FACULTY OF TECHNOLOGY Warehouse Digitalization, Innovation, and Automation Adam Mirosz 812352A:2 Digitalization and Innovation 2021 University of Oulu October 2021 TABLE OF CONTENTS INTRODUCTION ....................................................................................................................................... 3 1. FEATURES OF AUTOMATED WAREHOUSES .................................................................................... 4 1.1 Automated Warehouses – definition ............................................................................................ 4 1.2 An example of an automated warehouse in Poland ..................................................................... 7 2. OPERATION OF AUTOMATED WAREHOUSES .................................................................................. 8 2.1 Warehouse Management System (WMS) ..................................................................................... 8 2.2 Automated devices in the warehouse......................................................................................... 10 2.2.1 Autonomous trucks for transporting pallets. ....................................................................... 10 2.2.2 Racking systems with stacker cranes. .................................................................................. 11 2.2.3 Automatic shelves. ............................................................................................................... 13 2.3 Problems of automated picking of goods ................................................................................... 14 3. FINAL CONCLUSIONS ..................................................................................................................... 17 REFERENCES .......................................................................................................................................... 19 INTRODUCTION The warehouse is the basic unit of the logistics system. Warehouses existed from the very beginning of human history, of course, they were not as advanced as they are now, but they performed similar functions. The goods are temporarily held in warehouses and sent to further links in the supply chain. The warehouse is a very important place that allows for large and noticeable savings. The introduction of an automation element to warehouse management allows for limiting human errors and long-term savings on employing workers. Thanks to automation, robots can work for longer periods in places where conditions are difficult for people, such as cold stores or chemical warehouses. It also means a significant increase in the level of employee safety. The subject of warehouse automation is a kind of novelty on the logistics market. Automation solutions are still being discovered and introduced to the market. In recent times, more and more companies offer cheaper and cheaper services that will allow companies to automate the warehouse. Closely connected to automation is the digitalization of warehouse documentation and innovation in the equipment department. Thanks to various Warehouse Management Systems it is becoming increasingly easier to automate a warehouse, but it comes with a lot of expenses for the company.1 The purpose of the paper below is to examine the issue of automated warehouses, their characteristics and to discuss the technology used in such places on the basis of literature and internet sources. What are the characteristics of automated warehouses? How do automated warehouses work? What equipment is used in automated warehouses? The research methods used in the paper are inference, document analysis, and synthesis. Literature items used to write the paper: • • • • Azadeh, K., & Koster, R. (2018). Robotized Warehouse Systems: Development and Research Opportunities, Rotterdam: Rotterdam School of Management. Hamberg, R. & Verriet, J. (2012). Automation in Warehouse Development, London: Springer. Murphy, P. & Wood D. (2011). Nowoczesna Logistyka Wydanie X, Gliwice: Helion S.A. Richards, G. (2011). Warehouse Management A complete guide to improving efficiency and minimizing costs in the modern warehouse, New Delhi: Kogan Page. The paper consists of an introduction, two issues discussed, and final conclusions. The first issue discusses the concept of a warehouse, presents the appearance and types of automated warehouses. The second topic discusses warehouse 1 https://www.mecalux.pl/blog/automatyzacja-procesow-logistycznych-przemysle (date of access 22.10.2021) management systems, presents examples of machines used in warehouses, and lists the problems encountered in automating order picking. Issues presented in the article: • • • • What is a warehouse - definition, the division into levels of automation, an example of an automated warehouse in Poland Warehouse management system - presentation of the issue, an overview of the system functions, a list of the most popular systems Devices used in automatic warehouses - examples of devices, descriptions, presentation of the range of possibilities Problems of automation - discussing the challenges they face in the automation of picking goods in warehouses 1. FEATURES OF AUTOMATED WAREHOUSES 1.1 Automated Warehouses – definition When browsing the websites or the literature related to the topic, you can find many definitions that apply to automated warehouses. Automated warehouse - An organizational unit in which the warehouse technological process is carried out using automatically controlled devices.2 Warehouses are a very important part of the logistics chain, thanks to which logistics companies can turn over much more goods while saving money and time. Warehouses allow you to create a supply network where they are central and most important places. The operation of the transport with and without the warehouse is shown in the figure 2 https://www.logistyka.net.pl/slownik-logistyczny/szczegoly/627,magazyn_zautomatyzowany (date of access 21.10.2021) Figure 1.1 Functioning of a supply chain without a warehouse and with one Source: Murphy P., Wood D., Nowoczesna Logistyka Wydanie X, Helion S.A., Gliwice, 2011, p.258 As can be seen, it is much more profitable to transport the goods to the warehouse and then to the individual retailers than to transport the goods directly to the retailers. It is even more profitable to automate the processes inside the warehouse. Thanks to automation, the savings are very large, and the employed staff is less numerous, less exposed to injuries and dangers, and the processes run in a way that can be controlled by IT. There are three levels of warehouse automation, it depends on the degree of application of automatic mechanical devices that are responsible for handling loads and the use of computer systems dealing with making decisions about logistics management. These levels are shown in Figure 1.2.3 3 https://www.mecalux.pl/blog/magazyn-automatyczny-definicja-zalety-poziomy-automatyzacji (date of access 21.10.2021) Figure 1.2 Warehouse automation levels Source: https://mecaluxpl.cdnwm.com/blog/img/poziomy-automatyzacji-magazynu.1.2.jpg (date of access 21.10.2021) It can be seen that as automatic cargo handling increases, so does the automation of logistics decision-making. They are as follows:4 • Low level of automation - activities based on traditional solutions, planning left to managers, employees distribute loads in the warehouse, often with the help of devices, rack systems are used • Medium level of automation - implementation of a warehouse management system (WMS), the introduction of devices supporting the preparation of orders, for example, racks supporting the PTL system • High level of automation - almost every warehouse process related to cargo handling is automated, the main task of the operators is to supervise the operation of devices such as pallet stacker cranes, shuttle trucks, or industrial conveyors When making a decision to automate a warehouse, it is very important to properly analyze the needs, opportunities, and costs. Most often, the starting point is minor modernizations or delicate changes. The important thing to remember is that, as mentioned above, there are different degrees of automation. Not every automated warehouse has to work with minimal human intervention. Different upgrades can be implemented at different levels and to different extent. One of the first but also bigger 4 https://www.mecalux.pl/blog/magazyn-automatyczny-definicja-zalety-poziomy-automatyzacji (date of access 21.10.2021) steps towards automation is the introduction of the warehouse management system (WMS). The prices of such systems are very dependent on the functionalities offered, so on the warehouse market there will be a system for warehouses starting their automation, as well as for those already very advanced.5 1.2 An example of an automated warehouse in Poland Probably the best known automated warehouse in Poland is the high-bay warehouse of the Amica Group in Wronki in the Wielkopolskie voivodship, which is the largest warehouse in the country. It was created out of the necessity to fit as many goods as possible in the smallest possible space. The warehouse consists of 5 automatic stacker cranes operating on 47-meter high racks. In this way, as many as 26,000 pallet places were obtained and the possibility of receiving 120 pallets per hour and issuing 180 pallets per hour. The warehouse handles about 60 transports a day, and during the first six months of operation, the warehouse completed 1,300,000 transport orders. The photo from the construction period of this warehouse is shown in Figure 1.3. Figure 1.3 Amica warehouse during construction Source:https://przemyslprzyszlosci.gov.pl/uploads/2020/02/magazyn-in-progress.png (date of access 22.10.2021) Kardex MLOG stacker cranes were chosen to move materials inside the warehouse from the racks. It was decided to use 3 different types of stacker cranes: two-mast, monolithic and double-pack, they are shown in Figure 1.4. The use of automatic shelving allowed for a narrower internal development, as it was not required to leave a sufficient width for the passage of human-operated trolleys. 5 https://www.netsuite.com/portal/resource/articles/inventory-management/warehouse-automation.shtml (date of access 22.10.2021) Figure 1.4 Stacker cranes used in Amica warehous Source: https://przemyslprzyszlosci.gov.pl/uploads/2020/02/uk%C5%82adnice-1.jpg (date of access 22.10.2021) 2. OPERATION OF AUTOMATED WAREHOUSES 2.1 Warehouse Management System (WMS) The basis for the possibility of warehouse automation is having a warehouse management system. The continuous increase in demand forces logistics companies to invest in WMS. The system is able to coordinate the movements of goods, process data much faster than a paper record and management system and handle a much larger number of orders, which is very important with today's standards in e-commerce industries.6 The introduction of new technologies allows not only to increase competitiveness, but also to meet the constantly growing needs of customers. The advantages of the warehouse management system are7: • • • • • • • • minimization of used paper, possibility of remote supervision, reduction of errors in the selection of goods, detailed information about stock, better customer service, the possibility of expanding the warehouse management system, the possibility of automatic replenishment of goods, better and faster reaction to changes in the warehouse. Choosing a warehouse management system is a big expense for your business, so make an informed choice. It is worth considering choosing the right system from the right supplier. The following are features that should be desired when selecting a system8 6 Richards, 2011, p. 138 Ibidem p. 328 8 Richards 2011 p.145 7 • • • • • • possibility of cooperation with other, already existing systems used in the warehouse, ease of use, availability, modularity and expandability, reporting possibility, the ability to meet special needs. While implementing a WMS into ones warehouse it is very important to follow some basic guidelines, such as: • • • • • • Creating an implementation team that consist of a project manager, warehouise manager, database administrator, on-staff engineer, WMS expert, and go-live team. Instituting change management plans and practices. Forecasting WMS implementation costs and budget. Dealing with warehouse data, for example backups and migration. Training WMS users. Planning go-live steps. On the market right now, there 3 main types of warehouse management systems9: Standalone Systems that are purchased only for their features and just that. They can be used parallelly with already existing solutions or some future ones. These systems usually consist of warehouse operations and inventory management. It should be possible to also track expiration dates, scan barcodes, count cycles, slot, follow putaway, picking, packing and shipping. That is the most basic type of a WMS and is often included with some of the inventory management systems and can be utilized by many industries, not only warehouse management. Supply Chain Modules This is a subcategory of SCM – Supply Chain Management. Thanks to its broad scope it is possible to manage every aspect of the supply chain, from vendor relationships to risk assessment. This kind of a system requires additional investment in forms of supply chain planning applications. While choosing this route it is important to try to minimize overlaps with the existing software. Supply chain modules support the whole management holistically instead of only covering the warehouse. Integrated with ERP This sort of software combines features of many other systems. It takes care of supply chain planning, accounting, customer relationship management, even human resources and much more. There are a lot of ERP system available on the market and it is very important to find a system that includes warehouse management features as 9 https://www.selecthub.com/warehouse-management/3-types-warehouse-management-systems/ (date of access 27.10.2021) well as the others. This system is also the most expensive option, but provides help with a lot of branches of a business. Below is a list of the top ten most rated warehouse management systems according to SelectHub. Ratings were based on system price, customer experience, and service level. The list shows the systems, starting with the best10: 1 2 3 4 5 6 7 8 9 10 Fishbowl Inventory, Oracle Warehouse Managment, Infor Supply Chain Management, JDA WMS, Tecsys, Softeon, Click Reply, Manhattan WMS, HighJump, SAP Warehouse Management. 2.2 Automated devices in the warehouse Automatic devices are not fully effective without a good warehouse management system, which is why it has been described before the devices. Appropriate devices can optimize the work of the warehouse and increase its capacity. Each of the warehouse zones can be automated to a greater or lesser extent. They are as important during the automation and innovation in the warehouse as a proper WMS. Below are some devices that make up an automated warehouse. 2.2.1 Autonomous trucks for transporting pallets. An autonomous trolley is an in-house logistics device. Such devices can be used for impersonal and safe transport within a large warehouse. A general abbreviation for such devices is AGV, from Automated Guided Vechicles. The MiR 1000 trolley, shown in Figure 2.2.1, which is distributed in Poland by ASTOR, will be used as an example. 10 https://www.selecthub.com/warehouse-management-software/ (date of access 26.10.2021) Figure 2.2.1 Automated truck MiR 1000 Source:https://www.astor.com.pl/sklep/media/catalog/product/cache/1/image/736x736/9df78eab3352 5d08d6e5fb8d27136e95/m/i/mir_1000_robot_mobilny_robot_amr_intralogistyka_robotyzacja_astor_0 _2.jpg (date of access 23.10.2021) This trolley is capable of transporting goods weighing up to 1,000 kilograms. This model can be equipped with a pallet lifter, allowing the truck to pick up, transport and deliver pallets autonomously. It is a safe alternative to traditional forklifts which can often pose a safety risk. The presented model is able to work up to 8 hours on a single charge and automatically returns to the charging station, where from 10% to 90% of the battery will be charged in an hour. It can be used in the area of loading and receiving goods.11 2.2.2 Racking systems with stacker cranes. Such solutions can be used in large high-bay warehouses, such as in the Amica warehouse mentioned earlier in the paper. Racks supported by stacker cranes can reach over 40 meters in height. Some are even 200 meters long. The stacker cranes move very quickly and efficiently between the racks, often one stacker crane handles two racks, each on the opposite side, so there is no need to leave sufficient width between the racks for traditional forklifts.12 The stacker cranes available on the market can be divided according to their design: • • • • 11 12 single-column (pole), two-column (frame), passable on rails, mobile, suspended https://www.astor.com.pl/sklep/robotyzacja/roboty-mobilne-mir/107001.html (date of access 23.10.2021) Hamberg and Verriet 2012 p.63 The stacker cranes are able to work 24 hours a day, which significantly increases the throughput of the warehouse. Thanks to the narrow buildings, even more storage space can be used, and the lack of the need for thermal insulation and lighting of the warehouse allows for lower maintenance costs of the facility. Thanks to its structure, it moves very quickly along the x and y axes.13 An example is the Mustang E + stacker crane, shown in Figure 2.2.2, produced by TGW Living Logistics. Figure 2.2.2 Mustang stacker crane Source: https://webmedia.tgw-group.com/var/site/storage/images/_aliases/medium/medienbibliothek/bilder/import/press_pictures/press_releases/201910_mustang_e/mustang_content_1/23862 -1-eng-US/mustang_content_1.jpg?v=1 (date of access 23.10.2021) The stacker crane shown above is a single-column stacker crane. It can reach up to 18 meters in height and carry goods weighing up to 100 kilograms. 14 The speed it can achieve is up to 6 meters per second. Thanks to the ability to work in conditions from -30 ° C to 40 ° C, it can be used in any type of warehouse.15 They are also available in variants with greater possible weight, they are used in warehouses of household appliances or automotive goods. The stacker cranes are used in the storage area of the warehouse. 13 https://www.tgw-group.com/en/services/integrated-systems (date of access 23.10.2021) https://www.tgw-group.com/en/news/press-releases/2019/mustang-e-storage-and-retrieval-machine-ofthe-latest-generation (date of access 23.10.2021) 15 https://isl.pl/tgw-systemy-shuttle-mini-load/ (date of access 23.10.2021) 14 2.2.3 Automatic shelves. An example of an automated device in a warehouse is an automated shelving. Unlike stacker cranes, automated shelving requires human support and is often chosen to automate small warehouses or warehouses for storing small items. The automatic shelves include elevator shelves. The vertical lift rack is an automatic rack in which the stored goods are stored on specially designed trays arranged in two rows of racks (equipped with storage places), between which the lift moves (movement in the up-down direction) enabling the transport of trays between a place of storage in a rack, and a service (consultation) window. The rack is an ideal solution when the stored goods differ significantly in weight and dimensions.16 Such racks allow for safe use and storage of goods without the use of forklifts and lifts. This eliminates the danger that occurs when working at height with a forklift truck. All goods can be at floor level within a moment, from where they can be safely picked up by an employee. The racks are designed in such a way as to make the best use of the usable space. Elevator racks are ideal for storing small goods, which in traditional racks would create free spaces between the rack levels. Thanks to automation, the warehouse staff does not have to undergo additional training in the field of operation, for example, of a forklift truck, which saves the costs incurred by the warehouse owner.17 The system that supports the rack will be able to indicate to the operator the optimal place for placing the goods. He himself will ensure that the weight is distributed evenly. The software used in the rack enables the ongoing control of stock levels. It is possible to set a minimum level for individual stocks, below which the system of automatic notifications reminding about the need to replenish the exhausted stock is activated.18 An example of an elevator rack is shown in Figure 2.2.3 Elevator racks are often used in warehouses where goods are stored 19: • • • • • 16 electronic and electric, chemical and pharmaceutical, machine and metal, automotive, hydraulic https://resolveindustrial.com/asrs (date of access 23.10.2021) https://www.dexionpolska.pl/Produkty/Regaly-automatyczne/ (date of access 23.10.2021) 18 https://promag.pl/regaly_windowe,9420.html (date of access 23.10.2021) 19 https://promag.pl/,10659.html (date of access 23.10.2021) 17 Figure 2.2.3 Kardex Remstar Shutttle elevator rack XP250/550 Source: https://www.kardexremstar.pl/fileadmin/_migrated/pics/Claas_DE_AM_ST_ShuttleXP500_011.jpg (date of access 23.10.2021) The presented automatic rack is able to carry loads up to 560 kg with a width of 4.05 meters. Some units may be equipped with a rack cooling or heating system. The racks are fireproof and can be equipped with a water or gas extinguishing system, depending on the needs.20 Automatic racks are placed in the storage and picking areas. 2.3 Problems of automated picking of goods Fully automated picking of goods is becoming more and more important, among others due to constantly increasing employment costs. Picking of goods most often takes place during night shifts, which can lead to confusion among employees due to fatigue.21 It is also a difficult activity to automate due to the size of the goods that are picked by machines. Often these goods are too small to be handled using conveyor belts. In these cases, the goods are packed in plastic containers that are easier to transport, the example shown in Figure 2.3. Figure 2.3 Plastic Source: Hamberg, Verriet 2012 p.106 20 bin for small objects https://www.kardex-remstar.pl/pl/produkty-pl/wertykalne-regaly-windowe/shuttle-xp-250500.html (date of access 23.10.2021) 21 Hamberg, Verriet 2012 p.105 Order picking is one of the last areas of the warehouse to be automated. Employees completing orders perform many, difficult to automate activities 22: • • • • identification of the goods from among many others and selection of the one that will be the easiest to transfer, picking up one item, moving the goods to another place, placing the goods in their final location All of these tasks are simple for humans, but automating them can be very problematic. The above-mentioned activities must be performed quickly, with as few errors as possible and very efficiently. The type of products transferred in the picking process depends to a very large extent on the type of warehouse in which it is located. They are often very diverse products. Figure 2.4 shows examples of the variety of goods in one of the UK warehouses. Figure 2.4 Examples Source: Hamberg, Verriet 2012 p.108 of goods in a UK warehouse The problem often encountered in automating this process can be divided into two main groups, seeing and grasping. These are the sensing and sensing categories, making them the most difficult operations for the machine. System problems and questions related to gripping23: • • • • 22 23 can the grab arm reach the goods? how to capture the goods in such a way as not to destroy them? has the goods been properly grasped? can the grabbed goods be safely transported from the storage site to a plastic container (destination container)? Ibidem p.107 Hamberg, Verriet 2012 p.109 • How can you put the captured object back in a plastic container (target container)? Problems and questions asked by the system related to seeing goods 24: • • • • is it possible to locate and identify the goods at the storage site? can the selected goods be lifted unhindered (other goods in the container)? what proportion of the goods can it be grasped for? where exactly to put the goods in the plastic container (destination container)? The devices used for the automatic picking of goods are equipped with a camera system and a grab arm. Cameras are able to identify the goods and develop, based on what they see, the optimal route to the goods. Based on the characteristics of the products, they are able to distinguish them when different goods are stored in the same place. Before the implementation of the automatic arm, IT specialists upload to the system many photos of products in the warehouse, thanks to which the system is looking for exactly which product is looking for and exactly where it should grab it.25 In order to efficiently grasp the goods by the frame, grippers made of a series of soft suction cups are often used, which are able to pick up the appropriate product in a non-invasive way. An example of such an arm is shown in Figure 2.5. Figure 2.5 Arm Source: Hamberg, Verriet 2012 p.111 24 25 Ibidem Azadeh, Koster 2018 p.44 with suction cups This way of moving goods is most often used in warehouses with small items. Such an arm moves along the x and y axes, with the tip moving along the z axis. This arrangement allows for quick work and precise placement of goods to their destination. However, this method of lifting goods has certain consequences. The goods must not be irregularly shaped, they should be in flat boxes with a smooth, non-rough texture. Another problem may be the difficulty of recognizing the product by the camera system due to its irregular, light-reflecting structure. Also problematic are goods with a small number of identifying marks for the system, such as those packed in soft plastic bags without markings.26 Another, more technically advanced way of lifting goods is through mechanical arms with hand-like tips. These devices are much more advanced than suction cups, and therefore much more expensive. They can be used to move delicate objects with irregular shapes, or in conditions unsuitable for long-term human work. Such grippers often have gripping portions terminated in a rubber-like or silicone-like material in order to achieve better gripping capabilities. This is a less used solution than the suction cup series, but still a solution worth mentioning. Despite several obstacles and difficulties in the world of automated product picking, it is still a very well-functioning system. The ability to work without interruptions and under any conditions means that more and more warehouse companies are choosing such solutions.27 3. FINAL CONCLUSIONS The aim of the paper was achieved by introducing the general method of operation of automated warehouses. The different levels of warehouse automation are described, along with a description of each type. The features of warehouse management systems were presented, along with a list of the most popular ones. By reading the content of the paper, the reader can learn about the field of logistics related to automated warehouse management. The research problems presented in the introduction to the paper have been solved. The characteristics of automated warehouses have been presented, as well as the division into warehouse automation levels. An example of an automated warehouse in Poland was also shown and its possibilities were presented. The functioning of automated warehouses has been discussed in the first and second issue. Thanks to the example from the first issue, it is easier to accept the material presented in the second issue, which also deals with the functioning of warehouses. The advantages of automatic warehouses over traditional ones are presented in the paper. 26 27 Hamberg, Verriet 2012 p.113 Hamberg, Verriet 2012 p.110-120 The equipment used in automated warehouses has been extensively discussed in the second issue. Examples of some devices were presented, methods of their operation, and also used. The problems encountered in automation are also discussed The analysis of documents was used in point 2.3. The authors of the text conducted very thorough research and compiled extensive records, on the basis of which the book was written, which was used in the paper. Many examples of the automation and challenges encountered in automated warehouses are presented. The synthesis made on the basis of the presented information in the form of a summary of an excerpt from the paper was used in the first issue and at the end of the paper. In the last issue, inference based on the information presented earlier was used. Knowing the positions and forecasts for the changing market of warehouse services, you can observe an increase in automated warehouses, especially in times of a pandemic and many online orders. Forecasts and predictions from many sources say that the number of automated warehouses will increase. The topic of automated warehouses is constantly evolving. Many companies are working on automated solutions that will be able to streamline and accelerate the activities that take place in the warehouse. Some of the solutions presented, a dozen or so years ago, only appeared in films, nowadays they are used every day in many magazines around the world. Changing market trends often force warehouse owners to implement automation in order to keep up with these needs. The increasing number of online orders, which usually consist of a small number of products and the orders themselves are irregular, make automation more and more popular. Another advantage of the machines is the ability to work without interruptions, as well as in smaller spaces. By automating the placement of goods on high racks, you can better take care of the safety of people working in such a warehouse, and it is also possible to make better use of the space. Keeping employees healthy has taken on yet another importance over the past year, especially due to the global pandemic. The fewer people working in the warehouse, the less chance of infection is, and the virus machines neither transmit nor are at risk of being infected. Summarizing, the following conclusions can be made: 1. Automated warehouses and their technology are constantly evolving, and new possibilities are discovered every day. 2. The costs of introducing automation are very high, but thanks to savings on hiring employees, they can quickly pay off. 3. Machines make mistakes much less often than humans, and every mistake leads to the development of even better solutions. 4. Warehouse automation is a logistics space that can see the greatest acceleration in development in the coming years. REFERENCES I. 1. 2. 3. 4. II. Books Azadeh, K., & Koster, R. (2018). Robotized Warehouse Systems: Development and Research Opportunities, Rotterdam: Rotterdam School of Management. Hamberg, R. & Verriet, J. (2012). Automation in Warehouse Development, London: Springer. Murphy, P. & Wood D. (2011). Nowoczesna Logistyka Wydanie X, Gliwice: Helion S.A. Richards, G. (2011). Warehouse Management A complete guide to improving efficiency and minimizing costs in the modern warehouse, New Delhi: Kogan Page. Articles Wyraż, E. (2015). Czynniki wpływające na efektywność zautomatyzowanych magazynów (Nr 3) Poznań: Logistyka - nauka III. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 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