DC s LEVEL UP
of product management with Locus Robotics. “One way to lower inflation is to become more efficient with your existing operations.” A hybrid approach to automation typically offers the best value for most companies, Sansone says. Companies can enhance their existing equipment and gain efficiencies with targeted solutions, while avoiding capital- intensive systems that often provide less flexibility to meet future shifts in demand. INCREASING ACCURACY “Some solutions, like sort-to-light, pick-to-light, and audio-based systems, all but hand you the product,” Caddy says. They reduce training time while boosting accuracy, all without requiring a massive investment. And these systems work well with small orders that contain multiple SKUs—like many e-commerce operations. The popularity of artificial intelligence as a tool to maintain service levels is growing. The effective use of analytics can enhance inventory control and help distribution centers more effectively manage demand and supply, Kent says. For instance, machine learning, a subset of artificial intelligence, can draw from historical data to help predict volatility levels.
can operate 24/7 with little human interaction aside from monitoring, Shute says. FLEXING WITH DEMAND “Robotics allows you to flex with the ebbs and the flows of demand,” Peterson says. Especially with the robots-as-a- service model, distribution centers can scale up and down according to the volume that’s moving in and out. Moreover, the idea that robotics and automation are going to replace jobs isn’t generally accurate, Peterson adds. Instead, these tools are performing the jobs companies can’t fill, while also making the roles more efficient and effective. She likens it to the introduction of the sewing machine, which boosted productivity, while reducing injuries. As important, technology solutions offer distribution center employees, including entry-level workers, the opportunity to gain critical competencies in applying digital technology or robotics to operations. “These aren’t just jobs but an entry to careers," Kent adds. “We need to make distribution centers more of a career choice.” ENGINEERING INNOVATION: ADDRESSING UNIQUE CHALLENGES Since its launch 16 years ago, Engineering Innovation, Inc. (EII) has automated the handling of letters, of letters,
While the market has partially recovered, volatility remains higher than pre-pandemic levels. “When coupled with more recent increases in freight and labor costs, as well as availability, shippers’ needs for efficient operations are amplified,” Sansone says. Even as DCs were hit with supply chain bottlenecks and higher product volumes, many struggled with tight capacity and labor constraints, further hampering efficiency. “DCs often have less space to store and move products and less labor to get products out the door,” says Spencer Shute, principal consultant with Proxima, a supply chain consultancy. ADAPTATION IS THE NAME OF THE GAME Technology can help companies tackle these challenges. “Technology is ever evolving to make DCs more efficient,” Shute says. The best solutions for each distribution center are determined by the product types being handled. Automating manual activities, while not a new idea, is critical to making processes more efficient and effective. Automating mundane, manual activities also can help attract candidates to distribution center and warehouse jobs, Kent says. A driving force behind the interest in automation isn’t only reducing labor costs—although that remains key— but the lack of labor, says Don Caddy, chief executive officer with Engineering Innovation, Inc., a leader in automated equipment for parcel applications. “The return on investment comes not from replacing labor with equipment, but from the ability to meet service level agreements (SLAs),” he adds. “SLAs don’t leave a lot of room to say, ‘Sorry, I won’t meet the agreement because I couldn’t get anyone here,’” he adds. Inflation also is driving interest in automation, says Neil Bentley, director equipment, service adds. key— Caddy, Engineering automated applications. comes not adds. interest in director
Robotics is another
solution. In some applications, it’s possible to develop a fully automated warehouse that
The Chameleon® from Engineering Innovation, Inc. (EII) is a highly configurable parcel processing system that adapts to each client’s environment as it processes up to 4,500 parcels per hour. With its modular design, it offers customizable options for sorting, labeling, barcode reading, OCR reading, and other capabilities.
48 Inbound Logistics • November 2022
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