Intralogistics: degree of automation must suit the company

Making SMEs fit for the future

Introduction

The demands on logistics are changing rapidly. Driven by e-commerce, globalization and relocalization, logistics structures are always on the move. Logistics is increasingly becoming not just a means to an end, but a central component of the business model. In this environment, the question of the efficiency of internal logistics arises time and again. Automation is generally regarded as the panacea for increasing efficiency. But is an automated logistics system the right solution for every company?

This white paper provides an overview of the trends surrounding automation in intralogistics and highlights the automation potential for various process steps. The model of different degrees of automation shows that it does not always have to be full automation. The advantages and challenges of automated systems are presented. What role do logistics employees play in an automated system? Can an automated logistics system also be flexible and scalable? Can logistics also be automated at a later date? These and other questions will be answered. The planning process is particularly important for automated solutions. It briefly outlines how the planning phase might proceed and what needs to be taken into account. Rounded off with a project example, the white paper serves as a guide on the path to individual automation for medium-sized companies.

An automated small parts warehouse offers plenty of storage space in a small area

Your contact person

Christian Mertens

Christian Mertens

Key Account Manager
Logistics Systems

T +49 2261 987-502
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Study: Trends and challenges in intralogistics

Fig. 1: Position of the people interviewed for the study and company size

Automation can be a driver for accelerating logistics processes. But what is the current status of automation in German companies? How pronounced is the awareness of the optimization potential and the willingness to invest in corresponding solutions? And what are the reasons for or against automation according to those directly responsible?

Unitechnik has asked: In the survey "Automation in intralogistics" among more than 100 participants from various industries in February 2021, trends and current market activities have emerged. We report on the findings in the next section:

Status quo: manual instead of automated

The various process areas at the participating companies are currently still mainly organized manually. This applies in particular to incoming goods and packaging. The area with the lowest level of automation is loading, which is carried out manually in 85% of companies. The most automated area is currently storage, followed at some distance by transportation and order picking. However, even in warehousing, the proportion of full automation is only around 35%; two thirds of companies rely on partially automated or manual processes. The conclusion: there is a lot of catching up to do.

Fig. 2: Current level of automation by area in the logistics process

Decision: pros and cons of automation

In which areas can companies consider increasing the level of automation? The answer is: mainly in storage and order picking, less so in transportation, incoming goods and packaging. Here too, automation is least in demand in loading, which is currently the most manual area. The reasons for or against (partial) automation of the process steps can be divided into costs and process efficiency. Most participants see it as a suitable measure to reduce operating costs, lower error rates and increase storage capacities. On the other hand, high investment costs and reduced flexibility speak against it.

Outlook: future willingness to invest

There are three main factors in favor of automation: it should save costs, speed up processes and increase quality. But what do companies think automation has the greatest impact on? Quality is the most important target for only 17% of participants. As many as 35 percent see it mainly as a cost reducer. For almost half of all companies, accelerated processes are the decisive factor. 70 percent can imagine investing in further automation solutions in the future - preferably in an automated warehouse and automated guided vehicles. Cobots/autonomous systems and continuous conveyor technology are less in demand.

Fig. 6: Effect of automation

Fig. 7: Willingness to invest in automation

Fig. 8: Investment readiness by technologies

Future-proof processes through intelligent automation in logistics and production

Degree of automation in companies: Potentials and current challenges

Automation has advantages and disadvantages - and that is precisely why it is important to realistically assess a company's level of automation. In many companies, process automation in the area of warehouse and transport logistics is still comparatively low. At the same time, there is a growing awareness of the enormous potential that modern technologies offer to make machines, workflows and the entire production process more efficient.

It is important to understand that automation technology in logistics is not an "either-or" proposition. Companies rarely move between completely manual and fully automated processes. Instead, the individual processes have very different degrees of automation - from semi-automated handling to fully digitally controlled systems.

Well thought-out management of these processes helps to increase efficiency, stabilize production and make optimal use of machines. The more specifically companies deal with automation, the clearer it becomes which technologies can be sensibly integrated in order to remain competitive in the long term.

Advantages and challenges of automation in logistics and production

The automation of production processes brings with it a wide range of opportunities, but also challenges. On the one hand, there are efficiency gains, improved workflows and more precise management of the entire production process. Automation means using machines and systems in such a way that recurring work steps are carried out faster, more reliably and with fewer errors. Modern automation technology also makes it possible to identify bottlenecks at an early stage and adapt the production process flexibly.

On the other hand, a higher degree of automation requires investment, technical expertise and continuous optimization. New technologies have to be integrated into existing systems, which can be challenging depending on the company structure. Nevertheless, the benefits outweigh the drawbacks for many companies: A higher degree of process automation not only increases productivity, but also makes it easier to manage complex processes - from warehouse logistics to series production.

Overall, companies that implement automation strategically and gradually benefit from more efficient production, more stable processes and a noticeable competitive advantage.

Comparison of automation levels in intralogistics

Manual

Manual processes are carried out entirely by employees. They carry out all steps independently.

Aids such as forklift trucks or order picking trolleys support the work. The orders are available in paper form or are displayed electronically.

Assistance

Assistance systems help employees in the logistics center to carry out their tasks more efficiently.

Examples include forklift guidance systems and picking aids such as Pick-by-Voice, Pick-by-Light and Pick-by-Vision.

Partially automated

In semi-automated processes, machines take over individual work steps that are particularly physically demanding.

Examples include carton erectors, carton sealers and strapping machines. This also includes processes in which people work together with machines, such as with cobots or goods-to-person picking stations.

Fully automated

Fully automated processes run without human intervention and are controlled by networked machines.

Storage and transportation are often fully automated, e.g. using shuttles, storage and retrieval machines, AutoStore systems, continuous conveyor technology and AGV vehicles. Automated systems are mostly used in secure areas where access by persons is prohibited. AGV systems are an exception.

Challenges of planned automation

Higher investment costs required

An automated solution for warehouse technology usually requires a higher investment than a manual solution. How high the costs actually turn out to be depends on the degree of automation. Another decisive factor is whether the warehouse is implemented in a new building or in an existing property. However, in view of the operating cost savings (mainly personnel costs) that an automated system generates during operation, the initial investment will pay for itself after a certain period of time. The lower space consumption also plays a major role in the individual calculation.

Less flexibility in the warehouse

An automated logistics system works with defined load carriers. Containers, pallets or mesh boxes have fixed dimensions and a maximum weight. This imposes certain restrictions on the range of articles. The system layout and the selected technology are planned and dimensioned on the basis of certain parameters, such as the number of items, ABC distribution, storage capacity, throughput requirements and response times. If these parameters change significantly, the logistics system may need to be adapted. It is also possible to scale performance in automated logistics systems. For example, the number of vehicles in a shuttle warehouse can easily be increased retrospectively.

Maintenance costs increase

Automation significantly increases productivity in logistics, but also creates dependencies. This is because technology can fail: Trained maintenance personnel are required to minimize the impact on operations in the event of a malfunction. Very few malfunctions are caused by faults in the system technology or software. Instead, misaligned light barriers and improperly loaded pallets are among the classic causes of malfunctions. The expert maintenance technician uses the analysis tools provided by the WMS and the system visualization to quickly rectify faults. If this does not work, the supplier of the system is ready with specialists who can help solve the problem via remote maintenance. It is advisable to conclude a service and hotline contract with them in order to have access to the experts outside normal operating hours. High system availability is a decisive factor for the performance and continuity of internal logistics.

Study and white paper: Automation in intralogistics

You can download the complete study and the white paper as a PDF here.

Automatisierung in der Intralogistik
Studie (German)
Automatisierung in der Intralogistik
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Intralogistics: degree of automation must suit the company
Whitepaper
Intralogistics: degree of automation must suit the company
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What advantages does automation offer?

Efficient use of space

Automated high-bay warehouses can be up to 50 meters high. In relation to the floor space, they therefore have a very large storage capacity. With double or triple-deep storage, several load carriers are positioned one behind the other in the rack. This further increases the capacity of the high-bay warehouse.

Automated small parts warehouses (AKL) generally store containers that are very compact and perform well. Multi-deep storage also improves space utilization here. The best use of space for containers in buildings with low ceiling heights is achieved, for example, by using an AutoStore warehouse.

Reduced operating costs

The higher throughput rate without additional personnel leads to lower unit costs. This effect is even greater in multi-shift operation. In addition, the automated logistics system takes up less space than a largely manually operated intralogistics system.

The smaller space means that running costs for heating and lighting are lower and can be virtually eliminated in fully automated areas. The operator also saves on imputed costs due to the lower space consumption.

Optimized delivery quality

The quality of deliveries is determined by their completeness and packaging quality. Here, automation and assistance systems can contribute to a significant improvement. Picking errors are reduced to a minimum by systematically guiding the picker and checking their work as thoroughly as possible. Once the contents are complete, logistics scores points with the following aspects: a good arrangement of the items (e.g. large, heavy products at the bottom), a carton that fits as accurately as possible, protective filling material, clean gluing and labeling. An automatic carton sealer is particularly helpful here. As a result, the optimized delivery quality leads to higher customer satisfaction and a reduction in the returns rate.

Shorter turnaround times

Speed is playing an increasingly important role these days, especially in logistics. One question that can be decisive in comparison with competitors is: Until when can you accept orders that are to be dispatched on the same day? - In an automated environment, it usually only takes five minutes for a container to be retrieved and arrive at the picking station. This allows the logistics provider with a wide range of articles to offer its customers significantly shorter response times than with a purely manual warehouse. To optimize turnaround times, the entire workflow from ordering to shipping must be consistent and coordinated - including the collaboration between the warehouse management system, ERP system, e-commerce platform and shipping software.

Ergonomics at the workplace

Ergonomics in a logistics center depends to a large extent on the design of the workstations and the tools used. For workstations where material is delivered automatically, there is an opportunity for ergonomic optimization. This applies above all to picking and packing stations. The arrangement of article and order containers as well as the required auxiliary materials is carried out in such a way that distances, movement sequences and gripping heights place as little strain as possible on the employee. It can also be adapted to individual body sizes. An interactive model of a workstation can be created using virtual reality as early as the planning phase of an automated logistics system. This allows employees to be actively involved in the planning process and optimize the system according to their needs.

Improved occupational safety

The greatest accident risk for employees in intralogistics is forklift traffic. This is significantly reduced by automated material transportation, which reduces the risk of accidents. In some sectors, employees are exposed to adverse environmental conditions. These include refrigerated areas, deep-freeze warehouses and warehouses with hazardous substances. Even with the special equipment and in compliance with the prescribed measures, the work is stressful for people. Automated systems can take over many of these activities.

Theft protection and inventory security

When it comes to theft protection, the following applies in automated areas: Controlled security reduces the likelihood of goods being lost in the process flow. Conversely, this also means that no unwanted objects get in - an important aspect for sensitive environments such as airports, for example. In this way, automation protects sensitive products such as valuable consumer goods. However, it is often not malicious intent when goods are removed from the warehouse undocumented. A part is urgently needed elsewhere and the employee forgets to add the withdrawal. Automated systems help to manage stocks correctly.

Employees as a success factor in automated logistics

Integrating logistics employees into overall processes

The employees in an automated system work with technical devices such as touch screens, handheld computers, data glasses and pick-by-voice devices. As a result, they are guided by the technology on the one hand, but on the other hand have to complete more processes in the same amount of time. This requires a high level of concentration, quick comprehension and an affinity for technology. Large screens display the most important key figures.

This gives employees an overview of the overall processes and motivates them to make their contribution to success. They benefit from ergonomically designed workstations, modern work equipment, intuitive user guidance and information on status and success.

Logistics employees in an automated system work with a variety of technical variety of technical devices
The maintenance employee benefits from a freely zoomable system visualization with status for each sensor

Warehouse manager optimizes processes

The warehouse manager's most important tool is the warehouse management system (WMS). It provides him with all the information on orders, stock levels and system status. Using comprehensive analysis tools, he can identify bottlenecks before they become a problem.

It is at least as important to record feedback from warehouse staff and maintenance. This information enables him to manage and continuously optimize operations. He benefits from the use of mobile devices, clear system visualization, bottleneck analysis functions in the warehouse management system and a freely definable key figure monitor.

Maintenance ensures availability

Well-trained employees are required on site to maintain an automated system. Ideally, they should follow the commissioning of the system and become directly familiar with how it works and the possible causes of faults. The task of a maintenance employee is to rectify faults as quickly as possible in order to ensure the highest possible availability of the system. If they are not able to do this themselves, they contact the specialists at the system integrator and act as an extension of the specialists when rectifying faults via remote access. However, the maintenance employee also strives to work preventively. For example, they alert employees to operating errors or improper loading. Overall, maintenance benefits from fault analysis tools, a freely zoomable system visualization with status for each sensor, a consistent control concept and identical automation components throughout the system.

The path to individual automation

The previous explanations in this white paper have shown that automation is not fundamentally right or wrong. Rather, its usefulness always depends on the individual context - the existing structures, the available resources, the objectives and, last but not least, the maturity level of the company's own processes. It is therefore not possible to give a blanket answer as to which advantages and disadvantages are important in a specific case, but must be considered in a differentiated manner.

Planning and simulation of various solutions for a logistics center

Before the investment decision is made, a planning phase is recommended. It can make sense to carry out this planning process with external support. The following reasons speak in favor of this:

  • Market overview - experience with many manufacturers
  • Process know-how - insight into many companies
  • Methodological expertise - from many planning projects
  • Modern tools - such as simulation and virtual reality
  • External view - the chance to question established paths

General contractors, such as Unitechnik Systems GmbH, also offer planning as an independent service. The advantage of such a planning partner is the extensive practical experience gained from a large number of completed projects.

Unitechnik divides its planning process into three phases:

Phase 1 - Basic evaluation
Phase 2 - Concept development
Phase 3 - Implementation planning

Details of the specific procedure can be found on the Unitechnik homepage at https://www.unitechnik.com/logistik-consulting.html.

Fig. 10: Criteria for the award of contracts for automated logistics systems

In this context, it is also interesting to note the results of our survey regarding the criteria for awarding a contract for the implementation of an automated system. The manufacturer's planning expertise was the second most frequently mentioned criterion.

Subsequent automation?

For most companies, the question of investing in an automated solution will arise when planning a new building or expansion. But there can also be good reasons to invest in automation in an existing manual logistics system - for example, an increased capacity requirement for the warehouse. It is important to know here: The differences compared to a new construction project lie mainly in the restrictions of the existing system and the changeover scenario. The latter in particular causes many managers to shy away from retrofitting automation. After all, ongoing operations must not be jeopardized. In this case, it is advisable to commission a general contractor who has a lot of experience in the field of conversion and retrofitting.

Extensive testing of the software is a prerequisite for rapid commissioning - the logistics system is simulated using a digital twin for this purpose (right-hand screen)

The prerequisites for successfully retrofitting a warehouse with an automated system are

  • thorough inventory
  • Individual planning of the appropriate logistics system
  • Planning of the changeover scenario
  • Extensive testing of the software on a digital twin (emulation)
  • Very short commissioning phase of the new system
  • Training and support for employees
  • Extensive testing of the software on a digital twin (emulation)
  • Very short commissioning phase for the new system
  • Training and support for employees

Conclusion

In order to make warehouse processes efficient and economical, more and more medium-sized companies are turning to automation concepts. One of the aims is to increase throughput and speed. However, automation is also a tried and tested means of meeting the challenges of a shortage of skilled workers, shrinking margins and increasingly small orders. Whether and to what extent automation makes sense for a logistics center depends on many factors. It is important to realize that not everything has to be fully automated. The degree of automation that makes sense for a particular company is determined by the advice and planning of an experienced automation specialist - such as a manufacturer-independent general contractor who advises its customers with a completely open mind. Thanks to their extensive experience in the implementation of automated logistics systems, they work with customers to design practical solutions that are guaranteed to work. Our thesis: In the future, (partial) automation will become an important competitive factor for SMEs in order to meet increasing customer requirements in terms of response times and delivery reliability.

Ergonomic goods-to-person picking station

Your contact person

Christian Mertens

Christian Mertens

Key Account Manager
Logistics Systems

T +49 2261 987-502
E-Mail | vCard

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About Unitechnik

Unitechnik Systems GmbH, based in Wiehl, has been one of the leading providers of industrial automation and IT for five decades. Now in its second generation, the family-owned company plans and implements customized systems for in-house logistics and production. Our innovative software concepts are the central building block here. Unitechnik acts worldwide as a system integrator and complete supplier. Unitechnik has been offering logistics consulting as an independent service for many years. As a result, customers benefit from decades of practical experience. Unitechnik's references include well-known companies such as CLAAS, DEHN, Hela, Linde Gas, Nobilia, Soennecken, Testo and Turck.

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