into mechanics and equipment usage, helping organizations avoid equipment failure and allowing them to take a more proactive approach to managing their conveyor systems.
"The enhanced ability to take action based on real-time information is what has transformed the performance of conveyor systems and automated material handling systems," says Ken Ruehrdanz, distribution systems market manager for systems integrator Dematic. "More sophisticated sensing technology, enhanced computing power, and the reduced cost of data gathering and storage allow systems integrators to track, identify, monitor, analyze, and optimize the performance of convey and sort systems."
And that translates to better all-around performance in the DC, adds Diane Blair, senior manager, international services and technical communications, for material handling solutions provider Honeywell Intelligrated. Blair emphasizes the pressure on today's DCs to work smarter and faster than ever before—while avoiding the lost revenue and the blow to customer satisfaction that comes from unplanned downtime.
"Everybody needs uptime, and they are trying to get as much availability out of the equipment they have—especially today," she says. "You never want a surprise when you're trying to ship a million boxes."
REAL-TIME CONNECTIVITY
The Industrial Internet of Things (IIoT) is driving much of the change occurring in conveyor system maintenance, particularly when it comes to monitoring the condition of equipment in the DC. Ruehrdanz points to advances in warehouse execution systems (WES)—software designed to control movement of products in a facility—as a case in point.
"In the era of the [IIoT], the WES can move from not only managing the operation [to] also optimizing conveyor system operation, repairs, and maintenance," he explains, pointing to Internet connectivity as the conduit for supplying more extensive, real-time data about the state of the conveyor system, down to the component level. "The maintenance management module of the WES software continuously assesses every portion of the conveyor network and then submits alerts when a threshold has been reached or a module is underperforming."
Those alerts allow technicians to schedule routine preventive maintenance—including automatic ordering of spare parts, in some cases. Analytics software records operational data, reporting trends and predicting future performance.
"Predictive analytics capabilities will continue to expand as IIot allows us to know what will happen, when it will happen, and what we can do about it," Ruehrdanz says. "This will allow warehouse and production operations to maximize operational excellence and strengthen the case for automation."
Similarly, predictive analytics are at the heart of Honeywell Intelligrated's Connected Distribution Center, a system that combines machine-level sensors, smart controllers, and connected devices for gathering data and delivering information on equipment health and facility performance in real time. Blair says the system allows unprecedented visibility into potential problems.
"It provides us with asset-level data that helps the customer set operations and performance limits," she explains. "We will see things we wouldn't normally see, such as a motor on a line way back in a system that makes a noise or vibration. [Technicians] may not see that until it gets to preventive maintenance—or they may not see it at all. It allows us to help them catch those anomalies prior to a failure, so they can address them before they become issues."
VIDEOS, APPS, AND MORE
High-tech connectivity is also helping to address labor-related concerns stemming from a dearth of technically trained conveyor maintenance technicians on the DC floor. Conveyor equipment makers and systems integrators are stepping up efforts to provide hands-on assistance with troubleshooting and maintenance needs by turning to IIoT-powered apps as well as emerging technologies such as virtual reality (VR). Mitch Smith, vice president of engineering for conveyor manufacturer Hytrol, points to the company's Hytrol Toolbox app that allows technicians to access equipment information and maintenance instructions on their mobile devices. The technician simply scans a serial number or 2-D (two-dimensional) bar code on the equipment in question to gain access to a host of information, including frequently asked questions and troubleshooting advice. The company provides video instruction in a similar way via its "Ask Hytrol" series on YouTube.
"One of the challenges the industry has—particularly material handling and a lot of e-commerce facilities and parcel facilities—is that there is a lack of trained and experienced conveyor maintenance technicians today," Smith says. "This leads us to integrate maintenance solutions by employing more controls, software, and other technologies."
Similarly, Dematic uses a smartphone app that allows technicians to stream live video or audio from an Android or iOs device. Called SiteView, the app enables Dematic's technical support team to see what the conveyor maintenance technician sees while hearing the technician describe the issue or ask a question.
Some companies are already using virtual reality tools for maintenance requirements, in the form of VR glasses and headsets that deliver hands-on instruction, for instance. Hytrol is developing its own Target Virtual Reality app that allows technicians to use their mobile device to hover over a piece of equipment, generating troubleshooting questions and step-by-step maintenance instructions on the device. Smith says the Target VR app will be released early in 2019.
"We're even looking at ways we can have online or video chat through this app," Smith says. "We're trying to connect the real world of what's going on in the field directly to the task at hand—and if need be, connecting to a human being at some point."
Smith adds that the race is on for conveyor solutions providers to bring more and more predictive maintenance capabilities to the table.
"It's about keeping the system running. It's about keeping equipment available for use," he explains. "At the end of the day, DCs are there to provide a service to consumers. It's our job to make sure the conveyor is running and available at all times. Being able to predict up front if there's a problem—that's what we're all trying to do."
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.