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Future in Maintenance: Will Machines And AI Replace Maintenance Workers?

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Archives, Global Logistics, Global Trade Daily, Software

Future in Maintenance: Will Machines And AI Replace Maintenance Workers?

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A widespread narrative on work in the future is that machines will take care of everything. Robotics, artificial intelligence, and modern algorithms powered by new energy sources will replace the way this world works. People will be out of jobs as they will not be able to compete with machines powered by AI. Leading to widespread unemployment and dispossession of the masses. The state of affairs is, allegedly, no different for maintenance activities in the future and looks bleak for maintenance employees. 

Now, is this the bleak future we face, or is it ‘immanentizing the eschaton’ as Willian F. Buckley puts it? For that, we have to take a look at the current state of maintenance automation, the potential evolution of the same, and historical precedents for such radical changes.

Maintenance automation: A Swiss army knife?

Maintenance activities have become a lot simpler with the help of technology. Managing maintenance schedules to predictive maintenance can be accomplished with the aid of modern technology. Everything with some level of computerized decision-making is broadly termed automation. But there are varying degrees of automation depending upon the entity making the decisions in various processes.

All processes in an industrial environment are formed by one or more of the following functions.

1. Monitor function

2. Advice function

3. Decide function

4. Implement function

The control of each of these functions can be handled by a computer or a human. Based on this, there are ten levels of automation starting from complete manual control to full automation. In full automation, all the functions in the process are controlled by a computer. The different levels of automation and who controls different functions in each of those levels are illustrated in the table given below.

The aim of all automation advancements is to reach the level of full automation. Today in most automation instances, computers control only one or two of the functions that form the process. The common narrative is that technological improvements snowball and compound to an exponential degree to deliver fully automated systems in the not-so-distant future. This will lead to the take over of all maintenance activities by machines and AI replacing all maintenance workers.

But what the narrative misses out on is the law of diminishing returns. According to the definition from Investopedia, “The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output.”

Applying the law in maintenance automation, after a period of compounding a ceiling is reached from where incremental improvement requires a disproportionately high amount of time, resources, and effort. This follows the trajectory of an S-curve as shown above. The progress in automation will follow a snail’s pace after a critical limit is reached. 

The real-world impact of the S-curve can be seen everywhere in technological advancement. The capacity of semiconductor chips was supposed to grow exponentially to infinity. “Faster and faster processors every year” was the narrative pushed during the initial phases of semiconductor development. Today, semiconductor manufacturing is fast approaching the physical limitation and the cost of improving the tech is orders of magnitude higher than earlier.

A similar ceiling for innovation will also hit the march to full automation of maintenance activities in manufacturing facilities. The cost of implementing incremental automation will rise exponentially after reaching a critical limit. Till the critical point automation technology will rise exponentially at a minimal cost. The problem is that no one really knows what is the critical point for maintenance automation or for any other technological evolution.

In the future, there will be an exponential rise in the technology driving maintenance automation. But it will not completely eliminate the need for human workers in maintenance activities. Maintenance automation brings about improvement in processes, efficiency, and in turn bottom line. But after a critical limit, an incremental increase in efficiency comes at a huge cost.

Horse buggies were replaced by cars and taxis. A lot of coachmen lost their jobs due to the transition. In addition to that, horse merchants, workers taking care of horses, carriage makers, all lost their jobs. But plenty of new jobs were created in the process of transitioning into automobile-based transportation. Cars and taxis were unheard of before the existence of automobiles. Plenty of new jobs such as cab drivers, car salesmen, car dealers, mechanics, etc came into being. This is the sort of creative disruption that always happens in free-market capitalism and maintenance automation would be no different.

Creative disruption

The most plausible scenario, for maintenance automation, is where human workers work in conjunction with machines and artificial intelligence. Software and algorithmic tools will be used extensively for process automation intelligence. Robotic arms and other robotic devices that can be programmed to perform regular tasks would be created. But since there is a lot of variability in a lot of maintenance tasks creating custom programmed robots for each instance would be cumbersome. 

The tasks that require flexibility and dexterity will be exclusively carried out by human maintenance technicians. They will have assistance from cobots. ‘Cobot’ is an abbreviated form of ‘collaborative robot’. It is specially designed robots that assist human workers in accomplishing their tasks. This form of creative cooperation will be commonplace for maintenance activities of the future.

The bottom line is that machines and AI will take over a lot of mundane and repetitive tasks. This frees up human capital to deal with more creative and complex tasks. While on the one hand, a lot of traditional maintenance jobs will no longer exist. But on the other hand, plenty of never seen before jobs will be created. Machines and AI would be a net positive for all maintenance activities and jobs in a plant, in the long term.

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Bryan Christiansen is the founder and CEO of Limble CMMS. Limble is a modern, easy-to-use mobile CMMS software that takes the stress and chaos out of maintenance by helping managers organize, automate, and streamline their maintenance operations.

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Archives, Global Logistics, Global Trade Daily, Warehousing

ZEN AND THE ART OF COBOT MAINTENANCE

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Innovative robotics and automation technology are helping organizations get more done, in less time and with limited facility space. 

Warehousing, distribution centers and logistics companies are some of the organizations that are seeing big benefits with robotics.

According to the 2020 MHI Annual Industry Report, 67 percent of survey respondents said they believed robotics had the power to disrupt their industry and offer a competitive advantage for their organization.

Therefore, it’s no surprise that 39 percent of surveyed companies said they’ve adopted robotics and automation. An additional 73 percent of those surveyed said they plan to add more robotics or start implementing robotics in the next five years.

Benefits of robotics and automation

There’s no doubt that robotics and automation can help organizations meet their mounting needs to standardize production and overcome challenges related to high staff turnover rates. With robotics, you can increase your facility’s outputs without expanding your physical footprint or facility size.

Robotics can help organizations with staffing challenges by offering the following:

-High staff turnover rates often mean added expenses in training and keeping a facility running at full capacity. Robotics can help reduce this fluctuation in staffing by offering a consistent and reliable work source.

-As warehouses, logistics companies and distribution centers look to streamline operations, it often means increasing the weight of fulfillment carts. This puts added strain on workers and can lead to workers’ compensation claims and costly time off, lowering production. Robotics help streamlines product picking and packing activities without straining employees physically.

-Robotics can assist staff members with learning efficient routes through warehouses to pick and pack products. With artificial intelligence, robotics can map out a way to efficiently pick and pack products throughout a facility. This can offer heightened job satisfaction for workers that use “cobots” (collaborative robots) to assist them in their daily activities, allowing them to be more efficient.

But robotics offer more than just improved staffing and a reduction in fluctuations from staff turnover. Robotics can also help facilities do more with the same amount of space. Some ways robotics help with stronger outputs despite capacity limits include:

-Better inventory management allows your organization to automate the inventory process so you have to keep less on hand.

-Set aisle sizes based on robotic width and smart technology that tells machines when another robot is in an aisle. That way, you reduce the need for two-way traffic in an aisle so you can shrink the aisle size and make better use of the space.

-Reduction in need for additional workspaces, such as electronic scales, because it’s built into the robot’s system.

Maintenance for robotics and automation

But with robotics comes new requirements for the maintenance team. 

Preventative maintenance becomes increasingly more important as keeping equipment up and running is crucial to your business operations.

If the robots fail regularly, you could experience worse staff turnover rates than you did without the technology as staff members get frustrated and tired of the loss in productivity. Your organization’s agility and ability to respond quickly to requests become more important than ever as you begin to rely more heavily on robotics.

To add robotics to your warehouse, logistics or distribution center operations, you need a maintenance plan that includes:

-Condition monitoring: Prepare a dashboard that shows each robot’s condition and expected date for new parts to prevent breakdowns.

-Work order requests: Allow staff members to make a work order request and have a process for assigning those work orders to your maintenance team for fast service.

-Reporting: Run reports that help your maintenance team see how often each robot requires maintenance so you can project and anticipate that maintenance in the future to avoid costly breakdowns.

Computerized Maintenance Management Systems (CMMS) help warehouses, logistics companies and distribution centers operate efficiently while taking advantage of the competitive advantage robotics can offer. 

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For more than 30 years, Eagle Technology Inc. has worked with various industries. The Mequon, Wisconsin-based company offers clients the ability to boost productivity, control costs and maintain compliance, all from its web and mobile-enabled CMMS software, Proteus MMX.

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Archives, Global Logistics, Global Trade Daily, Warehousing

6 Innovative Trends in Warehouse Technology

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Gone are the times when warehouses were simple hangars full of stuff. As technology progresses, new, ingenious solutions see the light of day. Some see daily usage across the globe. Others await further development to become viable. Yet, both have one thing in common: they’re revolutionizing the warehousing industry. Today, we’re focusing on innovative trends in warehouse technology already in use. The ones you can implement today to make your warehouse more efficient and effective.

Trend 1 – Goodbye, clunky Excell sheets!

People in the warehousing industry already know about Warehouse Management Systems (WMS). This is one of the innovative trends in warehouse technology already in widespread use. And not without reason.

WMS is a set of software and protocols designed to manage and optimize warehouse performance. It places complete control of your warehouse at your fingertips, thus helping you:

-Save money on labor and operating costs;

-Increase warehouse productivity;

-Improve accuracy and inventory visibility;

-Improve workforce management;

-Make inventory, shipping, and labor management more efficient.

However, WMS’s biggest strength is adaptability. You can either integrate it with existing systems or have it operate as a standalone unit. Therefore, whether you’re starting from scratch or you’ve been in business for years, you can definitely benefit from it.

Trend 2 – Automation and Robotics

The usage of automation and robotics isn’t new, per se. Various industries already use both to a larger or lesser extent. However, this trend wasn’t so popular in the warehouse industry up until recently. In the wake of the Coronavirus, many companies had to adapt their modus operandi. The focus shifted to reduce human contact while retaining efficiency. Automation and robotics were the logical choices. But, aside from keeping your warehouse operational, integrating both can help you:

-Reduce labor costs;

-Optimize the space;

-Increase productivity;

-Increase throughput.

When combined with employees, automation and robotics can dramatically increase the efficiency of your facilities. In some cases, even up to 100%. Now, that’s a productivity spike every prospective businessman dreams of.

Trend 3 – Picking matters

Order picking is an integral and indispensable part of operating the warehouse. It’s also tedious, inefficient, and prone to mistakes. Unless, that is, you integrate Wearables and Smart Picking Technologies. Aside from acting as a picklist, a combination of these technologies provides more convenience for both you and your customer. But, it also vastly increases the safety, efficiency, and effectiveness of your warehouse. Furthermore, it eases the burden on your employees, thus allowing them to focus on more pressing matters.

Trend 4 – “Tell” your warehouse what you want it to do

The combination of previous technologies gives you unparalleled control over your facilities. As such, you’d think it’s efficient enough. Well – not quite. There’s always room for improvement, and, in this case, it comes in the form of Voice Activation Technologies. This technology is already seeing widespread use. It’s functional enough, easy to use, and super convenient. After all, why would anyone sit in the office, clicking and typing thousands of times, when they can simply tell the warehouse what to do?

Trend 5 – “Smartify” your warehouse

The advancement of smart technologies opened a world of possibilities for various industries. Of course, warehousing didn’t fall short, either. In fact, all innovative trends in warehouse technology we listed can utilize smart technologies, in one way or another. Today, with only the internet and a smart device, you can manage an entire industrial complex. Without even setting foot on the premises. But, comfort and convenience aside, smart technology comes with many more benefits. The most notable ones are:

-Ability to track cargo or product in real-time;

-Data accessibility and transparency;

-Visibility and access to operation(s) 24/7;

-Improved worker productivity;

-Lower equipment downtime.

When combined with mentioned trends, smart technology allows for incredible versatility and flexibility, the two things necessary for the growth and evolution of every business.

Trend 6 – Go renewable to remain profitable

Warehouses consume copious amounts of energy to operate, even more so if they run temperature-controlled or refrigerating units. And even more than that, once they start implementing other modern technologies from this list. Needless to say, this can lead to some serious utility bills. That’s why many warehouse companies today focus their efforts on renewable energy sources – mainly solar power.

A warehouse, as a structure, allows for the incredible use of solar panels. Huge roofs are an ideal place to install a not-so-small solar farm. This, in turn, lets you create a semi-self-sustainable operation, thus cutting your operating costs significantly. And, as a welcome side-effect, it also increases the value of the building itself. So, renewable energy sources are an excellent long-term investment.

Tomorrow starts today

Living in the age of information, we witness the birth of new, amazing technologies daily. Many of them contribute to our lives, both personal and professional. But only if we’re willing to accept, implement, and change with them. Because, as much as we depend on technology – it depends on us, too. Therefore, following innovative trends in warehouse technology is more than a whim. It’s the future of the industry and a necessity.

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Erik Waidhofer is a freelance author with over 15 years of experience in moving, warehousing, and shipping industries. When he’s not writing for Fairfax Transfer and Storage and other moving companies, he enjoys woodworking and watching old movies.

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Archives, Global Trade Daily, Software

8 Reasons Why The Packaging Process Should Be Automated

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The packaging process is an important part of the supply chain. It ensures that products are packaged for shipping to customers and stores. The problem is that it’s time-consuming, costly, and difficult to do right. Automating the process can help solve all three of those problems and more. This article will discuss 8 compelling reasons why you should automate your packaging process.

Automation Saves Money

Automation saves money. Automated packaging means that a company does not need to hire people to do the work, and this can save thousands of dollars in wages each year.

It also avoids hiring mistakes or costly labor turnover costs, which can be expensive for any business. Take case erector manufacturers, for example, they can potentially save up to a million dollars every year by automating the packaging process. So just imagine: with automated packaging, there’s no need to worry about hiring extra personnel; plus all of these savings help lower your overhead expenses and cost you less money!

Automation Reduces Human Error

Any human worker is bound to make errors no matter their resume. One of the key benefits of automation is that it reduces human error. Machines do not have a mind, so they cannot make any mistakes on their own and complete tasks more accurately than humans can.  The time, effort, and money that would be wasted on human error can instead be invested in other parts of the company. Human error is a huge problem in the business world, and it is imperative to eliminate this type of issue.

Packaging machines will always complete their tasks with accuracy because they cannot make any mistakes. This means there are no human errors occurring which speeds up production times drastically.

Since everything has been automated, nothing can go wrong anymore – unless you’re talking about hardware but that’s another conversation entirely.

Automation Is Time Efficient

Machines can take care of things at a faster rate than humans so it takes much less time for them to complete a process that would take hours or even days with human hands alone.

When employees don’t have to do tasks manually, they can focus on more important things- like the next step in the production process.

Automated systems provide a smoother workflow and reduce bottlenecks that could otherwise slow down productivity or cause quality control issues later on.

For example, the right software will reduce errors by simplifying processes through automation and data collection from across your supply chain – saving time, money, and hassle for everyone involved in the packaging process.

Automated Machines Are Easier To Maintain

Automated machinery doesn’t require much maintenance due to its design. Machines are created with a specific purpose in mind, and they don’t have many moving parts or components that break down easily.

Thus, the equipment for automated machines is less likely to break down than the machinery used by humans. Humans need time off and they can’t work 24/hours a day, this is not an issue with robots since their workloads don’t depend on human intervention. Robots also don’t need to take breaks or sleep.

Apart from this, automated machines are less likely to injure themselves since they have the ability to sense what’s around them and stop before any accidents happen. Human errors can lead to injuries when packaging products such as heavy boxes that could cause a personal injury if dropped on their foot for example. Automated machinery doesn’t make mistakes like these which means “packaging-related” accidents will be greatly reduced with automation; you don’t have to pay for hospital bills.

Automation Is Predictable

A human can’t be expected to do the same job consistently. Consistency is an important part of any process, and it isn’t possible for humans to perform tasks in exactly the same way every time. This difference makes your product more varied, which may not always be a good thing. Automation removes variation from your manufacturing process, giving you consistent results each time.

The automation process will produce a consistent quality of work that humans cannot achieve, such as making sure each box is sealed tightly before moving onto the next one so there are no leaks or spills in transit.

Automation Means Less Product Damage

Less product damage is one of the most important reasons why packaging should be automated. Product damages happen even before the products are shipped to customers due to improper handling or rough transportation. The only way to prevent this from happening in a manual setting would be double-checking and triple-checking every step which takes more time away from production line efficiency but automation would prevent this by doing the checking automatically once and for all.

Automation Means Better Customer Satisfaction

The automated packaging process will dramatically increase customer service and satisfaction. By eliminating the need for human error, the number of times customers have to wait can be drastically reduced. This means that you’ll be able to offer better communication with your prospects since they won’t feel like their needs are being ignored because there is no one available to answer them.

Customers also like their products coming from an automated system because they know that there will be no human error involved in packing them up correctly; this builds trust between customer and company. For manufacturers who want to sell globally, customers outside North America are wary about packaged goods being tampered with if people pack them manually.

Automation Means Lower Environmental Impact

One of the best reasons to consider automating packaging is that it will lead to less environmental impact. This means there are fewer emissions being pushed into the air or water because the machine is using less energy to operate. With an automated system, the operator doesn’t have to do as much physically and thus will be able to use a smaller footprint of space in their facility when they’re not operating it.

Another reason why automating packaging can lead to lower environmental impact is that there are fewer emissions being released into the atmosphere over time because machines don’t need any maintenance or replacement parts like humans would if they were doing this task themselves on a daily basis.

The automation process is predictable, which means you can be sure that your machines will work as intended. This also saves time and money in the long run because automated machinery requires less maintenance than human-driven equipment. Plus, when it comes to customers, they appreciate not having to wait on hold for hours or talk with someone who doesn’t know what they’re talking about! By implementing a degree of automation into your production line, you’ll have happier customers and more efficient operations without sacrificing quality.

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Archives, Global Logistics, Global Trade Daily, Warehousing

The Future of Warehousing

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In September of 2018, Forbes Insights published a survey of 400 senior haulage executives. They reported that more than two-thirds of the respondents believed seismic changes had to occur within the logistics sector, otherwise its warehouses would risk not being able to facilitate the growing demand for freight delivery.

Three years and a global pandemic later, and demand for warehouses is higher than ever. So how has the industry endured this tumultuous period? The simple answer is greater investment in technology! Innovators within warehousing have continued to incorporate intuitive software into their models to cut costs, speed up delivery time and improve efficiency.

With this trend of incorporating technologies into the haulage sector only set to continue, the mind boggles at what warehouses could be capable of in the future. To that end let’s unravel the warehouse innovations set to be introduced in the coming years and what the biggest names are doing today to ensure they won’t be left behind.

Warehousing the Amazon way

We would be remiss not to mention Amazon in a discussion about the future of warehousing. After all, their network accounts for over 150 million square feet of warehouse space across the globe.

The company has, since its emergence in the ‘90s, being trailblazers for cutting-edge warehousing models. In the mid-2000s they popularized fulfillment centers whereby sellers could leverage the vast network of warehouses Amazon had to store, pack and ship their customer’s orders for the same standardized fee – no matter where an item was being sent.

Since then, many warehouses have attempted to adopt something similar to the Fulfilment By Amazon (FBA) program and offer to not only store their client’s products but package and deliver them as well. However, none have been able to even rival the FBA. Namely because of one very appealing benefit that FBA offers sellers: Prime eligibility.

This legacy of advancement was further solidified by the recent announcement that Amazon was opening its first robotics fulfillment center in Alberta, Canada. The automated warehouse, slated to open in 2022, is the result of almost a decade-long investment.

In 2012, Amazon purchased robotics company Kiva Systems for $775 million which gave them ownership of a new fleet of mobile robots which were capable of carrying shelves of products from worker to worker and intuitively navigate a warehouse according to barcodes on the floor. Like the FBA program, it’s expected that many warehouses will use Amazon as inspiration and invest in some form of robotics to aid with automation.

Automation for all

As Amazon recognized, automation is the silver bullet when it comes to boosting a warehouse’s operations. Having a workforce that never tires, runs 24/7, and provides a near-perfect output is invaluable. It’s likely that every stage of warehouse infrastructures will have some form of automation in the next few years if they haven’t already.

Drones are expected to have a significant role in the future of warehousing, specifically in aiding inventory control. MIT conducted research in 2017 where they programmed drones to fly above a warehouse floor to read RFID tags from more than ten meters away. The study was a success with the drones only having a 19cm margin of error.

There are currently some safety concerns delaying the immediate integration of drones in warehousing but the continual developments of the technology suggest that we’re not too far away from seeing them introduced.

Automated conveyors and sortation systems have been staples of warehouse infrastructures for decades, now experts are predicting that a third system will become part of every warehouse’s arsenal. The ARC advisory group’s warehouse automation and AS/RS research forecasts that the shuttle systems market is going to grow exponentially.

For context, a warehouse shuttle system is a mobile cart that transports items in pallet racking. It replaces the need for an operative to use a forklift to retrieve stock totes, trays, or cases in a storage buffer. The system, which is also being touted as an essential by various trade groups, provides warehouses with high throughput, scalability, and storage density.

Considering that repetitive tasks can be mechanized fairly easily, there’s plenty of reasons to be excited for what other types of automation could be introduced into warehouse infrastructures and the benefits that they will no doubt yield.

Big Data & AI

Big data and machine learning have revolutionized many industries since their proliferation in the early 2000s and it’s expected to do the same to warehousing.

Order and inventory accuracy, as well as fulfillment time, are all Key Performance Indicators (KPIs) that could be improved through the use of Artificial Intelligence (AI). AI can also evaluate more general drivers that may affect a warehouse’s overall performance including safety, facility damages, and employee productivity. Using this aggregated data AI is able to start automating tasks, collecting the necessary information, and making decisions on its own.

Some industry leaders have already made the transition and began using AI. For example, Alibaba recently fully automated its stocking and shipping warehouses in China by using robots controlled by a sophisticated machine learning algorithm.

Further down the line, many experts believe that more advanced metrics will come into play as well, such as predictive analytics which will give operators a helping hand when it comes to forecasting and drive smarter decision making in the warehouse’s overall operations. Predictive analytics will help with evaluating demand for warehouse space, planning inventory location, responding to supply chain issues, and reducing risks associated with more complex supplier networks.

It’s clear to see that the prospects for warehousing in the near future are bright with plenty of exciting technology currently in use and on the horizon. The industry’s willingness to constantly evolve is truly admirable, with interest in big data, automation, innovative models, and AI at an all-time high. We should all be very excited about the future of warehousing.

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Archives, Global Logistics, Global Trade Daily, Warehousing

5 KEY FACTORS TO IMPROVE WAREHOUSE WORKFORCE MANAGEMENT

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The global e-commerce industry could grow up to $2.7 trillion by the end of 2021. Jobs must be filled, and warehouse operations will likely accelerate at an unprecedented pace. Yes, robotics and automation technology can improve the efficiency of the workforce, but the people working in these warehouses still represent the backbone of the industry. 

The five factors that follow are vitally important if you wish to improve your management scheme and enhance morale in the workplace. Do not be afraid to make changes—even if you manage a “well-oiled” machine. Society is changing by the second, and making progress at work requires a few changes from time to time.

Focus on Employee Engagement and Retention

Given the recent boom in demand for warehousing, attracting and retaining talent has become increasingly more difficult. What’s more, this comes down to a lot more factors than simply salary and benefits.  

The more intangible factors include recognition, personal development and opportunities. Or in other words, engagement. An emerging trend in this field is the gamification of warehouse work. Similar to fitness tracker apps, these digital platforms have goals and milestones for employees to achieve. Once achieved, they’re rewarded with both virtual recognition, such as topping a leader board or gaining badges, as well as more tangible perks such as reserved parking spaces and gift cards. 

The idea is to provide positive reinforcement to workers, so instead of doing the minimum required for their paycheck, they go the extra mile and earn lots of small perks along the way.

Aside from the more fun and inventive engagement tactics such as gamification, managers shouldn’t forget the basics. Being present on the warehouse floor for a portion of each shift pattern, and taking a bit of time to check in with staff, is still one of the best ways to build rapport. This also helps nip in the bud any issues that workers may have, before potentially becoming a bigger problem. 

Forming Strategic Partnerships with Staffing Agencies

As warehousing demands continue to increase and seasonality continues to drive peaks, forming strategic partnerships with staffing agencies is becoming more crucial. A good agency that you have a long-term and trusted relationship with can be relied upon to provide quality hires as you ramp up to manage increases in order cycles. 

The more agencies you partner with, the more you’re spreading your risk. Think about an extreme but possible staffing scenario, where order volumes spike to the near physical capacity of the facility. How many additional hires would you need to manage this? How many hires could each of the staffing agencies you partner with be able to provide within a few weeks to a few months? 

This is also where building strategic relationships with the staffing agencies you work with are crucial, so you have confidence that they’ll prioritize your needs above other operators that are also trying to staff for seasonal peaks. 

When it comes to striking the optimal balance between permanent, directly employed workers, and agency temps, the 80/20 rule is a good one to work to. This ensures that the majority of the workforce are committed permanent members of staff “in it for the long haul,” while the remaining 20 percent allows you to easily scale up or down with seasonality. 

Implement COVID-19 Screening and Security

With all warehouse operators having spent the past 12 months getting their premises COVID-19 secure, now is a great time to think about your screening regimen and any improvements you should make.

A debate you may be having right now is what the best type of screening process is for your operations, especially seeing as experts expect COVID-19 to continue having an impact on our daily lives for the whole of 2022.  

There are two broad options available here: symptom screening or virus testing. Symptom screening is the far more affordable option compared to testing and has the least impact on your employee scheduling. App-based screening platforms enable employees to self-screen for symptoms before they leave their homes for the start of each shift. This can also be supplemented by temperature checks on arrival. 

Virus testing, on the other hand, will detect asymptomatic cases and early infections, but the costs can be prohibitive for many warehouse operators. And of course, you need to plan regular testing around shift patterns and consider what the pay implications are of asking employees to report to work 30 minutes before their shift starts to receive an on-site rapid test.

It’s little surprise then that screening employees for COVID-19 symptoms is a more practical solution for many warehouse operators, who are looking for a cost-effective way to protect staff while also lowering a business’s risk of litigation and, potentially, its insurance premiums.  

Reassess Demand and Reoptimize Processes 

Demand for specific goods has shifted enormously over the past 12 months, which has had a big impact on warehouse product velocity. So, the products that were moved most frequently in the recent past may no longer be the case. Therefore, operators need to ensure they’re regularly reassessing their velocity slotting, at a much greater frequency than perhaps they were pre-pandemic, given how volatile demand has been for certain products since. 

As demand levels shift, distribution centers must become a lot more agile, quickly reassigning priority shelving and circulation flows, and relaying this information to employees as part of the process. Employees will then have an easier job on their hands hitting targets if products are being more frequently reassigned to shelving based on up-to-date movement flows.  

Invest in Enhanced Labor Management Systems

With the high demand for warehouse staff pushing up wages, especially with the likes of Amazon paying above average and inflating wages in the areas where they’re based, cost savings will become more crucial than ever throughout 2021. To this end, many operators are focusing on enhanced labor management systems (LMS) to deliver much of these savings.

With the ethos shifting from using these systems to identify underperformers, to instead uncover ways to optimize the workforce, an intelligently deployed LMS can help distribution centers to achieve more with less.

A big focus now with LMS is measuring and comparing the performance metrics across different facilities within the same organization. A few years ago, this would have been prohibitively expensive for many, but thanks to cloud computing and SaaS pay-as-you-go models, this is now easily affordable. And once you can measure something, you can improve it, such as focusing efforts on underperforming facilities.  

But of course, it’s not just at the macro level that LMS are increasingly being used to measure performance; the focus is also on the level of the employee. AI is helping managers to demand forecast in real-time better than ever before, based on pick counts and other KPIs during each shift. So, 2021 could be the year that we start to see fewer managers moving staff around on the fly and instead begin to rely on predictive modeling.    

Ultimately, the past 12 months were focused on survival and rapid-adaption for many businesses. Now we’ve made it through the tough part, it’s time to take a pause, take stock, reassess processes, and then begin optimizing for the new normal. And focusing much of that attention on workforce management improvements is a great investment for any distribution center.

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Adam Day is president & CEO of Time Rack, a time & attendance, payroll integration, and HR SaaS platform that provides warehouse time & attendance systems and HR administration services that create work-life harmony. Visit timerack.com to learn more.

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Archives, Global Trade Daily, International Trade

Cosmetics: To Cope with Booming E-commerce, Manufacturers Deploy Warehouse Robots

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The cosmetics industry in France is a major driver of the economy. Despite the drop-off in exports caused by the pandemic, the sector achieved total revenues of over €15.7 billion in 2020 and leads the world with a 24% share of the global cosmetics market. The exceptional circumstances over the past year have had another effect on the industry – they have amplified consumer trends and pre-existing purchasing practices such as personalization, transparency and the boom in online sales. The net effect has been the total disruption of the product mix occasioned by, for example, the surge in demand for natural, healthy products and a fall in the demand for lipstick.

Against this background, in addition to its usual challenges – time to market, the growing demand for personalization and the management of peaks in activity – the cosmetics industry is being compelled to change and adapt its logistics model. Warehouses are having to automate storage and order picking without losing sight of the particular nature of personal care products – high unit values, tight technical specifications, critical shelf life and low individual despatch unit volumes – in order to be fully effective strategic assets, delivering products increasingly quickly and meeting new consumer expectations.

The benefits of Goods-to-Person robotization in meeting new logistics challenges

As new trends coalesce into a dynamic that demands a response, Goods-to-Person robotization – where robots transport shelf units containing goods to operators – is set to revolutionize logistics in the cosmetics industry.

– Given the change in consumer behavior and habits: In response to new consumption trends, today’s cosmetics industry is setting its sights on omnichannel sales and distribution together with digital technology. Consumers are demanding a simplified buying journey in every channel, from next-day delivery by e-commerce sites to click-and-collect, and a smooth item return process for online purchases. In warehouses, this rapid omnichannel delivery is translating into an exponential increase in retail order picking activity, which is both time- and resource-consuming.

Advantages of Goods-to-Person robotization: Besides reducing storage space by up to 30% using mobile shelf units where many products can be economically stored in small quantities, the Goods-to-Person robotics solution guarantees quicker picking of retail orders. It eliminates unnecessary movement and actions by operators to ensure the careful handling of fragile products. The gain in picking productivity can be as much as 40%.

– In this age of hyper-personalization: The other great challenge facing the cosmetics industry is the advent of hyper-personalized cosmetics where the ingredients and packaging are adapted to match consumers’ individual requirements. To this is added a boom in kits that allow consumers to make their own beauty products. The impact of these developments on warehouses is an increase in the range of products to be stored and picked, the need for short or on-demand production runs complying with the regulations on cosmetics (which are particularly demanding in Europe) and the need for personalized packaging combined with adherence to tight delivery times.

Advantages of Goods-to-Person robotization: Goods-to-Person robotization enables small quantities to be picked rapidly and moved seamlessly to areas where orders are personalized in terms of labeling, preparation and/or packaging.

– Ever-increasing trackability and transparency: Another fundamental trend rapidly becoming established in the cosmetics industry is the demand for natural products and the consumers’ need for transparency, reinforced by the Covid-19 crisis. Consumers now want sustainable products, in phase with their concerns, together with all the necessary information on their ingredients, origin and manufacturing process. Their desire to care both for themselves and the environment looks set to continue as “clean” beauty, eco-friendly packaging, short supply circuits and products made in France gain in popularity. Trackability of products in the warehouse is a key factor in meeting the consumer-driven demand for transparency.

Advantages of Goods-to-Person robotization: Scallog’s Goods-to-Person robotics solution makes it possible to optimize locations according to batches, expiry dates, etc., and to ensure flawless trackability throughout the picking process.

– And therefore security: This demand for trackability is linked to that of security. Cosmetics products are recognized for their high monetary value, which increases the risk of theft. Cosmetics manufacturers must mitigate the risk of products “flying away” from warehouses that run a multitude of processes and are often staffed by a high proportion of temporary staff. Any solution that helps to combat theft and shrinkage improves the manufacturer’s margin.

Advantages of Goods-to-Person robotization: The Goods-to-Person system is based on a fully enclosed and secure storage area in which robots operate, moving shelf units. In addition, when picking orders, operators are guided and monitored in everything they do.

– Many triggers that cause peaks in shopping activity: The cosmetics industry today offers consumers many incentives to shop in order to boost its sales. To the traditional festive season, always a time of high shopping activity, are now added promotional offers, Valentine’s Day, Black Friday, Cyber Monday and similar “special” events that result in booming sales of perfumes and cosmetics over a few days. Warehouses must once again cope with a significant increase in order picking over a short period.

Advantages of Goods-to-Man robotization: Scallog’s Goods-to-Person robotics solution absorbs peaks by smoothing order picking efficiently and cost-effectively. It handles increases in order picking requirements by extending its operating times, only needing limited additional human resources.

A competitive and dynamic sector, the cosmetics industry is having to reinvent itself and its logistics model in response to today’s unusual situation. The main post-Covid-19 challenges, wide-scale sustainability and “naturalness” – natural ingredients with recyclable, zero-waste packaging – all represent sources of growth for the industry. Goods-to-Person robotization can play an important role in maximizing this opportunity as its flexibility, adaptability, productivity and sustainability are guaranteed!

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WESCO Doubles its Robot-Enhanced Warehouse Zone with Scallog

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Wesco – a specialist for healthy child development with products such as furniture, games and school utensils  – is rapidly expanding its range and is therefore doubling the Scallog Goods-to-Person robot zone at its Cerizay logistics platform in summer 2021.

Wesco, a French SME established in 1975, creates, manufactures and distributes fun and innovative products for children: furniture, games, educational material, motor skills modules, etc. It markets its 15,000 products to families and professionals working with children via mail order and via its e-commerce website. Today, the company exports its goods to 60 countries.

In response to its growing activity, Wesco will be doubling the Scallog robotized storage area at its logistics hub in the West of France in the summer of 2021. The company’s growing B2B and B2C order flows require increased storage density, a boost to productivity and an accelerated order picking rate. This logistics expansion project will allow better product availability and shorter delivery times, thereby increasing satisfaction amongst Wesco’s wide range of customers.

Arnaud Gaborieau, Wesco’s Logistics Manager, states: “Our logistics performance must reflect our company’s image, which combines innovation and quality with the enduring aim of satisfying our clients. Building on the success of our first Goods-to-Person project with Scallog, we are doubling the capacity of our robotized storage zone to increase our productivity and responsiveness. Once again, Scallog is supporting us in our growth, helping us to absorb our ever-increasing order picking loads and the peaks in our activity that typically occur at the start of the new school year and in the lead-up to the end-of-year holiday season.”

In summer 2021, the robotized storage zone will double to 1,000 m2: it will include 20,000 storage locations and 24 Scallog Boby robots, which will service four ergonomic workstations. These workstations will be able to be used for both picking and replenishment operations.

Furthermore, Wesco has also worked with Diplex on constructing a mezzanine above the Scallog zone to increase storage density. 

In conjunction with the INFFLUX BEXT WS solution, Scallog’s warehouse control system will optimize orders and the management of storage locations, accelerating picking rates and the ability to handle the company’s ever-increasing number of products.

Guided by a Pick-to-Light system, each operator will be able to manage up to 100 orders in parallel at its workstation, which is coupled with a conveyor system that enables goods to be routed to a number of further warehouse zones.

Doubling the size of the existing simple and easy-to-install Scallog Goods-to-Person robot system will take less than a month. With the new facility, Wesco anticipates a 100% increase in the number of order lines processed per hour, and ensures optimum use of the warehouse area.

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Three Key Aspects that will Influence the Demand for Industrial Sensors by 2027

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Large-scale adoption of industrial robots across manufacturing & processing industries is expected to offer a considerable push to the industrial sensor market outlook. According to the International Federation of Robotics, around 2 million industrial robots are expected to be utilized across factories worldwide by 2022. Robotic Process Automation (RPA) technology in the manufacturing sector, as well as automation equipment such as HMI (human-machine interface) and PLC (programmable logic controllers) in assembly and production lines heavily, rely on industrial sensors.

The demand for such automation equipment may accelerate supported by favorable government initiatives designed to advocate the acceptance of industrial automation in the food & beverage sector. In March 2021, the Government of Australia announced an investment of USD 993 million to support the region’s F&B manufacturers under its MMI (Modern Manufacturing Initiative) scheme.

Projections from a report published by Global Market Insights, Inc., suggest that the industrial sensors market is expected to surpass USD 30 billion by 2027. Although, it is vital to note that the shortage of raw materials & components due to imposed COVID-19 restrictions have severely impacted the industrial sensors market growth in mid-2020. The shift of existing manufacturing facilities to new regions due to political and business obstacles might hinder the market growth during the pandemic.

Here are some of the trends to look for in the industrial sensors market until 2027:

Force Sensors Witnessing High Demand

Industrial IoT is steadily extending its reach across the pharmaceutical, food & beverage, chemical, and oil & gas sector. As a vital component in industrial IoT, industrial sensors are used to detect, measure, and analyze parameters such as level, temperature, pressure, force, and position, among others. Reports indicate that the force sensor segment held a market share of around 8% in 2020.

Force sensors are used to measure various physical parameters such as torque, mass, and weight of an object in the industrial sector. These sensors are commonly used in counting scales, hopper scales, bench scales, platform scales, truck scales, and belt scales. Force sensors have high capabilities to monitor the load and prevent industrial machinery from overloading and find application in force exertion control and industrial test benches in industrial robotics.

Demand Across the European Pharmaceutical Sector

Europe is home to some of the world’s leading pharmaceutical manufacturers such as AstraZeneca, Novo Nordisk, and Pfizer, Inc., among others. These companies are currently emphasizing on the mass production of vaccines and novel drugs. Certain equipment used in the medical industry are integrated with force sensors for fluid monitoring applications, endoscopic surgery, dialysis machines, physical therapy equipment, orthopedics and MRI devices.

Pharmaceutical companies in the region are extensively focusing on new research & development activities, increasing the adoption of industrial sensors. High-volume manufacturing and large-scale investments in the pharmaceutical sector will devise new opportunities for industrial sensor manufacturers in Europe. As per estimates, the industrial sensors of Europe is anticipated to register 7% CAGR from 2021 to 2027.

Use of Gas Sensors in Mining Application

The demand for industrial sensors such as gas sensors is escalating in mining & exploration activities. Generally, industrial gas sensors are used undermining conditions to monitor safety parameters to safeguard miners from toxic & flammable gases. Linking sensors with IoT systems will help mining companies to extract real-time & exact data about the temperature, pressure, and gases in the mines. The mining application segment held a 7% market share in 2020 and is projected to grow at 8% CAGR by 2027.

Source: https://www.gminsights.com/industry-analysis/industrial-sensors-market

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Trends Shaping the Future of Electronics Manufacturing

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The electronic manufacturing industry is one of the fastest-growing industries globally and has brought about changes in both businesses and personal life. It is estimated that the industry grew in revenue to about $2.4 trillion in the year 2020.

However, the growth is about to experience a new shift with the introduction of emerging and barrier-breaking trends that will shift the running of businesses, homesteads, and how electronic manufacturing is run. Although some trends and practices have been in the industry for years with emerging modern improvements and growth in the technology world, so has electronic manufacturing. Some of these trends take this industry to a new level.

Take a look at some future trends to watch out for in the electronic manufacturing industry and better understand how these trends manage to take top spots in shaping and directing the growth of the electronic industry.

Trends shaping the future of electronic manufacturing include:

1. Internet of Things

This is the connection of everyday devices through the internet, allowing easy sharing and receiving information through electronic devices. Internet of Things (IoT) has increasingly been embraced in electronic manufacturing with more companies, leveraging the benefits from IoT to increase device efficiency, improve consumer safety and cut costs.

2. Use of Virtual Reality (VR) and Augmented Reality (AR)

By using virtual reality and augmented reality, manufacturers can design consumer-friendly products. Computer-aided designs have helped designers and manufacturers make accurate and timely changes to the products. Also, the use of VR and AR helps in designing and eliminates error and reduces inspection time as workers are better able to identify errors.

3. Use of 3-D Printing

A report by Smithers estimates an annual growth of 23% in the next decade in 3-D revenue. The report also shows the 3-D printing revenue growth is estimated to grow from $5.8 billion to about $55.8 billion by 2027.

The 3-D printing marketplace has a vast share around Western Europe and North America, where cutting-edge technology developers are pushing for increased mainstream use of 3D printing among technology companies.

Electronic manufacturing companies are capitalizing on their technological abilities and emerging trends. To ensure they remain competitive, it is important to work closely with equally fast emerging trends such as 3-D printing. 3-D printing developments are not only focused on the physical aspects but are also working on the design, the application, and the overall satisfaction of the end-user.

4. Big Data

Corporations worldwide have been exclusively using big data. Much of this was because it was expensive to small and medium-sized enterprises (SMEs). However, advancements in IoT and other cutting-edge technologies have turned the tables. Now, businesses of all sizes can draw information from multiple sources. This has made big data more valuable than it was.

Consequently, electronic manufacturers are applying the information they receive from big data in various productive ways. For example, they apply it to minimize production costs while raising profit margins and market share. This is guided by the willingness of managers to gain more understanding of their businesses. This helps them to overcome various issues while projecting and preventing future challenges.

5. Use of Industrial Robotics

For years, the automotive industry was the leading driver in the growth of industrial robotics. However, this has changed, and industrial robotics have been used in electronic manufacturing to perform several tasks in recent years.

The widespread use of industrial robots in the electronic industries led to substantial growth in industrial robotics use in 2016, where global sales increased by about 16%. This number is estimated to grow over the years, leading to an increase in the global market.

The use of robots in electronic manufacturing has allowed miniaturization and reshoring. Moving forward in innovations, design, and the business running, manufacturers across the board are looking for ways to increase efficiency. The use of robots has proven an essential tool.

Besides future technological trends, manufacturing companies also need to look at some of the business trends that will influence the success and running of their business. Some of the future business trends to look out for include:

6. Use of ERP Systems

To keep a company competitive, companies need to enforce enterprise resource planning (ERP). Though this trend has been in use for some years, some worthy mention benefits of embracing this trend when looking to expand the electronic manufacturing industry include:

With the use of the internet in all operations, it is now more critical for a business to use real-time information; enterprise resource planning helps companies optimize and automate new information fast and in real-time.

Owing to fast access to real-time information, companies can act fast and make accurate and quick decisions. The enterprise resource planning has been through growth stages that have allowed its efficiency. However, with the growth of the electronic industry, the same is expected with the enterprise resources system with technological advancements working towards increasing reliability and ease in running the business.

7. Shift from B2B to B2B2C

For many years electronic manufacturing companies operated using the business-to-business (B2B) approach. But with more manufacturing companies looking for ways to cut costs. Companies are now turning to the business-to-business-to-consumer approach (B2B2C).

With the use of the B2B2C approach, companies are now working towards eliminating intermediaries, which helps them reach the clients directly; as a result, it increases company profits and, in turn, reduces purchase costs. Additionally, the B2B2C approach enables the manufacturers to collect accurate customer data, improving customer satisfaction.

Why these Trends

While these trends may seem like ordinary technological advancements, they have several things in common that make them unique. In a world full of innovations, new designs, and a desire to be effective, it is essential to have the following attributes in mind.

Working on cost reduction, most of the resources and trends making waves and promising success, reduces costs. Cost reduction will be beneficial to the manufacturing companies and cut the cost to the consumers.

Product efficiency, electronic devices are part of the world and the introduction and use of the internet across the globe. It is essential for manufacturing companies to not only provide functional products but increase efficiency. For instance, with the use of the internet, everything in electronic manufacturing, people can now have smart homes and have actual time footage on their homes or even offices. This is possible due to the electronic manufacturing innovations.

These trends have proven to help manufacturing companies achieve product precision, which improves quality and reduces costs and error.

Waste reduction, amid the technological innovations and significant electronic developments, is essential for companies to also focus on. This is not only a great way to cut company costs but is also an excellent way for these companies to preserve the environment.

Bottom Line

More people embracing electronic devices in their homes, places of work, and running businesses. Manufacturing companies have a massive task in ensuring consumer satisfaction by focusing on high-end innovation and working closely with other technology sectors to ensure they are competitive and efficient.

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Linda Liu is the overseas marketing manager for MKTPCB, a leading PCB manufacturer that offers high-quality PCB products and services. Since 2012, she has established “first-of-its-kind” industry-changing and transformational businesses initiatives that increased revenue growth, brand exposure and market expansion for MKTPCB. Linda graduated from Western University with a bachelor’s degree in marketing.