Warehouse Automation Choice

Intralogistics customers partnering with Beumer, a provider of warehouse automation technology, can expect step-change improvement in processes. The wins include space, time and cost efficiencies, with better tracking and security as a bonus. Paul Hamblin meets the team.

For Beumer Group, successful business relationships are about partnership. The company bills itself as the ‘Partner of Choice’, validated by the continuing success of the company’s proven technologies, and delivery on the promises made to its partners.

Gregor Baumeister, Director, Warehousing and Distribution Logistics Systems, tells me he was very happy with the company’s LogiMAT this year, describing “concrete project discussions with budgets and timelines” as part of an overall positive sentiment throughout the halls. This perhaps contrasts with ProMat a week later, where his American colleagues described a more cautious and uncertain atmosphere, no doubt due in no small part to the blizzard of tariff announcements and amendments from the Trump administration in the first part of 2025.

End-to-end Automation Provision

At LogiMAT 2024, Beumer focused on ‘Lights Out’ warehouse technology; this year the company highlighted its capabilities in the delivery of end-to-end automation in DCs.

For Gregor Baumeister (pictured below), the argument that automation represents a damaging replacement of human labour is bogus. “The world talks a lot about automation reducing labour opportunities, but I think it’s more accurate to say that our customers are unable to source that labour any longer simply because it is no longer available. So, in reality, the drive towards higher levels of automation is more accurately an enabler to stay in business. That’s the key difference. And with our systems you can create a fully automatic line of warehouse processes.”

Gregor Baumeister, Beumer

He outlines the Beumer product offering. “If you look at the processes in a DC, typically you’ve got goods receiving, then storage facilities, and retrieval via a shuttle or cube system basically bringing products to people,” he explains. “Beumer starts at the point of bringing those goods to people, then we go downstream from there, either in a pouch system or via a loop or line sortation system, including packaging and shipping to customers.”

The company demonstrated full automation of this process in Stuttgart. A significant advance is the automatic unloadable pouch, with which Beumer provides customers – should they choose to do so – with the facility to remove another layer of human interaction on a product’s journey to the end consumer. “Customer partners have the option of feeding a pouch system either via an operator placed at an ergonomic workstation or by using a robot. We will collaborate with customers to provide them with the most appropriate choice for their needs,” he reports. “The pouch system does its magic and the product can then be directly packaged by machine. If it needs special packaging – stretch-wrapping for high-value goods perhaps – this too is possible. All preferences are at the behest of the customer partner.”

Typically, pouch technology is tailored to smaller items in the 550mm x 420mm x 280mm dimensional category. “You can handle these items very effectively in a pouch,” he continues. “Our system handles items up to 7kg each, which is 40% more than other systems can do, and is particularly popular in fashion and general e-commerce settings. In those categories, 70-80% of parcels or bags are that size. Pouch technology is also developing a growing reputation in what we call ‘e-pharma’ handling.”

He points out further space-exploitation benefits of pouch technology. “By hanging the pouch system from the roof, we can use the third dimension in the warehouse. It is super space-efficient, with very high dynamic pick rates and order fulfilment rates. It’s very efficient overall in terms of space, labour, time, and also in tracking and traceability, because every pouch has a ‘licence plate’, making the whole process fully transparent.”

Stretch Hood Security Technology

Another eye-catching security innovation from the company this year is the Beumer stretch hood, which helps to secure pallets. Gregor Baumeister illustrates: “Consider a pallet delivery to shops and stores containing small, high-value goods: a good example might be razor blades. This is what the stretch hood is for – an enclosed hood made of film which can be pulled down and over the goods snugly. Anyone looking to pilfer goods from the pallet would need to tamper with the film to extract anything and this would be very evident in the breakage of the film. While it’s possible to reach inside an unprotected rack pallet to take out a product, it can’t be done with a stretch hood attached. A rack pallet you can always reach in, but with a stretch hood you cannot. In addition, it also provides protection from the elements.”

Learning from Data

Beumer’s advanced data analytics capabilities enable customers to further exploit the full capability of automation technology.

“Data analytics enables the recognition of patterns, thus facilitating predictive maintenance,” he explains. “But it also performs valuable service in steering operational processes, so that we can proactively advise customers of upcoming situations. In modern business, it’s important to see as far and as early as possible. Our customer diagnostic centres help monitor and manage facilities, offering operational advice if the customer wishes us to do so.”

Beumer’s tools enable the flexibility so essential to today’s logistics needs. “You don’t know what’s coming round the corner,” Baumeister cautions. “You need to avoid roadblocks if you want to stay in business.”

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Enhancing Goods-To-Person with Pouch Technology

The explosion of e-commerce has fundamentally changed the operations within warehousing and distribution, and fulfillment centres, writes Rupesh Narkar, VP Sales & Systems, Logistics Systems, Beumer Group. Previously, these facilities handled large, bulk orders destined for retail stores, a process that was predictable and could be planned. However, the rise of online shopping has introduced a more complex sortation scenario. Goods to Person (GtP) involves the distribution and fulfillment of orders to numerous individual consumers who may order just one or two items at a time.

The shift to GtP has created significant challenges, including the need for sortation facilities to perform tasks traditionally managed by retailers, such as distinguishing between item sizes and colors for B2C orders. Another area that has become more challenging is the management of returns. Return rates can reach as high as 60% in the e-commerce sector. Handling these returns (reverse logistics) involves multiple steps, including quality checks, relabeling, and repacking, all of which add to the complexity and cost of operations.

A basic GtP system can be configured as an inventory buffer, or a pick system, or both. No matter what the setup, most of the system’s capacity will still be allocated for basic warehousing needs like receiving, storing and picking. Post picking processes like ship order consolidation, sortation, sequencing and shipping require advanced configuration of the GtP or an additional high-capacity subsystem that can interface with the GtP. This is where a pouch system comes into play. It acts as a consolidation buffer system that will be complimentary to the existing GtP setup without any need for complicated reconfiguration.

Pouch system solutions

Essentially, a pouch sorter comprises a conveyance system of hanging pouches that carry products along a rail. Pouch systems are designed to transport a wide range of items, including garments, shoes, books, and other merchandise, offering high flexibility. Pouch technology is very scalable, modular and can be installed in unused overhead space offering the ability to buffer, sort, and sequence; automating the order handling and returns processes.

Pouch sortation systems facilitate processes such as post picking sortation, order batching & sortation, and intermediate storage handling of returned items. A typical application of pouch systems would be to efficiently handle throughput, temporary inventory buffer and order consolidation regardless of whether an order consists of two items or ten. Various sequencing challenges can be easily tackled by a pouch system. For example, ensuring that the most fragile or delicate items are sorted last, so that they are packed last in order to avoid damage. Thus, a pouch system can play a pivotal role in simplifying the returns process by reducing costly touchpoints and streamlining the overall process by establishing traceability and control to improve overall process efficiency.

Reducing touch points

Pouch system technology is constantly evolving. Beumer Group has recently added an innovative AutoDrop feature to its BG Pouch System to enable flexible and reliable automatic packing lines. In this system, pouches are unloaded from the bottom using a pioneering nickel-titanium alloy first used in the medical industry. This metal alloy has shape memory and will contract substantially when electric power is applied. When the power is withdrawn, the alloy returns to its original shape. Each mechanism has the capability for one million opening cycles without any deviation.

AutoDrop uses these characteristics to open the pouch automatically at the unloading point, enabling GtP operations to eliminate manual handling during unloading. This saves time at the unloading stations and reduces order lead time. The BEUMER Group Pouch System with AutoDrop can process approximately 10,000 pieces per line per hour. Combining multiple, adjustable drop point positions in one single drop line enhances flexibility to accommodate different unloading needs, while significantly reducing the physical footprint within the distribution facility.

This AutoDrop feature enables reduced touch operation for the entire pouch handling process, as well as offering customers substantial benefits in terms of reducing order lead time and saving valuable floor space.

Delivering digitization

As the GtP industry continues to innovate, the adoption of data-driven and software-based solutions will be key to creating the warehouse of the future.

Acting as the cornerstone of the Pouch System is the warehouse management software (WMS). The Pouch WMS supports digitization of the warehousing process from inventory management to ship order consolidation. This digital footprint provides the user with enhanced tracking, traceability and control at each step of the process. Digitization options such as this create the possibility of process optimization for efficiency and thus, enhancement of the entire fulfillment experience.

Pouch as an enhancement to GtP

Making a business case for deploying a new materials handling system will be different for each GtP operation, depending on your priorities and business needs. Factors include the type of building and available footprint, the type of products or items and their sizes, and the level of returns to be managed, along with your labor requirements and CAPEX and OPEX considerations.

However, the reasons to deploy a pouch system are compelling. Pouch systems are easily retrofitted into existing base GtP operations. They provide mid- to short-term storage, acting as a ship buffer with automated sortation and sequencing capabilities. Pouch systems can also help optimize the reverse logistics process. Scalable and modular pouch systems can grow as the e-commerce market expands. Their ability to integrate with other systems facilitates digitization, giving GtP businesses greater data insights that will further enhance productivity.

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Enhancing Fashion Logistics with Pouch Sorter Systems

Fashion logistics is increasingly shifting to omnichannel operations to meet the needs of retail and e-commerce. The accelerated growth of digital channels during the 2020–2021 pandemic continues today, driven by consumer demand for convenience, delivery flexibility, and ease of comparison. This shift introduces new challenges for fashion logistics companies, particularly in balancing B2C and B2B demands.

Challenges in Omnichannel Fashion Logistics

The expansion into omnichannel operations brings unique challenges. B2C operations focus on fulfilling numerous individual orders quickly, often with an emphasis on premium packaging for high-end items. B2B operations, in contrast, require efficient, high-volume stock replenishment with packaging that suits in-store needs. Additionally, the returns process, especially for e-commerce, can involve handling rates of up to 60%, requiring swift relabeling and repacking to prevent revenue loss.

The Role of Pouch Sorter Systems

Pouch sorter systems use pouches or pockets in an overhead sortation setup to store and transport items, significantly streamlining logistics processes. These systems can decouple picking from order fulfillment by storing items in dynamic buffers, then sorting them into desired sequences through matrix sortation. The pouches then move to either packing buffer lanes or direct unloading stations, creating a flexible system suited for both B2B and B2C requirements.

AutoDrop: Revolutionizing Unloading

New automated technology, such as BEUMER’s AutoDrop, enables automatic unloading from pouches. This system uses a nickel-titanium alloy with shape memory, a material first developed for the medical field, to perform precise, controlled unloading. When an electric current is applied, the alloy contracts to open each pouch; when the current is removed, the alloy returns to its original shape, allowing for a seamless unloading process without complex mechanical components. This design is engineered for durability, capable of handling up to a million cycles with minimal maintenance.

The AutoDrop system unloads items from overhead pouches, dropping them into designated packaging chutes in a controlled sequence. Heavy items are released first to protect fragile ones, which is a valuable feature for fashion logistics where item fragility varies significantly. This automated sequence is especially beneficial for handling the wide range of products in fashion logistics, from heavy textiles to delicate accessories.

Benefits of Pouch Sorter Systems

Pouch sorters enhance efficiency by minimizing human touch points, conserving floor space, and automating key processes. The system’s modular design allows for scalability, with each module capable of processing up to 10,000 items per hour, making it adaptable to the fluctuating demands of high-volume fashion logistics. Additionally, pouch sorters seamlessly handle both shop-friendly bulk orders and individually packed direct-to-consumer parcels, supporting the flexibility required in omnichannel operations.

Beyond sorting, the pouch system enables dynamic buffering, which allows returned items to be quickly reintegrated into inventory after quality checks. This capability is crucial in the fashion industry, where return rates are high and resale speed directly impacts revenue. With the ability to handle both Garments-on-Hanger and flat-pack items, pouch sorters provide a unified solution that addresses the diverse packaging needs of fashion logistics.

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Easier to do Materials Handling Projects

Repeat custom now accounts for almost two-thirds of the Beumer Group’s business. That’s why the motto of the company’s appearance at LogiMAT was ‘Easy to do business with’. David Priestman reports.

BEUMER Group is a large organisation operating on a global scale, with locations in more than 50 countries, but is determined to avoid organisational complexities and local variations in quality and service. The goal is to always offer the best possible service or product, and the motto of being ‘easy to do business with’ encompasses everything from allocating customers a consistent point of contact from project start to completion to providing data insights via its Customer Diagnostic Centre that enable customers to make better operational and investment decisions.

Brian Hansen (pictured below), Systems and Proposals Director, says: “We talk openly to customers and potential customers and we want to be approachable. Choices are more complicated now. We prefer to discuss products and solutions later down the line after talking through their challenges and requirements.” The company says it recognises the challenges and uncertainties that customers and partners face and does what it can to mitigate them, for example by simplifying the organisational structure and communications. This includes encouraging customers to call the mobile phones of their Beumer contact, at any time.

“If a customer wants to increase optimisation in the warehouse the system will run for 15 or 20 years,” adds Hansen, “so they need to live with it. Brand loyalty and repeat business are fostered by providing the best customer experience and trust, not at the lowest cost.” According to Beumer, it is often the small details that make the biggest difference. For example, one international CEP customer recently benefited from the fact that Beumer does not use internally generated codes on their technical drawings: they are labelled clearly and descriptively to avoid any confusion.
“As a designer, I look at sustainability,” Hansen tells me. “Long term projects that last and work are an inherent good.” Is this ease of doing business good for retaining customers are obtaining new ones? “It’s hard to tell customers to switch materials handling supplier, but we believe in the invite, to give it a try. We don’t know everything but we can find the next steps with customers.”

Dark warehouses?

Despite its global presence, Beumer is still a family-owned business. From the outset, customers are assigned a consistent point of contact so they develop a personal relationship with someone who has the relevant experience and understanding of their business and challenges. This same contact is present during system installation for total continuity.

Brian Hansen

The ’customer first’ philosophy is also evident in the way Beumer conducts itself on site. The way its materials handling systems are packaged and delivered is organised meticulously to minimise the time spent on unpacking and assembly. In addition, all waste is removed from site for recycling or disposal once the installation is completed. The company also prides itself on never letting a customer down: they do not leave the site until the job is finished.

Gregor Baumeister is the Director of Warehousing and Distribution. He says that as AI and robotics advance we are moving towards full automation in the DC. “Market uncertainty and the restriction on brownfield developments means customers must use and maximise the existing space. Unused headroom requires 3D handling systems. We’re not talking about making people redundant,” he asserts, “we’re mitigating risks for customers as they cannot find staff due to demographic ageing.” Goods to person is key in new systems, along with pouch sorting and robotic picking. “Retail verses ecommerce picking in a DC are vastly different quantities,” he points out. “Technology can therefore provide certainty in throughput, for example with a 2 step batch pick-up.”

Diagnostics and maintenance

Providing customers with certainty extends into maintenance and obsolescence management. Beumer offers a minimum of 15 years parts support, simplifying maintenance and giving customers confidence that their material handling system will perform reliably with minimal downtime over its lifetime. Indeed, such is the quality of some automated solutions that they are still maintaining and updating systems that are more than 25 years old.

Christian Buhrmann oversees the company’s customer diagnostic centre, which currently has 60 staff. ‘Improve, Prevent, Ensure’ is his motto in this venture. “We collect so much data,” Buhrmann acknowledges, “we must use it to empower customers. We’re system agnostic.” ‘Improve’ is about taking advantage of data analytics, enabling customers to gain efficiency. ‘Prevent’ is using diagnostic models and cyber security. “We do our utmost to stop problems and breakdowns,” Buhrmann states. ‘Ensure’? “When something goes wrong we utilise our best-in-class hotline to get operations running again. You can get straight through to a systems specialist, not a customer call centre,” he emphasises. That sounds easy.

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Omnichannel Returns Resolution

Fashion fulfilment centres continue to face a substantial increase in the rate of returns as omnichannel shopping becomes increasingly prevalent. But though it is a pain point for many fashion logistics companies, within the challenge of returns lies opportunity, writes Harald Hanaweg, Head of Sales Engineering at BEUMER Group.

The continuing growth of online retail brings with it great rewards for online retailers. But for fashion fulfilment centres in particular it also brings a problem in the shape of a rising number of returns. Indeed, it has been estimated that returns rates may exceed 60 percent for e-commerce fashion retailers. In an environment where a good returns policy is essential to maintaining a competitive edge and retaining customers, how can fashion logistics companies respond to the challenges of reverse logistics? And might it even be possible to reduce handling costs and create a value chain from returns?

There are two elements to a solution to this problem that fashion logistics businesses can explore. First, they can reduce the steps involved in their reverse logistics management, and second, they can create a healthy, viable value chain from their returns. In a typical conventional returns process, a total of 13 touches are required to process a returned item. What if the logistics centre could eliminate many of these touches and thereby reduce not only the labour required but also the time it takes to make the goods available for resale?

With a pouch sorter system all these wishes can come true. This specialised e-commerce fulfilment technology is able to transport, sort, sequence and store both outbound and returned items, and by doing so can simplify and streamline a number of steps in e-commerce fulfilment in general.

Pouch technology eases the handling of returns by placing each item directly into a pouch rather than sending it back to the shelf or regular storage, where it has to be picked again when it is ordered. The pouch system serves as an intermediate buffer for returned items, which are typically resold within three days. Returns needed to fulfil an order are automatically retrieved from the dynamic buffer and sent to sortation. Only items that are not sold after a given number of days are returned to shelf storage – or shipped for recycling – as part of an automatic, easy housekeeping process that is run during periods of low throughput. And even these non-sold items can be sorted according to any criteria as needed. For example, all pieces of a non-sold SKU can be brought together to a packing station where they can be put into a tote or carton and sent back to storage as a single lot.

The pouch system thus dramatically reduces the cost of handling returns, because the fewer times an item is touched, the shorter and cleaner the process and the more value the item retains. In fact with a pouch system the number of touches necessary to process a returned item is reduced from 13 to only seven.

Value creation

This is by no means the only advantage of a pouch system and it is even possible to create a value chain from returns. The great benefit of automated sortation is that it can be very accurate and can achieve a fine degree of sortation that would otherwise typically take considerable labour and time. For example, once the distribution facility has handled the initial receipt of the returns, the automated system can perform sortations into individual SKU master packs or gaylords destined for the next market segment. It is a simple matter to sort large, heavy items to the bottom, followed by the medium and then the lighter items on top.

Through this type of sortation the facility knows exactly what’s in every package. And if it opts to on-sell its returns on the secondary market it can receive a higher value because of the way they have been sorted, segmented and treated. Instead of returns being a loss, this higher level sortation can create a value chain within the supply chain. Fashion distributors can realise the hidden opportunities in reverse logistics and leverage the value in returns.

Logistics companies in today’s fashion e-commerce environment may not be able to decrease the high number of returns they have to handle, but they can most definitely adjust and ameliorate their returns management. Pouch sorter technology can reduce the touches and the manual intervention typically needed in the returns process, refining that process and greatly reducing costs. What’s more, fashion distribution facilities can even design their sortation processes to recapture value and uncover the hidden potential of returned assets.

Forewarned is Forearmed in Supply Chain

In uncertain times, supply chain planning is paramount, says Stephan Heessels (pictured), Director, BEUMER Group Logistic Systems. He explains why increased use of automation and digital technologies is essential and talks about how he saw the industry developing over the course of 2023, particularly in terms of the way in which e-commerce affects the material handling and logistics business.

“The major disruptions caused by the Covid pandemic may now be largely behind us, but that does not mean that everything will be smooth sailing from now on. Even as that memory recedes we find that there is still plenty to concern us, with geopolitical conflicts, high inflation, energy insecurity and nervousness around a pending global recession heading the list. For the logistics operator, increased automation and use of digital solutions will be more important than ever in order to respond and modify their processes to meet evolving circumstances.

“For years, the cornerstones of supply chain management have been globalisation, low-cost supplies and minimal inventories. Covid had a major deleterious effect on global supply chains and with the current global geopolitical and fiscal outlook, major upheaval is still possible. Experts predict that systems could return to pre-Covid ‘normality’ in 2023, but even so, the global logistic network will be vulnerable to future political instability, natural disasters and regulatory changes. Building supply chain resilience and assessing how future interruptions can be avoided is therefore critical.

“For an industry that has relied on volume growth, it will be difficult to attain revenue increases in these circumstances. Indeed, we are already witnessing stagnation in parcel volumes and some major logistics service providers are reporting financial losses and tumbling share values. However, on the positive side one of the forces driving the growth of online retail commerce is the global use of smartphones and tablets. Both retailers and shoppers are increasingly using mobile shopping apps, with one in five US shoppers reporting using them multiple times per day.

“Mobile commerce is estimated to have been 6% of total retail sales in 2022, a rise from 4.1% in 2019. And by 2025 social commerce sales – those taking place on platforms such as Facebook, Instagram and TikTok – are estimated to triple.

“In concert with the rise in m-commerce is the increasing popularity of live shopping, whereby retailers can digitally broadcast their products via video and connect directly with consumers online. This is an emerging phenomenon that first appeared in China and can be thought of as the digital, mobile phone based version of TV shopping channels. It is set to become a major driving force in e-commerce, with the 2023 market size projected to reach US$600 billion in China and US$25 billion in the USA.

“Nevertheless, amid this forecast bright outlook for growth there are some shadows. The distribution sector is having to grapple with a difficult labour market as the talent shortage in the supply chain, end to end, reaches a crisis point. Postal distribution centres are struggling to ensure timely and cost-effective last-mile deliveries in the face of an unprecedented lack of workers.

“To stave off this attrition, the industry will also need to deploy strategies that attract, retain, develop and motivate its workers in the digital era. In light of this, we expect to see companies being more conservative when it comes to capital investments, while the focus on digitalising their processes – both back and front-end – will be even stronger, with the adoption of automation tools and advanced data analytics. We have seen much development in the digitalisation of the costly last mile, but hubs will be looking to find ways to digitalise all their processes and become less dependent on human resources through digital insights.

“In consideration of all these factors, I conclude that despite facing some headwinds, the market will continue to grow, providing e-commerce fulfilment facilities with plenty of opportunities for increased growth. In servicing this market, however, it will be important that fulfilment centres work to optimise their operations to reduce costs and resources through increased use of automation and digital technologies.”

Beumer Group Opens New UK Office

BEUMER Group, a leading global supplier of intralogistics and materials handling systems and solutions, opened a new UK head office in Ashby de la Zouch, Leicestershire, today.

The ribbon cutting event that will officially open the new office in Ivanhoe Business Park, will be attended by the mayor of Ashby, councillor John Deakin.

BEUMER Group has had an office near Heathrow Airport for a number of years and is opening the new facility to cement its relationship with the UK and act as a hub from which the company’s skilled sales, engineering and project experts can advise on, manage and maintain its material handling and airport baggage handling systems. The Heathrow premises will remain active as a satellite office.

BEUMER Group has served the UK with clever material handling solutions since the early 1980s. Its most recent projects have been the design and installation of the parcel processing technology for Royal Mail’s two new fully automated parcel super hubs in Daventry and Warrington, a sortation system for the new Evri eco-friendly hub in Barnsley, and the new baggage handling system for London Stansted Airport. Previously the company has supplied automated handling systems to a range of UK organisations including DHL, DPD, British Forces Postal Services, ASOS, New Look and Sainsbury’s, and upgraded the baggage handling system between London Heathrow’s T1 and T2 to smoothly process departure and transfer baggage for passengers in the Queen’s Terminal.

David McGarry, CEO, BEUMER Group UK, commented: “The opening of the new UK head office reinforces our strong partnership and commitment to our customers in the UK and Ireland, this will enable us to provide an even more seamless service to support them in their continued growth investing in local expertise in the long term.”

BEUMER Group is an international leader in the manufacture of intralogistics systems and solutions for conveying, loading, palletizing, packaging, sortation, and distribution. With 5,100 employees worldwide, BEUMER Group has annual sales of about EUR 1.1 billion. BEUMER Group and its group companies and sales agencies provide their customers with high-quality system solutions and an extensive customer support network around the globe and across a wide range of industries, including bulk materials and piece goods, food/non-food, construction, mail order, post, and airport baggage handling.

Successful Through Tradition for Beumer

FAM Group has been part of the Beumer Group since May 2022. FAM plans, designs and manufactures turnkey plant and systems to extract, transport, load and store minerals, raw materials and goods. Through this acquisition, Beumer Group has considerably strengthened its market position in the minerals and mining sectors. But what is FAM?

FAM Group is a globally active manufacturer of conveyor systems which has its headquarters in Magdeburg. The mid-sized company is one of the world’s leading full-range bulk handling and processing equipment suppliers. The company’s journey started with the construction of steam engines in the mid-19th century. Over a period of just a few decades starting in the 1830s, Magdeburg witnessed the growth of one of Germany’s major industrial centres. In the early 20th century, the industrial areas in and around Magdeburg continued to grow. Increasing numbers of technical innovations first saw the light of day here – for example, the first double-portal excavators for coal mining, which were developed and built by the company.

During the Second World War, and more precisely on 16th January 1945, Magdeburg was almost completely destroyed for the second time in its history. Due to the changed political circumstances, Magdeburger Maschinenfabriken – as FAM was called at the time – became a state-owned company. Following the reunification of Germany in 1990, industry in Magdeburg and the mechanical engineering sector in the area underwent a deep-seated structural change. The majority of the businesses in the area were unable to keep pace. FAM Förderanlagen Magdeburg, which was the new name of the company, was more fortunate: In 1993, it was privatized and able to make a fresh start.

A difficult period of modernization followed. FAM stayed the course and developed from being a component manufacturer and supplier to become a general contractor offering custom-built conveyor solutions. Nowadays, the provider supplies state-of-the-art machines for the extraction, handling and preparation of raw materials. FAM is one of the global market leaders in its sector. The company stands out for its impressive, high-level engineering expertise. In this way, FAM is successfully continuing the tradition of mechanical engineering in Magdeburg. The Group has subsidiaries around the globe. It has customers in more than 80 countries. These rely on the bulk materials handling equipment, loading systems and opencast mining technology from Magdeburg to transport raw materials or extend port facilities. FAM offers consulting, planning, development, design engineering, assembly and commissioning services, all from a single supplier. However, the company’s range of activities also includes quality management and monitoring, maintenance, conversions and service.

In addition to expanding the BEUMER Group’s portfolio, FAM Group’s expertise and global positioning also complement Beumer’s competence in the planning of plant and equipment projects. The company brings planning, engineering, and the entire value chain to the Beumer Group, as well as aftersales service.

Schmidt Named CEO of Beumer USA

BEUMER Corporation, the wholly owned U.S. subsidiary of Beckum, Germany-based BEUMER Group, today named Markus Schmidt as president and chief executive officer. Schmidt joins the company effective immediately. BEUMER Group is pleased to welcome a seasoned leader with a proven track record of collaborative partnerships.

With more than 30 years of industry experience and 18 years of executive experience, Schmidt brings to BEUMER decades of expertise in intralogistics automation, market segment-oriented strategy, understanding of the unique challenges facing operations throughout North America and a dedication to collaboration with both internal and external partners. Schmidt’s leadership style and commitment to excellence align perfectly with the company’s vision and values.

As the new CEO, Schmidt will work closely with the talented team at BEUMER Corporation to build on the company’s strong legacy and drive continued growth and success. The company is committed to delivering innovative solutions and world-class service to customers, while prioritizing safety, quality and sustainability.

“We are pleased to have Markus join BEUMER to lead our North American operations,” said Rudolf Hausladen, CEO of the BEUMER Group. “Markus’ expertise in intralogistics automation coupled with strategic leadership within multinational organizations will enhance our sustainable success by creating valuable solutions for our customers in Canada, the United States and Mexico.”

“I’m honoured to join the BEUMER team at such a crucial time for our industry, said Markus Schmidt, incoming CEO at BEUMER Corporation. “As the industry faces exceptional growth, technological advancements and a continuing e-commerce surge, I look forward to working with the exceptional North American team to provide solutions that enhance productivity, efficiency and create unparalleled customer value across the many markets we serve.”

Schmidt earned his diploma from the University of Cologne (Germany) and has sought advanced education focused on leadership development at the University of California, Berkeley, the University of Virginia, Darden School of Business and the University of St. Gallen (Switzerland).

Pouch Technology: Optimizing Reverse Logistics

The cost of handling returns, reverse logistics, can have an enormous effect on a logistics facility’s bottom line. Unless action is taken the problem can only get worse as omnichannel shopping becomes increasingly prevalent and the rate of returns continues to rise. Any returns that simply languish on shelves are a drain on the bottom line as they take up valuable space, do not bring a financial return and can easily depreciate in value. So what can be done?

One of the key challenges to handling returns is the many manual touches involved in the process. But what if the logistics centre could remove many of those steps to reduce the labour required and the time taken to make the returns available for sale again?

BEUMER’s pouch technology eases the handling of returns by placing each item directly into a pouch that circulates on an overhead conveying system rather than sending it back to the shelf or regular storage, where it has to be picked again if it is ordered. The pouch system serves as an intermediate buffer for return items, which are typically sold again within three days. Returns needed to fulfil an order are automatically retrieved from this dynamic buffer and sent direct to sortation. In this way, the pouch system dramatically reduces the cost of handling returns; the fewer times an item is touched – and the shorter and cleaner the process – the more value the item retains.

Only items that are not sold after a few days are returned to shelf as part of an automatic, easy housekeeping process that is run during low-throughput periods.

With this type of sortation, the facility knows exactly what is in every package. If it opts to on-sell its returns on the secondary market, it can receive a higher value because of the way they have been sorted, segmented and treated. Instead of returns being a loss, this higher-level sortation can create a value chain within the supply chain.

Data Analytics

As well as having to handle a rising number of returns, fulfilment operators have to contend with the ‘new normal’ of an unpredictable global economy, disrupted supply chains and labour shortages. In order to stay ahead they must make adjustments to achieve greater efficiency, and one of the most cost-effective ways to do this is through the use of real-time data.

All fulfilment centres, from large, fully automated facilities to small operations, have valuable data points in their sorters, scanners, scales, chutes and conveyors from which they can begin automating in ways that enable efficiencies and future growth. The goal is to condense these vast data points to unearth issues that must be resolved, or reveal opportunities to achieve greater efficiency.

The process starts with digitalization, which is the collection of enormous amounts of information – generated from equipment and operations in the fulfilment centre – that is stored as data. When this is done, e-commerce logistics providers can begin to unlock proactive decision-making abilities through real-time data analytics that present facts to help them understand what is happening in their processes.

Data brings to light contributing events and their impacts, allowing managers to deal with problems immediately. Today’s logistics systems enable machines to communicate with each other at a high level, enabling managers to align their operations in all areas of their fulfilment operations and make determinations about efficiency, machine communication and operator performance.

Further development of data analytics systems will result in self-learning machines that use real-time data to self-optimize the system. Thus the future will lie in prescriptive analytics, with material handling systems actually telling operators the action they need to take to avoid problems. There will also be greater integration with third-party data, allowing operators to further optimize their processes, from sourcing materials to last-mile delivery.

BEUMER Group is an international leader in the manufacture of intralogistics systems for conveying, loading, palletising, packaging, sortation, and distribution. With 5,100 employees worldwide, BEUMER has annual sales of about EUR 1,1 billion. Its companies and sales agencies provide their customers with high-quality system solutions and an extensive customer support network around the globe and across a wide range of industries, including bulk materials and piece goods, food/non-food, construction, mail order, post, and airport baggage handling.

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