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Food Logistics in Changing Times

Population growth, demographic change and evolving consumer behaviour are among the many factors that present new challenges for logistics operations in the food and beverage industry. It has become obvious that the increasing speed and complexity of logistics processes can only be managed with a high degree of automation. Innovative robot and Industry 4.0 technologies in particular promise outstanding potential for the future, writes Frédéric Zielinski, GM for Swisslog Middle East LLC, Dubai

 

In the past decades, few industries have undergone changes as dramatic as those in the food and beverage (F&B) industry. One reason is the population explosion in some parts of the world, which has created a surge in demand for food and beverage products. Closer to home, this transformation is fueled by something more mundane: people are more consumed by their jobs than ever. A large percentage of the working population simply doesn’t have time to prepare meals from scratch. As a result, more and more people rely on chilled and frozen products or ready-to-eat convenience food.

Other changes are evident on supermarket shelves. Instead of just one type of cheese spread or tomato sauce, there are often dozens of different varieties and flavours. In addition, shopping habits have undergone a fundamental transformation. Consumers don’t just go to the supermarket to simply grab a few items on their shopping list. Instead, they want to be inspired, they want to discover new things, and they want to have a large selection of products to choose from.

Fast availability a necessity

These developments have a profound impact on the way logistics processes are structured. In the past, F&B companies needed logistics systems that quickly and efficiently moved large quantities of products through their distribution centers. Today things are different. Keeping pace with the trends towards ever smaller lot sizes and delivery quantities as well as ever faster availability and shorter product life cycles requires systems that are highly automated and flexible.

As a result of partnering with leading food and beverage companies, Swisslog’s automated warehouse logistics solutions have undergone major changes throughout the years. When designing and modernizing logistics and distribution centres, the focus has shifted to developing innovative automated logistics systems which not only optimize throughput but also offer a number of additional performance criteria. This includes maximum flexibility – a key factor in the F&B industry where, driven by cost efficiency efforts, fewer and fewer stores are eager to fill their warehouse far in advance.

This means that the F&B industry needs logistics systems designed to deliver increasingly smaller order quantities on a firm, fixed delivery schedule. In addition, to meet the growing demand for frozen foods, speed-optimised logistics processes must be operational at temperatures below  20°C. Swisslog’s solution portfolio for the F&B industry is tailored to meet these exact requirements.

Innovative technology for the TC segment

For Apetito, Germany’s leading frozen food company, Swisslog engineered an innovative logistics and distribution centre. The 18-aisle carton warehouse is designed for fully automated interaction with a 2,192m² picking and shipping area, both of which are kept at a constant -24°C. Another special feature of the logistics centre is that the system operates without bins or trays. Between the warehouse and shipping area, the cartons filled with frozen food travel directly on a special conveyor.

Robot solutions on the rise

Many Swisslog customers in the F&B industry already rely on automated guided vehicle (AGV) systems in order to automate transport processes between warehouse and shipping. This means that innovative robot technology is already in use in F&B warehouses. The concept of an Automation Powerhouse as envisioned by Swisslog and robot manufacturer KUKA is taking this idea a major step further: Its defined goal is to deploy up to date Industry 4.0 technologies to make the logistics processes in the F&B industry even more dynamic.

While today most products are still shipped to stores on single-SKU pallets, it is conceivable that in the future loading aids mixed with boxes, trays and plastic containers will become the norm. The reason is that delivering significantly smaller lot sizes to stores is possible only if smaller containers are used.

As a result, the challenge currently being tackled by Swisslog as a provider of intralogistics solutions for the food and beverage industry is to find a way to make order-specific picking in individual containers a reality. AGVs will certainly play an important role in this intralogistics concept. However, it is possible that the AGVs will be accompanied by robots which will handle fully automated picking while the vehicle is en route.

Robot solution for reusable containers

Swisslog’s solution portfolio already includes a robot-based picking system for the F&B industry. At the heart of this solution is the StarRobot module, a circular shelving system surrounding a robot, that is primarily used for picking and stacking reusable containers. This innovative solution is a sign of things to come in the near future: Swisslog and KUKA engineers are already working at full speed to meet the growing demand for faster product availability on store shelves using smart and future – proof technologies.

What is Industry 4.0?

Deloitte explains Industry 4.0 as an Internet of things, services, data and people that will transform the future of manufacturing.  Commentators use the term Industry 4.0 to refer to a fourth industrial revolution with four main characteristics:

1. The vertical networking of smart production systems, such as smart factories and smart products, and the networking of smart logistics, production and marketing and smart services, with a strong needs-oriented, individualised and customer-specific production operation

2. Horizontal integration by means of a new generation of global value-creation networks, including integration of business partners and customers, and new business and cooperation models across countries and continents

3. Through-engineering throughout the entire value chain, taking in not only the production process but also the end product – that is, the entire product life cycle

4. Acceleration through exponential technologies that, while not really new in terms of their development history, are only now capable of mass-market application as their cost and size have come down (e.g. sensor technology) and their computing power has risen massively.

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