Staying Ahead of the Competition
Mikael Renström, Marketing Director, Elettric 80
Why aren’t all companies automating their end-of-line?
There is a common consensus that beverage manufacturers have been slow to embrace the benefits of automation and robotics. There is no particularly reason for this, but several factors come into play. Firstly, the payback is not immediate and the size of the investment can often cause delay in getting projects off the ground. Secondly, end-of-line solutions have a significant impact on the way businesses operate, which consequently has important change management implications. Finally, it is undoubtedly a big step, which means you have to get widespread internal consensus. If you combine all these issues, it is understandable that many projects fail to get a green light.
What about those who do invest?
However, the reality is that the companies that have the foresight to introduce automation technologies are now outperforming their competitors. Beverage is a sector where profitability is king and if we’re honest the end-of-the-line is an area where cost efficiencies can have a great impact. Sometimes in life you have to invest for the long term and within the beverage sector those that do will remain a sustainable commercial reality for years to come.
So what operational issues drive the need for automation?
Due to changing consumer demands and the necessity to consolidate or build market share, new products with differing stability and storage requirements are constantly being introduced. This often leads to changes in pallet types and the way goods are handled in the warehouse. The production process has, for some producers, been automated and streamlined over the years, but warehouse handling has lagged behind and in many cases is the same as it was 30 to 40 years ago. Within business, it is widely accepted that the biggest variable cost in the production process is storage handling and distribution.
But how can the beverage sector address the storage and distribution issue and introduce cost efficiencies?
One of our latest innovations directly addresses this specific challenge. The Giraffe Laser Guided Vehicle (LGV) is the latest addition to our LGV family. The high-lifting Giraffe has a reach capability of 9 metres and a maximum pallet weight of 1,200 kg. It is able to work alongside manual fork lift trucks in a rack storage environment to ultimately improve safety, increase flexibility and reduce storage handling costs on-site.
The Giraffe can be programmed to manoeuvre in a 3 metre wide corridor and due to its small footprint can replace existing manual fork lift vehicles in a facility without the need to change the racking environment. The Giraffe complements our existing LGV technology, such as multi pallet handling LGVs for block stacking, which are successfully being used by some of the biggest brands in the sector including Foster’s, Damm and Miller.
This latest innovation dispels the myth that a LGV-based system is slow and needs a big space to move in, and as a consequence more floor space than a manual system. In truth, the space an LGV requires is usually no more than what a manual vehicle needs, but critically the LGV improves safety in that space one hundred fold.
Our LGV-based Storage and Retrieval System (SRS) combines storage, warehouse management and transportation capabilities and can handle block stacking of up to four pallets high, gravity racking, single deep racking and drive-in pallet racking. Critically, our solutions are installed quickly and with minimal disruption to production; in fact many implementations are often conducted while production is still running.
What about a high street brand?
Carlsberg is another example where we are deploying our technology to improve end-of-line operations and increase storage efficiencies. For its Falkenberg facility, we are providing twenty-two dual pallet handling LGVs, which complement the two single LGVs which are currently in use at the warehouse.
This solution increases operational efficiencies at the plant by automating the movement of palletised products from the production line and receiving docks. Depending on order requirements, it will also manage the storage of pallets and ensure the transportation of product directly to the shipping docks. When considering its automation options, Carlsberg were mindful of the need to improve storage and therefore required a solution which offered conventional block storage capabilities, combined with the ability to store in different types of rack; maximising storage space was a key driver for Carlsberg implementing a LGV-based solution.
Storage potential is undoubtedly improved following the deployment of a LGV-based solution. Block stacking can be made more efficient allowing more pallets per square metre to fit into a warehouse. In addition, goods can be stacked higher using a LGV than with the manual alternative. When racks are used the sophisticated fork handling of a LGV guarantees higher stacking with an improved safety margin.
Doesn’t this type of technology need software?
To support the LGV-based technology, we have developed our own Warehouse Management System (WMS) which works alongside and integrates with any existing WMS or Enterprise Resource Planning (ERP) system. This means that the existing WMS requires minimal change and any additional WMS functionality required for the automation process can be easily integrated with the help of our software.
Our WMS software design incorporates product location, quantity, size, and order information to determine where to stock, where to pick, and in what sequence to perform these operations. Due to our in-depth knowledge of the beverage sector, the standard WMS software modules are tailored to a specific requirement and can be intelligently programmed to cope with seasonal variations or cycles within a warehouse or production area.
What size of company should be considering automation technology?
It really does vary, for instance we have clients that only use one LGV, which may handle up to 30/40 pallets an hour. On the other hand, we deploy solutions for multinational companies that have facilities that can accommodate 30,000 pallets.
In reality, the benefits of our systems are maximized in an environment where you have both in and out-bound traffic.
How do I decide if I need this type of technology?
Ultimately, companies have to look in the mirror and ask themselves how they can improve their bottom line. No doubt, the answer will be complex. Perhaps a better question would be to ask how do you remain competitive…The answer here is usually found in evaluating your operational overheads. If there is a way you can decrease these long-term then perhaps you have answered this question. LGV and robotic technologies are proven to provide cost and operational efficiencies. That is a fact. It is also a fact that the most successful brands in the sector have already introduced these technologies. Maybe the most prevalent question you need to ask yourselves is do you still want to be in business in ten years time…