I SN distributes more than 200,000 automotive tools and other products from 500-plus suppliers to wholesalers and distributors across North America and Europe. Transactions occur through its website, phone, and EDI connections, among other methods. “We are definitely omnichannel,” says Theron Neese, chief supply chain officer. As the company grew, Neese looked for a technology solution that would help ISN keep costs in check, while also improving throughput. ISN takes orders until 3:30 every day, and then fills and ships them by 6 p.m. “It's a very tight window,” Neese says. With volume increasing, some of the company’s five larger distribution sites were becoming congested. Ideally, the solution also wouldn’t require a large capital investment, nor a lengthy implementation period, and it would help retain employees. Autonomous mobile robots (AMRs) from Locus Robotics met these criteria. ISN worked through Körber Supply Chain and Locus Robotics to implement them. ISN made the decision to introduce the robots in late 2020, and then went live with its first AMRs in its Buford, Georgia, location in spring 2021. “One reason I selected this solution was the
with Körber. AMRs can bring items to employees, reducing travel time and wasted movements. Many organizations are turning to technology to transform their supply chain operations. Only 1% of supply chain organizations say they have no plans to invest in emerging technologies over the next five years, finds research from Gartner. What’s more, interest spans industries, geographies, and company sizes. “Everyone’s looking,” notes Dwight Klappich, research vice president and Gartner fellow. STARTING LOW The growth in automation is starting from a low base. More than 80% of warehouses are not automated, Research and Markets reports. Running distribution facilities with paper and pens hampers efficiency and accuracy and obscures visibility, says Rupesh Narkar, director, sales, integrated engineering with Swisslog. Automation also can alleviate labor challenges. Even as layoffs upend other sectors of the economy, supply chain and logistics organizations have been mostly immune, says Spencer Shute, principal consultant with Proxima. A few large logistics companies have announced layoffs, but many were a result of over- hiring to accommodate surging demand during the pandemic. Demand for labor in warehousing and transportation remains high, partly a result of turnover and the physically demanding nature of many positions. By handling “the dull, dirty, and/ or dangerous jobs,” automation lets employees focus on more value-add work, says Kevin Heath, senior manager of robotics with Dematic, a provider of supply chain solutions. Declining technology costs are also driving automation implementations, says Tyler Higgins, managing director and retail practice lead at AArete, a management and technology consulting firm. Amazon’s rapid growth and its positioning of automation as a standard within warehouse operations is also prompting deployments.
ease of implementation and the light integration,” Neese says. The only real capital investment, which was relatively modest, was installing the AMR networks in each of ISN’s five major distribution sites. ISN’s warehouse management system does most of the heavy lifting in transmitting information back and forth from the robots. The benefits have been significant. The robots show pictures of the items to be picked, making it easier for employees to pick the right items. Overtime dropped from double to low single digits. Through attrition, headcount dropped about 20%, and ISN reinvested a portion of these savings into wages, which helped retain employees. Another benefit has been the reduction in fatigue. “Our workers aren’t pulling 100-pound carts through aisles all day long anymore,” Neese says. ISN is currently experimenting with deploying the robots in its putaway function. “This solution is extremely scalable,” Neese says. “It has been a game changer for us.” In a typical non-automated warehouse, employees may walk the entire facility several times each shift as they fill orders, says John Santagate, vice president of robotics and voice
DHL is the first commercial customer for Boston Dynamics’ Stretch robot. The multi-purpose mobile robot will tackle several warehouse tasks, beginning with truck unloading at select DHL facilities.
30 Inbound Logistics • February 2023
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