Coca-Cola HBC Adds Extra Fizz to its Partnership

Coca-Cola HBC, the strategic bottling partner of the Coca-Cola company on the island of Ireland, has extended its long-term partnership with Wincanton, the leading supply chain partner to UK businesses. 

The contract extension until the end of 2026 builds on the two brands’ strong partnership which began in 2016 and marks a decade of collaboration.

As part of this collaboration, Wincanton will continue to provide warehouse operations management at Coca-Cola HBC’s dedicated facility in Lisburn, Northern Ireland, which handles over 52 million cases of popular brands such as Coca-Cola, Fanta and Monster per year.

Wincanton is also responsible for delivering operational efficiencies, incorporating volumes driven by the Deposit Return Scheme in the Republic of Ireland whilst also bringing logistics expertise to the facility to support the company’s ongoing growth.

Joanna Sneddon, Coca-Cola HBC Ireland and Northern Ireland Supply Chain Director said:

“Delivering high-quality products and service to our customers is our priority. We are pleased to grow our partnership with Wincanton on our journey to develop world class logistics service over the coming years.”

James Hurrell, MD for Grocery & Consumer at Wincanton, added:

“With its vision to be the world’s leading 24/7 beverage partner, we’re delighted to be supporting Coca-Cola HBC and its unique portfolio on its journey to exponential growth. 

“We look forward to continuing our work together and celebrating a decade of growth, innovation, and automation together.” 

The extended partnership also reflects a shared commitment to sustainability and innovation. Both companies are actively investing in greener supply chain practices, with Wincanton introducing initiatives to reduce carbon emissions and Coca-Cola HBC advancing its World Without Waste goals. This continued alignment on responsible logistics and environmental stewardship ensures that the partnership not only delivers operational excellence but also supports broader sustainability objectives.

Alongside its extended partnership with Coca-Cola HBC, Wincanton is undergoing significant transformation as it strengthens its market position through strategic acquisitions and partnerships. In early 2024, the company was acquired by GXO Logistics in a £762 million deal, which is currently under review by the UK’s Competition and Markets Authority (CMA). While the regulatory process continues, Wincanton remains focused on innovation and operational excellence. In a move to advance its automation capabilities, Wincanton also acquired inteq, a UK-based specialist in warehouse execution software and robotics integration. This acquisition brings inteq’s proprietary technology and expertise into Wincanton’s portfolio, enhancing its ability to deliver cutting-edge, efficient logistics solutions across its network.

Read Similar…

DHL eCommerce to Merge with Evri

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.

Read Similar…

How to Prevent Conveyor Malfunctions

Calling ‘order’ on Inbound Goods

Supermarkets face a pressing need to automate their DCs. But first, they must put their inbound processes in good order. Dan Migliozzi, Sales & Marketing Director, at independent systems integrator, Invar Group, gets to the root of the problem.

With floor areas measured in hectares, carrying tens of thousands of SKUs to supply the daily needs of 67 million people, the distribution centres of our major food retailers are surely the textbook case for extensive and profitable automation.

Dependence on manual operations is looking increasingly unsustainable. Post Covid mitigation measures have introduced inefficiencies, recruitment is tough as the gap between the wage rates the food chain can afford and the salaries available elsewhere is growing, in contrast to the levels of skill, capability and commitment offered by those who are prepared to work for the money. Meanwhile, margins are shrinking in a highly competitive market faced with the ‘cost of living crisis’.

And yet in 90% of grocery DCs across Britain and Ireland, manual operations are still all-pervasive, and where the supermarkets have invested in automation the benefits and the returns on investment are often underwhelming. What is going wrong?

Feeding the beast

It’s not the technology. From the simplest conveyors to robotic arms and Autonomous Mobile Robots (AMRs), automation continues to become smarter, faster, more capable, more flexible, even more energy-efficient. The problem lies not with the appetites of the automation, but in how we feed the robotic beast.

Because, in a strange way, the robots are only ‘human’. Like us, they work most consistently and efficiently when presented with standard, predictable, ordered tasks. When the job is random or chaotic, even the latest advances in sensors, vision systems, artificial intelligence struggle – indeed, often human workers are better at creating order from chaos. Which is why even in relatively highly automated facilities there are many workers purely engaged in sorting goods so that they feed the right piece of automation in the right order at the right time.

This in turn arises because of the haphazard way in which incoming goods are received from suppliers. Too often there is no standardisation or uniformity in the way goods are received, even from one supplier let alone across the supply base.

Arriving in a mix of roll cages, totes, pallets, boxes, bags, goods destined for quite different routes through the DC are often mixed promiscuously. ‘Zero day’ goods, or consignments that should be cross-docked for immediate onward shipment, are in the same cage as goods that will be held for days; robust and heavy cartons of dry goods alongside (or on top of) the perishable or the delicate. There is little consistency in how labels and bar codes are presented. Even the distinction between ambient, chilled and frozen may be only loosely observed and within those categories, while surely no supplier would put cooked meats adjacent to raw chicken, lesser sins are regularly committed.

Need for SKU-specific protocols

In short, there are no SKU-specific protocols – rules that mandate the supplier that ‘this is how this SKU should be delivered, in these temperature conditions, and in this form of pack. These are items it can legitimately be co-shipped with; putting it in with those items is a no-no’. And so on.

Creating and enforcing such protocols across tens of thousands of SKUs is a major, we would say strategic, task, but it has to be done if automation is to yield its much-needed benefits.

Across the range of SKUs questions need to be asked. What am I receiving? When is it arriving? When does it need to go out again? Where will it be stored (if at all), in what conditions and for how long? Which are the items I want to see arrive together – based not just on the nature of the goods but on what is going to happen to them on their journey through the warehouse, which effectively is asking what elements of automation are going to touch these items?

Driving collaboration

This can’t be done in isolation. The supplier, after all, isn’t presenting a chaotic mix of items just to be awkward – they will have their own constraints, for example on batch sizes and times, or on their own storage capacities. So, this needs to be a joint venture – which in some cases will be the job of a 3PL or 4PL – working with suppliers almost in the role of consultants, to understand supplier challenges and making sure the supplier understands the challenges in the DC, so that goods can consistently be delivered in a way that can feed the automation with minimal intervention.

Naturally this requires top class, intelligent WMS/WCS not just for operations within the warehouse or DC, but to interact with outbound transport logic. There is a lot of data-driven software involved, but the benefits will be significant.

If the product is sorted logically before it hits the automation, the system works faster, more consistently, with smoother flows, better use of storage and so on. Further investment, in say scanners and vision systems, or AI applications, then becomes justified because the payback is visible and predictable. At the moment ‘the product is sorted logically’, more or less, by scarce and expensive manual labour – how much better it would be if it was already in order when it leaves the supplier.

read more

Tesco Picks Transporeon To Manage Inbound Logistics Flows

 

Food Sector Fears over Warehouse Automation

Past mistakes should inform, but not inhibit, the adoption of new technologies within the food supply chain. Dan Migliozzi, Sales & Marketing Director, at independent systems integrator, Invar Group, explains why the sector needs to rediscover its appetite for risk.

The food and grocery market in the UK is one of the most competitive and fast-moving retail sectors, arguably, in the world. The pressures are immense, with disruptors to existing business models ranging from the rise of the discounters and the explosion in home delivery to the impact on supply chains of everything from weather to war. In addition, there is the constant cycle of new products and trends, such as vegan/meat free, which may or may not become established.

And all this is set against the challenges of ever more costly and increasingly unavailable labour, uncertain but generally increasing transport costs, and a consumer base that despite, or because of, the ‘cost of living crisis’, demands convenience and availability at the lowest price and exhibits diminishing levels of loyalty to retailers and brands.

To meet these challenges, one might think that investment in automation in the fulfilment chain – warehouses and distribution centres – would be a no-brainer. Higher throughputs, managed, picked and delivered more accurately, improving service levels with less inventory (and waste), better transport utilisation, all with lower levels of labour and a more flexible and agile response to changing market conditions, whether there be one-off events or longer-term trends.

Past mistakes

Yet, there is a clear reluctance amongst supermarkets and other food businesses to go all-in on automation. This is perhaps unsurprising – there are few of the well-known names that haven’t experienced some sort of technology-driven crisis over the past decade or two. Not infrequently these have left the business section for the front page, leading not just to missed sales and unhappy consumers, but to panicked shareholders, questions in Parliament, and ‘thoughtful’ op-ed pieces in the media. More often than not, the ‘solution’ has been to side-line the tech and flood the warehouse with people.

As a fully independent automation and systems vendor and integrator, however, we observe that it is only rarely that there have been fundamental issues with the hardware and software. Rather, the issues lie around timescales, complexity and over-ambition, and a lack of forward vision. Major investment decisions appear to have been driven by a combination of FOMO – fear of missing out on what the competition is thought to be doing, and the understandable desire of owners, whether public shareholders or private finance, to ‘sweat the assets’. Neither of these are sound foundations for the serious investment in advanced technologies that the sector undoubtedly needs.

Paradoxically for such a fast-moving environment, our first piece of advice would be to slow down a bit. Take the time to think ahead. However fast the implementation of technology, it may well not outpace transformations in the industry: think how quickly home delivery moved from being a niche ‘inside the M25’ offer to being core business in the Highlands and Islands!

A measured approach

Implementation doesn’t have to be simultaneous and company-wide, across half a dozen DCs. Starting with a large-scale pilot across a single DC, a particular class or skus and/or a particular channel will allow you to find out, not just if the chosen automation is really appropriate, but more fundamentally, whether you have truly captured the reality of how your business works, or should work, in practice.

This may mean that some of the potential efficiencies and savings are not immediately captured, but these are by definition long term projects. If this scale of investment is really the answer to today’s problems, there are probably deeper issues at play. The business needs to look out as far as it can, with the best forecasts (or range of forecasts) available. This automation is supposed to make the company more successful – so what does ‘success’ look like, not next quarter but in five years’ time?

Change is the only certainty – how flexible, adaptable, scalable is the solution you are proposing? Do you need a higher level of ‘robotics’, broadly defined, to meet a largely unknown future, or is it appropriate (as it may be), simply to opt for significantly over-specified fixed automation? But while any level of investment must meet a business case, it is a false, and potentially disastrous, economy to allow this apparently unnecessary surplus capability to be stripped out of the proposal. Could it, in fact, be unnecessary? Has anyone mentioned promotions?

Examine flexible options

There is a lot of detailed ‘what if?’ thinking to be done – what if, for example, demands for less packaging lead to more loose goods being handled? That might steer the project towards a greater use of robotics for item-level manipulation, rather than fixed automation at a carton or pallet level. There are also assumptions to be challenged – it may be that the automation plan expects suppliers to deliver in a certain manner. Actually, they don’t but that’s alright because the workforce knows the work round. The automation probably doesn’t. The automation has to be designed around the supply realities, but equally the suppliers have to be aligned with the automation.

And although we stress the need for the longest-term planning, it does have to be accepted by the business owners that it may be desirable to replace at least some elements of the automation years before its theoretical end of life. Fixed automation, or AS/RS (automated storage and retrieval systems) may be a valuable interim solution to be augmented or replaced a few years down the line by AMRs (autonomous mobile robots), ‘cobots’ working alongside staff, or whatever else technical progress brings forward. AMRs, incidentally, are a great way of achieving great scalability for low CapEx, as units can be taken on or off lease as requirements vary – easier and cheaper than hiring a hundred extra bodies.

An appetite for risk

The food chain is always under huge pressure – consumers, media, shareholders, suppliers, and often with an added political element. To meet these pressures, the food distribution chain needs to rediscover its appetite for risk. But don’t panic – by working with an independent and experienced systems integrator such as Invar, those risks can be well-controlled.

Read more…

80% say Brexit is biggest disruption

 

Sustainable Warehouse Automation Options

Can warehouse automation advance sustainability? Dan Migliozzi, Head of Sales at independent systems integrator, Invar Group, looks at the options available.

Logistics and supply chain professionals are increasingly concerned about the sustainability of their operations, and in particular, about the environmental performance of their warehouses and DCs. What’s more, they have to be. Their customers are demanding ever greater and more demonstrable levels of sustainability.

This applies across the board, from how their facilities are constructed, to impacts on land use, hydrology and infrastructure requirements, transport movements generated, and of course how the facility itself is equipped and operated. As labour becomes scarcer, many businesses are considering automating warehouse processes. So, a big question for a growing number of companies is, can automation be used to advance sustainability within the warehouse?

Applied appropriately, higher levels of automation should lead to greater efficiency, less waste – including but not confined to fuel and energy – and therefore a more sustainable operation. In practice, things are not quite so clear-cut. Automation that is poorly thought out, mis-directed, inappropriately scaled, or implemented with substandard equipment, can impact both operational and environmental performance. However, a well-planned and implemented automation project can yield many sustainability benefits.

A big question is, should the automation be housed in an existing building, or is a new build designed around the requirements of automation a more sustainable solution?

A new build obviously generates a lot of carbon and uses other resources in its materials and construction. Also, a greenfield site will almost certainly impact the ‘natural’ environment, may influence drainage and groundwater and requires new infrastructure. But a new build can be designed to accommodate sustainability features such as solar panels, heat pumps, wind turbines, energy-conserving doorways, airlocks and insulation.

However, automation in an existing building may make better use of space, removing the need for physical expansion or any need to move. Exactly which option works best is a complex equation and depends on the long-term strategy of the business. Whether in a new build or refurbished premises, automation can create many other sustainability benefits beyond the walls of the shed. More accurate and timely order fulfilment can reduce the size of truck park required – fewer acres under concrete. And to the extent that headcount is reduced, that is fewer staff bringing in and parking private vehicles.

Automation can lend itself to, at least partial, ‘lights out’ operation, if appropriate, saving considerable cost and energy. Incorporating a sophisticated Building Management System which optimises the needs of manual and automated operation can yield real cost and sustainability benefits.

So, what are the sustainability issues to consider when selecting the technology? Sourcing/procurement is one area to take up with the vendor or integrator. Are machines and materials traceable to suppliers with acceptable records on their own sustainability? How much power is consumed per unit of output? Does the design of the automated system minimise the number of motors in use? Is the most energy efficient technology being considered? Could gravity be put to good use? Do control systems allow lower power consumption at times of light usage? What recharging facilities and procedures are used for Autonomous Mobile Robots (AMRs) or other electric powered vehicles?

Unpowered elements also matter. Do conveyor components have the lowest coefficient of friction? This can make a huge difference – we know an installation where low friction belts saved 65% of power consumption which, given there were seven miles of conveyor, amounted to 20% of the consumption of the whole building.

Reputable integrators and vendors should supply reliable estimates of energy consumption, related to levels of usage as part of the bidding process. They should also detail their approach to SCADA (Supervisory Control And Data Acquisition) or other approaches to monitoring energy use as part of the control system for the automation. In use, this should be able to highlight areas where power consumption is high, perhaps pointing to a need for better equipment or different modes of operation.

This approach may also uncover areas where performance is deteriorating. Vendor equipment comes with detailed Preventative Maintenance schedules for good reason – it isn’t just a ploy to ramp up spare parts sales – which, incidentally, should always be authentic parts even if they are more costly. Without proper maintenance, performance will inevitably deteriorate, and sustainability will diminish, quite possibly ending with an expensive line stoppage.

Taken all together, the potential for automation to deliver real sustainability, as well as economic gains, is clearly evident.

Company Culture puts People First

In the fast-paced world of logistics, company culture has emerged as a powerful driver for success. “At Invar Group,” writes Dan Migliozzi, Head of Sales for the warehouse automation specialists, “we understand the significance of cultivating a strong organisational culture that not only aligns with our core values and resonates with our customers, but one that also empowers our employees and allows them to thrive.

“The recent formation of our People and Culture division – supporting 111 employees across our UK and European teams – has seen us step up our commitment to nurturing our talent. Its targets sit beyond traditional HR functions, with the team serving as the driving force behind fostering an inclusive, collaborative, and inspiring work environment. By investing in and caring about our people, we hope to strengthen a culture where talent thrives and innovation flourishes. And in a bid to achieve this, we have identified a set of guiding strategies to support our vision.”

Fostering a Shared Vision: Promoting Our Purpose, Vision, Mission, and Values

“At Invar, we hold a strong commitment to what we call the ‘Invar Way’— a holistic embodiment of our Purpose, Vision, Mission, and Values (PVMV). We firmly believe that aligning our employees with a shared PVMV creates a sense of identity and belonging within our organisation. It ensures that everyone understands the bigger picture and their instrumental role in achieving it. For this reason, we have built a strong fabric of core values — integrity, collaboration, passion, and innovation — which have set the foundations for nurturing a cohesive and motivated workforce that strives for excellence and delivers exceptional results for our customers. By communicating and reinforcing these principles, we aim to inspire our employees to embrace the Invar Way, embody our core values, and work collectively towards a common goal — we aim to ensure each and every employee knows that they are working on a crucial part of something greater.”

Elevating Recruitment and Onboarding Practices

“For us, building high-performing teams requires more than simply recruiting and retaining top talent, it’s also about prioritising cultural fit. Our recruitment strategy is focused on finding candidates that resonate with our core values, enhancing the potential for a harmonious fit within the organisation. Furthermore, we understand that the onboarding process is pivotal in helping new employees integrate seamlessly into the organisation. We are committed to continually improving our onboarding experience, to ensure that our new recruits are well-equipped to contribute effectively from day one.”

Investing in Talent Development and Career Growth

“Empowering our employees to reach their full potential is not just a goal; it’s a core component of our people strategy. Through initiatives like our appraisal scheme, we identify and develop the right training programs, ensuring opportunities for continuous growth and skill enhancement. Listening to our employees and providing them with the tools they need to thrive, both personally and professionally, is absolutely key to supporting talent development. By investing in talent development and career growth, we aim to not only foster a sense of loyalty and commitment among our employees, but we also wish to help them remain at the forefront of their respective fields, throughout their career.”

Supporting Work-Life Balance and Creating a Positive Work Environment

“We recognise the crucial role that work-life balance and a positive work environment play in the well-being of our people. Therefore, our people strategy includes initiatives that actively support work-life balance, such as the introduction of Smarter Working Days, a scheme in which individuals can gain an extra day of holiday each month if they meet their objectives. Furthermore, the majority of our contracts are home-based, meaning that people have the flexibility to work how and where they like. But importantly, our offices provide a much-needed physical focal point for building a sense of community, a space that brings our teams together beyond work. In the coming months, we will be developing a structured programme whereby staff can vote on charity initiatives they would like to engage in.

“A positive and productive work environment is one where clear job descriptions, regular feedback, and effective management practices encourage accountability. Employees that understand their roles and responsibilities fully can take ownership of their work and reap the rewards from their efforts.”

Encouraging Collaboration, Knowledge Sharing, and Continuous Improvement

“The power of people working together, pooling their expertise, and encouraging creativity is incredibly important to us. By fostering a culture of collaboration, we create an environment in which ideas flow freely, and best practices are shared across the organisation. Invar’s journey has been punctuated by periods of growth and change, and we encourage our employees to embrace the mindset of taking on challenges face on, striving for continuous improvement. Identifying opportunities for innovation and promoting a working environment of learning, agility, and adaptability are essential components of our culture.

“Overall, we hope that our continued efforts to put people at the heart of everything we do will enable us to stay ahead of the curve and create a workplace where collaboration and trust flourish — an environment where both our company and individual team members can thrive together.”

Complete or Phased Approach to Warehouse Automation?

With labour hard to find and performance at peak under scrutiny, businesses may be tempted to opt for a complete, turnkey warehouse automation project to solve all their problems in one move. But might a stepped approach make more sense? Dan Migliozzi, Head of Sales at independent systems integrator, Invar Group, considers the options.

There can be little doubt that automation is the future for all but the smallest of warehouse operations. New affordable technologies are now within reach of most small to medium sized businesses (SMEs) and these technologies, often involving robotics and AI, are transforming performance across intralogistics processes.

Driven by poor labour availability and increasing customer demands, many businesses will be thinking about a comprehensive review of their operations, and may be tempted to go for a full turnkey approach – introducing a whole raft of systems at the same time. However, whilst this may be appropriate for some companies, others may be exposing themselves to unnecessary levels of risk, and a more considered approach could yield greater gains.

For a major corporation with the luxury of multiple warehouses or distribution centres, and facing challenges or changes to their current operational model, it may be practical, even desirable, to take facilities off-line one by one and rebuild them. For smaller businesses though, this could be a highly risky strategy and may be unviable – a considered, step-by-step approach to the end goal of significant automation may be preferable, both financially and operationally.

Financial benefits

Financially, moving towards automation in planned stages limits the need for often significant up-front capital expenditure, a particular concern for start-ups and other companies in a phase of rapid growth when other demands on working capital can be considerable. A stepped approach that quickly takes advantage of ‘low hanging fruit’ can achieve an early Return on Investment and bring many other benefits – potentially helping to fund subsequent phases of automation.

But even if capital funding isn’t an issue, the risks of an ‘all-in’ approach are significant. Some degree of disruption is inevitable during installation, and even with the most careful planning, highest quality equipment and dedicated vendors and integrators, it’s rare for everything to work straight out of the box. The risk of a major delay or disruption could have a far-reaching impact on the business and may lead to lost sales and reputational damage.

A further consideration is, with a complete turnkey approach it’s usually not possible to revert to the old ways of working while the fixes are actioned. There is no redundancy in this situation.
So rather than playing with the entire operation in a giant sandbox, better by far to identify and address the most urgent or compelling challenges and opportunities as they arise. That way, processes can be better defined and understood, employees at all levels trained and other necessary capabilities – maintenance, for example – built up at a manageable pace.

Planning a phased migration

‘Step-by-step’, however, does not mean ‘piecemeal’. The planning for a stepped migration to more automated operations is just the same as it would be for a turnkey project – indeed the ultimate goals will be just the same – it’s merely a question of how to get there.

Firstly, and obviously, the company needs to know its objectives and requirements. Is automation needed because the business is in, or is anticipating, a period of rapid growth? Growth is good, but for many companies, perhaps in a mature or niche market, higher volumes and throughputs may not be the issue – greater efficiencies, lower costs and perhaps particularly better use of scarce labour may be the imperatives.

The company needs to map and understand its processes from cradle to grave, including processes which are unlikely to be directly addressed by automation. Where are the biggest wins, the greatest challenges, the most acute pain points? Address these first – paradoxically, trying to optimise a process that you know to be already very good often carries a larger downside risk.

Consider scaleability

But the automation plan can’t just address short term issues. The business may need to consider the extent to which the automation is scaleable – can a robotic installation, for example, be scaled up for future growth just by leasing more units, or will there be a point at which the racking and other physical attributes of the warehouse require major change? And if so, should that be done now, even though it may not be needed for some years?

The plan also needs to consider the pace of technological change. Evolution in fields such as robotics is lightning-fast. There is no shame in buying last year’s model if it does the job, but there are risks that equipment and systems may become ‘obsolete’, or worse, unsupported, much quicker than expected. This means that some of the steps in the automation road map may need to cover replacing or upgrading earlier and relatively recent investment steps. Robust continuity planning, in partnership with reputable vendors and integrators, is key.

Planning a stepped approach to warehouse automation cannot be just a top down, or a bottom up, process. It really does require the involvement of every stakeholder in the business. Clearly it needs high level strategic direction to ensure that the plan is aligned with the company’s goals, its financial capacity, and its appetite for risk. Operational input – will the proposals actually meet the requirements of, for example, seasonal peaks. Engineering – does the business have, or can it expect to establish, an adequate maintenance capability or will this have to be outsourced. HR may have views on how staff can be trained, and whether new staff with new skills need to be hired.

Technical capabilities

And then there is installation. Even quite modest steps in automation are likely to involve systems and equipment from multiple manufacturers and vendors and will require some level of integration, both with each other and with existing equipment and systems. ‘Plug and play’ is a much-vaunted term, but it’s hard to find evidence that it really exists in the modern warehouse!
Therefore, it’s important to find a reliable, independent integrator that has the necessary technical capability and in-house software skills to deliver a project successfully over several planned stages – an integrator that supports you every step of the journey.

Hai Robotics Opens UK Office in Northampton

Hai Robotics, a worldwide leader in Autonomous Case-handling Robot (ACR) systems in warehouses, is thrilled to announce the grand opening of its maiden UK office at Vulcan Works, a new space for creative and digital businesses in Northampton.

Since establishing its European headquarters in the Netherlands in late 2021, Hai Robotics has quickly developed a reputation for revolutionising warehouse automation throughout the region, undertaking more than 30 projects across Europe and four in the UK. This growth is further bolstered by partnerships with UK companies including Logistex, Breathe Technologies and Invar Group.

The new office at Vulcan Works in Northampton will house the sales, solutions, implementation, testing, after-sales support, PR and marketing functions of Hai Robotics UK Ltd. The team will be fully supported by the company’s European HQ in the Netherlands.

“Launching our inaugural UK office signifies a critical milestone for Hai Robotics and underscores our enduring commitment to this vibrant market,” declared Damien Skinner, Country Manager of the UK & Ireland. “Our decision to establish ourselves at Vulcan Works was driven by a multitude of factors. Northampton’s strategic location in the heart of the UK’s ‘Logistics Golden Triangle’—Bedford-Birmingham-Nottingham—ensures our close proximity to customers and site references. Additionally, the comprehensive facilities at Vulcan Works, which feature beautifully restored spaces, well-equipped meeting rooms with flexible booking options, provide an environment conducive for growth and innovation. Above all, the flexibility and security offered by Vulcan Works are paramount in fuelling our progressive journey.”

Recently, Hai Robotics proudly unveiled a ground-breaking project in the UK, joining forces with Logistex to optimise John Lewis Partnership’s new e-commerce distribution centre in Fenny Lock, Milton Keynes. The project is centred around the deployment of a picking solution powered by Hai Robotics’ innovative ACR robots and HaiPort workstations, which also provide flexibility and scalability for future expansion. Hai Robotics initiatives have seen the successful implementation of 160 ACR robots. In addition, the company has solidified its presence in the market by securing two more substantial contracts, further contributing to its growth trajectory.

“We are thrilled to welcome Hai Robotics to Vulcan Works,” added Centre Manager of Vulkan Works, Garrick Hurter. “To have a global company who is at the forefront of such impressive digital technology and forward-thinking automation choose our space as a location for its first UK office is a real coup.

“This is a prime example of the type of business we want to attract to the centre – a company who is looking to grow and expand with a digital or creative focus. We know that Hai Robotics will really flourish here, not just thanks to our wonderful facilities that are conducive to productive, collaborative working, but also through our additional business support events and workshops and prime location.”

ACR systems provided by Hai Robotics deliver highly efficient Goods-to-Person solutions that blend perfectly within the warehouse environment. Notably, these systems can increase storage density by an astonishing 80 to 400 per cent and enhance worker efficiency by three to four times, outperforming traditional warehouse automation solutions. Moreover, ACR robots can reach impressive heights of up to 10 metres, making them a game-changer in warehouse operations.

Certified by UKCA and CE, Hai Robotics‘ revolutionary ACR systems are all set to bring about a seismic shift in the UK’s warehouses and logistics centres, promising extraordinary benefits that set the company apart from the rest, reshaping the future of logistics in the UK.

Automation: Key to Sustainable Warehousing

The way to sustainable warehousing is through automation, says Craig Whitehouse, Managing Director of Invar Group.

Creating more sustainable logistics operations is a priority for businesses, governments and increasingly, consumers. The warehouse is the beating heart of the supply chain, but it may not be immediately obvious that investment in warehouse automation can significantly contribute to sustainability goals.

On the face of it, automation may appear resource heavy, requiring metals, plastics and electrical power. How can this be more sustainable than resource- and energy-light manual processes?
However, sustainability isn’t just about the headline issues of rare earth metals and carbon emissions, important though these are. We need sustainability in land use and water management, in transport capacity, in the reduction of waste in all its forms, in enabling the goods and packages we handle themselves to be more sustainable. Further, labour and money are also finite resources, which need to be managed sustainably. Automation, of physical processes and of control systems, can contribute to achieving sustainability goals in all these areas.

Consider, for example, Automated Storage and Retrieval Systems (ASRS) in all their variety. By using high-density storage right up to the eaves and in very narrow aisles, the required building footprint, with its associated impact on hydrology, can be reduced – along with the amount of steel and concrete that goes into construction. ASRS can save energy too, as lights-out operations are often possible, and less empty space is being heated, air-conditioned, or refrigerated.

Automated processes, perhaps combining ASRS, conveyor runs and Autonomous Mobile Robots (AMRs), can greatly reduce or even eliminate the requirement for carbon-emitting forklift trucks – with all the health and safety benefits of a reduced exposure to the possibility of collisions, back injuries and repetitive strain grievances. And as labour is a scarce resource in itself, freeing people up for more thoughtful, dexterous tasks.

However, automation can offer even more. The automated loading/unloading of vehicles reduces waiting time and thus the yard space required, enables more efficient vehicle utilisation, and again has safety benefits. Automated handling can also reduce waste through lowering stock damage, and with the latest packaging innovations can facilitate the use of ‘greener’ packaging solutions, with less waste of cardboard as a result of more compact packages.

These benefits can be amplified through the appropriate use of automated planning, management and control systems. Warehouse simulation, together with tailored Warehouse Management Systems (WMS), can optimise layout and activities to minimise movements and thus energy consumption – for example, by minimising the number of movements in and out of cold stores. A well-attuned WMS can also contribute to more efficient and sustainable use of transport, making it is easier to plan and assemble full loads for a destination within the necessary timescale. Automated goods-to-person order picking using, increasingly more affordable mobile robots combined with pick-to-light technology, or voice with human operators, can reduce mis-picks, and thus waste and returns.

Meanwhile, environment management systems can save on heat, refrigeration, and turn the lights off when an area of the warehouse is free of workers. Management systems for AGVs and AMRs can, within limits, plan for vehicle recharging off-peak, which is both cheaper and may reduce the demand for fossil-based energy generation.

Finally, machine monitoring systems informing preventative maintenance procedures can ensure that equipment is operating at peak energy efficiency as well as contributing to safe and healthy operation, while the general use of digital systems can greatly reduce the operation’s consumption of paper. These are just some of the automation options which, sensibly combined, can make a real contribution across the whole range of sustainability goals of the business, from climate change to human welfare and, yes, sustainable profitability.

Invar Group, headquartered in Cranfield UK, is focused on delivering complete turnkey warehouse automation solutions using advanced technologies such as industrial robotics, AMR goods-to-person solutions, pick-to-light technology, sortation systems, as well as conventional warehouse automation. The Group comprises: Invar Systems, a developer of warehouse control and management systems; Invar Integration (Greenstone Systems), a front runner in solutions design, hardware integration and project management; and Invar Controls, specialists in the design, implementation and maintenance of PLC software and hardware.

The Rise of the Intelligent Warehouse

The warehouse is undergoing a huge transformation, from repository to fulfilment powerhouse, but there are risks to growth that need to be addressed. Robotics, AI and digitalisation could hold the key to boosting capacity. By Craig Whitehouse and Tim Wright, Managing Directors at Invar Group.

What is the shape of modern warehousing and where is it heading? Far from its traditional role as a repository for inventory, the warehouse has become a powerhouse for fulfilment, whether it be replenishing retail stores, feeding just-in-time manufacturing lines or serving a discerning customer base directly through ecommerce.

Demands placed upon the performance of the warehouse have ratcheted up considerably over the past ten years as C-suite decision makers have come to realise the critical role the warehouse plays in delivering on the ‘customer promise’, developing market reach and strengthening the competitive position of the business.

Immediacy is now a commercial imperative. Sales can be won or lost on availability, speed of despatch and proximity to the customer. Short lead-times and late cut-offs play a decisive role in winning and retaining customers ¬– and margins, along with brand reputation, can be enhanced or diminished by the speed and efficiency with which returns are processed and refunds managed.

Warehouses are fast becoming ‘fulfilment factories’, increasingly mechanised, automated and digitally integrated with the wider supply chain. The future looks bright, but there are significant influences and challenges that business will need to consider and act upon in order to mitigate rising costs, protect margins and increase capacity.

Costs on the rise

Rising costs are an immediate concern with energy prices spiking, wages increasing and container shipping rates – although stabilising – still higher than the pre-pandemic norm. In addition, the National Living Wage rose by 6.6% to £9.50 an hour last April, coinciding with a hike in National Insurance of 1.25p in the pound for both employers and employees. Such increases in cost can quickly erode margins, leading many companies to look at point solutions where automation can be scaled up over time.

Labour availability

Labour is no longer easily and readily available. Logistics UK reported in late 2021 that more than 13% of businesses were experiencing severe problems recruiting warehouse staff, compared to autumn 2020 when zero respondents recorded such difficulties. Similarly, the UK Warehousing Association recently reported that some warehousing businesses were experiencing vacancy rates of over 20%, with its CEO, Claire Bottle, saying the warehouse industry is ‘tens of thousands’ short in terms of employees.

Uncertainty is a big issue for many businesses using flexible labour. Firms can find that up to 20% of gig-economy labour may not show up, creating significant problems for businesses during critical peak periods. Uncertainty over labour availability can now be a key factor, above cost of labour, in businesses choosing to invest in automation.

Supply anxiety and the great space shortage

Supply issues are a major concern, both in the manufacturing and retail sectors; a combination of the after-effects of a post-pandemic global recovery and complexity arising from post-Brexit customs procedures. Uncertainty over lead-times, deliveries and the supply of parts is hindering planning, impacting production lines and creating gaps on retail shelves. These issues with supply have led many businesses to adopt strategies that enhance supply chain resilience. Consequently, organisations are sourcing goods closer to home and importantly, increasing levels of inventory, leading to unprecedented demand for warehousing space.

In the autumn of 2021, property agent Cushman & Wakefield reported that available space in the UK had fallen below 50 million sq ft, the lowest level since it started tracking availability in 2009. However, this shortage of space is not a sudden phenomenon, nor a short-term problem, and it has been exacerbated by the steady growth of ecommerce.

A report published in January 2022 by the British Property Federation and Savills finds that demand for warehouse space across England has been underestimated in planning policy for a decade and that future demand is likely to be at least 29% higher than past levels. This chronic shortage of warehouse space has seen rents rise 61%.

With space in such short supply and rents rising, businesses will need to focus on maximising productivity within the cube. However, many businesses are overlooking – or are unaware of – the potential to use readily available technology to drive performance, and hence capacity

and growth, from an existing footprint.

The impact of Ecommerce

Ecommerce has radically changed the dynamics of the warehouse. A shift in emphasis away from pallet loads towards single or few-item order picking processes required for ecommerce has dramatically increased dependency on finding sufficient pools of available labour. Until recently, this wasn’t a problem. However, labour is now a scarce resource. Businesses wishing to grow and increase capacity are constrained by the poor availability of labour and the competition from local businesses for those same, limited resources. As a result labour rates are rising.

The pandemic propelled ecommerce to new heights. ONS figures put Internet sales as a percentage of total retail sales at 30.4% in November 2021, a considerable rise on the pre-pandemic peak of 21.6% in November 2019. At the height of lockdown in January 2021 that figure hit 37.8%. And although figures have returned to more modest growth, with shoppers returning to the high street, expectations for ecommerce remain high.

According to a report into ecommerce published in February 2022 by Metapack with Retail Economics, UK retailers are expecting an additional £19.6 billion of online home deliveries by 2025, with online predicted to account for 49.7% of total non-food sales within that timeframe.

Importantly, ecommerce has also given manufacturing businesses the opportunity to sell directly to customers. How these businesses approach fulfilling Internet orders may well play a critical role in determining how successful they are.

The challenge to support growth

Supporting and enabling the future growth of the businesses has become a major challenge for those responsible for fulfilment. Mitigating cost may be a perennial issue for most businesses, but significant structural change within the labour market, following Brexit and the pandemic, together with a constricted warehouse property market – where availability is low and rents high – has placed a great number of companies under intense pressure. How can fulfilment gear-up effectively for growth when labour and space are hard to come by and costs for both are rising sharply.

A growing number of businesses are using smart warehouse automation, such as robots, to drive productivity within the warehouse; reducing exposure to labour issues, mitigating operational costs and significantly increasing capacity. In fact, technology analyst, Gartner, predicts that 75% of large warehouse enterprises will have adopted some form of intralogistics related smart robots by 2026.

Interestingly, the low cost of robot technology now puts it within the reach of SMEs too. Smaller companies have the opportunity to leverage the performance gains created by flexible and easily scalable Autonomous Mobile Robots (AMRs), possibly giving them a competitive advantage over larger companies encumbered by out-dated, inflexible fixed systems.

The rise of the robot

AMRs offer tremendous flexibility and, importantly, scalability in traditional labour-intensive tasks such as order picking and put-away. AMR systems combined with pick-to-light technology can boost order picking performance from under 100 units per hour using traditional methods, to up to 400 picks per hour, with an ROI that can be as little as 12 months.

Mobile robots may also be used effectively to transport pallets, roll-cages and totes within a warehouse, or for sorting parcels, offering a more flexible alternative to fixed conveyor systems. And ‘follow me’ type mobile robots can cut out lengthy time-consuming runs within the warehouse, working as cobots alongside picking operatives. In cold stores too, some AMRs are designed to work in temperatures down to – 25°C and are resistant to condensation – even capable of carrying two roll-cages at a time.

But there are other forms of automation that are also in demand. De-stuffing of shipping containers is a labour intensive task that has many businesses looking for alternative mechanised or automated assistance. Within ecommerce returns operations the speed with which items can be processed and re-despatched can help boost capacity of fast fashion goods, securing more sales and increasing margins. The use of overhead pouch systems can play a major role in buffering high-demand products close to despatch, saving considerable effort returning items to storage.

There is a bewildering array of AMRs and intelligent automation, all with their own specific technical attributes and capabilities suited to particular applications. The problem for those looking to apply this technology is, knowing which is best suited for the task. Important too, is the consideration of the solution as a whole, which may include ASRS systems, automated packaging machines, overhead pouch sorters, pick-to-light technology, powered roller conveyors or a multitude of other technologies.

Specialist knowledge

Under such circumstances, it helps to consult an independent systems integrator. Not being bound by any one technology or in-house manufactured solution, they are free to be objective about specifying the right solution for the application. Bringing a combination of technologies together in a cohesive way, based on process efficiency and overall performance, is what counts and much of this depends on the software development and the skills of the integrator to successfully tailor the solution for optimum performance.

Flexible technology combined with powerful, intelligent software allows for a new way of thinking. A conventional conveyor system is normally installed to an agreed throughput, usually to a projected peak figure. But this results in the asset running below capacity for the majority of the year. On the quietest day it may only handle a tenth of the volume experienced at peak. However, a solution using AMRs could be designed for 70% of peak, with additional robots brought in during peak periods. It’s this level of scalability that offers SMEs a flexible low-entry point to automation.

Advances in simulation

Simulation software brings a concept to life. For instance, at Invar Group, we have invested in leading-edge 3D simulation technology that enables us to select the most suitable materials handling hardware from a virtual catalogue and place appropriate technologies together as a concept system within the software. Then, by inputting a customer’s real data set, we can apply routing logic to allow us to view its performance and see in advance, any potential bottlenecks in the system.

Testing a concept in this way highlights where in the system there is too much capacity and where there isn’t enough, and hence, where expansion is required. Then you can scenario plan for what ifs, such as twice as many orders, or twice as many products, what if slow movers became fast movers and what happens at peak?

Digital transformation

A business’ competitiveness depends upon its access to, and analysis of, critical data. And smart business will be developing smart warehouses where robots, pickers, packaging machines and sorters are seamlessly integrated to produce, not only optimum performance, but valuable data that is shared in real-time with wider systems in order to deliver competitive advantage.

It is the efficient integration of these processes, technologies and intelligent software that enables fast delivery of a solution and a trouble-free future. An intelligent system, conceived by expert design engineers and implemented by competent controls and software professionals, drives productivity and offers the agility needed to respond to change.

As an independent, full-spectrum automated warehouse solutions provider, Invar Group is free to select the most appropriate technology for the task, and being a multifaceted organisation that brings together skilled individuals with competencies across warehouse management software, systems integration and controls, we take responsibility for the complete turnkey-key system from start to finish.

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.