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Alvey is active in two main lines of
business: palletising and logistics
solutions. Both lines of business
have their unique challenges. Let
us zoom in on what the challenges
are on the logistics systems side.
Our internal definition is ‘Handling,
sorting and transporting goods away
from the place where the goods were
produced.’ The vast majority of goods,
once produced, go through at least
one of these steps: from manufacturing
to (temporary) storage, from storage to
a distribution centre, from this centre
to another centre, and from there to
the customer, who may need to handle
the goods again to deliver it to the final
consumer. Alvey is active in all these
fields
(see page 62, May issue).
The challenges in this activity we
perceive are;
(i) unpredictability of volumes,
(ii) ‘peaky’ volumes,
(iii) multitude of SKU’s combined with
(iv) rapid changes of the SKU’s and
(v) operator skills.
The unpredictability of volumes is
caused by the fact that logistics centres
are suppliers of a service to others
– be it of the same organisation or
to other organisations or consumers.
Therefore, logistics centres are
Challenges of
intralogistics
dependent on what is going on
elsewhere. It is easy to see that this
can be highly unpredictable for internet
shops, as well as in food and drink
distribution, where simple things like the
weather might have a major influence.
In addition, many logistics centres have
volume peaks, which in turn have to do
with things like opening hours of shops
and the need to connect to organised
distribution networks.
If these were not enough, there is likely
to be a very high number of SKU’s to
handle, which tend to change rapidly
as a result of new products becoming
available, new trends in the market and
seasons. Multiple SKU’s typically also
means a multitude of types and sizes
of packaging. From boxes the size of
a cigarette pack to crates the size of a
pallet, all the way to items like exhaust
pipes which are virtually impossible to
transport in an automated way.
With all this complexity there is a need
for operators. These operators must be
highly flexible and trained, and work
under stress and be very accurate.
Mistakes are very costly. However, it
is not normally economical or even
feasible to attract University graduates
for this type of work, so one must
employ relatively low-skilled labour.
How does Alvey respond to such
needs? It all starts with an as complete
as possible understanding of the
business our customer is in. We need
to understand where this business is
going in the foreseeable future, so we
can build a scalable system which is
small enough in the start to safeguard
the return on investment, yet can grow
as and when the customer’s business
expands. Which, usually, it does and
faster than forecast. No two logistics
centres are the same, as indeed no two
Alvey solutions for them are.
A second must is the need to apply the
right technology for the right challenge.
This means that logistics solutions
typically include a mix of technologies,
with some areas fitted with conveyors,
some open or have static racks, in
some areas picking is done by list and
in others by light or by voice. In this
business, ‘one size fits all’ does not exist.
Ergonomics are extremely important for
operators as is user-friendliness. This
includes clear and unequivocal user
interfaces and a multitude of simple
to understand instructions in the form
of boards and stickers. We should not
forget that operator turnover is high,
and some operators may come from
foreign countries and have limited local
language skills. Language skills can
generally be very easily overcome in
a pick-by-voice situation, where the
language can be easily changed.
None of this is enough. The design
of the system and the software must
especially take into account that
mistakes happen. What happens if
an operator removes a box from a
conveyor where he should not, or the
other way round? What happens if an
operator picks the wrong article, or a
wrong quantity thereof? How can this be
detected, and how can it be corrected?
To come up with the right solution there
is only one way: in depth-dialogue,
openness and trust with the customer.
By Maarten van Leeuwen, Managing Director of Alvey Group
44
Logistics Business Magazine | September 2015
Materials Handling Systems