Food for Thought - Food Engineering · Remember the Hershey Foods meltdown when they lost $150...

Food for Thought Automated Material Handling Technology for the Food Industry

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1. Introduction......................................................................................................................................... 3

2. IssuesShapingtheFoodIndustry.................................................................................................4

3. PrinciplesofAutomatedMaterialHandlingDesigns............................................................... 7

4. AutomatedMaterialHandlingSolutionstoCommonChallenges..................................... 10

5. TechnologyOptionsforAutomatedMaterialHandling........................................................ 12 RackStorage........................................................................................................................... 13 TransportEquipment........................................................................................................... 15 StorageandRetrievalSystems......................................................................................... 17 HybridorCombinationSystems...................................................................................... 19 ControlSystems................................................................................................................... 20

6. Summary........................................................................................................................................... 21

Table of Contents

Food for Thought – Automated Material Handling Technology for the Food Industry

The severe and dynamic business conditions of the past decade haveforcedfoodcompaniestoinvestigatedifferentwaystomanagetheiroperationstoachievesuccess.Factorssuchasglobalizationandhealth-consciousconsumershavecreatedremarkableopportunitiestodevelopnewproducts,attractnewcustomers,andextendreach.However,unprecedentedpressurestofillcomplexorders,deliverordersontime,increasefoodsafety,andreducecarbonfootprinthavemadesuccessadauntingtask.Thesedemandsaredrivinglogisticsprofessionalstoinvestigateautomatedoptionsfortheirwarehousestohelpdriverevenuegrowth.

Oneofthefirststepsinconsideringwarehouseautomationistoassessyourcurrentoperationtodetermineifautomationmakessenseforyourcompany.Atcertainthresholdsofvolumeanddwelltime(e.g.225,000palletsperyearfor21daysorless)automatedorderfulfillmentoperationsarelesscostly.Thereisausefultooltoassessyouroperationathttp://www.activ.com/feasibility_calculator.Thissitecanhelpyoudetermineifyouroperationcouldbefillingordersmoreprofitablyandwillassessvariousscenariossuchaswarehouseconsolidation/automationofhighervolumefastermovinginventory.

Therearenumerousresourcesandexpertsavailablethatcanhelpyouwiththisprocess.Ideally,youshouldseektechnicallyqualified,unbiasedsupportwhenconsideringautomatedwarehousesolutionsforyourorderfulfillmentoperations.Experiencedindependentsystemsintegratorscanassistyouintheprocessofidentifyingappropriatewarehousematerialhandlingtechnologiesandcapacityconstraintswhiledevelopingsolutionsthatalignwithyourbusinessrequirements.

1. Introduction

Page3 Introduction


IssuesShapingtheFoodIndustry

Witheconomicrecoveryandgrowthopportunitiesgainingsteam,thenextfiveyearscouldprovetobeoneofthemoredynamic,ifnotchallenging,timesforbusinesses.Addtothemixtheuniquechallengesprevalentinthefoodindustry,andevenmorepressureswillbepileduponthefoodwarehousemanager.So,whataresomecommontrendsaffectingthefoodindustrywarehouselandscape?

Changing Consumer PreferencesFrugalbuyinghabitsdevelopedduringtherecentrecessionappeartobedeep-seatedasshopperscontinuetobecarefulwithfoodspending.Thishasdriventhetendencytoshopforfoodatmassretailers,clubstoresand“dollarstores”.

Private-labelfoodproductoptionshaveincreasedandgrowthinthisareawillcontinue.Thisisdrivenbyconsumers’desireforvalue,perceptionoftheimprovedqualityofprivate-labelfoodchoices,andthepriceincreasesthatpackagedfoodcompaniesarelikelytoimplementinthenearfuturetohelpoffsettheirrisingcosts.

Anotherfactoraffectingconsumerpreferenceistheincreasingdesireforfresh,naturalfoods,withnopreservatives,andthepushtowardshealthiereatinghabits.Manyexpertscallobesityournation’sbiggesthealthcrisis.AccordingtotheCentersforDiseaseControltheobesityrateforchildrenages6-11is19.6percent,meaningalmostoneoutofeveryfiveAmericanchildrenareconsideredobese.Thefoodandbeverageindustryhasrespondedwithreformulationsandchangesintheirtactics.Forexample,manufacturersintheHealthyWeightCommitmentFoundation(HWCF)promisetointroducelower-calorieoptions,lowerthecaloriesofcurrentproductsandreducesingle-serveportionsizes,allinanefforttoreducetheamountofcaloriescustomersconsumeby1.5trillioncaloriesby2015.

Finally,consumersarealsomakingintelligentdecisionsaboutwhichbrandstheysupport.Companieswhoareidentifiedaseco-friendlyandsociallyresponsibledemonstratevaluesthatmanyconsumersfindimportant.Improvingpracticesinmaterialhandlingbyreducingenergyusage,greenhousegasemissions,packaging,workersafetyandwaterconsumptionwillbemorerelevantandwillmostlikelyberewardedwithcustomerloyalty.

2. Issues Shaping the Food Industry


ComplianceTheregulatoryenvironmentisalreadyrequiringmorefromfoodmanufacturersanditislikelythatrecentregulationsinlabeling,traceability,andrecallpracticeswillsignificantlyincreasesupplychainvisibilityandpressure.The2009salmonellarecallofpeanutbutterandpeanutpastefromPeanutCorporationofAmericainvolvedmorethan2,100products,from210foodcompanies,andcostpeanutproducersover$1billioninlostproductionandsales.

InJanuary2011,theFoodSafetyModernizationAct(FSMA)waspassedandsignedintolaw.ThebillincreasestheFoodandDrugAdministration’sauthorityoverfoodrecalls.Itwillrequirecompaniestoenhancetheirtrackandtracecapabilities–rapidlytracingbackfromwhereaproductwasreceivedandtrackingforwardstothepointofsale.Thiswillcreatemassiveamountsofinformationthatcompanieswillhavetomanagetoprovidecompletetraceabilityacrossthesupplychain.

AlsodrawingattentionistheProduceTraceabilityInitiative(PTI).Itistheproduceindustry’sefforttocreateastandardizedprocessfortrackingandtracingfreshproducethroughouttheentireproducesupplychain-fromthetimeit’sharvestedthroughthetimeit’spurchasedbytheconsumer.Thegoalistoachievecompleteadoptionofelectronictraceabilityofeachandeverycaseofproduceby2012.

Foodindustrywarehousemanagerswillneedtobecomeproactiveinunderstandingandaddressingchangesinregulations.Itisalsocriticalforwarehousemanagerstorealizehowtooptimizehiddenbenefits;forexample,producetraceabilitywilladdcostsbuttherecouldalsobebenefitsinreducedshrinkandincreasedaccuracy.

Increasing ComplexityAsanyoneinconsumergoodsknows,brandsarecontinuallyaddingproductsinanefforttoremaincompetitive,controlshelfspaceandsupportconsumerpreferences.Inthefoodindustrythesenewproductofferings,brandextensionsandproductvariationsalladduptoanincreaseintheSKUsthatdistributionmusthandle.IncreasingSKUscanstrainwarehouseresources,increaseorderprocessingcosts,delaydeliverytimeandcauseaccuracyissues.

Page5 IssuesShapingtheFoodIndustry


IssuesShapingtheFoodIndustry

Ordersarealsogettingsmallerandmorecomplex,makingthemhardertofulfill.Asdiscussedearlier,changingconsumerpreferencesandspendinghabitshaverequiredmanufacturerstoserviceawidervarietyofstores,eachwithdifferentservicerequirements.Inaddition,smallerandmorefrequentordersarebecomingmorecommonasretailersarerespondingtocustomerdemandbychangingtheirinventoryreplenishmentstrategies.Thesefactorshavedrivenhometheneedforflexibilityinthesupplychaintoadapttothesechallenges.Unfortunately,manycurrentdistributioncentershandlethesepressureswithexistingsystemsthatwerebuiltforsimplerorders.

Growing Need for Speed Today,quickandaccurateresponsestocustomerordersisthekeytokeepingexistingcustomers,aswellasgainingadvantageoverthecompetition.Customerswantwhattheywant,whentheywantit.Ifacompanycan’tmeettheserequirements,they’llfindsomeonewhocan.RemembertheHersheyFoodsmeltdownwhentheylost$150millioninordersduringthe1999Halloweenseason?SupplychainproblemspreventedHersheyfromdelivering$100millionworthofproductontime,resultingindecreasedstockprice,aprofitdiveandlostmarketsharetoMarsandNestle.

Competition,consumerpreferenceandtrendsallincreasetheneedforspeedtomarket.Addtothat,theinherentshortshelflifeofmanyfoodproducts,andthereisgreatpressureondistributioncenterstobeagiletodealwithincreasedordervelocity.


PrinciplesofAutomatedMaterialHandlingDesign

Aspressureincreasestoreducecostsandimproveefficiencyindistributioncenters,manycompaniesareonceagainlookingatmaterialshandlingautomationasameansofachievingtheobjectivessetforthbymanagement.Whateverthereasons,itisimportanttostepbackandconsiderwhetheranautomatedsolutionisrightforyouroperation.

Themostcomprehensiveorderfulfillmentsolutionsaredevelopedbyfirstansweringasimplequestion-Whatdoyouwanttoaccomplish?Manyfailuresinsuchprojectsstemfromoverlookingbasicbusinessneeds,respectiveofthecurrentandfuturebusinessvisionandbynottakingthetimetoclearlydevelopapath.Otherfailureshavecomefromputtingthecartbeforethehorse.Examplesofthatcanbeseenwhereabuildingisunderconstructionbeforetheduediligenceforthemanufacturinganddistributionprocessesandmetricsarefullyunderstood,causingthematerialflowstobeimprovisedandconstrained.

Thefollowingquestionsshouldbeconsideredbeforedeterminingtheviabilityofanautomationproject:•Aredecisionsproperlyalignedwithcorporatestrategies?•Doesitoffersatisfactoryreturnoninvestment?•Isitanacceptablebusinessand/ortechnicalriskfortheinvestor?

3. Principles of Automated Material Handling Design

DECISION

STRATEGIC INTENT

FINANCIAL RETURN

MANAGEABLE RISK



Companiesthatrealizethebestoutcomesfromautomationprojectsuseastrategicapproachtocharttheircourse.Theseinnovatorsgatherdata,defineproblems,rank,structureanddocumentsystemrequirementsbeforebeginninganydiscussionsaboutequipment.Thereisatendencytorushthroughthisdefinitionprocessandjumprightintohardwareselection.Infactthereareanumberofexamplesinwarehouseautomationwheretheattentiontodeterminingneedsandsystemrequirementshavebeenrushedandmillionsofdollarsspentonequipmentonlytofindoutthatitdoesn’tperformasdesired.

Desiredfinancialandoperationalresultsareachievedthroughproperanalyses,systemengineering/integration,deliverytorequirementsandwell-executedprojectmanagementduringinstallation,testingandtraining.Astructuredplanningprocesswithmultipledecisiongates,asdepictedbelow,isrecommendedinordertoattainasuccessfulbusinessresult.Iterationsofeachstepmayberequiredtoachieveasound,data-baseddecisiontomoveforward.

Afteraclearlydefinedstrategicdirectionhasbeendeterminedyoucanbegintoanalyzehowtoachieveyourgoals.Designersforautomatedmaterialhandlingmusttakeintoaccountseveraldesigncriteriathatcanimpactdecisionsincluding:•Well-definedconcept,relativetoprocessesandmetricsforthebusiness•Neworfixedbuildingandarchitecturalconstraints,includingmaterialflow•Designthatisreadilyadaptabletointegratecustomerchanges,includingwork-arounds andrelatedcosts•Computerplatformandsoftwarestandards•Equipmentsuitedtotheparticularpurposeforwhichitwasdesigned•Companycultureanditsabilitytoadapttoautomationparadigms•Fixedcostperunitthroughgoalsorobjectives•Capitalconstraints•RelativelyshortpaybackwindowsoraggressivetargetsforROI•Considerfuturestateconditions—howwillthebusinesschangeoverthenexttenyears?



Don’t Forget The Important DetailsBeforeplansarefinalizedmanyparticularsneedtobedeterminedsuchas:•Theexactnatureofthematerialshandledrelativetosize,weightandstability•Alltheunitsofmeasuretobehandledinthevariousaspectsofflow•Strengthandcharacteristicsofmaterials,relativetohandlingdamageissues•Processes,sub-processesandtheirrespectiveflowpathsforeachaspectofthe‘end result’(i.e.apalletorderwithoneSKUversustwoSKUs)•Averageandpeakflowmetrics,brokenintoincrementsrangingfromweekstominutes•CustomerorderrequirementsincludingKeyPerformanceIndicators(KPIs)•Enduserdemandssuchascolumnstackversuslayersonapallet•Thebestequipmentforthesystem,consideringbothshort-termandlong-termusage.

Onceduediligencehasbeenpaidregardingsystemdetails,thereareawidevarietyofmaterialhandlingtechnologiestoinvestigateforwarehouseoperations.Theyrangefromtraditionalforklifttrucksandfloorstackingstoragetofullyautomated,computerized,high-densityflowsystems.

Thegraphbelowdisplaysthefactorsinvolvedwithtechnologyselection.Ingeneral,densityanddynamicsincreaseasyouselecthigherlevelsofautomation.Laborwilldecreaseandyoucangainmorecontrol.



4. Automated Material Handling Solutions to Common Challenges

Manycorporationshaverealizedthatthesamesystemthatpoweredtheirsuccessformuchofthepastcenturynowstandsinthewayoftheirprogress.Currently,intheUSfoodindustry,dozensoffacilitiesoperatewithsignificantmaterialhandlingautomationintheirprocessingareas.However,manymanufacturersstilluseantiquatedwarehouseoperationswithequipmentandfacilitydesignsthatwerecommissionedyearsago.Theseenvironmentssimplyhavenotkeptpacewiththerestofthecompany’sinnovationandgrowth.Asthesewarehousescontinuetoage,thegapbetweenthecompany’slong-termstrategicgoalsandtheirwarehousecapabilitiesbroadens.

What Are Your Challenges?Mostlikelyyoustrugglewiththesameproblemsaseveryothermanufacturerintheworld.Nomatterwhatindustryyou’rein,thequestionsremainthesame.Howdoyoukeepcostsdownwithoutcompromisingoncustomerservice?Howdoyourunatightinventoryandwarehouseandstillrespondtocomplexcustomerdemands?What’sthebestuseofmycurrentwarehousespaceandoperations?Thechartonthenextpageshowsthebusinesschallenge,impactandhowwarehouseautomationcanimprovethesituation.

Page10 AutomatedMaterialHandlingSolutionstoCommonChallenges

Business Challenge Business Impact Warehouse Automation

Growing demand for more fresh

and organic products

Increasing SKUs can strain warehouse

resources, delay delivery times, cause accuracy

issues and negatively impact relationships with

customers. Fresh and organic products need to

move faster due to no preservatives.

Real-time visibility of customer orders allows for

optimization of orders for freshness and accuracy, while

intelligent staging of orders can offer shorter delivery

cycles.

Food safety issues

To meet more stringent global food safety

guidelines there is increased responsibility to

track products to improve recall capabilities.

Precise reporting data can limit the consequences of a

product recall and it's effects on business. Offers

absolute tracebility and rapid access to all products.

Customer satisfaction with on-

time delivery and accuracy

Poor customer service can end a customer

relationship and decrease revenue. Added cost

of order correction and expedited shipping.

Provides the level of control to deliver the right product to

the loading dock at the specified time. This ensures that

the truck will be loaded, as required, for an on-time

accurate delivery.

Increasing demand for direct

store delivery

Customized deliveries can strain warehouse

resources, exacerbate delivery time and

accuracy issues.

Provides the flexibility to stage the proper product in the

proper sequence to accurately fill orders.

Rising order velocity

Customer demands, intense competition and the

short shelf life of many food products requires

fast turnaround

Automated solutions can retrieve/ship product faster with

more accuracy and less personnel.

Increased truck wait time while

complex orders are loaded

Idle time for trucks waiting for loading can

increase shipping costs and delay delivery of

orders.

Stages the proper product in the proper sequence

enabling trucks to be loaded in the minimum time and get

on the road faster, reducing carbon dioxide emissions

and fuel consumption.

Carbon footprint reduction

initiatives and high energy costs

Increasing order and SKU complexity makes it

challenging to reduce carbon footprint and

energy costs. More people and forklifts are

needed to provide this higher level of service.

Can reduce the overall carbon footprint of warehouse

operations by minimizing amount of forklifts required,

eliminating lighting from storage areas, minimizing HVAC

needs in the storage area and maximizing cube

efficiency.

Turns per year increasingCannot meet demand. Poor customer service

can result in negative revenue.

Can handle increasing demand without sacrificing

delivery performance. Orders are staged at a

predetermined time and sequence.

Current operations are

landlocked or space constrained

Can't expand current operations using current

order fulfillment methods, this could result in lost

revenue.

Increases capacity within a smaller footprint by utilizing a

stacked/higher building concept.

High labor costs or labor

shortage

Need high labor content to handle volume and

order complexity. High turnover due to

environment can lead to increased training costs

and reduced productivity.

Automated warehouses operate with far fewer people

and can reduce dependence on manual labor, especially

in freezer or refrigerated environments.

Equipment damage and repairAdded costs of new equipment and

maintenance.

Operates with less equipment damage than manual

warehouses due to the well-controlled movement of

goods.

High product damageDamaged product can lead to production

shortfalls and lost profit.

Causes far less product damage than manual

warehouses due to the precise movement of products

throughout the system.

Stringent date coding

Some large chain stores will not accept product

that is too close to the expiration date.

Traceability to the pallet level is becoming the

standard.

Warehouse control systems can easily track each pallet

and ensures FIFO inventory management.

Page11 AutomatedMaterialHandlingSolutionstoCommonChallenges


Becauseofthebroadrangeofequipmentthatisavailabletoautomateyourwarehouse,technologyselectionrequiressignificantdiligence.Drivingthedesignandintegrationofthetechnologiesshouldbegoodadherencetocurrentandfuturebusinessrequirementsandmetrics,versusthesometimeseasy,quickfixselection.Thisportionofthewhitepapercontainsshortdescriptionsoftypesofequipmentandsystemsthatarecommonlyusedinawarehouseenvironment.Thediscussionislimitedtounitloadorpallettechnologies,however,itisrecognizedthatinpartsofthefoodindustry,less-than-palletloadordersarecommon.

Oneimportantfactorthatisessentialinautomatedhandlingenvironmentsisunitloadintegrity.Unitloadintegritygenerallymeansthattheloadmaintainsastablefootprintandloadenvelope(actualheight,widthandlength)whilebeinghandled,soequipmentisnotjammed.

Pallet ConsiderationsTherehasbeenmuchdiscussionrecentlyregardingpallettypeandtechnologyinthefoodindustry.Palletsarecommonlymadefromwood,plastic/composite,paperandmetal,withthevastmajorityinusetodaymadeoutofwood.Howeverinthefoodindustry,plasticpalletsandcompositesareseeingsubstantialgrowth.Somecontributethistowellknownissueswithcontaminationofwood(i.e.Tylenolrecallin2008),theinherentriskofdamage,(fireandstructural)theaddedweightofwoodenpalletsandtheabilitytomoreeasilymerchandizedirectlyinplasticpallets.PlasticpalletshavebeencriticizedlatelybecauseoftoxicityconcernsassociatedwithDeca-bromine(Deca),acontroversialfireretardantusedinsomepallets.

Therearesomefactorstoconsiderwhenselectingpalletsforautomation.Plastic/compositepalletstendtobemoredurablethanwoodoverall,buttheycanbendandsagovertime,whichcannegativelyimpactperformance.Theydohavelessissueswithdamagefromnails,splinters,andwarpedwoodthatcancausejammedloadsandcanharmmaterialhandlingequipment.

Inaddition,plastic/compositepalletscanbemoreeasilyembeddedwithRFIDtagstotrackthelocationofeachloadofproducts.MajorretailerssuchasWal-MartandCostcoandtheUSDepartmentofDefensearepushingsupplierstodeliverallproductswithRFIDtagsoncasesandpallets.PalletswithRFIDtechnologycanhelpimprovewarehouseefficiency,productvisibilityandregulatorycompliancebyenablingrapidcollectionofdatarequiredtoensurethesafetyoffood.

5. Technology Options for Automated Material Handling

Page12 TechnologyOptionsforWarehouseMaterialHandling


TechnologyOptionsforWarehouseMaterialHandling

Rack StorageWhilebusinessneedsarebestoptimizedwhenunitloadsaremoveddirectlyfrompackagingandpalletizingintotrucks,theneedtostage,store,orpick-fromhascreatedaneedforhighvelocityunit-loadstorageoptions.Dependingonstoragedensityrequirements,aspecificracksystemorcombinationofsystems,maybestservethewarehousingandshippingneedsofabusiness.Mostracksaremadeofsteel(boltless,traditionalopen-backcolumnsandclosedtubularvarieties),needtosupportheavyweights,keeploadsuniformandstraight,andprotectproductsfromdamage.Racksystemstodayhavecomeunderseriousscrutinytoavoidcollapse.OnlymanufacturersthatcomplywiththeUS-basedRackManufacturersInstitutecodesshouldbeconsidered.

Drive-In or Drive-Through RacksDrive-InorDrive-ThroughRacksincreasedensityandareoftenutilizedwheregrouppalletselectionismorelikelythanindividualpalletselection.Theirlanesprovideaccessforaforklifttrucktoplaceandremovestock.ItisanidealrackforcoolerorfreezerapplicationsbecauseloadingandunloadingwithinabaycanbedonefromthesameaisleoritcanbesetupforFIFO(FirstInFirstOut)inventorycontrolbyloadingfromonesideandunloadingfromtheother.ThistypeofsystemiseconomicalforstoringlargerquantitiesofthesameSKUsandisrelativelylowinequipmentandmaintenancecosts.Drive-InorDrive-ThroughRacksareusedinanumberofcoldstorageapplicationsduetotheneedtostoreasmanypalletsaspossibleinaslittleexpensivefreezerspaceaspossible.But,italsocanhavehighlaborandenergycosts,withlimitedornoabilitytomixSKUsindeeplanes.Theseracksaretypicallysubjecttomoreabuseduetothewaytheyareused,sorackintegrityandstrengthareimportantfactors.

Gravity-Flow RacksGravity-FlowRacksarerackswithconveyororskatewheelsections(orrollers)runningfromfronttorearonhorizontalloadbeams.Theconveyorwheelsectionsareinstalledataslightinclinesoallunitscanbeloadedononesideoftheracksystem,flowdowntheincline,andberemovedfromtheotherside


Image compliments of Frazier Industrial



ofthesystem.Brakesinstalledalongtherailscontrolthespeedoftheflow.WithGravity-FlowRacksinventoryisrotatedregularlybecausethefirstpalletloadedintothesystemsisthefirstpalletremoved.ThishighlyflexibletypeassuresFIFOinventorymanagementrotationofproduct(anadvantagewithperishableandtime-sensitiveproducts)andeasyaccesstodifferentSKUswithlaneallocationforeachSKU.However,thereislimitedornoabilitytomixSKUsindeeplanesandanincreasedpotentialforproductdamagefromimpact.

Push-Back RacksPush-BackRackspossessintegratedcasteredshelvingthatallowsunitloadstomoveintodeeperrackpositionswithouttheassistanceofanextendingdevicesuchasareciprocatingforkfoundonaStorageRetrievalMachine(SRM).Thisisdonebyunitloadsbeingpushedsequentiallyfurtherandfurtherintotherackbyasingleordoubledeeprackentrymotion,similartowhataforklifttruckdoeswhensettingaloadintostandardracks.

Push-BackRacksfacilitatesLIFO(LastInFirstOut)inventory,whichmakesitanidealsolutionforsomeitemsthatmayhavealongerstoragelifeordon’trequireimmediateaccess.Becauseitprovidesverycompactstorage,theyareoftenusedinfreezers,coolersandotherfoodstoragefacilities,wherefloorspaceisatapremium.Itmayrequireaddedheighttoalloweachpalletdeep,whichcanreduceoverallwarehousecapacitywhencomparedtootherracks.

Selective RacksSelectiveRacks,oneofthemostpopularandversatileracktypesavailable,allowforeasyselectionoffairlyhighvolumeSKUs,normallybyservice(forklifttruck)aisles.SelectiveRackscanbeSingleDeep(one-unitloadpositiondeep)orDoubleDeep(two-unitloadspositiondeep).Theyusethesamebasicdesignasrackstructuresoperatingwithforklifttrucks,reachtrucksorVNAandturrettrucksinconventionalwarehousing.Thisracksystemprovidesconstantaccesstoeverypalletandisidealforfastermovingproducts.Theycanhelpimprovelaborproductivitythroughavoidedshufflingofloadsandhasflexibleheightsanddepths.Itdoesrequirenumerouswideaislesforforklifttrucks,whichdoesresultinlowerstoragedensity.




Transport EquipmentComplexflowpaths,extramoves,andinefficientactivitiesaddcosts,time,andproductdamagetothematerialhandlingprocess.Transportequipmentcanreducetheexcessmovementandeliminateredundanthandlingwherepossible.Whenresearchingtransportequipmentdeterminetheoptimalpathneeded,withintheshortestperiodoftime,fortheleastcostandwiththeleastamountofeffort.

Transportequipmentusedinthefoodindustryhassomespecialneeds.Becauseoffoodsafetyrequirementsthesevehiclesmayneedtowithstandstringentwashdowns,aswellashaveaminimalnumberofcrevicesandopeningstohelpminimizemicrobialfoodsafetyhazards.

Forklift TrucksThetermsforktruck,counterbalancedtrucks,turrettrucks,highreachtrucks,sideloadersandVNA(VeryNarrowAisle),alldescribevariationsoftrucksthatcanmanagedifferentweights,rackheights,aislewidthsandsoon.Somecanbecustomizedtohandletwoormoreloadsatonceandthesizeisdirectlyaffectedbytotalliftedweights.Liftheightisacriticaldesignconcernbecausehigherliftsrequireoperatorstotraveltothedesiredputawayheighttomaintainvisibilityintotheracksforsafeputaway.

Thistransporttypehandlesawiderangeofloadcapacities;withavarietyofcapability-enhancingattachmentssuchasclamps,rotatorsandpush-pullunits,andcanpickandstackspeedily.Whilenearlyeveryforkliftmanufactureroffersanadd-onpackageoffeaturesthatcustomizeavehicleforcoldstorageandsub-zerofreezeruse,thetrucksthatdeliveralowercostofownershipincludetheseitemsasstandard.Lookforsealedcomponents,electricalconnectionsandswitchesbecausewaterfromwashdownsandcondensation,causedbymovingfromsub-zerotoambienttemperatures,canbeaproblemforsensitivecomponents.Foreasieroperationbydriverswearinggloves,lookforoversizedbuttonsonthecontrolhandleandswitchesthatcanbeeasilyactivatedbyminimalpressure.

Forklifttrucksareveryflexibleandcantransportgoodsoveravarietyofdifferentsurfaces,buttheymayhavehighinitialinvestmentcostsandcanbelaborintensive.



ConveyorsUnit-loadtransportation,sortationandaccumulationcanbecompletedpost-palletizingonconveyors,providedtheunitloadsarestable.ConveyorsusedinfoodusuallyconveyGroceryManufacturersAssociation(GMA)pallets,whichareastandard40”x48”(1016mmx1219mm,Europalletsaretypically800mmx1200mmor1000mmx1200mm).Conveyorscomeindualandtriplechainconstructions,whicharecosteffectivebuttoughonpallets,aswellasChainDrivenLiveRoller(CDLR),whichsupportthepalletson2”to5”(51-127mm)rollercentersandcanbemadeinavarietyofmaterials.Speedsforbothmayrangefrom20FeetPerMinute(FPM)(6M/min)to60+FPM(18M/min).

Conveyerscanoccupyalargeamountoffloorspaceandcanreducepathflexibilityontheworkfloor.Theyarecostefficientformovingcontinuousstreamsofproductandcanhandlelighttoheavyloads.

Automated Guided Vehicles (AGVs)AGVsareautonomousrovingmachinesdirectedbyacomputersystemtooptimizemovementinsimpleorcomplexapplications.Theycantransportandtug,storeandretrieveandaccumulatepallets,layersorcases.AGVstendtooperateatrelativelylowheights(upto30ft(9.1M)approximately)whenusedasstorageandretrievaldevicesandusuallytravelfreelyonopenfloors,aswellasinrackareas.Mostdesignsareforktypewithliftingheightandspeedslimitedtotheircounterweightsystems.

Likeforklifttrucks,theycanbemodifiedtobecompliantwithstricthygieneregulations,withstainlesssteelframes,sealedcomponents,etc.,toallowcompletecleanlinessofthesevehicles.

Inthefoodindustry,AGVstendtohavedouble-unit-loadwideforksthatprovidetheflexibilityforpickinganddepositingloadstoavarietyoflocations.Radiofrequencyandlaserguidancesystemshavereplacedthewireandenablethevehicletobedirectedvirtuallyanywhereinthefactory.Collisionavoidancesystemsprovidegoodsafetyintheeventthatanunexpectedobjectorpersonisencountered.AGVsloadandunloadautomaticallyandcanoperate24/7,withouthumansupervision.Theyarealsoadaptabletoallowforexpansion/businesschangesandintegratewellwithotherequipment.Theunitscanbeexpensive,areconstrainedbyfloor(surfaceandbarriers)obstaclesandrequirebatterychargingandregularmaintenance.


Image compliments of Egemin Automation, Inc.


Manual and Automated Turret or Narrow Aisle TrucksThislimitedclassofAutomatedGuidedVehiclesisamodifiedversionofastandard,manuallyoperatedTurret,NarrowAisleorVeryNarrowAisle(VNA)truck.Themodificationofaddedcontrols,includingthelogic,drives,andcondition-sensingequipment,allowsthetrucktotravelandoperateman-freeifneeded.Mostarereciprocating-forktypeswithliftingheightandspeedslimitedtotheircounter-weightsystems.Themaximumheightofthistypeisusually42ft(12.8M).Theseunitscanbeexpensive,theyarenotasfastassomeothermethods,andtheyareconstrainedbyfloorobstacles.Thebenefitsaretheycanoperateintightwarehousespace,whichcanmaximizespaceusage,andareadaptabletoallowforexpansionandbusinesschanges.

Storage and Retrieval SystemsStorage Retrieval Machines (SRMs)Unit-loadSRMscomeinawidevarietyofheightranges-from30to150feet(9M-46M).Theyarecapableofhandlingdifferentweights,widths,andperformancefunctions.SRMscanbeveryreliableandofferhighstoragedensity.Thesesystemscanalsobeadaptedtospecialworkingconditionssuchasfreezingtemperaturesandextremehumidityprevalentinsomefoodwarehouses.Theyrequirepreciserackstructuretooperatesmoothly,somearebatterypoweredandmaynecessitatesignificantmaintenanceandthereislimitedadaptabilitytochangeinbusinessneeds.

Aisle-Bound CranesThisclassofSRMsisthebroadestindesignandtypicallyemployssingleordualmast,meaningthatuprightmetalcolumn(s)is/areusedtoguidealiftingplatformwhichcarriesaunitloadtothedesiredracklevelandalsocarriesthemechanicalequipmentneededtoextendtheunitintoandoutoftherack.Theyaremadeprimarilyforhi-riseunitloadstoragebuildingsabove32ft(9.8M)andweredesignedforfixedaisletravel.MostrideonASCErails(similartotraintrack)andcantravelnearlytwiceasfastastheotherclassesofvehicles(vertically200+FeetPerMinute(FPM)andhorizontally900+FPM)(60M/min-275M/min).Absoluterackprecisionisrequired,especiallyastheheightexceedsthe40ft(12M)mark.Someallowforman-aboardoperationsbutmostareman-less,exceptformaintenance.SomeclassesoftheseSRMsoperateinfixed-aislemodebutmaybedesignedtotransferoneaisletothenext.Othershandlemorethanoneunitloadduringanoperation,eithertwowideacrosstheaisleortwodeepdowntheaisle,thusimprovingtheperformanceoftheSRM.


Image compliments of Dambach


Deep Lane Storage Retrieval MachinesThistypecanbeusedwhenarackisoverfourpositionsdeep.Alanyardconnected(ortethered)vehiclemayleavetheSRMtotravelintothedeeplanerackandoperateasanautonomousdeviceinretrievingorstoringaunitload.Thesevehiclesarealsocalledsatellites,moles,REMs,remotevehicles,and/ordeeplanecarts.

Automated Storage and Retrieval Systems (ASRS)AutomatedStorageandRetrievalSystemsarecombinationsofequipmentandcontrolsthatautomaticallyhandle,storeandretrieveloadstoandfromdefinedlocations.Variantsofthistypeoftechnologyaretypicallyusedinapplicationswherethereisaveryhighvolumeofloadsbeingmovedandwherestoragedensityisimportantbecauseofspaceconstraints.

High Density Dynamic Storage (HDDS)HighDensityDynamicStoragesystemssequentiallystoremultipleunitloadsofthesameSKU,inthesamelane,oneinfrontoftheother,withaminimumdistancebetweentheloads.Avarietyoflowtohighperformancedesignsexistforthisclassofstorageandretrieval.TheoldestoftheHDDSdesignsusesmechanicalracksemployingintegrated,airorelectricmotor-drivensub-assembliestopickupandlowertheunitloads.ThistechnologyoperatesbestinaminimalSKUenvironmentwithlowtomediumthroughput.Amoresophisticatedtechnologyusesverydeeplaneracking,5-30positionsdeep,andemploysbattery-operated,radiofrequency-directedautonomouscarstotravelunderthepalletsandprovidethestoreandretrievemotions.Forklifttrucksmanagelaneand/orelevationtransfers,makingthistechnologylimitedtothoseoperationalparameters.

HighDensityDynamicStoragesystemscanincreaseproductvisibility,efficiencyanddensity.HDDSsystemswithmultipledeepstoragedesignscanmaximizecube,importantinrefrigeratedorfreezerenvironmentsbecauseitcancostmoretocoolthantoheatawarehouse.Itutilizesasmallerbuildingfootprintforlessimpacttotheenvironmentandcandeliverenergyandlaborcostsavings.However,palletquality,configurationandloadstabilitycanimpactoperationsandthereisahighinitialcapitalinvestment.



Super High Density Flow SystemOneofthemostcapableandflexibletechnologiesusesbothdeeplane,andcross-deeplanecabledrivencarts,tonotonlystoreandretrieveproducts,buttoalsosortandpre-stageunitloads.Thistechnologyemploysautomatedliftsin-lieuofforklifttrucksandcanbebuiltmodularlyandtaller.Itismosteffectiveinexistingwarehousesbecauseitprovidesthehigheststoragedensitypossibleforbuildingsthathavearelativelylowclearanceheight.Thishelpssupportcorporatesustainabilitygoalsbyconservingenergyandusingcubicspacemoreefficiently,especiallywithincoldstorage.

TheACTIV®Systemisanexcellentexampleofthistechnology.Itisaunique,dynamicstoragetechnologythatcanbuffer,sort,andstagepalletizedunitloadsintheexactloadingsequence.Fastmovingproductsaremoreaccessiblewhileslowmovingproductsarepositionedoutoftheway,soloadscanbeinternallystagedinthelowerlevellanesandsequencedfortrailerloading–24hoursaday.Thistypeofsystemisexpandabletosupportfuturebusinessgoalsanditintegratesseamlesslywithothermaterialhandlingsystems.Itcansavesignificantdollarsifdwelltimeis15daysorless.Retrotech,Inc.istheexclusiveauthorizeddealerinNorthAmericafortheACTIVtechnologyandhasinstallednineACTIVSystemsitesintheUSAwithover200,000storagepositions

Hybrid or Combination SystemsIntheseflexiblesystems,fastmovingSKUsarestored/retrievedwithanautomatedsystemwheretheslowermovingSKUsareinitiallystoredusingtraditionalfloororracktechnology.WhenanorderrequiresoneoftheseslowermovingSKUs,theloadcanbemanuallydeliveredtothedockoritcanbeintroducedintotheautomatedsystemsoitcanbestagedinsequencewiththeremainderoftheorder.Manywarehousestodayfunctionusingamixtureofmanuallyoperatedandfullyautomatedmaterialhandlingprocessestoefficientlyuseequipmentandoptimizecurrentoperations,whileleavingthefullyautomatedoptionopenforfuturegrowth.Oneofthebiggestchallengesinthesewarehousesistheproperalignmentofthemanualandautomatedprocessestoensuresmoothproductflowbetweenstorageareasandshipping/orderfulfillment.Possiblemiscuesandpoorinterfacebetweensub-systemsispossible,ifnotplannedandengineeredproperly.DetailedanalysisofthewarehousethroughputandthenumberofSKUstobehandledisrequiredtoensurethatadequatecapacityisdesignedintothesystemforboththecurrentbusinessneedsaswellasfutureprojections.



Control SystemsDuetorecentlegislaturethereisanincreasedfocusonwarehousecontrolsystemsandtracingproductmovement.Companiesarerealizingthatanytypeofsafetyorsecurityconcerncanbeverydamaging,andjustonerecallcanhurtacompany’sreputation.Actingasthewarehouse“trafficcop”,productmovementisdirectedandcontrolledduringtheprocessbymaterialcontrolsoftwarewiththeabilitytotrackinventorythroughoutthesystem.ByunderstandingtheattributesandneedsofaparticularSKU,thesystemcandirectittotherightplaceortemperaturezoneandcanensurethatproductsthatshouldn’tbeclose(likechemicalsandsnackfoods)don’tendupnexttoeachother.Carefulselectionofcomputers,software,operatingsystems,programmablecontrollers,relatedsensorsandotherreadingandidentificationdevicesareessentialtosystemdesign,operation,andreliability.

Commonmaterialcontrolsoftwareterms:

Enterprise Resource Planning Software (ERP)Handlesend-to-endoperationalplanning.Largersoftwarepackageshavewarehousingandtransportationmodulesdesignedtointegrateoperations,althoughmostfallshortofbusinessoperationsdetailsandrequirecustomizationsorworkarounds.

Warehouse Management Systems (WMS)Offerssignificanttoolsandreportsformanagingoperationsatadetaillevel.Forklifttruckmanagementandpickingmanagement,aswellasinterfacestoautomationsystems,makethesecapableofmanaginginventoriesandmaterialflowswithinthewarehousewhileevaluatingproductivityofstaffandequipment.

Warehouse Control Systems (WCS)Responsibleforkeepingeverythingrunningsmoothly,maximizingtheefficiencyofthematerialhandlingsub-systems,andoftentheactivitiesofthewarehouseassociates.Itprovidesauniforminterfacetoabroadrangeofmaterialhandlingequipmentandtheirintegratedcontrols,suchasASRS,carousels,conveyorsystems,sorters,palletizers,etc.

Machine Control SystemsProvideson-boardhardwareandsoftwarecontrolforequipmentinawarehouseenvironment.



Changingconsumerpreference,complianceissues,increasedspeedandordercomplexityareallaffectingthefoodindustrywarehousedramatically.Manyarelookingtoautomationtohelpalleviatethepressure.Itiswelldocumentedthatwarehouseautomationcanincreasethroughputspeed,accuracy,safety,andtraceability.Itcanalsolowerenergycosts,uselesslaborandcauselessdamage.Infact,companieswithanexceptionalorder-fulfillmentprocessare20%moreprofitableandgrowtop-linesales25%fasterthanothercompanies.*

Thedecisiontoautomateawarehouseshouldbemadeonlyafteracarefulandcomprehensivebusinessprocessreviewandevaluationiscompleted.Theprocesscantakealongtimeanditcanbeacomplexpath.But,it’sworthit.Theoptimizationofyourwarehousingactivitiescanleadtodrasticreductionsinstructuralcoststhatcanpropelyoursupplychainfrontandcenterasapotentialkeytoorganizationalsuccess.

Whenconsideringanautomationproject,youmostlikelywillencounteravarietyofvendorsandsupplierswithwhomyoucouldpotentiallypartner.IndependentSystemsIntegrators,likeRetrotech,Inc.,canassistyouintheprocessofgatheringdata,identifyingappropriatewarehouseautomationtechnologies,developingsolutionsthatalignwithyourbusinessrequirements,andcreatingplansforimplementationthatmitigaterisks.

*“StrategicSupplyChainManagement”McGraw-Hill2004.

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