Eileen Mozinski Schmidt Eileen Mozinski Schmidt

Advancing with automation and AI

In today’s material handling environment, warehouses are driven by the need for speed and accuracy. At the same time, finding the right labor force remains challenging for some operations.

Some are looking for automation and artificial intelligence (AI) advancements to fill those gaps and meet expectations.

Increased demand for automation

Brett Webster, director of product management at Dematic, noted that AI has already been transformative in many settings, including automation.

“The industry continues to face challenges, such as ongoing labor shortages and disruptions caused by global events,” Webster said.

“In an era where supply chain resilience is no longer ‘nice to have’ but a requirement for success, increased visibility and connection are paramount,” Webster said.

According to the company website, Dematic is a “global leader in innovative, integrated supply chain automation technologies, software, and services. ”

Leaders at Dematic anticipate supply chains will continue to become more autonomous, aided in part by the growth of AI. Webster noted a recent report by MHI and Deloitte finding that 87 percent of companies believe autonomous, connected intelligent supply chains will be standard by 2027.

“As a result, companies are increasingly investing in AI technology,” Webster said.

Currently, Webster said AI’s largest impact is on enhancing algorithms for decision-making software and optimizing operations.

“However, as AI continues to grow over the coming years, access to and proper use of data will become critical. Real-time data analysis allows AI systems to identify inefficiencies, streamline operations, and automate tasks, helping the cost of and need for labor amongst industry-wide shortages,” Webster said.

AI can also ensure algorithms reduce travel times and increase output by optimizing inventory placement, and help provide predictions and adjustments for fluctuations in customer demand, according to Webster.

“We believe building a holistic ecosystem of solutions, software, and data, powered by AI, will drive the development of autonomous supply chains the industry has long anticipated,” Webster said.

Solutions for e-commerce

According to Mike Oren, SVP of sales for the Americas for Dematic, the demand for automation has increased in the years following COVID.

He said the demand is driven by “evolving consumer expectations, ranging from same or next-day delivery, to sustainable business practices to omnichannel shopping.”

“This shift is further fueled by ongoing labor shortages and the rapid growth of e-commerce, putting significant pressure on businesses to improve efficiency,” Oren said.

The drive is resulting in a turn to automated solutions like Automated Guided Vehicles, Autonomous Mobile Robots, mixed-case fulfillment, and goods-to-person picking, according to Oren.

“Fluctuations in demand have become the norm, and flexible automation can be scaled to help our customers adapt to their shifting needs,” he said, adding that software is the brains behind all of the technological solutions.

“Software provides the data and visibility necessary to make insightful decisions while maximizing performance and speeding up fulfillment,” Oren said.

He added that the companies best positioned to be competitive in the coming years will be those providing comprehensive hardware, software, and services.

According to Kevin Heath, director of global robotics, Dematic provides up-to-date solutions for the world of automation through the work of its Modernizations & Upgrades team.

Heath said the team helps customers improve the effectiveness of their operations by identifying and incorporating new automation, controls, and software that optimizes performance.

“We also identify the best solutions for our customers to address those changes,” he said, noting that while Autonomous Mobile Robots have been in the market for some time, Bin-to-Picker AMRs in particular are “ideally suited” for the growth of e-commerce.

Heath noted that when 3PL provider Radial outgrew its manual distribution center in the Netherlands due to increased e-commerce demand, Dematic helped with the automation of a new facility.

“This included adding almost 300 AMRs to their operations, including 10 Bin-to-Picker stations. Since the facility opened in 2023, picking and packing performance has improved significantly, and the error rate is vastly reduced,” Heath said.

He added that for companies with scarce resources, Bin-to-Picker AMRs can operate without human intervention and with little to no fixed automation.

“Bin-to-Picker AMRs are cost-efficient, easily scalable, and equipped with software to improve efficiency and reduce order fulfillment times,” said Heath, who said Dematic customers utilizing Bin-to-Picker AMRs report more than 99 percent order accuracy and an ROI in as few as 1.5 years.

Dematic automated systems can also be adapted to different warehouse environments, which Heath said makes them “an ideal solution” for industries ranging from retail to third-party logistics.

“Our automation systems are modular, meaning they can be upgraded and expanded as new technologies emerge or business needs evolve,” Heath added.

Meeting automation needs

Some companies are building advanced solutions via new collaborations.

In September, Kivnon announced the formation of a strategic partnership with Macrovey.

According to a press release, Kivnon is a leading producer of mobile robots, including automated guided vehicles and autonomous mobile robots.  Kivnon specializes in solutions that optimize logistics and internal transport processes across industries.

The statement said Macrovey is an industry leader in industrial equipment, performing electrical installations of complex motor and process controls for a variety of material handling systems.

The new collaboration, which is now in effect, will “enhance both companies’ market presence and operational capabilities across North America,” the release said.

“With this partnership, Kivnon aims to streamline the sales and installation processes for its mobile robots,” the release said.

“At the same time, Macrovey will gain access to Kivnon’s innovative product line, allowing them to expand their offerings.”

Jaume Martinez, managing director of Kivnon USA, said the partnership will ensure that customers receive top-tier service and support.

“Together, we will set new standards in the automation industry, delivering tailored solutions that meet the specific needs of our clients,” said Martinez in a statement.

In an email to Material Handling Wholesaler, Martinez said Kivnon’s automated guided vehicles and autonomous mobile robots help automate material handling tasks and integrate seamlessly with higher-level systems.

“One of our key strengths is the ability to connect our robots to external fleet management systems, enabling businesses to manage mixed fleets of AGVs from various manufacturers more effectively,” he said.

This allows for greater flexibility and adaptability in warehouses, according to Martinez, who said the demand for this type of flexible, integrated automation is growing rapidly.

“By leveraging easy data accessibility and communication between Kivnon robots and external fleet management software, companies can optimize their entire logistics operation, enhance efficiency, and reduce bottlenecks,” he said.

Macrovey’s director of business development, Danny Pierce, said Kivnon’s products and services complement the company’s automation solutions.

“Macrovey’s cutting-edge technology, along with Kivnon’s innovative products, will bring added value to customers looking to automate systems,” he said in the release.

According to the company’s release, the partnerships aim to deliver more localized and responsive services.

“This collaboration directly addresses the increasing demand for automation driven by the need for cost reductions, improved safety, and higher productivity in the U.S. manufacturing and logistics sectors,” the statement said.

About the Author:

Eileen Mozinski Schmidt is a writer and journalist based in the Greater Milwaukee area.  If your company would like to be featured, email [email protected]

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