How long will your automation last?

WHY AUTOMATE? And how do you convince the company’s board to automate? Experts from the UK retail and warehouse sector tussled over the reasons to automate – and the challenges it presents – at a recent Research Roundtable, hosted by ARMS Innovations.

Participants agreed that companies are adopting automation to reduce costs, enhance efficiency, growth and – top of the list – address labour shortages. But barriers to investment remain in place for small and large businesses alike.

“We installed an automated pallet storage and retrieval system at Coca-Cola because we wanted the stock to be located close to where it was made in the factory,” explains Clare Bottle, CEO of the UK Warehousing Association formerly associate director of warehousing at Coca-Cola.

Martin Brickell, director UKI supply chain fulfilment and physical logistics at Accenture, added that implementing automation enabled scalability and growth: “Operators are interested in what their competitors are doing because they are trying to reduce their unit handling costs.”

Guests agreed that a lack of labour is a key driver for automation in the UK. Many warehouse workers left the UK following Brexit which exacerbated existing shortages.

It’s equally difficult to find engineers. Justine Farrar, head of logistics – strategy and engineering for M&S, hopes to promote from within. “We are constantly looking for talent on the warehouse floor, ascertaining who might be interested in doing an NVQ 1, and giving them automation tasks which can be safely carried out.”

For 3PLs, automation is becoming necessary to reduce costs and address margin pressures. But speakers highlighted the need to remain flexible and focus on value-added services.

Large scale automation may not suit 3PLs serving smaller customers. Some suggested that 3PLs should take a phased approach, leveraging existing infrastructure first before making any major updates.

Preparing to automate

Scott Price, director of KAM Project Consultants, has some advice regarding new automated warehouse developments: “For an optimum start to an automation project, sufficient time should be planned for a scoping stage before you engage with a property developer. With a brief in place, this means the project is on the front foot from the outset in terms of considering options for integrating a customer’s requirements into the developer’s base build specification and programme.”

“There’s a huge list of things you need to understand before you even say the word automation,” says Stuart Ross, who spent a number of years leading Tesco’s supply chain and distribution.

Stuart raises concerns that organisations are not asking key questions before they embark on their journey, including: “What are our channels to market? What are the things we’re trying to solve? ”

Maria Torrent-March, warehousing & logistics strategy director for Iron Mountain, says it’s important to have a diverse group of people in the room when you’re planning. “Start with what problem you’re trying to solve, and try to identify problems at the design stage.”

Team mindset

Guests agreed that to get the best out of your automation, you need to create an innovative mindset within the team. Developing a data-driven culture, with a team which values the importance of collecting and analysing data from automated systems, will lead to new insights and can optimise the total supply chain.

And, as Clare points out, "Once you start with your automation, surely the best way to capitalise on the investment is to grasp every bit of data."

ARMS chairman Joe Morris argues that optimising automation can only be achieved through full access to data about its performance.

Equally important to team innovation, is fostering a culture of continuous improvement, and viewing automation as an ongoing journey rather than a one-time thing. Requirements change over time, so flexible systems and flexible thinking will help to establish processes for its evolution.

“Ensure you have competency in your team to run the automation,” says Steve Thorpe, chief operating officer at ARMS. A major benefit for ARMS’ clients has been the creation of their engineering team on their behalf. 

“ …and involve the team in the entire process from planning to implementation. It’s essential to get their buy-in,” he adds.

Extending the life of your assets

Board approved, team in place, implementation done. So how do you manage the life of assets once they’re installed and how long will they last? 

The guests discussed the longevity of automation systems. Justine Farrar says that if her property lease is 25 years, the automation has to last 25 years. Also, ESG legislation may dictate end-of-life for buildings that contain automation.

Another key issue discussed was component obsolescence and understanding the cost of repairs versus new replacements.

3D printing was seen as a potential solution to reduce costs by making custom parts in-house, rather than relying on the OEM, as well as a way to replace obsolete parts and keep automation running longer.

“I worry less about the parts, I worry more about the WCS,” adds Justine. The room echoed her concerns that WCS’ are very customised, and that long-term support of them needs to be considered.

Joe Morris added that regular obsolescence audits need to be carried out to ensure obsolescence surprises don’t suddenly appear, leaving insufficient time to find a solution. “Parts can become obsolete after 5-10 years, not just after 20 years. If obsolescence is reviewed regularly, you can plan to avoid it.”

Automation was considered no longer useful when parts availability declines, reliability issues increase, the site no longer fits business needs and when the software platform cannot support modern upgrades.

Data collection and insights that enable continuous improvement and predictive maintenance were considered key ways to optimise automation and extend its life.

It seems that successful automation – from concept to decommission – requires workforce readiness, long-term thinking and data visibility. Is success also making it last five years longer than advised? If you still need it, and it’s not stifling further innovation, then that’s a comfortable yes.

For more information, visit www.armsinnovations.co.uk