Filling Gaps in The Supply Chain With AGVS And AMRS

BRIAN GAUNT, SR. DIRECTOR, OPERATIONS DEVELOPMENT, DHL SUPPLY CHAIN

Long before the pandemic, the supply chain industry  had begun its move towards digitalization. The  transformation, however, was accelerated by the  effects of the pandemic, such as rapid growth in  e-commerce, changes in consumer behavior, and  the ongoing labor challenges. Digitalization is helping to  reshape processes throughout the supply chain and create  opportunities to reduce costs, improve service levels, and  adapt resources. 

ne of the focuses in digitalization within the logistics  and supply chain industry has been robotics. Many types ofrobots have been developed for warehouses; however, the  automated guided vehicle (AGV) and automated mobile  robot (AMR) are becoming among the most widely used  robots. Computer-controlled and wheel-based, AGVs are  load carriers that travel along the floor of a facility without  an operator or a driver. Their movement is directed by a  combination of software and sensor-based guidance systems.  Meanwhile, AMRs are vehicles that use on-board sensors  and processors to autonomously move materials without  needing physical guides or markers. 

One of the most common applications for AGVs is the  movement of pallets. AGVs can unload and load pallets from  a trailer and put them away in dedicated locations. There  are also AGVs such as autonomous forklifts designed to  put away, retrieve, and move pallets of varying weights and  sizes around the warehouse. Autonomous forklifts operate  with a high degree of speed and precision, especially at pallet  storage racking levels three and above. 

On the other hand, AMRs handle tasks such as picking and  sorting. Assisted picking robots enable warehouse associates  to continually pick without leaving their working zone. They  go to the exact location of the item to be picked and, through  a simple user interface, show the associate details of the  item, such as SKU and quantity. Once the pick is completed,  the robot moves to the next pick, and the associate moves to  the next robot within their zone. Automated sorting solutions  work similarly. An associate scans the parcel and then gives  it to the robot; based on the barcode information, the robot  can determine where the item should be placed within the  warehouse. 

“The first step in the automation journey should be identifying labor-intensive, repetitive tasks that lend themselves well to automation. There are many such tasks that AGVs and AMRs can handle, freeing up financial and human capital to focus on other projects”

With such a variety in applications, the benefits of  deploying AGVs and AMRs across warehouse operations  are quite compelling.

• Increase productivity - At DHL Supply Chain, we’ve  deployed multiple AGVs and AMRs solutions and have begun  to reap real benefits. In one warehouse, utilizing assisted  picking robots, we’ve seen a three-times increase of units  picked per hour. This increase in productivity also reflects  in cost savings. Robots have the potential to operate in 24-  hour shifts increasing the efficiency of existing warehouse  infrastructure. 

• Safety - The robots are programmed to avoid accidents.  An AGV can stop its task if it detects an error or potential  issue, and an AMR can navigate around obstacles to avoid  a collision. Some AGVs, such as autonomous forklifts, may  operate in dedicated areas within a warehouse where there is  little to no human interaction, thereby minimizing any possible  accidents or injuries. 

• Scalable - AGVs and AMRs can be deployed in a warehouse  of varying capacities. This is ideal as robots can be added and  removed as needed, such as peak and off-peak times or where  there may be an unexpected change in the workforce. 

• Response to labor challenges - Since the pandemic, there  has been a drastic increase in the competition for labor. These  robots can handle simple tasks freeing up highly valuable  human resources for activities that require more human  intervention. Robots have also proven to be a tool for employee  retention. In DHL Supply Chain sites with high automation  levels, associates have shared that they feel more engaged and  fulfilled in their jobs and enjoy working alongside the robots. 

• Consistent costs – The robots typically have a fixed, agreed  cost per unit, allowing for more accurate financial forecasting.  With human labor, costs can fluctuate during the year due to  unpredictable market conditions, leading to a need to raise  wages or implement costly incentives.  While these advantages make a valuable case for  implementing robotics in your operations, it is crucial that  you develop a clear plan before you rush into deployment.  DHL Supply Chain’s accelerated digitization program servesas a guidebook on how we nurture and deploy innovative  technology solutions at scale. Five key tenants from this  program that you can use in your plans include:

• Let priorities drive strategy - The first step in the automation  journey should be identifying labor-intensive, repetitive tasks  that lend themselves well to automation. There are many such  tasks that AGVs and AMRs can handle, freeing up financial  and human capital to focus on other projects. 

• Understand the innovation landscape - The supply chain  technology market is dynamic and encompasses hundreds of  companies, which can pose a challenge when determining the  type of technology best fits your operations. At DHL Supply  Chain, we developed a proprietary innovation process that  helps us to funnel the most promising solutions to our proofof-  concept stage before being scaled across our network. 

• Know your risk tolerance – Not every company is  comfortable with being “early adopters”. For the risk-averse  company, you’re better off focusing on solutions with a proven  track record in applications like yours. Regardless of your risk  appetite, it is always best practice to conduct a pilot to see how  the technologies work in real-world applications and minimize  the risk of making significant investments in solutions that  might not be the best fit. 

• Maintain operational flexibility – Improvements in  technology are being made at a fast pace. Be careful about  locking your organization into inflexible technologies as the  innovation market continues to evolve quickly. Luckily AMRs  allows flexibility to implement complementary solutions or  replace one solution with another when additional value can  be realized. 

• Partner for success- Digitalization in today’s supply chain  is an ongoing process that must be executed with discipline  while maintaining the flexibility to adapt to business and  technology changes. Not all organizations have the resources  to manage this. That’s why partnering with an experienced  third-party logistics (3PL) leader like DHL Supply Chain is  often the fastest and most effective way to realize the immense  benefits of supply chain digitalization. 

In today’s environment, gaps in the supply chain have  been exposed by volatility and dramatically shifting customer  demand patterns, presenting numerous risks and challenges  for businesses. Supply chain managers are also acutely aware  that, despite the huge potential that technology holds to solve  problems and transform our lives, there is no digital “silver  bullet” and maybe also additional risks and challenges when  technology is not deployed in a targeted and measured way.  However, for DHL Supply Chain, AGVs and AMRs are one  area in which we are seeing clear evidence of how digitalization  can help fill those gaps and deliver increased efficiency and  growth in the supply chain.