Although not as common as during the height of the COVID-19 pandemic, disruptions to local, regional, national and international supply chains remain a concern for manufacturers, their customers and consumers. To overcome these challenges, the logistics process has become smarter, faster and more efficient by automating operations, adopting technology and forging partnerships that build resilience.
Automation of operations
Manufacturers continue to expand the use of automation on the production line and adopt it in the warehouse.
Robotics is often the automation tool of choice for applications ranging from initial entry to pallet unitization. Most consumer packaged goods (CPG) companies (84%) use robotics in their operations, and this number will reach 93% by 2027, as predicted in a report. infographic.
The implementation of robotics can achieve several objectives:
- Reduce work and repetitive tasks
- Increase speed and productivity
- Achieve repeatable quality and consistent product handling
- Improve operator safety
- Minimize waste and human error.
Today’s robots and collaborative robots (cobots) cost less and are smarter and more durable, significantly faster and easier to program and operate, reducing the level of operator skill required for successful deployment . New artificial intelligence (AI) capabilities and accelerated computing power have dramatically accelerated path planning, optimization and execution. This has opened the door to installing robots for applications in processing, primary packaging, secondary packaging and transport packaging, where automation was not previously feasible.
There is a wider range of systems designed to food industry standards and more choices for small businesses that are new to robotics and need systems that can be installed and operated with minimal training. Human/machine interfaces are more user-friendly and often include resident support documentation such as setup and operating instructions, schematics, training manuals, troubleshooting tools, and access to OEM support. Configuring and operating some systems right out of the box is possible without any special training. If the operator is familiar with a tablet or smartphone, programming and reprogramming can be done quickly. This easy programmability is particularly useful in meeting the growing demand for more mixed packaging and smaller volumes.
Modular design allows systems to evolve as needs change. More functional end-of-arm tooling (EoaT) can select a wider variety of shapes, reach deeper, and switch between tools more quickly.
The report predicts that sales of cobots will see particularly strong growth, with usage doubling from 27% in 2022 to 57% in 2027. Functional improvements such as vision, feedback sensors, self-learning , mobility and AI will drive adoption. Systems are becoming more compact and many newer units are designed to handle heavier payloads at higher throughputs. Some systems can move payloads of 30 kilograms or more and automatically switch between standard and collaborative modes. Collecting on-board data allows operators to identify fault trends to improve productivity.
Material handling applications are growing with the development of more flexible autonomous mobile robots (AMR). Equipped with vision systems and 3D LiDAR (light detection and ranging), today’s AMRs can change routes to avoid obstacles and move through tight spaces in dynamic environments. Mapping allows for faster commissioning. Narrow width units navigate tight floor spaces, and AMRs with all-metal bodies are designed to withstand harsh environments. Fast charging capability minimizes downtime.
Despite strong interest in robotics and lower prices, the report notes that challenges remain in adoption, including justifying return on investment and identifying suitable applications. Additional barriers to implementing robotics include supply chain delays and long delivery times; internal deficits (time, skills, budget); calculate total cost of ownership; plan downtime and resources for equipment implementation, training and performance testing; difficulty recruiting qualified and unskilled labor; and OEM support for integration, training and service.
In the warehouse, direct-to-consumer (D2C) business models and labor shortages are driving investments in advanced automation technologies to improve efficiency, quality and productivity, according to another report. Robotics, particularly automated guided vehicles (AGVs) and AMRs, supported by coding, labeling and scanning technology, streamline material handling and help meet the demands of a wider variety of smaller and more frequent inventory management and ordering units.
Building resilience
As manufacturers work to eliminate and overcome supply chain disruptions and meet the growing demand for D2C shipping, they need to know where their products are at all times. Traceability technology, including labeling, scanning, and digitized data capture and analysis, provides visibility into production, inventory, and shipments. This capability helps track a product as it moves through the supply chain, identify potential issues, proactively prevent delays, expedite product replenishment, and automate replenishments.
Equipping labels with scannable barcodes, radio frequency identification tags or near field communication technology, installing associated scanning equipment and implementing data capture and analysis software allows identify the correct package for an order, organize shipping and track the package throughout its journey. travel.
Working together, these technologies can:
- Improving corporate transparency
- Drive improved performance and more efficient integration throughout the value chain
- Enable new economic models
- Support and stimulate innovation and sustainability.
According to the 2023 World Packaging Machinery report from PMMI Business Intelligence, this so-called “smart” packaging can also provide access to information on the raw materials used, facilitate recycling and promote consumer engagement.
Implementing traceability and digitalized inventory management and control in-house offers many benefits, but for smaller businesses or warehouses that are not set up to efficiently accommodate D2C shipments, using a service provider third-party logistics (3PL) or a third-party logistics provider (4PL) The supplier can offer a better business case.
A 3PL provider can perform a range of transportation, warehousing and value-added functions such as customer service, order management, sales support, e-commerce and IT integration. Joining forces with a 3PL partner is especially desirable for CPG companies with multiple factories producing different products. With 3PL support, the manufacturer can ship products from each factory to the 3PL provider, and orders can be fulfilled from there, according to PMMI’s Packaging and Automation in the Warehouses of the Future report.
However, broader support is sometimes needed. When this happens, it’s time to hire a 4PL service provider that can manage the end-to-end supply chain through a 3PL operations network. As a result, 3PL and 4PL distribution accounts for up to 50% of D2C shipments made by CPG companies, and the PMMI report predicts that reliance on these logistics partners will increase.
In fact, the 4PL segment already dominates, accounting for more than 62% of the global logistics market in 2022, according to statistics collected by Facts and Factors. A projected compound annual growth rate of 3.92% through 2028 ensures that the 4PL segment will continue to dominate.
One of the strengths of 3PL and 4PL service providers is the increasingly data-driven nature of operations. This meets the growing demand from FMCG companies for package traceability and ensuring on-time fulfillment. A range of emerging tools are evolving to support traceability and reduce theft, fraud and delivery errors. This includes sophisticated software platforms and smart labels with printable electronics, which replace manual barcode scanning with an automated process.
The benefits derived from a relationship with a 4PL service provider include faster processing, operational efficiencies, cost savings and expedited deliveries. Additionally, the report notes that 4PL service providers can help reduce overhead, labor and inventory costs, eliminate unnecessary procedures, simplify the supply chain and improve business leverage. purchasing through an expanded supplier base.