As evidenced over the last few years, consumer behaviors and e-commerce are driving significant change in warehouse operations. The need for two-day to same-day shipping throughout industry sectors, including food and beverage, are transforming how operators invest in their workforce and technology. The answer is greater integration of warehouse automation to meet order fulfillment objectives at higher accuracy rates, while using labor in a more strategic capacity to complement evolving technologies.
Food Logistics takes a look at how food and beverage is using various forms of warehouse automation to meet growing demand and fulfillment objectives. From increasing use of robotics, AS/RS, wearables and pick to light/voice, to autonomous vehicles, the focus is on less labor and more automation.
Westfalia’s AS/RS solution at the Sargento Foods facility in Plymouth, Wisconsin.
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As evidenced over the last few years, consumer behaviors and e-commerce are driving significant change in warehouse operations. The need for two-day to same-day shipping throughout industry sectors, including food and beverage, are transforming how operators invest in their workforce and technology. The answer is greater integration of warehouse automation to meet order fulfillment objectives at higher accuracy rates, while using labor in a more strategic capacity to complement evolving technologies.
Food Logistics takes a look at how food and beverage is using various forms of warehouse automation to meet growing demand and fulfillment objectives. From increasing use of robotics, AS/RS, wearables and pick to light/voice, to autonomous vehicles, the focus is on less labor and more automation.
Westfalia’s AS/RS solution at the Sargento Foods facility in Plymouth, Wisconsin.
Automated Storage and Retrieval Systems
Automated storage and retrieval systems (AS/RS) are a staple in best-in-class warehouses. Moreover, with a healthy economy coupled with aggressive order fulfillment demands, there is more reason to invest in this segment of warehouse automation. When real estate is sparse and your warehouse operations rely on dense, interim storage, an AS/RS is an ideal solution.
Chris Capshaw, executive director of automation sales for SSI Schaefer Systems, says e-commerce is revolutionizing the last mile where having regional and local distribution centers help create an ecosystem that enables same-day shipping and receiving in most areas. The shift toward e-commerce has led more food manufacturers, grocers and wholesalers to incorporate newly automated warehouses with AS/RS into their growth plan. When relying on AS/RS in food and beverage distribution, several factors come into play.
“Many distribution fulfillment centers house a mix of both pallets with case products and individual picking for omnichannel fulfillment. Thus, an AS/RS system must account for both piece and case picking—this is omnichannel at its core,” says Capshaw.
“Food and beverage warehouse operations also need a cold storage environment. We see growth in case picking from cold and freezer storage using AS/RS where harsher environments exist,” he says. “With more local and regional brands driving sustainability, the need to store cold items in a more regional or local area is becoming common as well.”
Dave Williams, vice president of software development for Westfalia, is also witnessing an increase in regionalization. Between the manufacturer and the final distribution process, there’s more regionalized distribution centers. We’re even seeing a step beyond this where the distribution center is attached to the manufacturing facility to provide a buffer in real time. AS/RS relieves the inventory burden on the manufacturing environment within these facilities.
“Because manufacturing processes seldom keep pace with over demand, AS/RS alleviates the concern about adjusting time and type delivery of goods,” says Williams. “Often, the shortest lag is a 24-hour turnaround. Product comes into the AS/RS, turns around and heads back out. Then you have products that sit idle for three to six months. Regardless of the scenario, AS/RS is beneficial.
“It’s no longer viewed as a longer-term storage solution. In food environments such as a bread facility, the turnaround is extremely short and the turns are numerous,” says Williams. “We have a customer that makes and stores the product on day one, it’s loaded on day two, and on a pallet and out the door on day three.”
Williams adds that while little has changed in the design of the technical equipment, the greatest growth in AS/RS is software. The equipment has the same basic design and does its job well, but process control is the leading innovation.
“Much of our focus and effort is in the development of the software processes. Our Savannah.net product is a warehouse execution system that controls the entire process, whether it’s an AS/RS that we install or one that is integrated with other pieces of equipment and automation within a customer’s facility.”
Voice technology is growing steady in its application to warehouse operations and the fulfillment space.
Pick to Light and Voice Recognition
When asked about the use of pick-to-light technology in food and beverage, both Keith Phillips, president and CEO of Voxware and Krishna Venkatasamy, chief technology officer for Lucas Systems, agreed that it’s used sparingly. Pick to light is most valuable in settings where workers are stationary during the picking process.
“Pick-to-light technology is valuable in environments where there’s little travel required at the pick phase. A person may have 100 bins and 100 items in front of them to pick from and only one or two steps in any direction,” says Phillips. “Because it’s a rapid pick, as soon as you introduce travel time the value of pick to light is immediately lost.”
“Compare pick to light to voice technology where it’s used throughout the warehouse in fresh, frozen and ambient areas,” says Phillips. “Voice has also evolved over the last few years to include scanning, because if you’re unable to scan barcodes then you can’t succeed in food service.”
According to a survey by Honeywell and YouGov, DCs are losing on average more than $400,000 every year on picking errors. To mitigate this risk, 87 percent of DC operators anticipate shifting to voice technology in the next five years. “Consumers want their purchases delivered as quickly as possible, which puts extreme pressure on distribution center operators to deliver the right products to the right place at the right time,” says Bruce Stubbs, director of industry marketing, Honeywell Sensing and Productivity Solutions.
Voice technology is growing steady in its application to warehouse operations and the fulfillment space. Improvements in efficiency and productivity can vary based on an operation’s process prior to implementation. However, Venkatasamy says when customers deploy a voice solution, he’s seeing gains as high as 30 percent to 50 percent.
While the current growth rate of voice is in single digits, Venkatasamy says two technologies are reaching an inflection point that could boost the adoption rate of voice technology.
“Many warehouses are moving away from traditional Windows-based devices to Android. Thus, operators are examining other technologies and software that can increase productivity,” says Venkatasamy. “Coupled with Android, the application of machine learning and artificial intelligence is causing warehouse operators to rethink how they want to apply technology within facilities. Combining voice with those technologies provides a much higher return on investment. Anticipate more voice implementations over the next five years.”
Phillips also sees the inclusion of other technologies with voice recognition to improve efficiencies. Few companies are using strictly voice technology as their solution. At minimum, Voxware customers are integrating voice and scanning. However, more customers are expanding that focus and embracing the concept of augmented reality.
“With augmented reality you’re able to involve all the different modes of data collection, such as voice, scanning, visual imaging and image capture video,” says Phillips. “All of those technologies coming together to support the various tasks occurring in the warehouse.
“Most of our new customers are automating every function within the distribution center, from receiving and put-away to replenishment, packing and loading,” Phillips adds. “The result is a higher level of productivity and a much higher level of accuracy. If you receive it and put it away and replenish it correctly, then you have a higher likelihood the selection will be accurate.”
Autonomous intelligent vehicles are appearing in more food and beverage warehouse operations from processing to packaging.
Robotics and Automated Guided Vehicles
Of all the forms of warehouse automation, robots and automated guided vehicles (AGVs) are one of the fastest-growing segments. Robotics is defined as robotic arms that perform picking and palletizing tasks, while AGVs are rover-type machines transporting racking and bins throughout the facility. As reported in a market research report by Markets and Markets, “The warehouse robotics market is expected to be valued at $4.44 billion by 2022, growing at a CAGR of 11.8 percent between 2017 and 2022.
“The warehouse robotics market for the food and beverages industry is expected to grow at a significant rate between 2017 and 2022. The growing trend of processed food and packaged eatables, requirement of clean room storage, and need for automated and hygienic handling of food items are expected to drive the growth of the warehouse robotics in the food and beverages industry,” says the report.
TJ Fanning, vice president of Consumer Goods for Swisslog, says articulated arm robotics are replacing traditional palletizing equipment. As package types evolve, robotics provides the flexibility to adjust to future package varieties.
“As more retailers and consumers push less corrugate and fewer packaging sizes, it impacts the stability of the cases and the ability to stack them,” says Fanning. “Thus, retailers are moving toward articulated arm robots for potential palletization challenges in the future.”
Laura A. Studwell, industry marketing manager for Omron, agrees, and says because robots are more versatile, the applications they can address are expanding. Where previously robots were used for standard end-of-line production, such as case picking and palletizing operations, they’re now found upstream in sanitary wash-down environments.
“Because robots don’t carry pathogens, you find them used in food processing touching raw food and handling delicate products such as peaches or tomatoes,” says Studwell. “With the use of suction grippers, robots can thrive in food applications and not tear or compromise the product.”
Shifting to AGVs in the warehouse, according to IBIS World’s industry market research report, Automated Guided Vehicle Manufacturing Industry in the U.S., “The industry has grown by 45.9 percent to reach revenue of $957 million in 2018. And growing industrial activity and freight volumes are anticipated to increase demand for AGVs.”
AGVs are ideal when it comes to the transport of products across continuous distances in the warehouse. Fanning says using AGVs to transport racks of product to pickers provides additional density as well as increased throughput capabilities of individual pickers, while improving warehouse safety and operator effectiveness.
“In a food environment where its potentially temperature controlled, employees are under high levels of stress trying to store a 3,000-pound pallet while 40-feet in the air and -20 degrees Fahrenheit,” says Fanning. “Often, rack sides are damaged during the process. Automated vehicles can replace that task, reducing rack damage as well as saving labor costs.”
At Omron, AGVs are referred to as autonomous intelligent vehicles (AIVs), and are appearing in more food and beverage warehouse operations from processing to packaging. From a processing perspective, Studwell says companies are using modular production lines where shared equipment reduces a facility’s footprint and improves cost savings. On the packaging side, AIVs help ensure product freshness and on-time delivery.
“We have a customer in the baking industry where its goods have an expiration date. Thus, it relies on the first in, first out distribution method,” says Studwell. “In a warehouse that’s completely automated, mobile robots are equipped with a collaborative robot mounted on top to retrieve and unload product. Mobile robots take packaged goods to various warehouse locations, unloading those goods into cases on a pallet before being shipped out to regional distribution centers and finally individual retail stores.”
If there’s consistency to the process and product, robotics and AGVs are the ideal automated solution. “If a product is coming off a piece of packaging equipment at the same rate and box structure for palletizing, then automate the solution and remove the human element,” says Fanning. “However, if variability exists where validation of the shipment or inspection of the product is required, humans are there for that process before placing product on a robotic or AGV solution for delayering or put away.”
Sortation and Conveyer Systems
Conveyors and sortation systems allow for more efficient retail, wholesale and manufacturing distribution, according to MHI, the nation's largest material handling, logistics and supply chain association. By allowing large volumes of material and/or product to move and be sorted rapidly, conveyor and sortation systems allow companies to ship or receive higher volumes with smaller storage space and lower labor costs—two of the modern warehouse’s greatest challenges.
While historically the bottom line has been the No. 1 focus for most food and beverage companies, Ahmed Arif, regional manager at Bastian Solutions, says he is increasingly seeing companies thaw to the idea of a capital investment on automation.
“They are realizing the model has changed, and they can’t just keep throwing labor at the problem,” he notes.
Further complicating the warehouse’s labor issues is a proliferation of SKUs and inventory levels, as big box food and beverage companies continue to combat stagnant sales by acquiring small but thriving boutique-type brands. With more choices in product, order sizes are also decreasing, but there are more of them.
“Instead of sending things out in full pallet like they had in the past, they have to move now to layers to cases and even in some instances down to the piece level,” explains Tom Steininger, market development director at Dematic North America. Which in turn, he adds means “they have more work to do to get their orders out but less people to do it. The two don’t work well together.”
Many companies are thus turning to automation in an effort to alleviate the two pain points.
“There are a lot more options for the consumer, so as a result that’s putting a lot more demand on the manufacturer to figure out how to deliver different flavors and different packaging sizes,” Arif says. “You just can’t scale that with traditional methods...you have to have the equipment that can rapidly alter what you’re delivering to market.”
Because sortation is the keystone for any distribution center, automated storage, sortation and conveyer technology is a good place to start.
For those food and beverage companies who are investing in automation, Arif says Bastian typically sees initial investment in storage, such as a pallet rack or advanced buffer. It also sees a lot of investment in picking conveyers, which are belted or roller conveyers that simply take away product, and zero pressure conveyers, which allow product to be separated.
“Those picking lines are usually merged into a line that are scanned and directed to the correct area for palletizing. From there either a human or robot palletizes the product, or it is loaded into that back of the truck if it does not need to go on a pallet,” explains Arif.
This type of operation means that instead of a worker walking around the entire warehouse, they can pick to a conveyer, which sorts to an operator who then stacks the orders. In higher speed applications, pallets can be built automatically from mixed cases without human intervention.
Beyond addressing the obvious efficiency and labor challenges, Arif adds that quality is also often in the top three concerns for many food and beverage companies considering automated solutions.
“It seems more than ever reputation for some of our customers is a bigger and bigger piece,” he says. “Cost is important, but a lot of our customers are putting an emphasis on quality and reputation as leading reasons why there are exploring automation.
“With social media and how quickly things spread, it’s critical that manufacturers and distributors are utilizing tried and true practices to get their products to consumers, and that is playing out with automation. Utilizing technology that they feel is going to help them stay on top of that is going to be absolutely critical,”Arif adds.
Packaging Automation
The manufacturing of our food has become a highly automated process—from harvest to processing to packaging. According to a survey from the Association for Packaging and Processing Technologies, 94 percent of food packaging operations are using robotics already. While labor challenges are of course contributing to this trend, the implementation of the Food Safety Modernization Act (FSMA) also had an impact.
“Picking and packing applications require high-rate repetitious motion, and it has become very difficult for most manufactures to find and retain a labor force to keep pace with production demands,” says Wes Garrett, authorized system integrator account manager at FANUC. In addition, he adds, “FSMA regulations call for strict procedures to be followed in order to comply, and automation inherently takes care of these needs.”
Because automation, he says, “allows for robust track and trace capabilities along with eliminating poor ergonomic workplace conditions.”
Today’s food supply chain has also been greatly affected by changing consumer demands. Consumers want to know everything about the food they eat, from the quality of the products to the way they are delivered, says Mike Wagner, global OEM business manager at Rockwell Automation.
“Today’s consumers want products delivered how, when and where they want them. These new consumer demands coupled with fluctuating labor rates and a lack of available workforce is creating new opportunities for automated solutions,” Wagner adds.
And those opportunities, specifically in consideration of modern picking and packing, will include a lot more robots, analytics and a globally connected enterprise.
“Packaging machine manufactures have traditionally designed and utilized a lot of conventional motion mechanisms such as gantries and cam driven machines. Packaging machine builders are replacing conventional motion devices with robots to gain reliability and minimize machine design/build time,” says Garrett.
Many OEMs are even building their own robots, which are much more integrated, Wagner adds.
“The wide variety of product shapes, sizes and branding require flexible machine designs,” he explains. “The challenge is to meet customer demand without driving manufacturing costs up. Unscheduled downtime and product changeovers can be reduced or eliminated using automation.”
Skylight for HoloLens by Upskill provides a mixed reality experience ideal for workers who could benefit from a larger, more dynamic “canvas” for visualizing instructions, PDFs, images and videos required to perform complex tasks.
Augmented Reality and Virtual Reality
Immersive technologies such as augmented reality (AR), mixed reality (MR) and virtual reality (VR) came in at No. 9 on Gartner’s top 10 list of strategic technology trends for 2019. Gartner predicts that by 2022, 70 percent of enterprises will be experimenting with immersive technologies for consumer and enterprise use, and 25 percent will have deployed them in production.
The potential for such technologies is becoming clearer in food and beverage warehouse as the way businesses operate continues to change.
“Because the business needs and models and customer behaviors are changing, there is a greater need for the workforce to be properly equipped with digital technology,” explains Jay Kim, chief strategy officer at Upskill.
For example, Upskill is currently participating in a sizeable pilot with a retailer that is working to equip their grocer pickers (in the aisle and in the warehouse) with immersive technologies that enhance their ability to complete curbside delivery of groceries that are pre-picked and packaged or even delivery all the way to the consumer’s home.
“Without these types of technologies to drive higher throughput of picks with accuracy, grocery deliver is something that probably isn’t easily enabled,” Kim says.
In addition to growing delivery models, the timeliness of delivery, especially in regards to fresh produce and other perishable goods, is also being made possible with the aid of immersive technologies.
“When you’re talking about being able to go and pick produce, you are on the clock the second the product leaves the refrigerated environment,” notes Kim, adding that “time and accuracy is directly tied into these businesses ability to generate a profit, and the need to make a profitable business out of [these new models] is also driving this.”
Currently, many warehouses and distribution centers use voice pick technology to boost efficiency and accuracy. It’s thought that AR, VR or a mix of the three is the next logical step for wearable technology, allowing users to access multiple sources of material—such as videos, photos, diagrams, instruction manuals and more—at the same time.
“Voice picking technology has been around for decades, and everybody feels really comfortable with that now, even though in the beginning people were really worried about that too. The next phase of that is having some type of augmented tool set that is not intrusive or a security risk,” explains Marco Nielsen, vice president, managed mobility services at Stratix
Kim agrees, noting the potential benefits for a more flexible and agile workforce, as well as a logical progression for use in conjunction with other highly-automated technologies, acting as the “human interface” that ties together the digital enterprise.
“Wearable tech, AR and immersive tech on the whole are fundamentally changing how work is being done in factories, in warehouses, and out in the field maintaining and serving equipment,” Kim says. “This technology today is going to have an impact by bringing real-time connectivity and access to computing materials that the hands-on worker has not had in the past.”
A few challenges still prevent large-scale deployments from leaving the pilot stage however. Nielsen recently worked with a large Arkansas-based retailer that was interested in immersive technologies but unsure if they had the right support around it.
“They didn’t really feel that was available yet,” he says. “They wanted to figure out what to do when they have hundreds of devices break, not just one or two, and how do we get them fixed.
“Some of the software and technology is there, but I think some of the support mechanisms also have to be there,” he adds, also noting that the battery power on consumer devices is still not up to par for enterprise-wide use, and the overall understanding of how and if these technologies make sense for your business remains low.
