“Automation in contract logistics is still in its early phase”

Warehouse automation is a complex topic. Technology and, consequently, opportunities have evolved drastically over the past years. Let’s do a quick review to begin with: where do we stand right now? 

In the past, intra-logistical processes were handled manually only. Over time, there were the odd automated beacons which were one thing in particular: tailored to the individual application. Nowadays, our logistical handling tends to be based on hybrid systems using modular techniques. Even though they are also configured for specific cases, they are still extremely flexible and thus remain very adaptable even when factors like order fluctuations change. On some points, we are a step further. That’s where artificial intelligence, humanoid robots and technology come into play that we can’t quite think of just yet. In a nutshell: we are moving from manual processes via complex integrated systems towards a number of simple, modular products. And that is precisely wherein the challenge lies, yet which also presents an incredible opportunity.

That sounds complicated. How would I find the right automation solution for my needs? 

There is no one-size-fits-all. However, based on what were originally known as the ‘six Rs in logistics’, there are the complementary ‘six Rs in automation’ that can be derived from them: the right concept, the right partners, the right technology, the right integration, the right acceptance, and the right costs. The baseline for every automation project is a well thought out concept. Different parameters need to be considered for this. The key is maximum flexibility for a modern logistics concept, which calls for modular and scalable planning. Beyond this, it is decisive to interconnect the individual modules – whether manual fields, hybrid components or automated technologies – intelligently with one another. And last but not least, sustainability also plays a vital role.

Let’s assume a viable concept has been created. What is the next step?

In the next step, we need to look for the right partners and technologies. To avoid getting lost in a whole host of offers, it is crucial to know the market well. The many providers, different warehouse automation solutions and plethora of products can be rather overwhelming. A scattergun approach would not support finding a solution. Something that might work well at one logistics centre may be totally useless at another. It’s always about the specific application case.

For hybrid systems to work smoothly, the individual components must interact sensibly. People and machines need to work hand in hand. Where is the key? 

Imagine the integration of the different players and systems at a logistics centre like the interaction of an orchestra. Without a conductor setting the pace with their baton, there is chaos. Except that, at a modern logistics centre, this role is executed by software. The software co-ordinates the interplay between Warehouse Management System, storage system and executing hardware such as driverless transport systems, conveyor technology and AutoStores. But no matter how good the software is: in the end, it is people who use, operate and work with the technology. And this won’t change any time soon – and neither is it supposed to. In order to integrate people seamlessly into such a system, the key word is: acceptance. This means that we need to build trust in technologies, reduce complexity, create control capabilities and guarantee safety. Only when we prepare our teams carefully, give them time and train them accordingly will they accept robots as their colleagues and as the helpers they are intended to be.

Concept, partner, technology, integration, and acceptance. The only R that is missing is: the right costs. 

And this is where, in fact, we are facing something of a dilemma. On the one hand, automation has become indispensable because it facilitates today’s required efficiency. On the other, however, it calls for substantial high investment costs which are faced with some uncertainty. Next to tying capital this includes, for example, short contract terms and economic risks. Therefore, it is important to find solid financing models on the one side while on the other, build on the multi-user or suitability for third-party use, meaning systems need to be modular, mobile, and scalable.

On a final note, do you have any figures for us from the World of FIEGE? 

We are very satisfied with our three AutoStores which are in operation at our locations in Apfelstädt, Greven-Reckenfeld, and Großbeeren for customers from the Fashion, Consumer Products and FMCG sectors. A further two AutoStore projects are already in the pipeline. They will launch at the end of the year in the medical technology sector: one at our location in Münster and the other, in the medium run, at one of our locations in Poland. We are also proud of our two AI-based robotic arms by Nomagic in Greven-Reckenfeld. With a view to sustainability, our 17 packaging machines are doing valuable work. They cut the material to size which allows us to avoid both the use of unnecessary filler material and reduce the shipment of air in a parcel. Over 1,000 robots and more than 50 kilometres of conveyor technology are currently in use across the World of FIEGE – and this trend remains strongly on the rise. After all, automation in contract logistics is still in its early phase.

Find this and many other worth-reading articles in the latest edition of our company magazine, THE LOGO#98.