A Guide to Warehouse Automation for Every Warehouse

The evolution of technology has been marked by the emergence of technologies that were once considered impossible. The first televisions and computers were bulky, expensive, and limited in their capabilities. However, they paved the way for the development of more advanced devices such as smartphones and tablets. These devices are not only more affordable but also more accessible to a wider audience, enabling them to benefit from the features that were once exclusive to the privileged few. The automation landscape has undergone a similar transformation in recent years. The traditional approach of relying on large, robust, and rather expensive solutions has given way to a more modular, scalable, and affordable approach. This shift has enabled smaller companies to leverage the many advantages of automation that were once only available to larger companies. In this blogpost, we will focus on the advantages of automation, introduce the main technologies, and introduce some operational and budgetary considerations, before jumping into some specific examples.

Advantages

The rise of automation has revolutionized the way warehouses operate. By leveraging technology, warehouses can now process more orders in less time, optimize their use of space, labor, and equipment, and reduce their reliance on manual labor. This has led to increased revenue, reduced costs, and improved efficiency. In this blogpost, we will explore the benefits of automation in more detail and how it can help warehouses achieve their goals.

1. Increased warehouse throughput: Automation can help warehouses process more orders in less time, which can lead to increased revenue and customer satisfaction.

2. Better resource utilization: Automation can help warehouses optimize their use of space, labor, and equipment, which can lead to reduced costs and increased efficiency.

3. Reduced labor and operational costs: Automation can help warehouses reduce their reliance on manual labor, which can lead to reduced costs and increased efficiency.

4. Real-time visibility into workflows: Automation can help warehouses track inventory and orders in real-time, which can lead to better decision-making and improved customer service .

5. Ability to forecast with greater accuracy: Automation can help warehouses predict demand and optimize inventory levels, which can lead to reduced costs and increased efficiency.

In conclusion, automation has transformed the warehouse landscape by enabling warehouses to operate more efficiently and effectively. By embracing automation, warehouses can stay ahead of the competition and achieve their goals.

Main Technologies

Another purpose of this blogpost is to have a deeper look at warehouse automation technologies that can increase efficiency and reduce labor costs. Across different industries and clients, the following technologies would be recommended:

1. Autonomous Mobile Robots (AMRs): AMRs are a type of robot that can navigate through a warehouse without human intervention. They are equipped with sensors and cameras that allow them to detect obstacles and avoid collisions. AMRs are highly customizable and can help warehouses automate the movement of inventory from one end of the warehouse to another, which can lead to increased efficiency and reduced labor costs.

2. Automated Storage and Retrieval Systems (AS/RS): AS/RS are a type of warehouse automation technology that can help automate the storage and retrieval of inventory, leading to increased efficiency and reduced labor costs. They are designed to store and retrieve inventory or products automatically, replacing large areas of shelving to save floor space, improve safety, and increase overall productivity. These systems can be designed to work with bins of smaller goods or full pallets and can work with people or integrate with other automated systems.

3. Automated Guided Vehicles (AGVs): AGVs are another type of mobile robots, equipped with sensors and cameras, that can help warehouses automate the movement of inventory within the warehouse, which can lead to increased efficiency and reduced labor costs.

4. Warehouse Management Systems (WMS): WMS is software that can help warehouses manage and control daily operations, from the moment goods and materials enter a distribution or fulfillment center until the moment they leave. It offers real-time inventory visibility, picking and packing processes, resource utilization, analytics, and more 1. By automating inventory tracking, order processing, and other tasks, WMS can lead to increased efficiency and reduced labor costs.

5. One of the most promising technologies in warehouse automation is the Autonomous Case-handling Robot (ACR). ACRs are mobile robots that can autonomously move cases or trays in shelf racks. They can help warehouses increase storage density and improve picking efficiency. ACRs are gaining popularity worldwide due to their flexibility, fast deployment, and high pick rate with huge SKUs. ACRs are used in goods-to-person automation models in warehouses, where they provide a shuttle-type retrieval function to handle totes from static shelves.

In conclusion, the implementation of warehouse automation technologies will provide significant benefits to your organization. By automating inventory movement, storage, and retrieval, one can increase efficiency, reduce labor costs, and improve customer satisfaction. The recommended technologies are proven to be effective and are gaining popularity worldwide. They also offer solutions that can work with operators or in a fully automated warehouse, allowing for flexibility and phased implementations of automation. We recommend implementing these technologies in a phased approach over a period of 18 months to minimize disruption to our operations and maximize the benefits.

Checklist

While it is true that automation can benefit businesses of all sizes, there is no one-size-fits-all solution. Every operation is different, and the potential of automation varies depending on the specific needs of the business. For this reason, we propose the following checklist to identify the viability of automation for your business:

1. Identify the process: Identify the business process that you want to automate.

2. Evaluate the process: Evaluate the process to determine if it is repetitive, time-consuming, and error prone.

3. Determine the benefits: Determine the benefits of automating the process, such as increased efficiency, reduced costs, and improved accuracy.

4. Assess the feasibility: Assess the feasibility of automating the process by considering factors such as the complexity of the process, the availability of technology, and the cost of implementation.

5. Develop a plan: Develop a plan for implementing the automation, including the selection of the appropriate technology and the training of employees.

6. Implement the automation: Implement the automation according to the plan.

7. Monitor and evaluate: Monitor and evaluate the automation to ensure that it is achieving the desired results.

Establish can assist you in identifying the viability of automation for your business and help you develop a plan for implementation.

Budget

The cost of implementing warehouse automation technologies can vary widely depending on the complexity and scale of the automation solutions chosen. Here are some factors that can influence the budget:

1. Initial investment: This encompasses costs for acquiring and installing automation equipment. These expenses can vary widely depending on the complexity and scale of the automation solutions chosen.

2. Operational efficiencies: Evaluating how automation will reduce ongoing operational costs is critical. This includes labor savings, increased throughput, storage capacity, and scalability for peak volume, to name a few.

3. Total cost of ownership (TCO): Future-proofing your investment means accounting for regular maintenance and potential upgrades of the automation systems, ensuring they remain effective and efficient over time.

4. Return on investment (ROI) analysis: Undertaking a detailed ROI analysis is essential. This step helps in quantifying the long-term financial benefits and justifying the investment in automation.

Establish can assist you in identifying the scope and budget of automation for your business and will keep the above financial indicators in mind when proposing potential projects and implementations.

Examples

While there is an abundance of use cases and considerable number of providers within each technology introduced, here is a list of some recent automation integration projects:

1. DHL has deployed up to 2,000 AMRs to reduce nonproductive walking time in their warehouses. 

2. Amazon uses AGVs to transport shelves of goods to human workers, who then pick and pack the items for shipping. 

3. Swisslog’s AS/RS system helped a leading pharmaceutical company increase their storage capacity by 50%. DHL also uses an AS/RS system to store and retrieve items in its warehouse.

4. A WMS helped a leading retailer increase their order fulfillment rate by 200% and can help businesses eliminate labor-intensive duties and improve operations.

5. A big retail client uses automated picking systems to fulfill online grocery orders.

Warehouse Optimization: Maximizing Space Utilization and Reducing Costs

In the world of supply chain management, warehouses play a crucial role in storing and distributing goods efficiently. However, many companies struggle with limited space and rising operational costs, which can hinder productivity and profitability. The key to overcoming these challenges lies in warehouse optimization. By maximizing space utilization and reducing costs, businesses can unlock significant benefits and gain a competitive edge in the market. In this post, we will explore practical strategies and actionable tips to optimize your warehouse operations and get the most out of your warehouse or distribution center.

Conduct a Comprehensive Warehouse Layout Analysis: A crucial step in warehouse optimization is analyzing the current layout to identify inefficiencies and areas for improvement. Consider factors such as storage density, product flow, accessibility, and safety. By critically evaluating your warehouse's layout, you can identify opportunities to reorganize storage areas, implement better aisle configurations, and utilize vertical space effectively.

Embrace Technology and Automation: Incorporating technology and automation solutions can revolutionize your warehouse operations. Implementing the right Warehouse Management System (WMS) can streamline inventory control, order fulfillment, improve overall accuracy, and enable further improvements. Additionally, technologies like barcode scanning, RFID tagging, and automated systems can enhance picking and packing processes, reducing human errors, and saving valuable time.

Prioritize Inventory Management and Sales and Operations Planning (S&OP): It is very important to look at supply chain planning from a holistic, end to end, point of view. This will help the overall business on a strategic level and positively impact the warehouse operation by having better inventory management. Successful S&OP and inventory management is crucial for space optimization and cost reduction. By understanding your inventory levels, turnover rates, and demand patterns strategies can be implemented that minimize excess stock, reduce carrying costs, and maximize available space. Furthermore, adopting an ABC analysis methodology can help prioritize items based on their value and optimize storage allocation accordingly.

Implement Lean Principles: Applying Lean principles to warehouse operations can lead to significant improvements in space utilization and cost reduction. Techniques such as 5S (Sort, Set in Order, Shine, Standardize, Sustain) can improve the efficiency at workstations by eliminating waste and creating an organized and efficient workspace. Lean methodologies also promote employee involvement, creating a culture of continuous improvement.

Optimize Slotting and Picking Strategies: Effective slotting and picking strategies can minimize travel time, reduce labor costs, and enhance overall warehouse productivity. Analyze your SKU velocity and order patterns to strategically place fast-moving items closer to shipping areas, reducing the time taken to pick and pack high-demand products. Regularly review and adjust your slotting strategies to align with changing demand and business requirements.

Foster Collaboration with Suppliers: Collaborating closely with suppliers can help optimize warehouse operations and reduce costs. Explore vendor-managed inventory (VMI) programs which allow suppliers to monitor and replenish stock levels directly. This reduces lead times, minimizes stockouts, and frees up your warehouse space. Additionally, explore opportunities to change that way that vendors ship product to help expedite the receiving and put away processes. Potential changes include packaging, labels, and cross-docking practices to reduce handling.

Warehouse optimization is a critical aspect of supply chain management that can yield significant benefits for businesses. By maximizing space utilization, implementing efficient processes, and leveraging technology, companies can reduce costs, improve productivity, and enhance customer satisfaction. Remember, optimizing your warehouse is an ongoing process that requires continuous monitoring, analysis, and adaptation to evolving market dynamics. By adopting the strategies discussed in this blog post, you can take a proactive approach towards warehouse optimization, unlocking its full potential and positioning your business for success in the competitive market landscape.

Warehouse Scanning Technology: Additional Options to Elevate Your Warehouse Operation

Warehouse operations are continuously evolving to meet the growing demands for efficiency, accuracy, and speed in order fulfillment. While handheld RF scanners have been a staple in warehouse environments for data capture, advancements in technology have introduced alternatives that offer enhanced capabilities and improved productivity. In this post, we will explore alternatives that are redefining warehouse operations, surpassing the limitations of handheld RF scanners and opening doors to new levels of efficiency and automation.

Wearable Technology - Empowering Hands-Free Productivity: Wearable technology, such as ring scanners or wrist-mounted devices, is emerging as a popular alternative to handheld RF scanners. These compact devices provide hands-free scanning capabilities, allowing warehouse personnel to move freely while scanning items. With wearable scanners, workers have improved agility, enabling them to perform tasks quickly and efficiently. The convenience and ease-of-use of wearable technology streamline order picking processes, resulting in enhanced productivity and reduced fatigue.

Voice Picking Systems - Harnessing the Power of Voice Recognition: Voice picking systems leverage voice recognition technology to guide warehouse personnel through picking activities. Workers wear a headset and receive verbal instructions on which items to pick and where to find them. By responding with voice commands, workers confirm their actions, eliminating the need for manual data entry or scanning. Voice picking systems improve accuracy, enhance worker safety, and eliminate the need for handheld devices altogether. This technology allows for seamless integration with warehouse management systems, further optimizing operational efficiency.

Mobile Computers - The Power of Data and Functionality in One Device: Mobile computers, also known as rugged tablets or handheld computers, offer a versatile solution for warehouse operations. These devices combine the functionality of a scanner and a portable computer in a single device. Equipped with built-in barcode scanners or capable of connecting to external scanners, mobile computers provide a larger screen for displaying information and enable real-time communication with warehouse management systems. They offer additional functionalities beyond scanning, such as inventory management or order tracking, empowering workers with comprehensive data and tools at their fingertips.

Vision Systems - Advancements in Visual Recognition Technology: Vision systems leverage cameras and image recognition technology to capture and process data in warehouse operations. These systems can automatically scan and decode barcodes or labels, eliminating the need for manual scanning. By integrating vision systems with conveyor belts or automated sorting processes, items can be identified and tracked accurately without human intervention. Vision systems offer rapid and reliable data capture, improving efficiency and throughput in the warehouse while reducing reliance on handheld scanners.

RFID Technology - Enabling Real-Time Inventory Visibility: RFID (Radio Frequency Identification) technology has gained prominence in warehouse operations, offering a highly efficient alternative to handheld RF scanners. RFID tags are attached to items, pallets, or containers, and RFID readers or antennas capture the data wirelessly. Unlike traditional barcode scanning, RFID technology does not require line-of-sight scanning and can read multiple items simultaneously. This enables real-time inventory visibility, automates tracking processes, and reduces manual data entry, resulting in improved accuracy and streamlined operations.

As the demand for speed, accuracy, and efficiency in warehouse operations continues to grow, alternatives to handheld RF scanners are revolutionizing the industry. Wearable technology, voice picking systems, mobile computers, vision systems, and RFID technology offer advanced capabilities that surpass the limitations of traditional handheld scanners. By leveraging these alternatives, warehouses can enhance productivity, improve worker safety, achieve real-time inventory visibility, and streamline operational processes. Embracing these advancements empowers warehouses to stay ahead of the competition, meet customer expectations, and unlock new levels of efficiency and automation in their operations.

Order Picking in the Warehouse: Choosing the Right Strategy

Order picking is one of the most important processes in a warehouse or distribution center, making up the majority of operating costs and directly impacting service levels. Selecting and implementing the right picking strategy will ensure accurate on-time deliveries and cost-effective labor. In this article, we will review some different order picking strategies and how they can improve an operation.

Single Order Picking

One of the most common picking methods is single order picking. Just as it sounds, this method requires one order to be picked at a time, from start to finish, by a single operator. This method is easy to learn, does not require advanced technology, and is less prone to errors due to its simplicity. Single order picking is best suited for smaller warehouses or where entire pallets are picked. For larger and more complex operations, single order picking becomes inefficient due to the high amount of travel required throughout the warehouse.

Batch Picking

Opposite to single order picking, batch picking groups multiple orders together that have the same SKUs, which are later sorted by an operator before being shipped. The main advantage batch picking has over single order picking is the ability to pick multiple orders in a single trip, which improves operator productivity. Due to the increased complexity of batch picking, a warehouse management system (WMS) and order management system (OMS) are required to properly route and track orders throughout the warehouse.

Cluster Picking

For cluster picking, multiple orders are picked, from start to finish, by a single operator. This method is different than batch picking in that each order is sorted as it is picked. This is accomplished with the help of a cart containing individual totes for the operator to place SKUs in as they are picked. Cluster picking does not require a warehouse management system (WMS) and works best for smaller orders and smaller warehouses. This can create significant improvement from single order picking since the operator’s total distance traveled is reduced.

Zone Picking

With zone picking, the warehouse is split into individual zones that an operator will pick from. Operators will pick all the SKUs for an order in their zone and then send it to pack or the next zone if it is incomplete. This method can be used independently or in conjunction with the above-mentioned methods. This is a valuable option for high volume warehouses that struggle with operator congestion in aisleways.

Wave Picking

Wave picking can be utilized independently or in congruence with the above-mentioned methods. Wave picking groups orders together and releases them to operators in batches or “waves”. Orders can be grouped together based on a variety of different factors, such as shipping schedules, shift changes, product characteristics, etc. Wave picking is best suited for operations that are using batch or zone picking, already have a warehouse management system (WMS) and order management system (OMS) in place, and are looking to fully optimize their picking strategy.

Choosing the right order picking strategy is a great start to optimizing a warehouse operation. The best strategy will vary based on company size, inventory size, number of orders, SKUs per order and technological capabilities. At Establish, we combine a fact-based approach with state-of-the-art technology including warehouse simulations and data analytics to determine the optimal picking strategy for organizations.

Supply Chains in 2021 and What to Expect in 2022

The year 2020 presented the world with some incredible challenges, especially in the world of supply chain. Almost two years later, the COVID-19 pandemic and supply chain issues remain a major challenge for the entire globe. Now that 2021 has come to an end, we want to look back on what happened last year and talk about what we expect to see in 2022.

2021 Recap

There is a lot to cover when looking back at supply chain and logistics in 2021 but we want to focus on two major topics that cover many different areas.

Cost Increases

A huge theme of 2021 was the continued increases to all costs across supply chain and logistics. Within transportation, we saw parcel carriers continue to hike up rates, while LTL and Truckload rates also continued to rise. One of the main drivers to the higher rates is that the demand for shipping remains way above the current capacity that exists. Perhaps the most extreme case of this was seen within the ocean container shipping industry. The cost to ship an ocean container at the end of 2021 was 3-7 times more expensive than in 2020, depending on the route. In addition, the congestion seen at the ports is causing dwell times to escalate, resulting in more costs due to the incurred fees.

The transportation industry was not the only area within supply chain and logistics to see cost increases. We also saw 3PL prices and warehouse rates increase dramatically. Many of our clients saw 3PLs increase transactional costs by up to 30%. The cost of leasing and owning a warehouse also increased across the board, especially in areas like southern California. This reflects the demand for warehouses and 3PLs growing faster than the availability.

Throughout the year, labor shortages also became a major headline in all industries, especially in warehousing and manufacturing. To maintain a sufficient workforce, many companies were forced to increase wages, adding even more costs to the supply chain.

Investment in the Supply Chain

Many of the reasons for the cost increases discussed in the previous section were due to demand being greater than the supply. This caused people and companies to take action, as investment in the supply chain and logistics was another main theme that was seen in 2021 and that we expect to see continue going forward.

In years past, reducing supply chain costs was always the main focus for our clients during supply chain network optimization projects. This year, service level and transit time to customers was emphasized more and more, even if it meant higher costs. Two of the world’s largest companies, Walmart and Amazon are a perfect example of this. Walmart has credited some of their 2021 growth to an increased focus on their e-commerce business and omni-channel development. To increase their ability to fulfill orders quickly, Amazon opened nearly 300 facilities in 2020 and the 2021 number is expected to be large as well.

Companies are also looking at supply chain optimization as a more competitive tool, focusing on organizing supply chains globally and across all business units rather than each region/business operating independently. This will require some heavy investments up front in order to improve the business over the long term.

In addition to companies investing in their own supply chains, investment firms also have been investing in transportation and warehousing. This is a direct result of the high demand for transportation and warehousing outweighing the existing capacity. These investments should bring additional capacity to the market in the years to come.

Investments in sustainability also became a major focus in 2021, with numerous companies making pledges towards net zero emissions. Over 200 companies globally have joined The Climate Pledge, to have zero net emissions by 2040.

What to Expect in 2022

We expect many of the trends and challenges from 2021 to continue but ease a bit in 2022.

More Capacity for Freight and Warehousing

We expect to see a lot of new capacity entering the market in transportation and warehousing thanks to the investments seen in the supply chain industry in 2021. This should cause trucking rates and ocean rates to continue to plateau and eventually be reduced but rates are expected to remain elevated in 2022. We expect to see a very similar trend in the warehousing and 3PL market as the additional capacity coming onto the scene should level out the price increases and eventually cause costs to drop slightly. However, like transportation costs, we think prices will continue to be elevated.

Increased Compensation

We anticipate more companies offering better pay and benefits to compensate for the labor shortages and attract a more capable work force.

Continued Investment in the Supply Chain

With the huge demand for carriers, 3PLs and warehouse space, we expect to see continued investment in supply chain. We also expect companies to continue to focus on warehousing and building out their distribution networks to increase their service levels to their customers. Many companies, especially online retailers, saw rapid growth over the past year. This has made warehousing a top priority for a lot of companies as they are quickly outgrowing their current operations. Many companies will not be able to support their growth without optimization, automation, and expansion.

Continued Growth in 3PL Demand

With e-commerce producing so many new companies and altering the business models of existing companies, the need for warehousing space is at an all-time high. For many companies, it makes sense to outsource this to experts rather than try and build a warehouse operation internally, so we expect an even greater desire for 3PLs in 2022.

A Focus on Global Supply Chains

We expect companies to continue using fulfillment and logistics as a competitive tool; companies are going to start looking at all business units and supply chain functions together to leverage any opportunities to integrate, optimize and reduce costs. We also anticipate the growth of nearshoring and more local and diverse sourcing to continue. This become a topic of conversation in 2020 and we started to see this come into action in 2021 but restructuring of this size takes a long time so results will not be seen until we get a bit further down the road.

A Continued Shift Towards Sustainability

We also expect to see a continued focus on sustainability in 2022 and beyond as restructuring supply chains can have a massive impact on a company’s greenhouse gas emissions.

We at Establish wish everyone a safe and healthy 2022!

The Lean and Agile Supply Chain Webinar Series

Establish Inc., in cooperation with best-selling author Paul Myerson, presents The Lean and Agile Supply Chain Webinar Series!

The subject couldn't be more timely as company's try to use their Supply Chains to achieve a competitive advantage while at the same time dealing with the added pressures of the Pandemic, the emergence of Omni Channel retail and various other impacts of natural and manmade activities on the Global Supply Chain.

What is this Webinar Series?

This 4-part Webinar Series will be delivered by Paul Myerson based primarily on his Amazon best seller LEAN Supply Chain and Logistics Management. Paul will describe how to identify and eliminate waste in your organization’s Supply Chain and Logistics function while providing explanations of both basic and advanced Lean tools, as well as specific Lean implementation opportunities.

Some topics that will be covered:

• Understanding and Identifying Waste in the Supply Chain

• Lean Warehouse, Transportation and Procurement

• The Challenge of a Global Supply Chain

• Omni-Channel and it's challenges

• Lean and Technology: Enabling the Lean Supply Chain through Planning, Integration and Collaboration

When and where is it?

The webinar series will take place on Zoom from 6:30-8:30 PM EST on four consecutive Tuesdays:

-          05/11/21

-          05/18/21

-          05/25/21

-          06/01/21

How can I register?

To register yourself or your employees, navigate to the contact page: http://supplychainsmarts.com/contact/

Don’t forget to mention ESTABLISH when registering!

Register by Friday, April 30th to get the Early Bird Discount of just $399.00 per person for the full series! The price will be $499.00 after, so register early!

You will be invoiced via PayPal using the email provided during registration.

An Introduction to Voice Directed Picking (VDP)

What is Voice Picking?

Voice picking technology is equipment that allows for hands-free and eyes-free capability in the warehouse. It is currently becoming a new standard in distribution centers, used primarily for outbound operations but can be applied to any process in a warehouse. This is because for outbound operations, voice-directed picking (VDP) increases overall productivity, accuracy, and safety in the facility.

VDP adapts Bluetooth technology and integrates with the warehouse’s WMS or ERP system. Rather than an employee reading information off a picklist or scanner, the system communicates to the employee via a wireless headset and directs them where to go in the warehouse and what to pick. VDP also provides real-time confirmation, removing the need of physical scanning and the logging of information, thus improving efficiency.

What are the Benefits?

Reduce Mis-Picks and Increase Safety

As mentioned, VDP creates a hands-free environment. It removes the need to press buttons, manually log/interpret information, etc. Instead, the employee on the headset follows instruction from voice commands and audio feedback which is directly logged into the WMS system. This can reduce the number of mis-picks that would normally be caused by human error due the ease-of-use VDP provides.

Safety in the warehouse is the most important element in any facility. There are many factors to consider such as material handling equipment and other employees on the floor which can cause unwanted accidents. VDP’s capability allows employees to be more aware of their surroundings when traveling around the warehouse. They are no longer distracted from reading their pick list or scanner throughout the warehouse and only have to focus on traveling safely to their pick location.

Increased Productivity

According to Körber Supply Chain, integrating VDP in the warehouse will usually create a 20-25% increase in productivity. The integration immediately eliminates the need for extra paper and hand-held devices which decreases the time to stop, read and scan items and picklists. Instead, listening and speaking allows for the user to multitask during the picking procedure. Then, as data is collected over time, even more productivity can be found by finding the most optimal pick-route. This information can be extracted to decrease travel time within the warehouse. These increases in productivity reduces the labor needed for picking which allows reallocation of resources where needed.

VDP is also seen being integrated with picking robots to further increase productivity. In addition to an employee utilizing VDP, picking robots will utilize the average pick and travel time to ensure that the picker and robot are just-in-time with one another. These robots provide an additive feature in the automation process.

Data and Continuous Improvement

This method not only provides real-time information but simultaneously collects data to provide helpful statistics such as how long the task will take to complete and average number of items on the pick list. These statistics are important for continuous improvement in the warehouse. Access to this information ensures that the pickers are arrived on time, at the correct location, and on a larger scale, maintain KPIs.

The Future of VDP

As warehouses continue to introduce new technology, the use of VDP will continue to grow as it increases accuracy without the sacrifice in time. Integration with picking robots will most likely grow in parallel due to their complimentary functionality, further increasing standards. The freedom that VDP allows a company to address other bottlenecks in the warehouse such as quality assurance or inventory storage by reallocated picking labor to where needed. Not only will productivity increase in the warehouse, but VDP also provides an avenue for companies to become more data-driven, which is critical for continuous growth and improvement. 

Digital Twin Technology - From Concept to Reality

Digital twins are the next step in the evolution of simulation technology. Early developments began in the 21st-century, starting from computer-driven simulations to the creation of AutoCAD and other simulation applications that have grown to current system design programs. Technology such as increased computing power and reliable sensors has made digital twins a real possibility.

What exactly are digital twins?

The digital twin is a solution to help bridge the physical and digital world. Digital twins take 3D modeling to the next level by capturing more than just static information and becoming a live e-model of the product. Sensors capture dynamic data that provides the accurate state of the product to better support areas such as prevention, troubleshooting, and quality management. It provides feasible and realistic simulations that will or could happen with a product. To put into simpler terms as defined by IBM, “The digital twin is the virtual representation of a physical object or system across its life-cycle. It uses real-time data and other sources to enable learning, reasoning, and dynamically recalibrating for improved decision making.”

The common key characteristics of a digital twin given by DHL are:

1.       A digital twin simulates both the physical state and behavior of the thing

2.       A digital twin is unique, associated with a single, specific instance of the thing

3.       A digital twin is connected to the thing, updating itself in response to known changes to the thing’s state, condition, or context

4.       A digital twin provides value through visualizations, analysis, prediction, or optimization

Effects in the Supply-Chain and Logistics Industry

Digital twins in the early stages were being used in high-value and high-criticality products such as aerospace and defense. Now, companies are starting to collect data for the use of digital twins outside of these industries. This can create a major influence in the product life cycle and manufacturing.

Product life cycle

·       Faster design iterations

·       Reduced development costs due to decrease in physical prototypes

·       Competitive advantage in fast-tracking a product into the market

·       Increased reliability of final product

Manufacturing:

·       Distinct specifications for suppliers, creating optimized shipping and manufacturing designs

·       Models with specific components and materials for all products

·       Conduct realistic simulations for layouts, processes, and material flow before facility is created

·       Troubleshoot product faults to help find root causes and optimize future performance

Challenges

The biggest challenge that digital twins face in the logistics industry is the quality of data. Current digital twins are not exact e-replicas of the product. This is because it is extremely expensive to collect and clean data such as the physical, chemical, electrical, and thermal state of a product. To bypass this, engineers are using assumptions and simplifying their models.

Collecting high-quality data can be expensive which poses the question if implementing digital twins are worth it. High-value and high-criticality industries will continue to expand digital twins, but we may not see adoption in the commercial industry in the near future.