Automatic Decisions
by Lynn Petrak
Software and hardware systems provide real solutions
and savings in dairy warehouses.
These days, it is not the
stuff of science fiction but of daily operations that machines and robotics
are moving things along in refrigerated warehouses, as intelligent
computers track all things in and out.
Indeed, just because products are neatly lined in racks
and shelves doesn’t mean that there isn’t much going on in cold
storage. Such sites happen to be the focus of a host of technological
advances.
Several factors have contributed to the upgrade of
automated systems for use in dairy warehouses, from safety concerns to
shifting demands from parties throughout cold chain. From a quality and
food safety standpoint, automation can help control variables that can
cause out-of-date or spoilage problems. “Some challenges remain in
perishability, but automation can better control it than manual methods,
having someone running around on the floor with a book pulling
cases,” says Len DeWeerdt, vice president for business development
for warehouse solutions company Retrotech Inc., Fishers, N.Y.
Automatic systems, run by software and managed through
automatic and/or robotic equipment, literally have built-in advantages over
various human-directed functions. “Traceability is something that you
can’t accomplish on a manual basis. Automated coding, whether
it’s bar coding or RFID (radio frequency identification) means
automatic data collection. And data that is inaccurate doesn’t cut it
with today’s USDA and FDA requirements,” says Patrick Pilz,
president and chief executive officer of warehousing software and equipment
provider CSB Systems, San Diego.
In addition to accuracy and traceability, another
reason dairy processors have invested in automated storage, retrieval and
shipping systems is the changing requirement from customers throughout
the cold chain, including third-party distribution centers, retail outlets
and foodservice operations. “Certainly, the distribution market
in the food industry is growing in terms of delivering product in
layers,” explains Dan Labell, president of Westfalia Technologies
Inc., a York, Pa.-based supplier of warehouse equipment, software and
solutions.
The “Wal-Mart factor” isn’t likely to
fade away, either. “My opinion is that there is more sophistication.
It’s not only Wal-Mart organization getting orders the way they want
it when they wan it, but others who also want that,” DeWeerdt says.
“That pressure will be felt at the processing plant.”
The availability of technology that helps ensure proper
order fulfillment and rapidly tracks products down to the shelf is
something that many dairies have evaluated in recent times. The most
frequent barrier to moving ahead with greater automation is cost.
Capital investment required to build or overhaul an
automated cold-storage facility can give some processors pause. That said,
there is a tangible return on investment, say those in the industry.
“When you do automation, the savings you have are in manual handling
and space,” Pilz says. “The savings in space enable a company
to grow with investment, and as labor costs rise, people will be forced to
do more automation to compete.”
According to Labell, the nature of the dairy business
lends itself to a “less is more” philosophy for storage.
“This industry has traditionally had a percentage of business
invested in automation and that may be partly environmental, because there
are a lot of coolers and freezers. So there is more willingness to reduce
cube or square footage of a warehouse,” he says.
DeWeerdt, too, says many dairies understand there are
real savings and, hence, profits to be had with capital improvements.
“Processors have had tolerance in the industry for long-term
investment before,” he says. “If you can reduce the size of a
warehouse by 50 or 60 percent, that is big.”
Much of the current investment in sophisticated
automated warehouse systems comes from high-volume dairies with expansive
distribution networks. “The ongoing consolidation in the industry
makes companies larger, and changes the economies of scale in investing in
automation,” Pilz says, adding that automation is less frequently
pursued by lower-volume dairies, including those with a range of bottle and
container types.
All Systems Go
Dairy processors looking to cut floor space and, with
it, space and labor costs, have plenty of options in cold-storage upgrades,
from automated storage and retrieval (AS/RS) systems to the use of
high-tech coding systems to regularly updated software.
Case and pallet handling is one area of recent
improvements in automation. Westfalia, for instance, has enhanced its
pallet-handling systems. “We are selling more systems with two cranes
in one aisle. The configuration lends itself more for going multiple
deep,” says Labell, noting that Westfalia has developed another
system that stores and retrieves layers in AS/RS systems without the use of
a pallet.
Last year, Vancouver, Wash.-based Columbia Okura LLC,
introduced new robotic palletizers that can handle cases and pails without
the need to change tooling. The robot uses a flexible vacuum-grip system to
adapt to various pail and case sizes, while the small footprint allows the
system to fit into existing production areas.
Warehouse management software is another hot spot in
cold storage solutions. Westfalia recently released the fourth version of
its savanna.net package. “It takes advantage of the dot-net framework
and reduces development time for customization,” Labell explains,
adding that there is a reason why software packages in the storage industry
are so often upgraded. “Usually, warehouse management systems
don’t have hundreds of users and are not really interfacing with a
database, so they need to be upgraded every six months or a year. You need
to stay ahead of the times.”
CSB Systems, meanwhile, has upgraded its own warehouse
management software to allow for greater customization and in turn, tweaked
some of its equipment. “If they need specific requirements to run,
like an ice cream plant that runs in subzero temperatures, we have also
have specific hardware systems,” Pilz says.
An emerging area of automated warehousing addresses
extended-shelf-life (ESL) products, which pose a unique set of benefits and
challenges. “ESL companies are typically producing large lot
quantities, more inventories, to make production runs longer and we can
economically store those in a dense configuration,” Labell says of
Westfalia’s capabilities.
Likewise, DeWeerdt sees dairy manufacturers’
forays entry into the ESL marketplace as key to greater use of automation.
“I think long-life product and improvements in pasteurization will be
a driving force where technologies like what we do become more
meaningful,” he says. “Even if you are just shipping pallets,
which a lot of long-life products can be, once that velocity reaches a
certain point, you can build a facility with a third of the size and
people, and see a much higher return and lower cost.”
As for the future, while some dairies continue to
investigate the implementation of RFID tags in warehousing systems, others
point to that technology’s limitations in reading liquid products and
its comparatively high cost of inventor management. Improvements in
automation for cold storage likely will continue to hinge on maximizing
space while reducing labor and costs per case or pallet.
DeWeerdt, for his part, predicts another potential
development. “I think you will see more voice activation, which is
friendly in the (dairy) environment,” he says. “Voice
activation can make the work force more productive with communication.
Lynn Petrak is a freelance journalist based in the
Chicago area.
$OMN_arttitle="Automatic Decisions";?>