Tradition meets material handling innovation in Europe
Fulfillment goes lights-out in Parma, Italy, where Italian food company Barilla is on the leading edge of robotic automation and sustainable distribution.
Victoria Kickham, an editor at large for Supply Chain Quarterly, 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 Supply Chain Quarterly's sister publication, DC Velocity.
Italian food companyBarilla is steeped in history, but company leaders are focused on the future when it comes to managing its material handling operations. The 144-year-old maker of pasta, sauces, breads, and more embarked on a supply chain transformation in 2012 that has produced a state-of-the-art distribution center in Parma, Italy, featuring integrated robotics systems and a 24/7 lights-out operation—a showcase of how automated material handling systems can improve operations and contribute to a more sustainable distribution and supply chain network.
“Barilla has always been committed to environmental and social sustainability. A sustainable food supply chain can be achieved only by looking at the entire supply chain in its overall dimension and [the] integration between the individual steps,” says Alessandro Spadini, plant director for Barilla’s headquarters and flagship production facility in Parma, which houses the DC. “An integrated factory, therefore, has a meaning that goes beyond the efficiency of the factory but is rather, a fundamental element [in making] the supply chain more sustainable.”
The 430,000-square-foot fully automated distribution center is equipped with more than 100 laser-guided vehicles and 41 robotic systems—including high-density automated storage and retrieval systems (AS/RS), palletizers, labelers, and stretch wrappers—and handles 320,000 tons of pasta per year. Designed, manufactured, and installed by Italy-based automation solutions provider E80 Group, the facility’s flexible automated systems not only streamline throughput and allow for volume fluctuation through the plant but also are energy-efficient, contributing to Barilla’s overall environmental goals.
“The transformation of the Parma plant was a fundamental step on the path that we have undertaken, together with E80 Group, to develop flexible systems capable of significantly … improving how we work and distribute,” Spadini adds. “This important project is consistent with the commitment that our group has [made] to contribute significantly to achieving theUnited Nations Sustainable Development Goals, along with the help of theBarilla Center for Food and Nutrition Foundation, which studies food in its environmental, social, and economic dimensions. We keep working together to [deliver on our] claim: Good for you, good for the planet.”
INTEGRATED AND ENERGY-EFFICIENT
Spadini says flexibility of design was the key to developing a DC that would address Barilla’s productivity and sustainability goals. A DC filled with rigid conveyor systems, for example, simply wouldn’t work.
“Any distribution system that is not sufficiently flexible, that is based on a rigid scheme, sooner or later, will become an issue,” according to Spadini. “The solution in trying to separate the various distribution processes—like high-density storage, transport of pallets, palletizing, stretch wrapping, and staging pallets at loading docks for shipping—comes from these processes ideally having flexible, adaptable solutions.”
With that in mind, E80 Group designed an integrated system that includes laser-guided vehicles (LGVs), robotic palletizers, and other end-of-line robotic systems that are adaptable and energy-efficient. The use of LGVs was an important part of the equation.
“One of the main reasons [for our decision] to move forward with this renovation of Parma’s distribution [center] was the desire to get away from conveyors and adopt laser-guided vehicles for pallet transport within the facility,” Spadini explains. “Traditional conveying systems are sized for production peaks and [are] not flexible enough to manage variations in throughput, in terms of both flow and volume. Therefore, pallet conveyor systems are typically highly inefficient.”
The Parma DC uses three main types of LGVs: those that carry a single pallet, those that carry two pallets at a time, and LGVs that carry four pallets at a time. The LGVs interact with floor-positioned pallets and AS/RS induction stations, picking up and dropping off pallets between the various stations throughout the facility: receiving, palletizing, stretch wrapping, labeling, finished-goods warehousing, and staging for shipping.
The LGVs are also a driving force for energy efficiency. The battery-powered vehicles use the latest in lithium-ion battery technology, according to both companies, and offer low toxicity and more consistent performance—the constant discharge voltage of the battery allows it to deliver virtually full power until it is discharged, for instance, reducing downtime and improving performance. The batteries also utilize wireless induction charging, with charging stations placed directly in the production area, which helps reduce vehicle travel in the facility, among other advantages. All told, the battery-powered vehicles have helped Barilla reduce energy consumption in the DC by more than 30% compared with a more traditional, conveyor-based system, Spadini says.
Barilla’s use of high-density storage within the facility helps with overall energy-reduction strategies as well. By storing more product within the DC, Barilla has eliminated about 3,000 truck trips per year to outside warehouses it previously used for storage, a strategy that has lowered carbon dioxide emissions and cut 40% of its lighting and 20% of its heating costs, Spadini says.
“These factors contribute to Barilla’s initiatives to reduce our carbon footprint,” he adds.
SUSTAINABLE AND SELF-SUFFICIENT
Barilla’s supply chain transformation is producing results: Since 2010, its Parma-based business (which includes manufacturing as well as the DC and is purportedly the largest pasta-producing plant in the world) has reduced its carbon dioxide emissions by 31% and cut its water consumption per ton of finished product by 23%. On top of that, it now purchases 64% of its electricity from renewable sources.
The facility’s “lights out” operation has been a prime contributor to those milestones. Receipt of products from manufacturing through staging of palletized units for shipping is completely automated. The facility’s high-density warehouse uses E80 Group’s AS/RS Store system, which uses stacker cranes equipped with automatic product-handling devices for double-deep storage. Six stacker cranes support 47,000 pallet locations, and there are an additional 50,000 pallet locations that allow drive-in LGV access. Palletizing is automated, as are stretch wrapping and labeling. Aside from loading and shipping, there is only a small team of employees who enter the facility for planned maintenance or unscheduled repairs, and the plant is supervised and controlled from a separate location.
“The DC was conceived as a lights-out facility [from] the very beginning,” says Spadini, emphasizing its contribution to the company’s larger effort to create a more sustainable supply chain.
Those goals are ongoing, as are improvements and upgrades in Parma that leaders at both Barilla and E80 say will continue to improve production and reduce energy consumption. Similar automation projects are planned for other Barilla facilities around the world as well.
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.