Industrial Automation Magazine India

Digital transformation offers immense opportunities for cost optimisation

Published on : Friday 04-08-2023

Sameer Gandhi, Managing Director, OMRON Automation, India.

The logistics and warehousing sectors are greatly influenced by digital transformation. What are the factors driving this change?
The influence and impact of digital transformation is mainly led by the following factors, which are helping companies in the logistics and warehouse sector to stay competitive, meet customer expectations, and optimise operations:
 
Customer Expectations: With customers demanding greater visibility, transparency, and faster delivery times, companies are looking up to deploying digital technologies to have a better control over material handling, tracking shipments, optimising routes, and providing real-time updates to customers. This is getting translated into usage of advanced technology, such as Internet of Things (IoT), Artificial Intelligence (AI), and Big Data Analytics, to enable efficient supply chain management, predictive maintenance, inventory optimisation, and automation of warehouse operations.
 
Growing E-commerce: The surge in e-commerce has led to a great demand for efficient logistics and warehousing operations. The ever-increasing volume of online orders is motivating the companies to look for digital solutions to streamline processes, improve order fulfillment, and enhance last-mile delivery.
 
Cost Optimisation: Digital transformation offers immense opportunities for cost optimisation. For example, automation and robotics reduce manual labour and improve operational efficiency. Predictive analytics and optimisation algorithms help in route planning, inventory management, and resource allocation, resulting in great cost savings.
 
Global Supply Chain Unpredictability and Complexity: The rising unpredictability and complexity in the global supply chain ecosystem can be managed and controlled more effectively with digital solutions led operational management. Digital platforms and cloud-based systems facilitate collaboration, streamline communication, and provide real-time visibility across the supply chain.
 
What are the technology trends that are revolutionising modern distribution and fulfillment centres?
Here are some of the key trends:
 
Automation and Robotics: Advances in automation and robotics technologies are enabling logistics companies to automate many warehouse processes, such as picking, packing, and sorting. This enhances efficiency while reducing labour costs.
 
Advanced Industry 4.0 based technologies: Internet of Things (IoT): The use of IoT devices, such as sensors, RFID tags and bar code readers, is also being utilised to transform warehouse management by providing real-time tracking and monitoring of inventory levels, shipment status, and inside warehouse activities. This enables companies to optimise supply chain operations, reduce costs, and also enhance productivity.
 
I would also like to mention the AI technologies here such as machine learning, and predictive analytics that hold a huge potential to add value in terms of providing real-time data insights, improving operational efficiencies, and enabling data-led decision-making.
 
Cloud Computing is also enabling logistics companies to leverage the power of big data to streamline warehouse operations. This also offers real-time data, and more flexibility towards scalability while reducing costs.
 
Augmented Reality (AR) makes workers see real-time visuals and instructions on complex warehouse tasks, which is very helpful in reducing training time, improving accuracy and thus increasing productivity.
 
Autonomous Vehicles: Advances in autonomous vehicle technology are a great enabler in improving the last-mile delivery and transportation within fulfillment centers and warehouses. This technology delivers faster, safer, and more efficient transportation of goods.
 
As logistics companies continue to invest in these technologies, the industry is expected to see more transformation in the coming years.
 
How is robotics in general, AMRs/AGVs in particular, supporting these endeavors?
Robotics – specifically Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs) – are playing a significant role in supporting the logistics industry.
 
AMRs and AGVs are being used in warehouses and fulfillment centers to automate material movement and improve operational efficiency. They are designed to autonomously navigate through the workspace including the human workers, carry out tasks like picking and transporting goods, and interact with other systems to ensure seamless operations.
 
At OMRON, we have Mobile Manipulators equipped with cobots and 3D vision. While the AMRs and AGVs provide gross movement and navigations in a warehouse, Cobots that are mounted on these can assist with the final stage pick and place of goods to and from the shelves. With integrated 3D vision based cobots coming into mainstream, we see these cobots being deployed alongside humans and helping in incoming material sorting, packing and palletizing.   
 
Here are some more insights to showcase their contribution towards the logistics industry:
 
Efficient Material Movement: AMRs and AGVs are used to transport goods within warehouses and distribution centers, reducing manual and repetitive workload and also the occurrence of errors. These robots can effectively move items between different areas, such as picking stations and loading docks, optimising the flow of goods and enhancing overall productivity.
 
The workforce can then focus on more value-added activities, such as quality control, and process improvement resulting in improved worker satisfaction and also more strategic allocation of responsibilities.
 
Warehouse Automation: When integrated with various technologies such as barcode scanners, inventory management systems, and warehouse management software, they are able to contribute towards automating processes like inventory tracking, order fulfillment, and also replenishment.
 
Increased Flexibility and Scalability: AMRs and AGVs are flexible and can be easily reprogrammed or redeployed to handle different tasks or adjust to fluctuating order volumes. This holds great use for better optimisation of resources in sync with the fluid market dynamics
 
Improved Safety: AMRs and AGVs are designed with built-in safety features to prevent collisions with humans and objects. They are equipped with sensors, cameras, and obstacle detection systems, ensuring safe navigation and reducing the risk of accidents.
 
Digital transformation of Intralogistics is incomplete without corresponding change in Warehousing as well as Shipping & Distribution. How are these segments performing together?
The integration of digital technologies across intralogistics, warehousing, and shipping and distribution is essential to create the desired level of synergies for driving holistic results and improvements. For example, a single focus on only warehouse automation and digital inventory management might lead to faster order processing, and quicker and more accurate shipments; however without the implementation of digital platforms for end-to-end supply chain visibility; we will not be able to achieve smoother coordination and collaboration between warehouses, transporters, and customers. Hence comprehensive and overarching integration is the key to evolving a business in a holistic and real manner.
 
It should be a comprehensive effort aimed at optimising operations, enhancing efficiency, and meeting customer expectations based on a truly interconnected and efficient supply chain ecosystem which is the need of today's fast-paced and digital-driven business landscape.
 
(The views expressed in interviews are personal, not necessarily of the organisations represented)