Industrial Automation Magazine India

Embracing digital transformation has become a necessity for businesses to remain competitive

Published on : Friday 04-08-2023

Sandeep Chakraborty, Vice President – Sales & Marketing, Engineering Sales, Daifuku Intralogistics India Pvt Ltd.

The logistics and warehousing sector are greatly influenced by digital transformation. What are the factors driving this change?
Digital transformation has revolutionised the logistics and warehousing sector, enabling the sector to take giant leaps towards implementing the best technologies which can drive innovation and growth. One of the major factors is the exponential growth of the e-commerce sector which has necessitated the adoption of digital transformation to meet the demand for faster deliveries, seamless order fulfilment and real-time tracking. Customer expectations have also evolved, with a focus on real-time visibility, flexible delivery options, and exceptional service, prompting companies to leverage digital technologies to enhance customer experiences. Digital transformation facilitates end-to-end supply chain optimisation and improved communication and visibility through technologies like IIoT, RFID. The abundance of data and advanced analytics tools empower businesses to make data-driven decisions, optimise operations, and reduce costs. Embracing digital transformation has become a necessity for businesses to remain competitive and unlock new growth opportunities in the logistics and warehousing sector.
 
What are the technology trends that are revolutionising modern distribution and fulfilment centres?
Key industry trends which are revolutionising modern distribution and fulfilment centres include the adoption and deployment of robotics and automation, which streamline the tasks such as order picking and sorting, reducing the need for manual labour and speeding up the operations. Artificial intelligence (AI) and machine learning (ML) algorithms optimise inventory management, demand forecasting, and route optimisation, leading to improved efficiency and cost savings. Internet of Things (IoT) assists in providing real-time data on inventory levels, equipment performance, and environmental conditions, enabling predictive and proactive maintenance and enhanced supply chain visibility. Advanced Warehouse Management Systems (WMS) integrate various functions, such as inventory management and order processing which assists in achieving On Time order fulfilment, real-time visibility and seamless coordination across the supply chain. Data analytics and other modern tools offer valuable insights into demand forecasting, inventory optimisation, and customer preferences.
 
How is robotics in general, AMRs/AGVs in particular, supporting these endeavours?
Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs) are vital in supporting the modern distribution and fulfilment centres. AMRs and AVGs are designed to automate repetitive and labour-intensive tasks. They can efficiently navigate through the facility, pick up and transport goods, and perform multiple materials handling operations thereby improving overall operational efficiency.
 
Unlike fixed automation systems, AMRs and AGVs can be easily programmed and reprogrammed according to changing needs. They integrate well with existing infrastructure and systems, allowing warehouses to scale operations without major hassles.
 
Conventional or Collaborative Robots in the warehouses are equipped with safety measures such as sensors, cameras, and anti-collision systems, enabling them to operate safely alongside humans. Also, by automating repetitive and physically demanding tasks, they reduce the risk of injuries and create safer working environments. Overall, robotics, specifically AMRs and AGVs, enhance efficiency, flexibility, safety, and accuracy of operations in distribution centres.
 
Digital transformation of Intralogistics is incomplete without corresponding change in Warehousing as well as Shipping & Distribution. How are these segments performing together?
Digital transformation and modernising warehouses goes hand in hand. The digital transformation of intralogistics encompasses warehouse processes, shipping, and distribution. This is driven by technology and automation which enhances efficiency, visibility, and ultimately, customer satisfaction. In warehousing, automation solutions like Automated Storage and Retrieval Systems (AS/RS) and robotics improve capacities, efficiency, and workplace safety. Warehouse Management Systems (WMS) integrated with IIoT devices provide real-time data for various business decisions such as inventory management. Digital transformation in shipping and distribution brings significant improvements. Transportation Management System (TMS) leverages AI, machine learning, and predictive analytics to optimise routes, carrier selection, and load consolidation, resulting in reduced costs and improved delivery times.
 
The convergence of digital transformation in these segments leads to synchronised operations, increased visibility, and improved performance. It allows end-to-end supply chain optimisation, faster order fulfilment, cost reduction, and enhanced customer satisfaction.
 
Successful transformation is crucial for organisations to remain competitive in a rapidly evolving business landscape.
 
What are the software platforms available that facilitate this transformation?
There are several software platforms available that facilitate the digital transformation in the logistics and warehousing sectors. These platforms provide comprehensive solutions to optimise operations, enhance visibility, and streamline processes. Few notable software platforms include:
• Warehouse Management Systems (WMS): WMS are software applications designed to manage and optimise warehouse operations. WMS provides functionalities such as inventory management, order processing, receiving and put-away, picking and packing, and shipping. These systems streamline workflows, track inventory levels in real-time, improve accuracy, and enhance overall operational efficiency.
• Transportation Management Systems (TMS): TMS platforms focus on optimising transportation and logistics operations. They offer features for route planning, carrier selection, load optimisation, and freight management.
• Enterprise Resource Planning (ERP) Systems: ERP platforms integrate various aspects of business operations, including warehousing and shipping. They provide a centralised system for managing inventory, orders, financials, and supply chain processes.
• Supply Chain Management (SCM) Platforms: SCM platforms offer end-to-end solutions for supply chain optimisation, including warehousing, transportation, demand planning, and supplier management.
• Industrial Internet of Things (IIoT) Platforms: IIoT platforms enable connectivity and data exchange between devices and systems. They play a crucial role in capturing real-time data from sensors and devices deployed in warehouses and distribution centres.
 
These software platforms provide the necessary tools and functionalities to drive the digital transformation in logistics and warehousing sectors, enabling organisations to optimise their operations, improve efficiency, and achieve better customer satisfaction.
 
How is 5G impacting the logistics and warehousing scenario given the importance of connectivity in IIoT based automation?
The advent of 5G technology will have a significant impact on the logistics and warehousing sector, revolutionising the way connectivity is established and leveraged in Industrial Internet of Things (IIoT) based automation.
 
The ultra-fast and high bandwidths offered by 5G technology will enable real-time data exchange in very limited time thereby enhancing the efficiency and effectiveness of automation systems in logistics and warehousing. With faster and more reliable connectivity, IIoT devices, such as sensors, robots, and autonomous vehicles, can seamlessly communicate and share data, leading to improved operational visibility and decision-making.
 
In logistics, 5G technology will enable enhanced tracking and tracing of goods throughout the supply chain. Real-time connectivity allows precise location monitoring ensuring optimal storage and transportation of goods. This reduces the risk of product spoilage; enhances safety and improves overall supply chain visibility and efficiency.
 
In warehousing, 5G will enable quick deployment of smart technologies, such as Automated Guided Vehicles (AGVs) and Robotic systems, which rely on real-time data exchange for precise coordination and navigation. These advanced automation systems can adapt to changing requirements and optimise warehouse processes with minimal human intervention, resulting in improved productivity and reduced operational costs.
 
Overall, 5G technology is a game-changer for the logistics and warehousing sector, empowering businesses with ultra-fast and reliable connectivity and enabling the seamless integration of IIoT-based automation.
 
(The views expressed in interviews are personal, not necessarily of the organisations represented)

Sandeep Chakraborty is the Vice President – Sales, Marketing & Engineering Sales at Daifuku Intralogistics India Pvt Ltd (a subsidiary of DAIFUKU Co, Japan). Sandeep has more than 25 years of experience in the field of factory and intralogistics automation, warehouse automation, packaging and end of line automation and robotics.