How Data-Driven Maintenance Transforms Materials Handling

Data-driven insights can help optimise the performance, maintenance and sustainability of warehouse automation and materials handling, explains Dan Migliozzi, Sales & Marketing Director, at Invar Group.

Current materials handling and intralogistics equipment is amazingly reliable. Nonetheless, there is a lot to go wrong – all those mechanical parts like rollers, bearings, motors, belts, not to mention switches, sensors and the rest of the electronics. For many businesses this equipment is fundamental – if it’s offline, everything stops.

Unexpected failures, and unplanned maintenance and repair, don’t just increase costs and impair customer service, they have direct and significant environmental and sustainability impacts. But by implementing data driven maintenance strategies these cost, performance, and environmental impacts can be greatly reduced.

Don’t be blinkered

Some companies, particularly those with limited in-house capabilities, work on an ‘if it ain’t broke, don’t fix it’ basis. This may appear to reduce unnecessary downtime and cost, but is a high-risk strategy. There’s a well-known law that states if something can fail, it will, and at the worst possible moment – peak season, rush order, Bank Holiday weekend when the spare parts stockist is closed. Not recommended.

A more sophisticated approach is that of planned, scheduled maintenance. Components subject to wear, or otherwise likely to fail, are replaced at regular intervals – as recommended by the equipment manufacturer, or based on bitter experience. This approach too has disadvantages.

The expected life of a part is a statistical construct – some will fail early; others may be good for much longer. Maintenance intervals are often based on the calendar, rather than the amount and nature of the usage the equipment has experienced – typically, all the parts of a given ‘lifespan’ will be replaced whether they need it or not. Perfectly good parts are sent for scrap. Meanwhile, the performance of other components may be degrading, well in advance of their ‘due’ replacement date. This may have knock-on effects on the condition or

life of other system components, while increasing the consumption of energy, lubricants and other consumables. None of this is good for sustainability.

An intelligent data-driven approach

Maintenance doesn’t have to be this arbitrary. Most materials handling automation gathers a plethora of condition monitoring and other data that can be used in a preventative maintenance approach – key parameters, perhaps the energy consumption of motors, or the temperature of bearings, can be monitored, and generate alerts and warnings before the worst happens.

But instead of maintenance staff merely reacting to warnings that an element is, or is about to go, out of its performance envelope, we can use intelligent analytical software to drive the maintenance process in the most efficient and sustainable directions.

We can bring together both historical and real-time data, from SCADA and other systems, to identify failure areas and causes – both one-time events and regular wear-and-tear, mean times between failures, and downtimes required to take action. We can use data on actual loadings and usage, rather than elapsed times, to predict which components are likely to require replacement and when – and which identical components should still be okay. All the sites we instal have this data waiting to be used and we have the software tools capable of analysing this data, to inform our decisions on the most appropriate, proportionate actions to take.

Further, software empowers learning, encouraging continuous improvement and potentially revealing where investment in new equipment, or appropriate upgrades and enhancements – or indeed staff and operator training – may be needed.

Data driven maintenance mean that equipment can operate longer at maximum capacity, and reduce those minor jams and other incidents, while necessary downtime can be optimised to suit patterns of work. This makes best use of engineering staff (internal or external), to anticipate the need for, and ensure the availability of the necessary spare and replacement parts so that maintenance downtime is not wasted.

Sustainability strategies

Data analysis of warehouse automation and its maintenance needs contributes to a wider suite of environmental goals and strategies.

Analytics allows for efficient use of a most critical resource – planning where and when trained staff will be needed, and what their training needs are.

Effective maintenance strategies support waste reduction goals by reducing the unnecessary use of costly (in economic and environmental terms) replacement parts. Parts may be recovered when they are still able to be reconditioned rather than scrapped.

Data driven preventative maintenance ensures efficient performance of the automation, thus reducing consumption of energy and consumables – a badly worn conveyor belt may consume 2-6 times as much energy as one in good condition. More generally, analytics can be used to drive the automation in the most energy-efficient modes.

The consumption and waste of packaging materials and their contents, damaged by underperforming or failed equipment, is reduced. Automation also reduces or eliminates the use of more polluting forms of materials handling equipment such as lift trucks.

Automation can mitigate or eliminate many of the Health & Safety risks associated with warehouse operations, such as lifting. Equipment that is well maintained so as to stay within its designed operational envelope is inherently safer.

Importantly, analytics can reveal differences in the lifecycle impacts of parts and materials from different suppliers, which can help inform sustainable procurement policies.

And whilst the physical maintenance operations inevitably incur downtime and another round in the age-old battle between operations and engineering, machine monitoring means the need to stop the line for inspection and assessment is largely eliminated. Ironically, disassembly of equipment for inspection is itself a recognised cause of failure!

We are all rightly concerned about the sustainability of our companies’ operations. Intelligent warehouse automation supported by a data analytical approach to maintenance which predicts and prevents equipment failures, will reduce downtime, improve costs and service levels, and significantly reduce the environmental impact of operations, maintenance, and repairs.

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Dexory Secures Funding to Drive Global Expansion Goals

Dexory, a leading robotics and data intelligence company, today announced it has successfully closed an $80 million Series B funding round. The round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic and several angels from the logistics industry. As part of this investment, DTCP’s Michael Rager joins Dexory’s board of directors.

The new funding, made up of a mix of equity and growth debt, will support an expansion of their artificial intelligence (AI) powered features across the DexoryView platform, grow its global team and accelerate the deployment of its autonomous robots with customers like GXO, Maersk, DB Schenker and beyond. A significant focus continues to be on expanding across the US market, where Dexory is already live with customers in seven states. The Series B will also enhance development and production facilities at its UK headquarters.

With the close of the round, Dexory has now raised $120 million over the past three years. The company has demonstrated incredible growth since the first commercial launch of their autonomous warehouse robots and software platform for the logistics space only 18 months ago.

Dexory’s continued innovation of warehouse optimisation technology will ensure that the firm remains a leader in this space. It is setting new standards and unlocking new value for the warehouse of the future, as businesses continue to manage myriad challenges across their supply chains, amidst cost and service pressures.

The global logistics automation market is expected to grow at a compound annual growth rate (CAGR) of 15% by 2030. The market size will reach around $90bn by 2030. Additionally, the market value for digital twin technologies is set to rise by a CAGR of 35.7% by 2030, representing a revenue forecast of $155.83bn. Dexory’s innovative solutions are ideally placed in the market to capitalise on the market trends, whilst ensuring warehouse and supply chain professionals can deliver exceptional accuracy and service levels for even the most high-paced and demanding of operations.

Dexory directly addresses the logistics market’s urgent need to maximise operating efficiencies across national and global networks. The company’s product, DexoryView, provides comprehensive real-time visibility across warehouses of any size through its autonomous mobile robots and AI. Through unique data sets generated from far-reaching sensor and image data, continuous scanning and the latest AI developments, Dexory unlocks new levels of optimization and seamless efficiency.

“We are incredibly excited about the momentum we’ve built over the past 18 months,” said Andrei Danescu, CEO and co-founder of Dexory. “DexoryView is proving to be an unrivalled technology for driving real digital transformation and delivering better business outcomes in the warehousing and supply chain industries. AI is clearly at the forefront of business leaders’ minds. With the quality of the data we are extracting and the powerful insights into operations that we generate, DexoryView will deliver commercial success for our customers and investors alike.”

“We are very impressed by the progress Dexory has made in transforming warehouse operations with its cutting-edge technology,” said Michael Rager, Partner – Growth Equity at DTCP and board member at Dexory. “The company is perfectly positioned at the intersection of our investment thesis on digitisation and automation. Its ability to capture detailed, actionable data from physical spaces and integrate it seamlessly into the supply chain is impressive. We are confident in its vision and excited to support their product innovation and expansion into global markets.”

Dexory’s platform is already making a significant impact in leading distribution companies such as GXO, Unipart, Yusen Logistics, as well as manufacturing players such as GE Appliances and Denso. By providing 360-degree visibility into warehouse operations, DexoryView enhances inventory management and operational decision making. The platform’s capability to perform rapid warehouse scans and create digital twins of warehouse spaces allows for optimised performance and future scenario simulations. Organisations such as DB Schenker have been able to increase their inventory accuracy by 6% and maintain it daily, whereas businesses like ID Logistics have been able to reduce manual inventory investigations by 41% in just two months to free up valuable time for other critical tasks.

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Lampenwelt Brings Light into the Supply Chain

When it comes to ordering lights online, many consumers make the final click at Lampenwelt. The e-commerce specialist, which is part of the LUQOM Group, recently started using the SCM software OSCA to bring transparency to the supply chain. As a result lead times and the workload for orders have been significantly.

“In addition to simple user guidance, Setlog convinces with its fast implementation,” says Patrick Keyser, Director Demand & Order Management, Global Forwarding, Lampenwelt GmbH. Anyone moving into a new home has a lot to do. Packing, moving, unpacking, assembling furniture and then lots of paperwork. Often there are only temporary light bulbs hanging from the ceiling in the new apartment. Replacing these is also on the to-do list. In the past, people would rush to large furniture stores and often spend half a Saturday in the lamp department to find a new lamp and the right light bulb for each room. But in the age of the Internet, many consumers do away with such time-consuming activities: Instead, they shop for their desired lamps online from the comfort of their new sofa.

For more than two decades, Lampenwelt from the Sauerland region of Germany has been one of the largest and most successful platforms for the sale of lamps of all price ranges. The company sells its products in 27 countries via various domains, including lights.co.uk in the UK and luminaire.fr in France. The online pure player, which is part of the Berlin-based LUQOM Group founded in 2017, offers a range of around 450 brands and more than 60,000 products. Lampenwelt is the nucleus of LUQOM. The LUQOM Group was extended by the strategic acquisition of Lampemesteren from Denmark in 2021 and the acquisition of the QLF Group in 2019, the online market leader in Benelux.

The associated sales growth also brought challenges – in all three of LUQOM’s business divisions: Services, brands including own brands and the e-commerce business. “Without a cutting-edge IT landscape, companies in the consumer goods sector can no longer be successful today,” emphasizes Patrick Keyser, Director Demand & Order Management, Global Forwarding at Lampenwelt. The retail expert has years of experience in digitalization in the fashion sector. Since 2022, he has been transferring his knowledge to the lighting and smart home products sector with the help of his team. His goal: to bring light into the darkness of the supply chain.

Darkness is an exaggeration, of course. Until now, the ordering process had been handled via email to the group’s branch in Asia, LUQOM Asia. The employees took care of purchasing from the Asian suppliers. “On one hand, the effort involved via Excel and email is huge. On the other hand, changes in production or delivery times pose challenges because the supply chain is not transparent,” reports Keyser.

He therefore tackled the project ‘introduction of SCM software’ quickly. From his previous position, he had fond memories of the cloud-based tool OSCA from the Bochum-based software company Setlog: “In addition to simple user guidance, the provider convinces with its quick implementation,” emphasizes Keyser. After consultations with Setlog Managing Director Ralf Duester and an analysis of other providers, the contract was signed in August 2022 and the project launched immediately. The first project milestone by December was to connect and train LUQOM Asia (30 employees) and all Chinese manufacturers of Lampenwelt’s own brands to OSCA SCM. The same applied for the two existing logistics partners. In a second step, the remaining suppliers from Europe and other countries – such as Turkey – will be integrated into the system so that OSCA SCM is used by more than 200 suppliers.

• OSCA SCM contains four service areas for LUQOM Group:
• Delivery Planning & Dialogues: This is where the purchase orders are confirmed by the suppliers.
• Booking & Shipment: This involves the suppliers’ transport booking process with the freight forwarders, the storage of shipment data (manually or via TMS connection) by the logistics service providers and the upload of mandatory documents.
• Delivery to DC: This is where the delivery process at the warehouse is controlled. The forwarder and warehouse employees coordinate the time of goods delivery.
• Reporting: Here, the system offers comprehensive reporting and analysis functions.

According to Keyser, the software was implemented quickly – just as planned. Training in German, English and Chinese also took just two weeks. Some employees and partners initially found it a little difficult to get used to the new workflows. “But anyone who recognizes the advantages also understands the change. OSCA brings transparency to the supply chain. There is now only one central system for communication and document exchange for everyone involved,” says Keyser. For him, there is no alternative to a ‘digital twin of the supply chain’.

Whether ‘Lindby’ ceiling lights or ‘Arcchio’ wall lights: Five employees in Keyser´s team can already manage 2.5 million orders per year via OSCA in the first stage of expansion. The products from Lampenwelt’s own brand are delivered via two logistics service providers to a multi-user warehouse with a total area of 45,000 square meters near Fulda, which is managed by a contract logistics provider, as well as to the company’s own distribution center, which is also located in Hesse.

Although OSCA has only been in operation since December 2022 and the connection of the remaining suppliers is yet to follow, SCM expert Keyser is already excited by two results: Lead times have been reduced by around 15 percent. The company has achieved even better results when it comes to reducing the amount of work involved in ordering lamps and the like: Keyser was able to measure around 20 percent. He anticipates a reduction of up to 50 percent – after the end of the second expansion phase. “The solution has also been well received by the retail specialists in Asia. Our Asian colleagues also benefit from the centralized solution in terms of data exchange and communication. A large number of emails are now a thing of the past,” says Ludger Tillmann, General Manager of LUQOM Asia.

Although the current project is not yet finished, Keyser is already working on others – the connection of other subsidiaries such as QLF and Lampemesteren to OSCA. The interfaces will be implemented shortly. Light should therefore soon be shed on the other supply chains.

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Yusen Logistics Improves Visibility and Efficiency with DexoryView

Yusen Logistics, a global supply chain solution company, provides businesses with ocean and air freight forwarding, warehousing, distribution services and supply chain management that provide reliability, excellence and value. The company is constantly looking for ways in which it can improve its services to its end customers, including leading electronics manufacturers. Yusen Logistics has implemented a global visibility platform, DexoryView from Dexory, the global leader in AI-powered robotics and visibility solutions.

As a result of the deployment, Yusen Logistics is now able to conduct wall-to-wall scans of its entire warehouse within two hours each day. This process used to take over one and a half weeks each month and over 100 hours of manual labour. Previously, Yusen Logistics carried out two annual wall-to-wall checks of the entire warehouse, but through generating real-time data each day, the company has also been able to remove this task completely, saving an additional 205 hours of work annually.

The implementation of the Dexory technology will play a pivotal role in Yusen Logistics’ efforts in streamlining warehouse operations whilst ensuring seamless order fulfilment processes. Just one of the benefits means it can now analyse the entire warehouse and see how errors impact the overall workflow in the warehouse.

“Yusen Logistics are investing in digitisation and automation to provide our customers with real time visibility of their inventory. The use of robotics and automation helps to optimise our warehouse space, which reduces costs, improves performance and stock accuracy, and removes down time for manual stock takes,” said Darren Felstead, Head of Contract Logistics.

The collaboration between Yusen Logistics and Dexory represents a strategic alignment of expertise and innovation, with both companies at the forefront of transforming the industry. As Yusen Logistics looks ahead, it remains committed to leveraging the latest technologies and forging partnerships that further drive operational excellence and customer satisfaction.

“Third party logistics providers need to be able to execute on customer strategies and provide innovation and efficiency to drive both theirs and their customers’ businesses forwards,” says Oana Jinga, Chief Commercial and Product Officer and Co-Founder at Dexory. “Together, Dexory and Yusen Logistics are paving the way for a new era of supply chain management, powered by real-time data and our global visibility platform, that further enhance the value provision to their end customers.”

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Autonomous Robots, Data Intelligence

 

 

Warehouse Management with DexoryView

Dexory, a data intelligence company, today announced it has deployed DexoryView, its cutting-edge AI and robotics solution, at the state-of-the-art warehouse facility of FLX Logistics, part of the Freshlinc Group, in Peterborough, United Kingdom. By using robotics and digital twin technologies, FLX Logistics, specialists in ambient logistics management, will be able to drive efficiencies and confirms the company’s commitment to innovation and operational excellence.

“At FLX Logistics, we are always looking for ways to enhance efficiency and accuracy across our operations,” says Sam Goodger, General Manager for FLX Logistics site at Peterborough. “Using DexoryView from the outset at our new facility provides us with unparalleled real-time data on stock accuracy that empowers our team to drive the business forward.”

In a recent successful implementation, at FLX Logistics’ brand new facility, spanning an impressive 140,000 square feet and housing products ranging from diverse food products, raw materials and finished goods, Dexory unveiled its DexoryView solution, featuring state-of-the-art autonomous mobile robotics (AMRs) and a seamlessly integrated digital twin. FLX Logistics was able to generate data from the outset to ensure it has stock accuracy from the opening of the new warehouse. This combined with having access to real-time data of the warehouse on an ongoing basis, allows the business to elevate the efficiency of its warehouse operations to an unprecedented level.

“We are thrilled to be working with FLX Logistics in revolutionising their warehouse operations,” says Oana Jinga, Chief Commercial and Product Officer & Co-Founder at Dexory. “Having implemented DexoryView from the outset shows that FLX Logistics is a forward thinking business and sees the benefit in utilising real-time data and insights to better drive efficiency across its operations. We have already seen the company use the data to effectively manage and transform its day-to-day operations thanks to the insights they are able to glean from DexoryView.”

Dexory captures real-time insights into warehouse operations using fully autonomous robots and Artificial Intelligence. Using autonomous technology to unlock data and drive insights through all levels of business operations, helping companies boost their performance and unlock their full potential. Instant access to real-time data helps optimise the present, de-risk the future and discover the intractable in each location and at every stage of the product journey through the warehouse and onto dispatch.

Founded in 2015, by three founders, Andrei, Oana and Adrian, and is based in the UK. The founders are school friends from Romania, who moved to the UK a decade ago with experience accumulated across engineering and tech roles at Formula 1, Google, and IBM. Combining commercial nous with deep technical expertise, the three founders are now working together to help transform warehouse management practices worldwide.

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New AI Technology for Warehouse Optimization

UK-based robotics and data intelligence company Dexory is introducing a first of its kind, AI-powered logistics engine to help warehouses maximize operational efficiency, optimize inventory management, and enhance the overall warehouse agility and responsiveness.

Through its multi-site, digital twin platform, DexoryView, Dexory will now enable warehouse operatives to process millions of precise data sets captured daily across warehouses via its autonomous robots, providing real-time access to insights and predictive analytics that enable businesses to make smarter, faster decisions.

The combination of computer vision, machine learning, NLP (natural language processing) and LLM (large language models) will allow warehouse operators to maximize efficiency across critical drivers such as space utilization, inventory, working time and machinery utilization.

AI-powered applications will transform three key parts of the users’ business:

• Warehouse performance: Implementation of slotting methods, consolidation of stock, space optimization and path planning will maximize warehouse value to enhance revenue and drive cost optimization. Rapid audit and analysis of inventory across reserve, pick and bulk locations will drive operational efficiency by saving thousands of hours yearly.
• Advanced issue detection and response: State of the art image analysis and machine learning models will automatically detect and address issues like damaged stock, fallen inventory and rack infrastructure damage to enhance compliance.
• Environmental monitoring: Sensor fusion across various data sets, including temperature, humidity and gas detection will track and address critical surrounding factors over time to control if goods are stored in the correct conditions.

Global challenges such as the pandemic and geopolitical issues, require businesses to operate highly resilient supply chains. Yet, according to Gartner, 60% of leaders say their supply chains have never been designed for resiliency. Traditional systems have severe limitations on both the volume and frequency of data captured, forcing blind decisions, based on stale or incomplete data, resulting in a growing data gap – the Visibility GapTM. Last year, the global research and advisory firm IHL Group estimated the combined cost of stock mismanagement at $1.77 trillion.
Eliminating this gap helps companies react faster and make fact-based decisions on how to manage supply chain disruptions and where to focus their investments (Accenture).

The new AI functionality unlocks the next level of intelligence in DexoryView. The platform combines the use of autonomous robots to scan warehouses of 1 million sq ft and over 100 000 pallets in a day, providing accurate, instant, real time information on goods and assets across the sites it operates in. Leveraging AI algorithms, alongside the use of enhanced sensors across Dexory’s robots, DexoryView will now power logistics teams with accelerated time to insight and action to make better data-driven informed decisions on operations, expanding outside of inventory – all through one intuitive and interactive cloud platform.

“Traditionally the logistics industry relies heavily on historical data snapshots, making it highly reactive and prone to error,” says Andrei Danescu, CEO and Co-founder at Dexory. “The pandemic started a major shift towards real-time, actionable insights. Our autonomous robots already give an unprecedented level of visibility on inventory within warehouses. Now combined with AI, we’re allowing our customers to enter a new era of efficiency and productivity. Dexory is thrilled to be leading this transformation.”

By addressing critical use cases with cutting-edge technologies, Dexory is helping to propel the industry forward, making supply chains more efficient, agile, and responsive to emerging challenges.

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Dexory Robotics and AI into USA

Dexory, a leading provider of cutting-edge AI and robotics solutions announced the first deployment of its robotics and artificial intelligence solution in the United States. Dexory’s technology is now in use at one of DB Schenker’s significant sites in Utah. This follows Dexory’s strategic expansion announcement into the North American market in early February.

In a swift and efficient implementation, Dexory unveiled its cutting-edge DexoryView solution, featuring state-of-the-art autonomous mobile robotics (AMRs) and a seamlessly integrated digital twin. The rapid deployment has resulted in the generation of real-time data points, providing DB Schenker with immediate insights into its operations.

DB Schenker, a global leader in logistics and supply chain management, is to leverage Dexory’s technology to enhance its real-time visibility of stock and occupancy tracking capabilities. With a focus on promoting efficiency and optimizing resource utilisation, the DexoryView solution scans the Very Narrow Aisle (VNA) area of the site, covering a staggering 40,000 pallet locations daily.

Leveraging advanced computer vision and AI, DexoryView provides clear, visual insights for every shelf and height level. This eliminates the need for manually checking discrepancies and ensures important operational information is easily accessible. It emphasizes priority actions, helping to make operations more efficient.

Daniel Spencer, Director – Solutions & Engineering at DB Schenker Americas comments “We are excited to introduce Dexory’s promising technology in our warehouses. The deployment of Dexory’s robotics and AI solution underscores our dedication to staying at the forefront of technological advancements and highlights our pursuit of operational excellence.”

Digital Twin

The collaboration between Dexory and DB Schenker teams has been instrumental in ensuring a comprehensive success of the integration and utilization of the DexoryView solution. Working in tandem, both teams are committed to maximizing the potential of the collected data, enabling the effective deployment of robotics and AI in the logistics and supply chain industry.

“This live deployment signifies a major step forward in Dexory’s mission to revolutionise how businesses approach logistics and operational efficiency. The progress achieved with DB Schenker serves as a testament to the power of innovative technology in transforming traditional practices, ushering in a new era of precision, speed, and insight in the world of logistics”, says Oana Jinga, Chief Commercial & Product Officer at Dexory.

Dexory looks forward to further collaborations and deployments that will continue to redefine industry standards and drive operational excellence. To find out more for yourself, Dexory will be exhibiting at MODEX in Atlanta from March 11-14 alongside representatives of DB Schenker at booth #B708.

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Sexify Logistics

Red Bull’s Formula One HQ in Milton Keynes is an appropriate and impressive backdrop to learn why data is fuel in logistics. David Priestman attended Dexory’s Supply Chain Fast Track conference.

High performance in logistics can be maintained by extracting insights from data and taking practical steps. “Data itself has no value,” states Rob Smedley, former Ferrari, Jordan and Williams F1 race engineer, “insight is everything. Complexity requires having a data strategy.” Warehouses may be less glamorous than race tracks, but they are also hubs of innovation.

Polycrisis logistics

When multiple supply chain disruptive events happen concurrently how can they be tackled? “Resilience planning is key,” says Mike Fahy, CEO of Neovia, a contract logistics provider operating in 20 countries and with 80 hub facilities and 8000 employees. The 3PL specialises in service parts logistics for automotive, industrial and tech customers, formerly being Caterpillar Logistics Services.

Fahy advises logisticians to tackle ‘polycrises’ by multi-sourcing, embracing technology and strong cybersecurity. “We’re not back to just-in-time yet, after the pandemic. We’re still at just-in-case for supply. Warehouse space is relaxing a bit, depending on the location.” Neovia use Dexory to create a ‘digital twin’ of each warehouse, providing visualization and interpretation of inventory stock. For example, the Dexory View dashboard enables pick face analysis of volumes.

Neovia use other tech, like Protex AI’s warehouse CCTV system, which reduced safety incidents by 80%. “New tech creates disruption,” Fahy emphasises, “being part of change is key.” He also praised Athingz – an autonomous supply chain service utilising machine learning to aid sales inventory optimisation, planning and execution. Real-time analytics with a virtual control tower helps forecasting freight lanes, both inbound and outbound. Extended reality, or VR, is used by Neovia for training, using tech from Elm Park Labs. Apple’s Vision Pro is tipped by Fahy to become a handy tool.

Supply chain design, of the number and location of distribution centres, leads to a tech-based materials handling approach. Simulation can be used prior to construction to study the average flow, slow days and peak operations. “Maximising cubic optimisation is key,” according to Fahy, and robotics is paramount. His company are piloting self-driven HGV lorries, remote driving of warehouse reach trucks and remote monitoring of assets.

Visibility gap

Only 6% of supply chain managers claim to have full global visibility. Gaps can lead to out-of-stock or over-stocking issues. The distribution centre is where some visibility is lost, due to damage, loss, theft or errors that occur. The visibility gap is an intelligence gap. An estimated 6500 hours per year can be spent on stock checks for a typical DC, say Dexory. Starting accuracy for their customers is 91-95%, with 24 minutes on average taken to resolve discrepancies. Dexory’s solution claims to increase accuracy to over 99%, which is better than warehouse drones can achieve.
GE Appliances are one of many manufacturers using temporary, overflow warehouses. “That can make it harder to maintain accuracy,” Harry Chase, GE Senior Director for Central Materials, says. “The quality and timeliness of data is crucial.” Dexory can be used for better slotting and stock consolidation, by freeing-up space and identifying bottlenecks.

Machine help?

Generative AI may create new strategies in logistics, for example in transport routing. Chris Coote of Dexory says AI is less intuitive than a human but provides fast answers and concepts. “Embrace limitless possibilities to build a smarter, safer ecosystem in the DC,” he exhorts.

Wincanton, a 99 year-old British third party logistics operator with 21000 staff, are in the process of being acquired by CEVA Logistics, part of the giant French shipping line CMA CGM. Paul Durkin, Chief Customer and Innovation Officer, has a practical view of robotics and automation. Companies should invest in tech, he argues, because labour costs are rising, automation costs are falling and there is a demand for short lead times in logistics. “There’s no longer a long payback time for this equipment,” he says, looking for a 20% return of capital deployed.

The downsides to such investment are the interest on capital expenditure, competing demands for investment and the proliferation of software and hardware, which makes it difficult to be certain what to purchase. “Retail customers spend on their ‘front of house’ (shops and stores). We’re ‘back of house’,” adds Durkin. Wincanton has re-organised itself to lean towards IT and technology, seeing 3PL as a service. Owning the IP of software in-house is important for the company. “We can’t rely on being an asset-based business, with just trucks and sheds,” he adds. Automation can solve customer problems. “Commercialize it. Value creation leads to long-term success.”

Industrial collaboration is a good thing, according to Durkin, who was speaking on the day the CEVA deal was being finalised. “There’s room for it. Warehouses haven’t evolved that much. We all need to accelerate our journey and get slicker. Wincanton need 30 upgrade projects a year, but only have the bandwidth for half that.“

Generation logistics

Getting the organization’s design right is key. “Size isn’t everything. Start small with automation and robotics, get used to it, be prepared to fail,” he advises. Wincanton work with smaller, nimble suppliers, including Dexory. “Now we have proof-of-concept on-site we can invest further. There are no guarantees, but we have created headroom.”

Automation and robotics can inspire colleagues and attract young people into the sector. It can lead to upskilling of existing staff. ‘Generation logistics’ is a slogan aimed to elevate the industry, make it sexier. New entrants to the market, like Hived and everstox, backed with venture capital by investors including Maersk, are on a fast track, fuelled by data to innovate and increase competition in logistics. Our industry is en vogue. Make hay and rejoice.

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Optimising Supply Chains Post Peak Periods

As holiday seasons wind down each year, supply chains and retail businesses face a new challenge: getting back on track post-peak shopping periods, writes Andrei Danescu, (pictured left) CEO and Co-Founder, Dexory. Having navigated the busy period successfully, businesses now shift focus to streamlining operations and enhancing productivity for the upcoming year. The transition from the peak to a quieter season provides an opportunity to reflect on the highs and lows of the recent busy period. It’s a cyclical rhythm in the supply chain landscape, where each busy season is followed by a period of relative calm. This quieter time offers a chance for supply chains to assess what strategies worked well during the peak and what areas need refinement. It’s a pivotal moment to plan and strategize for the forthcoming cycles of peak and quieter seasons, ensuring a continuous process of improvement and adaptation.

Fine-Tuning Inventory

Once the rush calms down, the main aim is to make the necessary inventory changes and recalibrate strategies. Moving away from a high-demand period, the focus is now on efficiently managing existing inventory. This involves doing a thorough review, a strategic evaluation of stock, pinpointing surplus items, and aligning inventories with predicted consumer demands. This also opens the opportunity for businesses to re-organise and optimise their warehouse space, thus ensuring that space utilisation is back to normal.

During this time, it is also an opportune moment for warehouses to analyse how stock moved during the peak period and understand how to better future proof. To gain an even better understanding of space utilisation and fluctuations, organisations should look into investing technologies that give them real-time visibility of stock movement and space.

Finally, this period also presents an opportunity to re-evaluate supplier relationships and explore potential enhancements or alternatives that could boost future resilience.

Predicting Customer Needs

Proactively anticipating and planning for customer needs at any time during the year is important. The integration of flexible forecasting tools, powered by advanced technologies such as AI and machine learning, becomes vital for understanding the shift in customer preferences. This flexibility allows businesses to swiftly adapt strategies to effectively meet changing customer requirements. Moreover, leveraging data analytics to understand the return patterns and reasons can provide invaluable insights, helping to refine future inventory management processes.

Optimising Return Processes

Once peak periods are over, returns pour in, which highlights the necessity of implementing a robust returns system. Streamlining this process not only minimises costs but also makes the most out of returned items. Optimising return policies and processes becomes essential to effectively handle this influx, potentially transforming what could be perceived as losses into opportunities for resale, or recycling.

Leveraging Technological Insights

Undoubtedly, technology is a major factor in optimising supply chains for the year ahead. Real-time insights supplied by state-of-the-art supply chain analytics and inventory management systems offer a crucial edge. These insights enable data-driven decision-making, facilitating agile adaptations to swiftly respond to changing demand patterns and operational obstacles. Embracing innovative technologies for enhanced traceability or for real-time tracking, provides opportunities for further strengthening supply chains during this recovery phase.

The period of recovery following peak periods is a great opportunity for supply chains to realign and fortify their foundations. Strengthening operations lays the groundwork for year-round customer satisfaction and sustained efficiency by harnessing advanced technologies and learning from peak seasons.

To summarise, the post-holiday phase is more than just rest and recovery; it is also a time for optimisation and fortification. Readjusting the supply chain at this time of year can set the path for long-term success beyond the holiday rush by leveraging technological advancements, quickly responding to changing customer demands, and embedding resilience into their operational frameworks.

Digital Twin for French Warehouses

Dexory, a leading provider of cutting-edge AI and robotics solutions, and ID Logistics have announced their collaboration as part of the ID Logistics’ ASTRID program, deploying Autonomous Stock Taking Robots for high-speed inventory management. The collaboration aims to increase warehouse accuracy and enhance overall efficiency to improve the service provided to their customers. Deployments have commenced at sites in France and look to expand to additional geographies in 2024.

The cornerstone of this collaboration is the state-of-the-art robot named Astrid. Operating seamlessly within the daily operations, Astrid conducts live, wall-to-wall inventory checks, flagging inaccuracies in real-time. This innovative approach saves countless hours, allowing the inventory team to promptly address discrepancies and prevent the knock-on effects of errors. Impressively, Astrid can process up to 10,000 pallets per hour, significantly boosting efficiency.

The implementation of this cutting-edge technology has been met with enthusiasm from site teams, becoming an integral part of day-to-day operations. The system has elevated accuracy levels to over 99.9%, nearly achieving perfection in operations. The robots operate during normal working hours, navigating around colleagues and machinery without the need to close aisles, ensuring uninterrupted workflow.

Key features of the collaboration include the utilisation of a digital twin, providing instant access to data with just a click. This allows teams to make informed decisions and enhances overall visibility into inventory management processes, resource allocation and beyond. The solution caters to all sizes of pallets and goods, demonstrating its versatility and adaptability to diverse operational needs.

Beniot Boiron, Group Innovation Manager at ID Logistics, added, “This collaboration marks a significant milestone in the evolution of inventory management and warehouse data acquisition. Astrid’s precision and real-time monitoring capabilities have transformed our day-to-day operations, bringing accuracy to new heights”.

“We are thrilled to collaborate with ID Logistics to support the elimination of inventory visibility gaps in their warehouses using real-time data. This partnership represents a significant leap forward in enhancing operational efficiency, accuracy, and overall productivity,” said Oana Jinga, Chief Operating and Product Officer at Dexory.

The success of Astrid in France has set the stage for further expansion into new geographies, promising to revolutionise inventory management practices on a global scale.

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