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.
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
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.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
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.