RoboRevolution – How Smart Robots Are Reshaping Intralogistics
Published on : Friday 08-09-2023
Leaders need to embrace the transformative potential of intralogistics and cutting-edge technologies.
Revolutionizing Intralogistics: Unveiling the Power of Digital Transformation - https://www.youtube.com/watch?v=oRNxxCHzKxA
Intralogistics involves optimising internal material handling, storage, and transportation processes within a company's facilities. It ensures smooth supply chain operations while meeting rising customer demands. Functions like warehousing, material handling, inventory management, and more work collaboratively for efficient material flow. Thus, robotic solutions are pivotal to streamline end-to-end supply chain operations by reducing errors and boosting overall efficiency and accuracy. For example, Amazon's US$1 billion robotics investment led to 35% faster order processing and 20% higher on-time deliveries. Walmart's US$14 billion automation investment underscores its significance.
By 2026, 75% of large enterprises will have adopted some form of intralogistics smart robots in their warehouse operations (as per Gartner study). In addition to labour availability constraints, rising labour costs and the residual impacts of Covid-19 will compel most companies to invest more in cyber-physical systems — especially intralogistics smart robots that can be deployed in warehouses and distribution centres. These robots address the need to automate certain processes to supplement the human workforce. Implementation is faster and less expensive than more traditional means of automation, such as conveyor sortation or automated guided vehicles.
Increasing adoption of Industry 4.0 has significantly impacted the growth of intralogistics adoption globally by enhancing the overall efficiency and productivity of the supply chain. At the same time, technologies such as Actionable Artificial Intelligence (AI), Smart Operations, Mobile Asset Optimisation, Digital Twins, Blockchain, Autonomous Mobile Robots (AMRs), Augmented Reality (AR) and 5G networks are expected to further advance the intralogistics growth globally.
1. Actionable AI delivers better data-driven decisions by mimicking the problem solving that humans make by augmenting decisions and keeping humans in the loop for validation purposes. A McKinsey study estimates that logistics companies will generate $1.3-$2 trillion per year for the next 20 years in economic value by adopting AI into their processes.
2. Smart Operations extend the pre-existing concept of smart manufacturing to encompass all core operational capabilities, including manufacturing, service and logistics that span warehousing, transportation and global trade. According to a survey conducted by Logistics Management Magazine in 2022, 37% of companies are using large-scale intralogistics automation (e.g., conveyors, sortation, storage/retrieval, or shuttle systems) in their operations, and 23.1% are using robots in their plants or warehouses.
3. Mobile Asset Optimisation (MAO) solutions maximise the use of an enterprise’s mobile assets by combining business process software, sensory technologies and operational research techniques for optimisation and business intelligence. According to a report by Frost & Sullivan, companies using MAO solutions have experienced up to 30% improvement in asset utilisation rates, leading to reduced idle times and increased overall operational efficiency.
4. Digital Twins are virtual representations of physical assets that enable companies to monitor and optimise their performance. According to Accenture, companies using digital twins for inventory management experienced a 20-30% reduction in excess inventory levels and a similar reduction in stockouts.
5. Blockchain provides a secure and transparent way to track goods as they move through the supply chain. A study by IBM and Maersk found that using blockchain technology for supply chain management reduced the transit time of shipping containers by 40%, resulting in cost savings and improved efficiency.
6. Augmented Reality (AR) can be used to improve worker productivity by providing them with real-time information about the task at hand. In 2019, DHL Supply Chain tested AR glasses as one way to streamline the process and reports the technology improved productivity by an average of 15%, led to higher accuracy rates, and halved onboarding and training times.
7. 5G Networks provide faster and more reliable connectivity for IoT devices. A study by McKinsey estimated that 5G could generate up to US$740 billion in economic value for the logistics and supply chain sector by 2030 globally.
The key components of intralogistics include hardware, software, and services, while Robots remain an integral part of most intralogistics components. The hardware component includes automated guided vehicles (AGVs), autonomous mobile robots (AMRs), and conveyor systems and sortation technology. The software component includes warehouse management systems (WMS), while the service components are non-slip flooring solutions, industrial maintenance plans and cleaning services.
Hardware Components
1. Automated Guided Vehicles (AGVs): AGVs have seen significant advancements in logistics applications. Integration of AI and machine learning enhances decision-making, optimising routes and predicting maintenance. Collaborative swarm robotics enables coordinated task completion, adapting to dynamic environments. Advanced sensors like Light Detection and Ranging (LiDAR) and RFID improve navigation and obstacle detection. Last-mile delivery AGVs navigate sidewalks for efficient package delivery. Energy-efficient designs and modular customisation enhance sustainability and adaptability. AGVs connect to IoT and cloud platforms for real-time monitoring and remote diagnostics. Safety features like collision avoidance ensure secure human-robot interactions.
Case Study: The major Building Materials manufacturer in Michigan sought to enhance wallboard movement within a curing room. They chose Transbotics for their AGV expertise, aiming to robotically transport palletised cement boards for safety and productivity gains. AGVs transported boards to the curing room for 24-hour drying, later evacuating them for packaging. Complexities arose from simultaneous load evacuation and storage, as well as real-time inventory tracking. AGVs needed to handle diverse product sizes, two stacked pallets up to 6,500 lbs, and dusty, high-temperature conditions. The solution employed 3 AGVs, utilising dual navigation with inertial and laser guidance. Result: Reduced labour costs, heightened safety, and efficient forklift-free movement of 1,600+ loads in 41 hours.
Top global suppliers for AGVs are:
- Bastian Solutions
- Daifuku Co Ltd
- Dematic
- Honeywell Intelligrated
- Murata Machinery Ltd
- Schaefer Holding International GmbH
- Swisslog
- TGW Logistics Group GmbH
- Toyota Motor Corporation, and
- Vanderlande Industries.
Suppliers such as Addverb, GreyOrange, Gridbots, Simplex Robotics and Hitech Robotic Systemz Ltd have significant presence in the Indian market with a potential client base.
2. Autonomous Mobile Robots (AMRs): As per Deloitte, autonomous robots such as cobots and pick & place systems are expected to see strong growth over the next five years, particularly within supply chain operations that include lower-value, potentially dangerous or high-risk tasks. Autonomous robots have a strong presence already in manufacturing, final assembly, logistics and warehousing. These robots are highly effective and versatile for various businesses as they can carry out complicated tasks independently. As AI advances, so will AMRs, making them increasingly smarter and more empowering. Deploying AMRs in a new environment can be a lengthy and delicate process where specific map zones need to be carefully designed to extract the most value from a fleet of robots.
Case Study: An Italian sensor manufacturer faced quality and productivity challenges. By deploying ABB collaborative robots (cobots), they achieved remarkable results. Productivity surged by up to 97%, streamlining their operations. Quality improvements were evident, marked by a significant reduction in defects. The cobots seamlessly integrated into the manufacturing process, assisting in intricate tasks. Human-robot collaboration elevated employee engagement and expertise. This success story underscores the potential of ABB cobots in revolutionising manufacturing, combining substantial productivity gains with enhanced product quality.
Top global suppliers for AMRs are:
- Boston Dynamics
- Clearpath Robotics Inc.
- Conveyco Technologies
- Geekplus Technology Co Ltd
- IAM Robotics
- KUKA AG
- Locus Robotics
- MHS Global
- Omron Group
- Teradyne Inc., and
- ABB Robotics.
India is anticipated to be the fastest-growing market globally in coming years, primarily attributed to the prevalence of domestic companies with a stronger base of AMRs, including Grey Orange India Pvt Ltd and The Hi-Tech Robotic Systemz Ltd.
3. Conveyor Systems and Sortation Technology: The ascent of artificial intelligence (AI) and machine learning (ML) is enhancing conveyor and sorting systems, enabling greater autonomy. AI-driven conveyors can now decide routes for packages based on size, weight, and destination, boosting efficiency in intralogistics. Advances in materials lead to robust, energy-efficient systems; new conveyor belts, crafted from durable lightweight materials, cut maintenance costs. Robotics' growing integration automates loading, unloading, and sorting, allowing humans to concentrate on intricate tasks like customer service. This transformation improves accuracy, efficiency, and lifespan of logistics operations.
Case Study: The DHL Express Sort Center in Leipzig, Germany is one of the most technologically advanced logistics facilities in the world. It uses a combination of conveyor systems, sortation technology, and robotics to sort and dispatch packages at a rate of up to 18,000 items per hour. Similarly, UPS is using robots to sort packages at its warehouses. These robots can sort packages up to 10 times faster than humans, and they can work 24/7 without getting tired. This has helped UPS to improve its efficiency and productivity.
Top global suppliers for Conveyor Systems and Sortation Technology are:
- Daifuku
- Beumer Group
- SSI Schaefer
- Swisslog, and
- Interroll.
While the global suppliers have significant capabilities to cater across markets, Indian companies such as Bharat Conveyors, Conveyor Belts India, Logitrans India, Systems Automation India and Tata AutoComp Systems are the major home brands with similar capabilities for the domestic market.
Software Components
1. Warehouse Management Systems (WMS): Cloud WMS gains popularity due to scalability, flexibility, and cost benefits over on-premise systems. At the same time, niche technologies such as AI and ML further enhance WMS efficiency, optimising inventory, order routing, and anomaly detection. Emerging technologies like augmented reality, blockchain, and IoT hold potential to revolutionise WMS further.
Case Study: Walmart is one of the largest retailers in the world, and it uses a WMS to manage its vast network of warehouses. The WMS helps Walmart to track inventory levels, optimise picking and packing, and ensure that orders are shipped on time. It has been able to reduce its inventory levels by 5% since implementing a WMS. This has resulted in savings of US$5 billion per year.
Top global suppliers for WMS solutions are:
- SAP
- Oracle
- Microsoft
- Blue Yonder
- Manhattan Associates
- Infor
- Tecsys
- HighJump
- JDA Software, and
- LogiNext.
Most companies have a major presence in the Indian market with significant market share and clientele in the domestic market. However, Indian companies such as Softeon, Vinculum, Zoho Inventory and 3PL Warehouse Manager are some of niche players in WMS solutions, while there are multiple IT service companies that offer these solutions as reseller/channel partner.
Service Components
1. Non-Slip Flooring Solutions: Non-slip flooring solutions have advanced remarkably. They're now crafted from cutting-edge materials like high-performance polymers, ensuring longevity, resistance to chemicals, and enhanced impact resilience. These solutions boast improved anti-slip systems, particularly effective on wet or icy surfaces due to rigorous research. The integration of digital technology, including 3D printing and simulation software, has elevated both design and functionality. Amid these changes, sustainability has taken precedence, prompting the development of eco-friendlier materials and processes. This amalgamation of advancements underscores a contemporary approach to non-slip flooring that seamlessly merges innovation, efficacy, and environmental responsibility.
Case Study: A global manufacturing company with multiple warehouses and distribution centres had a high rate of slips and falls in their warehouses, which was leading to injuries and lost productivity. The company installed non-slip flooring solutions in all of their warehouses and distribution centres. The flooring solutions were made from a high-performance polymer that was resistant to chemicals and abrasion. They also had an anti-slip coating that made them very effective in preventing slips and falls. In the first year after installation, the company saw a 50% reduction in the number of injuries caused by slips and falls. The company also saw a 10% increase in productivity in their warehouses. The company also saved an estimated US$1 million in the first year after installation.
Top global suppliers for Non-slip Flooring solutions are:
- Adheron
- Gerflor
- Grip-Tex
- Milliken
- Safegrip
- Teknoflor
- Vitrex
- Zodiac Flooring
- Nora Systems, and
- Tarkett.
Indian companies such as Safe Grip Systems, 3M India, Adhesives India, Neat Finish India and Grafix India are some of the key suppliers for non-slip flooring solutions. However, most global companies operate in the Indian market either through collaborations or as direct investment to cater to the massive domestic market.
2. Industrial Maintenance Plans and Cleaning Service: Maintenance plans encompass scheduled inspections, repairs, and upkeep of equipment such as conveyor belts, automated storage systems, and forklifts. These plans aim to prevent unexpected breakdowns, minimise downtime, and extend the lifespan of machinery. Concurrently, cleaning practices involve the regular sanitation of equipment and storage areas to uphold hygiene standards, prevent contamination, and create a safe working environment.
Case Study: Russian Railways, a major global rail company, annually transports US1.3 billion tonnes of cargo and passengers, equivalent to 80% of Russia's goods movement and 40% of passenger travel. Despite harsh conditions, it excels in maintenance. Managing maintenance for 20,000 locomotives, 25,000 passenger cars, and 630,000 freight cars is complex. With the help of Mitsubishi Electric's Industrial Maintenance solution, they identified repair parts, adjusted schedules, and integrated automation for central control. Intelligent RFID tags enhanced traceability, reducing losses and boosting productivity. The integrated solution nearly doubled processing capacity, maintaining 7,300 freight cars annually, up from 4,300.
Top global suppliers for Industrial Maintenance Plans solutions are:
- Siemens
- Rockwell Automation
- ABB
- Mitsubishi Electric
- KION Group
- Honeywell
- Bosch
- Eccotrol, and
- Jungheinrich.
All the aforementioned global companies have a significant presence in India, while Indian companies such as Logisys, Brammer, Enpro India, LogiNext, Evolve Automation, Synteract, and APG Automation are some major names in intralogistics and industrial maintenance solution offerings.
The demand for flexibility in production arises from its ability to swiftly respond to crises and peaks. Covid-19 highlighted this need, prompting firms to adapt to disruptions and consumer demands. Flexible production is vital in areas like retail, as seen in e-commerce's staffing challenges. Labour market uncertainty fuels automation adoption, while empty warehouse spaces, worsened by rising real estate costs, underscore automation's appeal. Thus, innovative solutions such as Robotics, including AMRs and AGVs, boost efficiency and help in meeting demands. By 2025, 45% of manufacturing could involve robots, allowing scalability complements flexibility and adaptable throughput. Robots collaborate with humans to enhance processes and Algorithm-driven production ensures agile, cost-effective processes. Predictive analytics' adoption is set to increase in coming years and remote monitoring aids efficiency and machine insights, reflecting a major shift in industry trends.
In the current dynamic landscape of supply chain challenges, driven by geopolitical uncertainties and technological disruptions, the imperative for supply chain leaders is clear. Now is the time to act and navigate through the complexities. Leaders need to embrace the transformative potential of intralogistics and cutting-edge technologies. Leverage IoT and data analytics to strategise the plan ahead by fostering transparency and adaptability. To revolutionise efficiency, embrace the autonomy of warehouses. Adopt AI and ML to improve predictions, operations, and demand forecasting. At the same time, it is a must to safeguard data, bridge skills gaps, and fortify defenses against tech glitches. Make resilience your defining quality. Take control of innovation, safeguard your future in a world of unknown dynamics, and plot a roadmap for superior logistics and long-term success.