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|What counts in a crisis? Cash or capability?||30/03/2020|
I recently listened in on an interesting webinar from Paul Cuatracasas, founder and CEO of Aquaa Partners, who spoke on tech, aviation and the broader supply chain in the wake of the coronavirus crisis.
His key take was that the pandemic had brought a long standing trend to a head - traditional hard asset firms are being eclipsed in terms of market capitalisation and strategic flexibility by younger, fast-moving tech firms.
He thinks this could be accelerated by deepening Government money-printing, which could de-value currencies. He then thinks a flight to safety will benefit the cash-rich tech firms.
It is an interesting thesis but in my view, it could just as easily fall the other way. If we see greater inflation and that hits the economy hard, safety may be in hard assets not ultimately frivolous tech firms with inflated values.
Facebook might have an enormous market cap, but if it disappeared tomorrow, the world would not fall apart. Facebook isn’t real life, it’s an abstraction and the connections it makes can be quite easily achieved a thousand other ways. Arguably, its real value is limited.
A large transport company on the other hand may have very modest profits and market cap, but if it disappeared tomorrow it would have very tangible and damaging impacts on the real world. What it does cannot be easily achieved via other means. It has enduring value.
So what counts?
It depends who decides. If the financial world decides, they’ll back where the bulk of their money is, i.e. the tech firms. But if Governments are ultimately making his decision, they are more likely to place value on the human and material assets out in the world.
So, the real question is then, who is the ultimate authority that gets to make that decision, the ‘markets’ or Governments? I don’t think it’s clear who ultimately would hold sway.
Note - for the sake of this editorial, we’ve made some assumptions that we hope will not come to pass. That is, we hope increased QE does not lead to inflation, we hope the economic paralysis caused by the COVDI19 crisis does not last too long, and that neither Governments, nor markets are forced to make stark decisions on the economy.
|Logistics - this is your time||20/03/2020|
People don’t always see the value of warehousing and logistics but the coronavirus crisis has really brought home how essential it is.
Emergency services and utilities engineers are readily seen as vital frontline staff, but it’s time to recognise logistics alongside them, and as the backbone of the UK economy. In reality, this has long been the case, and yet industry associations have seen their pleas for recognition and respect repeatedly ignored.
I hope this will now change as, for as long as this crisis lasts, we are all going to rely very heavily on the dedication of people working in logistics, particularly in food supply. So here’s to all the lorry drivers, warehouse staff and planning teams. Thank you and be safe.
As a media outlet, we will do all we can to make sure you have industry-specific information on best practice to help you perform your jobs to the best of your ability.
The Nineteen Group have made a prudent decision to delay The Health & Safety Event in the light of the coronavirus crisis. It was due to take place at the end of April at the NEC and this has now been put back to later in the year. It will now take place on Sept 22-23, once again at the NEC in Birmingham. You can read the full story here.
The health and safety of attendees and exhibitors must be the top priority for everyone at this uncertain and worrying time. Indeed, we have seen a number of large scale exhibitions such as LogiMAT in Germany, and MACH in the UK making similar decisions.
We do need to strike a balance between business as usual, particularly with regards to key services, with warehousing, logistics and supply chain being, of course, front and centre in these considerations, and making sure unnecessary risks are not taken.
This is easier said than done and the next few months will be a learning process for all involved as we grapple with these unprecedented circumstances. But, as I said earlier, life goes on.
The warehouses and logistics networks of the UK must be efficient – now more than ever. The products and innovations that would have been on show at events such as LogiMAT have by no means diminished in importance. These products are still needed and warehouse operations still need to continually improve.
Handling & Storage Solutions magazine aims to be a coronavirus-proof information delivery vehicle for the industry to provide the guidance and product information to help you in your vital roles.
In this issue, we have a very timely Special Report on Warehouse Optimisation. We’ve broken this down into optimising space and optimising process, although to be honest, they often go hand in hand. Indeed one of the key warehouse challenges is balancing optimal use of storage space with throughput speed.
We lead this Special Report with an in-depth report from Britvic. I went up to Leeds recently to chat with team there and saw how they had to re-engineer their facility to cope with a big investment in new production lines. The warehouse and despatch side of the ops had to get some big decisions right to keep pace. It was a sizeable investment and that came with the potential for disruption, but has paid off with numerous benefits in throughput, capacity, and safety.
There are always winners in every situation, and it seems Ocado is very busy as consumers ramp up orders, stockpiling essentials ahead of potential anticipated shortages. Certainly, this must be a tonic for the innovative online retailer after a very expensive year. The firm has faced two massive outgoings, each hovering around the £100m mark.
The first was payouts to board members for achieving and sustaining massive growth in market capitalisation over the last five years. The second was costs associated with a fire that burned the Andover distribution centre to the ground. The firm lost over £200m in the last financial year, and what is perhaps just as worrying for the long term, it has always struggled for profit. It’s one thing riding the helter skelter of fast growth, quite another turning that into sustainable profit. It has always been an issue for Ocado, and when you consider the next big step, it doesn’t look like it will get easier.
\Ocado is set to build and run a number of fulfilment centres in partnership with other retailers around the world from Europe, to the USA to Asia. Large scale building projects are tough enough in your home market, but tackling multiple projects all around the world at the same time seems very risky to me. Coronavirus, Aussie bush-fires, the China-USA ‘trade war’, even Brexit, all show how delicate supply chains can be and how they can be readily disrupted.
Simon Duddy, Editor
|What’s all the fuss about…||19/02/2020|
Automation, robotics and solving the picking conundrum in Omni-channel retail?
We tackle automation for online grocers, automated picking options, as well as inventory counting robots and much else. Insights include: It is reckoned a manual picker can spend up to 60-70% of their time walking between picks. That’s a lost of waste. What can you do about it?
Goods to persons automated systems are said to improves pick rate by a factor of ~2.5. AutoStore is said to be the fastest robotic goods-to-person system on the market, with the potential to remove the most pickers from a given environment. On the other hand autonomous mobile robots (AMRs) can bring savings to operations that have throughputs that are small compared to AutoStore style deployments, and they can be set up quickly and deployed more flexibly, particularly in tandem, with RaaS, robotics-as-a-service. It is well worth exploring with the plethora of vendors bringing robots to the market.
Be sure to keep an eye on Handling & Storage solutions to find out who’s who in this new and exciting category of solutions providers. Did you know…. A major courier is planning a 363,000 sq ft facility in the UK. Due for completion in 2022, it will initially process 1.3 million parcels daily. Read on for a broad scope of the options that make Billy Whizz look like a slowcoach.
Diesel not dead
Diesel is far from dead but it is starting to be marginalised. Tighter rules and regs, for example, ULEZ in cities, and stringent regulations for engine manufacturers, mean diesel driven cars, forklifts and other machinery, will be increasingly expensive and limited in their applications. Not to panic, as diesel will still have an important role to play in the right application for many years to come. The wind of the future will not blow everything towards electric - we just don’t have the generating capacity for start - but you can certainly hear the wind whistling through the pylons. I recently visited German intralogistics specialist Jungheinrich in Hamburg and saw it is betting heavily on electric and lithium batteries as the forklift power combo of tomorrow’s warehouse. Jungheinrich is a big player, with annual revenues of around 4 billion euros, but not quite as big as major rivals such as the Kion Group and Toyota Industries. Perhaps this is part of the reason it is seeking to specialise, relative to the approach of its rivals. The infrastructure it is building around lithium based forklifts is remarkable. The forklift is very much the central part of it, but just a part. It has set up JT Energy Systems, a joint venture with Triathlon, dedicated to lithium battery manufacturing and recycling. Jungheinrich has expanded its range of lithium chargers and energy storage devices, including models designed for outside use. Jungheinrich explained these devices could be used to help manage power draw efficiently, allow companies to take advantage of off-peak charging, and integrate with renewables as part of an energy management solution provided by the manufacturer. It also previewed the P30i electric counterbalance truck, which it claims will be a one-for-one replacement for any IC truck in any task, regardless of performance workload or outside conditions. The truck is expected to launch to market in late 2021.
Consider entering the Safer Logistics category at the Safety & Health Excellence (SHE) Awards. If you have a great project or initiative that has helped boost the safety of your logistics operation, get in touch and you could be set for a night of glory among 550 of your peers on April 29 at the Vox Arena in Birmingham. The deadline for enttry has been extended to March 15. Check out the entry criteria at www.she-awards.com/awards
|Impressive innovation on view||26/11/2019|
AI and big data are not yet able to cut through the chaos and unpredictability of online retail.
The automated intralogistics provider says this means warehouse automation needs to be flexible enough to deal with the unpredictable demand. With this end in mind, TGW has designed its automation solutions to be channel independent.
That is, one system will handle any combination of orders regardless of whether the ultimate destination is to store, wholesaler or to the consumer’s front door. One example is Puma, which has a new DC opening in Germany in 2021 (By the way, Puma have been busy in Yorkshire too).
At the core of the system is TGW’s FlashPick for automated single-item picking. It will have 713,000 storage locations, with some 122,000 SKUs. The plan is to ship 74m units per year, with a B2B Peak picking 13,500 cartons per hour, and the B2C peak picking 124,000 pieces per day.
Modern counterbalance truck
Linde’s fleet management software Connect will be included as standard, an increasingly common move, as Toyota now issues its fleet management software I_Site on all warehouse trucks. The new Linde forklift is the start of a new form factor, which will apply to all Linde counterbalance models under 5 tonnes loading capacity, regardless of the power source used.
This should lead to fewer components used and manufacturing savings, giving scope for lower cost trucks.
|Be ready for on the spot inspections||01/10/2019|
As Halloween approaches, be aware that scares can come in many guises.
A company was recently fined £100,000 for poor warehouse safety practice - http://bit.ly/2Hi1Fxg
What stood out here was there was no incident.
It was enough for someone to spot the poor practice, report it, and for the HSE to prosecute the possibility a serious incident could occur.
At last year’s SEMA Safety Conference, Terry Mallard, health and safety inspector at Birmingham City Council, warned attendees about this very point. He explained: “I have come across businesses where I suspect practices are unsafe and have carried out on the spot inspections. Remember, it is not necessary for someone to have been injured for them to be served legal notice.”
The next SEMA Safety Conference is coming up soon on Halloween (Oct 31) - see details here - http://bit.ly/2oSbGef
It would be great to see you at the event!
Writing about warehouse robots this morning has got me thinking about software and AI.
The IDC research highlighted a key challenge in the supply chain.
‘The biggest source of waste in the supply chain has always been non-value-adding (or value-destroying) movement of material; for example, when a product is moved between locations and no improvement that the customer is willing to pay for is made. Essentially, any moving of a pallet, a case, or a single item that costs more than the value added by the movement can be viewed as waste.’
IDC says autonomous mobile robots are built to reduce this waste in the supply chain and in the process free up people to focus on adding value.
‘In addition to wasted movement of material, human movements can be considered waste as well. Anytime a person is used to scan something, push a cart through a facility, or perform other low-value tasks that can be automated with AMRs, it becomes an opportunity to increase operational performance with the help of AMRs.’
That is true but regardless of the carrier, be it human, robot or mechanical vehicle, or some combination of them all, it is the software directing them that will be most responsible for reducing waste. After all, a poorly directed robot will still make a lot of wasted movements.
If you are in discussions with robot providers, it is definitely well worth spending at least as much time on the software and artificial intelligence the firm is using as the hardware. And don’t forget the human resources they will devote to implementation and support.
|A whole lot of metal…||05/07/2019|
If you grew up in the 1980s like I did, you no doubt well remember how prevalent metal-heads were. There they were, big, greasy hairballs, on every street corner, with ghetto-blasters and denim jackets with band patches. All spandex, pimples and loud, rock anthems from the likes of AC/DC, Iron Maiden and maybe even Black Sabbath.
A whole lot of metal… a bit like the modern automated warehouse. It can be a problem. Operators get frightened by all that metal. First of all, the more there is, the more it costs. Secondly, large automated warehouses have historically tended to be inflexible and the worry is that if order volumes and profiles change enough, you could end up with a white elephant.
Witron touched on the first challenge recently when it spoke about key challenges facing the retail sector, saying it was aiming for ‘compact design, as well as short and transparent material flows, minimising the conveyors required’.
I think this is a key point. Economy of design and flexibility are both needed for warehouse automation to continue its growth.
Robotic single item picking is often thought of as the holy grail of automation. I think it is important, but I wouldn’t call it the Holy Grail. Sooner of later, robots will be more efficient at picking than people, but will it really mean a revolutionary change? After all, people are pretty good at picking.
I think the real holy grail of warehouse automation is a system that does not require enormous new infrastructure to boost efficiency, and can be overlaid on the existing warehouse.
Maybe we are seeing early signs of this in robotic automation that can learn to navigate any environment, and in software-based systems that can direct and co-ordinate a wide variety of different types of equipment and processes.
The extent to which automated technology and methodology can be overlaid on existing ‘caveman’ era warehousing and yet be robust enough to work and pay dividends in tiers of efficiency, that is the holy grail.
Check out our upcoming Automation & Robotics feature in the July / August issue for more discussion on key topics such as this. Get in touch with Angela Lyus for advertising opportunities at firstname.lastname@example.org
|Energy flashpoint looms in warehouse||17/06/2019|
Energy has rarely been a major concern in the warehouse. That might’ve been different, for a number of reasons. First, it could have been an environmental priority. In 2006, The Stern Review on the Economics of Climate Change suggested the corporate world was finally getting behind the drive towards a more environmentally friendly and sustainable way of doing business. But a few years later the recession hit and the momentum faltered.
Nowadays, ‘green issues’ are perceived as the priority of young people. For businesses, the focus is more on cost and while firms often unveil ‘eco bling’ projects, it does not always filter down to on-the-ground reality. In the last decade, if you wanted to make an environmental gain, you had to make sure it saved money too. This has served some technologies such as LED lighting very well. But while some energy bills have been coming down, others have been on the rise, to the extent that continuity of supply could be emerging as a real issue.
Recently, at the Warehouse Technology Group Live event in Manchester (full write-up next month), Kevin Mofid, director of research, Savills highlighted this. He spoke about a 2 million sq ft fully-automated warehouse that was planned, which would use ‘almost as much energy in a year as Lincolnshire’. He asked the audience: is anyone coming up with innovative energy solutions? A large scale distribution centre needs 3-13Mva, which is roughly equivalent to that needed for 10,000 three bedroom homes.
Mofid said: “If you add in electric vans and cars, energy supply will get out of hand. We advise you to think about it now, consider how to secure power supply, or think of off-grid solutions. There are also many National Grid substations with low power supply, that will require upgrade to facilitate major warehouses. If you are thinking of locating a new warehouse in England and look at a venn diagram of energy, labour and land availability, there are few places where they meet optimally.”
There are certainly instances of companies trying new things to save energy. In this issue we have a case study featuring a cold chain firm that has made the most of its electricity by carefully responding to demand and feeding energy back to the grid for profit when it can.
I also interviewed Jason Hibbs, MD of HVAC firm Jet Environmental and he outlined the increasing challenge of maintaining temperature control in ever larger, and more automated warehouses. Jet is looking at the next evolution in energy saving by using predictive analysis. This means taking into account weather forecast data and altering controls proactively, using nature to save on cooling.
|Kicking the can down the road||24/04/2019|
Neither the UK nor the EU are particularly known for decisiveness. Perhaps the only thing they really share over Brexit is a deep-seated fear of being blamed if they do make a decision… and it all goes wrong.
Thus, it’s not a great surprise that businesses face further uncertainty as we still don’t know quite what kind of Brexit we will have, when it will happen, and there is even a chance (a small chance) that it won’t happen at all. For politicians, it is, as always, much easier to say what they don’t want, than it is to take a chance of what they do want.
This means businesses must remain agile. I had a recent chat with Andy Butters, MD of temporary building specialist Aganto, and he made a lot of sense as he explained his company’s outlook to Brexit, and how he is helping companies hope for the best, and prepare for the worst.
Just last week (at the time of writing), our parent company Nineteen Group held The Health & Safety Event at the NEC. For the fifth year, I chaired the Safer Logistics seminar area, and we had more than 600 people attending the sessions, which tackled topics such as forklift training myths, safer rack management, helping HGV drivers operate safely at night, looking out for the potential failure of ageing cranes, and understanding the dangers repetitive work can pose to forklift operators. Thank you to our partners CILT, FLTA, LEEA, RTITB, SEMA and Southalls, and special thanks to sponsor Toyota Material Handling UK.
I also recently attended the Fork Lift Truck Association (FLTA) Awards for another fantastic and exciting night. We are so proud to be the media partner for the event, from taking a role on the judging panel to publicising the event and enjoying the night itself. From Page 24 you can read about all the winners from the night, from the innovative products scooping highly coveted Archies, to the teams being rewarded for going the extra mile on safety, and the individuals recognised for service at the end of distinguished careers as well as those highlighted for promise at the beginning of theirs.
Your warehouse: service & repair
Also check out our new feature, which highlights an excellent viewpoint from Siemens on effective monitoring and maintenance of automated warehousing - set to become an increasingly important issue. This feature also sees a report on an A-Safe customer day, and how Mainmark fixed the subsiding floor of a warehouse.
|How to fit a quart into a pint pot||21/11/2018|
Brexit has only exacerbated spiralling demand for warehouse space. The eComm boom had already greatly increased the need for warehousing, and we are still stewing in the hangover of the recession where years passed without new spec build warehouses coming online. But there is no doubt Brexit has brought this into sharper relief.
Consultancies are now telling companies to stockpile products in case of problems and delays with importing, which is particularly likely if there is a ‘no deal’ Brexit. This flies in the face of years of advice on running supply chains lean.
This is a good time for you to review your logistics and storage operations. Can you better utilise the warehouse cube? Should you invest in temporary buildings? Should you explore cross-docking? In this issue, we have no shortage of space-saving solutions for you to consider, as we provide in every issue.
Check out the shuttle-based storage system a food firm has installed across multiple temperature zones. Pharma firm Cultech bought itself more space to keep pace with growth by deploying a permanent, steel-clad building and two extensions at its Port Talbot location. A specialist forklift can help you make the most of yard space and make cross docking more efficient.
Making the most of space is also a key concern for Muntons, a food ingredients firm based in Stowmarket. By the way, Muntons warehouse manager Nicki Milner won the reader’s prize (£100 of Amazon vouchers) when we surveyed the readership about future innovations for our Tomorrow’s Warehouse Special Report. It was great to follow this up with an interview at Muntons in Stowmarket and see the warehouse and logistics operations first hand. Nicki has developed a broad range of strategies to make the most of space at the plant, allowing the firm to grow considerably in recent years, particularly via exports. As she says ‘we fit a quart into a pint pot.’
Simon Duddy is an experienced B2B editor and has worked across a range of titles including Handling & Storage Solutions, Heating & Ventilating News and Arabian Computer News.