Rigid systems lose value (and workers) in dynamic markets. Andy Williams of Exotec North America explains how modular automation and human-centric systems give warehouses a competitive advantage.
Skypods operate in an enclosed human-free area to reduce safety risks and deliver items to humans at stations. Image courtesy of Exotec.
North America is behind the times in terms of warehouse automation. Most warehouses are entirely manual, and workers may walk 10 miles daily. People do the heavy lifting — literally — which creates safety risks and turns off the emerging, tech-savvy workforce. Warehouses implementing autonomous mobile robots (AMRs), autonomous guided vehicles (AGVs), automated conveyors, robotic arms, pick-and-place systems, and other technology reap the rewards as employees learn to enjoy their robotic companions.
“The part that’s a little bit qualitative and harder to grasp is watching the systems in action and the operators interacting with the robots. They enjoy it — it’s kind of fun. And it’s sustainable so that they can produce more for a longer period,” said Andy Williams, EVP of sales in North America at Exotec. “There’s this gamification element to it — interacting with the robots but also having positive incentives and a safer, more comfortable working environment.”
Stations present items in the “golden zone” to prevent worker injuries and improve productivity. Image courtesy of Exotec.
Though there’s a lingering stigma that robots are taking jobs away, experienced workers are often grateful for the relief, and the emerging workforce expects to use such modern technology in their daily grind.
But sentiments aside, a well-designed, human-centric warehouse transcends generational preferences and ensures businesses can scale according to market and labor fluctuations.
“One of the biggest macro trends is the volatility and uncertainty,” said Williams. “The supply chain challenges and disruptions make it impossible to predict with any great degree of certainty what the future holds.”
As recently as ten years ago, fixed automation systems ruled the roost with large, highly engineered, expensive equipment. With these rigid designs, leaders had to make assumptions about the future, which constrained the value of their investments.
Today, the goal is to be as flexible and adaptable to change as possible — keep moving equipment simple and let intelligent software adjust the system as needed.
“We’re working with one of the world’s biggest consumer packaged goods (CPG) companies right now, and they want to serve all their businesses from the same facility,” said Williams. “The ability to protect against future volatility is very important to provide a great environment for their staff. Also, the system we’re working on is in a 500,000-square-foot facility. With the performance we’re achieving and our ability to meet the throughput and storage for the different businesses, we’re looking at a $75 million investment with really reduced capex. If we took that same system design and rewound the clock ten years, we would have needed a 1.5-million-square-foot facility and probably a $250 or $300 million investment, in addition to having all the constraints and playing Nostradamus for the future.”
With a modular, highly adaptable system, the CPG company can locate the facility close to its manufacturing, positively impacting its supply chain and mitigating environmental strains.
Modular racks leverage vertical space and help warehouses scale. Image courtesy of Exotec.
“The largest companies, and certainly many more, recognize this as a competitive advantage. It’s a sustainable one that can ultimately lead to advantages over competition and higher profits,” said Williams.
But the benefits aren’t just for large companies that nurture in-house robotics expertise. Any warehouse experimenting with or ready to take the plunge can begin the automation journey with modular, third-party systems. And if they don’t try, they’ll likely be consumed by larger companies that do.
“Traditionally, it’s been ‘I can have an automated or manual warehouse — let’s evaluate the ROI.’ That discussion has changed dramatically to ‘This enables a whole new suite of capabilities — I can dramatically change my supply chain,’” said Williams. “Companies that really understand the impact are trying to move as fast as they can to implement it.”
In the past 20 years, warehouse automation technologies evolved out of necessity in regions such as Europe. Their advancements have now sparked a need for North American companies to up their game.
“For our evaluation, when we look at the market today compared to then, the market size in North America is roughly the same as all of Europe combined. And we will see North America accelerate and overtake Europe in the next five to ten years by a substantial margin,” said Williams.
Though a confluence of factors has accelerated the rate of robotics adoption, North America remains at the lower end of the curve for now. And those trying to get ahead know that designing automated systems for human-centered environments will be a differentiator.
“We use a combination of black, white, and signature bright teal color to enhance the workers’ experience,” said Williams. “If you’ve been in these environments in the past, it’s so drab and dirty. When you go to our systems, it’s bright colors and very clean, in addition to being ergonomic and more productive. So, having robot stations and storage in stark contrast to the gray-beige palette of the past not only aids in the aesthetic appeal of the environment, but there’s certainly a safety aspect to it as well.”
Warehouses can add more Skypods as demand increases without changing production processes. Image courtesy of Exotec.
Originally founded in France, Exotec entered the North American market in 2020, ready to take on the world’s largest economy. Currently, it has more than 20 customer sites across the U.S. and Canada for leading brands, including Gap, Ariat, and Decathlon. The North American market is expected to represent one-third of Exotec’s global business by 2025.
“With the projects we’ve already done, we’ve saved workers from walking nearly 30 million kilometers. It’s very substantial,” said Williams. “It’s a human-centric work environment that’s more sustainable and enjoyable. The people look forward to coming to work and feel respected because the companies have invested in technologies to help them.”
Exotec
exotec.com
Filed Under: NEWS • PROFILES • EDITORIALS, Warehouse automation
