Dan Ulmamei (left) with Justin Mackedie, Chief Supply Chain Officer for Electus Distribution which stores, distributes, stocks and services Jaycar. Photo: Swisslog
Making the most out of new technology, keeping up with consumer demands, labour challenges and land scarcity are expected to dictate warehouse automation trends in Australia and New Zealand this year.
That’s the assessment of Dan Ulmamei, managing director of Swisslog Australia and New Zealand, a Swiss-based global company and one of the leading logistics automation companies.
“Organisations are increasing investments in proven automation technologies and unlocking new efficiencies through software orchestration and artificial intelligence,” he says.
He identifies four trends likely to shape the industry, especially across Australia and New Zealand. These are:
BROWNFIELD WAREHOUSE AUTOMATION/SCALABILITY
He says that as industrial land prices rise across Australia and New Zealand, particularly in and around major cities, it is becoming increasingly important for companies to make the most of existing space with retrofits, modernisations, or upgrades (brownfield) to new technologies that bring greater efficiencies.
“Upgrading to the latest warehouse technology or software can deliver immediate benefits to energy efficiency, safety, data acquisition and utilisation, and maintenance schedules particularly for equipment nearing end of design life, which may be harder to maintain,” he says.
Scalability (the capability of handling business growth) is “crucial” when considering automation investment, Ulmamei says, because if a business expands, the warehouse will have to handle additional and greater volumes.
Swisslog’s warehouse automation range includes Vectura cranes, a high bay warehouse pallet stacker capable of operating at up to 50 metres. Photo: Swisslog
MFC/HUB-AND-SPOKE STRATEGIES
Micro-fulfillment centres (MFCs) are the next step to a harmonious omni-channel supply chain and have grown in popularity in the last five years, Ulmamei says.
He explains that a MFC model is a form of hub-and-spoke strategy whereby a central fulfillment centre (the hub) stores a large amount of stock then each spoke holds some stock, replenished efficiently from the hub.
The spokes are often stores but can be straight-to-home delivery centres.
Automated MFCs allow companies, with or without a physical presence in an area, to operate closer to customers to reduce transport costs and delivery times. Companies can build a MFC as a stand-alone facility or as part of an existing facility.
SOFTWARE ORCHESTRATION
“For warehouse automation and intralogistics systems to perform at their peak, and deliver maximum return, the right software can make a big difference,” Ulmamei says.
For greenfield and brownfield warehouse automation projects, companies wanting to take operations to the next level will need to use software orchestration, he adds.
ARTIFICIAL INTELLIGENCE AND ROBOTICS
Ulmamei sees real benefits for the intralogistics industry from AI and robotics which are getting smarter and more capable.
“AI-powered systems can enable accurate demand forecasting, predictive maintenance, real-time inventory management, and seamless integration with warehouse automation solutions,” he says.
Sophisticated data analytics tools will provide real-time insights on inventory levels, order patterns, and operational bottlenecks, he believes.
AI will enable data-driven solutions to identify patterns, accurately predict demand, maximise resource allocation and streamline processes while predictive maintenance capabilities will minimise equipment repair times.
“Swisslog is seeing these trends not just across Australia and New Zealand but globally too,” Ulmamei says.
He says sustainability remains a key focus for most Australian and New Zealand companies as they seek to reach Net Zero emissions by 2050.
“Electric automation technologies, like robotics, are energy-efficient, using as little as 0.1 kW per hour, and can be powered by renewable sources,” he says.
