Eileen Mozinski Schmidt Automation a game changer in Warehousing
As labor shortages only get worse, moving more products is expanding daily for businesses
When it comes to e-commerce, big growth is happening. E-commerce now represents around 12 percent of the retail business overall, with Amazon making up 37 percent of that number, according to Steven Leavengood, vice president of sales and services at the Interroll Group.
“We’re seeing huge growth,” he said. E-commerce “is expected to grow to 25 percent of the total retail market in the next five years.” As retail moves this direction, the press to automate in warehouses and throughout the industry is on, especially as some struggle to find the necessary workforce.
But some experts say the journey to automate and implement artificial intelligence remains in its early stages and stresses that in a process that takes time, companies need to consider automation options now lest they fall behind. “It’s like raising a child. You’re always developing, growing, changing adapting,” said Leavengood, of implementing automation. “It’s a path of a thousand steps. It’s incremental. You start in a very basic mode and the journey goes on and on,” he said.
Automation, step-by-step Leavengood sees automation moving into the industry faster than artificial intelligence, which so far is primarily centered in the largest material handling companies. But the incremental opportunities are there for small and medium-sized systems in material handling to start down the road of automation, Leavengood said. A business can “start off with conveyors and then scanners and then picking and sorting,” he said, explaining that automation can be integrated into each of those steps and companies rarely implement everything at once.
“What’s often concerting for companies that don’t do a lot of automation is they are concerned about the ability to handle the control side. How do I make sure everything works together, communicates?” Leavengood said. But he provided reassurance. “There’s technology, you can learn it. You can learn the controls. It is much more user-friendly than it used to be,” Leavengood said, noting smaller companies do not require the complex systems of giants like Amazon or Walmart.
Leavengood noted that in automation, smart technology is especially helpful as those in the industry look for more precision throughout the operation. “Data is a big driver around all platforms,” he said, noting that it helps craft pinpointed accuracy to drive better decision making. ‘An innovative drive solution’ Interroll bills itself as a leading provider of material handling solutions with a wide range of platform-based products and services.
The company’s new DC platform, launched at MODEX 2020, taps into this need for precision by working communicating closely with robotic systems.
In a press release, Interroll dubbed the platform “an innovative drive solution.” “As automation becomes more common, intelligent goods flow control plays an ever more significant role in conveyance systems.
With the DC Platform, Interroll has developed a powerful technology platform that fulfills these requirements in an exemplary manner,” the release said. Armin Lindholm, managing director of the Global Center of Excellence for Rollers and RollerDrive in Wermelskirchen, said the platform enables dealing with user requirements in a more individual manner.
“This new platform can be used to create a unique range of conveying solutions, from autonomous conveyors that can be commissioned without a programmable logic controller (PLC) using plug-and-play, all the way to tailor-made, high-performance systems that can be consistently and transparently integrated into the data universe of Industry 4.0 applications for the purpose of monitoring in control stations, for preventive maintenance or for other functions,” he said, in the statement.
The company’s new platform is a “game-changer” in the way it implements data and its power capabilities, Leavengood said. “This is a real revolution in the hardware,” he said. Helping with labor needs One advantage automation and artificial intelligence offer is in meeting employment needs.
“Ten years ago, I think our (national) unemployment was over nine percent. Today, I think it is 3.5 or 3.6 percent. So, the labor challenge is significant in this country,” Leavengood said. “The benefit of automation is being able to scale up and down per your needs.” There are different factors at play in the current labor force, he added. “You see Amazon increasing the hourly rate but on the other hand reducing workforce because of automation,” he said. “Jobs are shifting.”
At BEUMER Corporation, Chief Sales Officer John Sarinick handles sales segments for North America. He agreed that labor is a major concern. “Automation is doing very well because companies can’t find the labor,” he said, adding that BEUMER has customers who “need to get product out the door but can’t find the labor.”
“There is a need for automation,” Sarinick said. Globally, Leavengood said the European markets are ahead of the U.S. on implementing automated solutions, although the U.S. is leading in e-commerce. “I see the U.S. as catching up over the next 10 to 20 years.
Spending for automation has steadily increased year-over-year,” he added. Leavengood said companies not looking into automation now are probably “a little behind the curve.” “The big companies are investing in automation. The mid-size retailers and small companies have to get on this bandwagon,” he said, noting the need to reduce errors, meet labor needs, be precise and meet market expectations for speed.
“The other piece of that is really the global competition. That’s a huge driver,” he said. Sarinick agreed. “In general, the need and the desire to have things as quick as possible is going to drive the need for speed and automation is part of that,” he said. “I think it’s still something that is going to continue to grow to meet the demands of the customer.”
Eileen Mozinski Schmidt is a freelance writer and journalist based in the Greater Milwaukee area. She has written for print and online publications for the past 13 years. Email [email protected] or visit eileenmozinskischmidt.wordpress.com to contact Eileen. If your company would like to be featured, email [email protected]
