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Advanced Analytics in Manufacturing Logistics

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Data is a crucial part of manufacturing logistics. But how does one go beyond inventory management, order fulfillment, and transportation metrics to gain deeper insights? Advanced analytics allow a company to delve deeper into its manufacturing processes, identify risks and opportunities in its supply chain, and turn information into strategic decisions. Guided by real-time data, Internet of Things (IoT), artificial intelligence (AI), and GPS, advanced manufacturing analytics are changing the way businesses monitor, improve, and streamline their operations. Let us deep dive into this interesting topic.

 What are Advanced Analytics?

Advanced analytics are more precise metrics and data-gathering methods that enhance supply chain visibility and performance. It relies heavily on big data, machine learning, and AI to deliver faster, more accurate insights to managers. Through advanced technology, companies are able to identify trends and risks more easily. With a more agile framework, logistics managers are then able to optimize their supply chains and enhance their strategies via a digital supply chain to deliver faster, more cost-effective results to their customers.

Some ways a company might use advanced analytics in manufacturing logistics include:

  • Predicting consumer behavior and forecasting demand
  • Monitoring and reporting market trends and economic turns
  • Enhancing overall equipment effectiveness (OEE) through root cause analysis
  • Improving time management through historical data analysis
  • Using real-time data to enhance quality control and regulatory compliance

Boosting Supply Chain Efficiency

Implementing advanced analytics into supply chain management ultimately leads to more informed decisions that yield better outcomes. One of the biggest struggles logistics managers face is justifying their supply chain decisions to executives and shareholders who think from an ROI standpoint. Data talks, and when a logistics manager can clearly illustrate the benefit of their strategies to leadership, the entire company benefits. Ultimately, advanced analytics create a more controlled supply chain for processes such as pipe fabrication Australia. Traditionally, companies that lacked substantial vertical integration were limited to their suppliers’, vendors’, and distributors’ own schedules. But with more refined technology and data, they can begin to optimize their own processes and communicate their needs more effectively with their supply chain partners.

Data Integration and Data Structures

Data integration can have technical challenges that ultimately delay management from implementing newer technologies into their supply chain. Data integration ultimately gives the steel fabrication Australia team a unified view of all the data it collects, ensuring the manufacturer is able to glean as much insight as possible from the findings. Understanding these challenges ahead of time can help ease doubts or wariness from executives, develop a strategic implementation plan, and start leveraging data effectively from day one. When one combines various types of data, such as IoT, AI, and quality management systems (QMS), synthesizing all that information into one cohesive format can feel overwhelming. Companies must consider the various data structures, formats, and protocols that each system uses, then determine how they will effectively merge them into a cohesive analytical framework. Working with a skilled logistics company is the best way to ensure that manufacturing data converges at all the right points. This gives the manufacturer the greatest insight into operations and provides maximum value.

What’s Next?

Predictive analytics will leverage the power of adopting AI in supply chains to generate optimal benefits. Businesses that use predictive analytics will be able to mitigate risks more effectively, develop more effective optimizations, and create a more efficient supply chain. Due diligence is essential to ensure that a manufacturing company covers all of its legal bases before integrating new data collection or analytical technologies. For many businesses, “advanced analytics” may sound like an intimidating concept, but in reality, it is the process of leveraging the best technology available to enhance what the manufacturer already does well. Through advanced manufacturing logistics, companies are able to transform their current data into meaningful metrics that go from being mere observations to actionable insights.

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DHL Welcomes Electric Prime Mover Truck

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DHL Supply Chain has added a new electric prime mover truck to its fleet, the first of its kind on the road in New South Wales. The Volvo FM (Forward control medium height cab) electric prime mover will run 10-hour shifts to move larger consignments between DHL’s western Sydney warehouse sites and its transport hub. The 6×4 configuration features six batteries with 540 kWh (BOL) providing up to 666HP with 300-kilometre range and hauling up to 46 tons while emitting no carbon or particulate emissions from the vehicle. It adds to DHL’s growing Electric Vehicle (EV) fleet, which includes Volvo and SEA Electric light duty trucks and Terberg yard tractors, to provide zero tailpipe carbon emissions transport services and provide fabrication opportunities in the electric vehicle space. Combined with DHL’s Green Star accredited warehousing, featuring rooftop solar arrays and sustainable building features, it minimises total carbon emissions across logistics operations.

In a major boost to steel fabrication Australia, DHL will also add 10 electric vans before the end of 2024, for delivering goods to retailers. DHL Supply Chain Senior Vice President of Transport, Bill Rolfe, said the company’s Green Transport Policy is driving EV acquisitions worldwide. “We are excited to continue with our rollout of EVs to pursue our global targets. While these targets are a part of our Strategy 2030 to be the ‘Green Logistics of Choice’ ultimately, they are about providing the best outcomes for third-party logistics customers who are relying on the sustainability prowess of their suppliers to enable more streamlined mandatory emissions reporting,” Rolfe said. “In addition to the lack of tailpipe emissions, these vehicles are also improving the amenity of the areas they pass through with no air pollution and relative silence, while also making for a safe working environment for our drivers.”

Volvo Trucks Australia Vice President Tom Chapman believes this proves fossil free transport is viable. “Partners such as DHL are proving that fossil free transport is not only possible, it is viable. It is businesses such as this that are paving the way towards a sustainable transport future and Volvo Trucks are proud to be a part of that journey,” Chapman said. DHL Group recently announced ‘Green Logistics of Choice’ as a new fourth bottom line, embedding sustainability into its Corporate Strategy 2030. Supported by a clear roadmap with transparent, time-bound targets and KPIs integral to the Group’s strategic planning and decision-making processes, DHL aims to continue assisting its customers on their decarbonisation journey by remaining the frontrunner in low-carbon logistics operations for industries such as mining plant and equipment Australia.

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Minimising Warehouse Costs Using Density and Robotics

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Just like any other property, the cost of warehousing is subject to the whims of supply and demand. AutoStore Business Development Manager for Australia and New Zealand, Julian Brancaccio said vacancy rates across commercial and industrial warehousing in Sydney are down to 0.04%. What makes that figure scarier is that it refers to stock that has already been built and the majority already leased. “We’re seeing rate rises of between $200 per square meter all the way up to almost $400 per square meter,” he said. “Customers are asking, ‘How can we get denser? Can we use conveyor systems to increase efficiency? How can we lower the price per square meter by making everything denser?’ That is one of the biggest trends we have seen. “Labor costs for processes like pipe fabrication Australia  is another huge trend that’s forcing organisations to automate and reduce footprint at the same time.” One of the options for denser warehousing is cube storage. “Some solutions currently in the market are dense, however their racking only goes up to two and a half meters, so anything above is a wasted opportunity,” Brancaccio said.

When it comes to automation in intralogistics, robotics is the way forward. “Automation is known, but robotics is new. It is a wave that has come in the last five years to disrupt the market and provide a cheaper alternative,” says Julian. “There’s a lot of moving parts to this solution. For example, there are a lot of vendors that do not have a significant partner network to be able to support the structural steel fabrication products they have in the region. That is where a lot of these kinds of vendors and solutions fall short. They are not able to get their solution into the market and set up a reference site. “It’s one thing announcing a partnership with an integrator, but it’s another thing to have a reference site people can see. There is a lot of interest in terms of what the solutions are and how they work, but the customer wants to know who’s the edge?” Brancaccio believes an AutoStore solution can deliver ROI in just a few years. “If you fulfill 3000 Bins per day as an example, it takes around 15 people. For us in an AutoStore system you’re probably looking at two people to pick 3000 Bins because everything becomes automated,” he said.

AutoStore is addressing the local market needs through Bin presentation. “There’s two things you’ve got to look for in a solution. There’s Bin density, how many Bins can fit on one square meter, and robot density,” Brancaccio said. “We’re denser and lower, which helps with fire compliance as well. AutoStore’s Bin density is 40 Bins per square meter which makes it the densest solution on the market. “The robot density of other solutions is usually around one robot per 50 square meters. On 1000 square meters, there are around 20 robots to fit that space and they can present around 30 Bins (plastic tubs) per hour. Comparatively the AutoStore system, on 1000 square meters we can have around 166 Robots and present 30 Bins per hour. Because a warehouse footprint is so expensive, AutoStore can help scale using that to get more out of it. Robot density is key.”

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AI Adoption in Supply Chains

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Modern supply chain management is experiencing revolutionary technological changes that transcend traditional production methods. Software companies are pioneering these changes by developing AI solutions for areas of concern and ensuring adequate supply chain operations. From planning production schedules and managing inventory to enhancing demand predictions and optimizing shipments of products such as pressure vessels, leveraging AI can refine tasks across the board. Applying this level of innovation guarantees efficiency, reliability, and accuracy, permitting staff to focus on transforming the AI’s findings into meaningful action steps. This blog delves into this exciting topic in greater detail.

Transforming Demand Forecasting

Growing geopolitical tensions cause supply chain companies to face heightened levels of uncertainty, especially when predicting upcoming product demands. Advanced AI algorithms analyse large datasets in real time to anticipate inventory and market changes and helps in future-proofing supply chains. They use current market trends, historical consumer patterns, and economic factors. Utilizing these results can prevent stockouts and overstocking, which improves your company’s cost-effectiveness. It can also streamline the shipment process and respond faster to setbacks, mitigating issues of timely deliverables to customers. Traditional methods primarily focused on past performances rather than future ones, but AI specializes in predictive analytics across all industries, not just supply chains. AI models are simply more agile and adaptable than traditional analytics, which require frequent manual updates. With an ever-evolving system constantly teaching itself to perform sufficient calculations, supply chain experts can rest assured that this technology is not overlooking complex data patterns.

Planning and Optimization

Depending on a company’s specific needs and areas of improvement, AI can significantly impact supply chain planning and overall optimization. AI systems can track material and warehouse capacity limits to meet demands. They can also prioritize tasks like order fulfilment, inventory and storage updates, risk management, and supplier communication. One transformative approach is utilizing AI automation. Mundane, manual tasks like data entry are not always quick and easy. These tedious but necessary duties consume much of employees’ time, taking their attention away from critical projects. Substituting human intervention with AI. such as introducing AI video surveillance, to perform these assignments could allow the team to devote more time to planning and structuring.

Barriers to AI Adoption

Arguably, one of the most significant barriers that prevent supply chain companies from using AI systems is the lack of AI knowledge within an organization. It is a classic case of “blissful ignorance,” which is why it is essential to start educating leaders on the powerful advantages of implementing AI. Highlighting benefits like improved cost-effectiveness, optimized proficiency, and reduced resources could lead them to embrace the latest evolution of workplace technology. Bergur Thormundsson, a research expert with Statista, published a survey where 600 senior technology personnel at supply chain companies were asked about AI usage. Roughly 38% said integrating AI into their operations will be critical by 2025. Augmenting different roles could result in employees carrying out new hybrid structures, improving productivity, and acquiring more skills, which could increase growth opportunities. For all these reasons, organizations must overcome barriers when they’re initially trying to apply AI-driven solutions.

What’s Next?

Supply chain companies underwent many production and inventory setbacks within the past five years. Labor shortages, geopolitical conflicts, cybersecurity, unreliable suppliers, and fluctuating demands of pipe fabrication Australia were some of the most prevalent obstacles. AI solutions are combatting these disruptions. In cybersecurity, for example, AI algorithms can detect and prevent potential cyber threats by optimizing data security. They also track usage patterns to enhance data encryption and identify fraudulent activity. AI adoption is becoming a standard within supply chain management, and its integration will not slow down anytime soon!

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Lean is the Future of Manufacturing

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Lean, a system that reduces production and response times from suppliers to customers, is continuing to transform the manufacturing industry through its focus on efficiency, productivity, and the reduction of waste for producers and suppliers of goods. Amazon, Toyota, and other major corporations are strong proponents of applying the principles of lean to their business. To satisfy a customer base that wants it “now,” Amazon took all their processes apart and found myriad ways to eliminate waste, which for lean manufacturing can mean everything from reevaluating the materials required for producing and shipping a product, to the processes used to get that product from design to customer. Reducing wait times and eliminating extraneous handling and labour through lean improves the bottom line. The capital saved can then be reinvested in new and better products and processes to further improve the customer experience, which in turn fuels business growth.

Out With the Old

The lean manufacturing journey begins by recognizing that the old way of running operations may be holding the company back, and potentially making one less competitive in the marketplace. A heavy steel fabrication company needs to be willing to invest the time and capital needed, or it will result in a failed effort. Once the budget has been set, spend some time identifying areas of waste. This can include wait times, unnecessary processing, overproduction, human movement, excess inventory, and task complexity. Next, set expectations within the company that innovative change such as work sampling is coming, and how everyone will benefit from the forthcoming improvements.

Build a New Pyramid

The first step is to reevaluate the current work pyramid. In traditional manufacturing and structural steel fabrication organizations, the base of the pyramid typically consists of line workers, while the company’s CEO and executive team sit at the top. The new, “lean” way of thinking flips that pyramid, so now, the most important people—those who will be responsible for the company’s continuous improvement—are the line workers. Acceptance of cultural change is important, else manufacturing processes such as heat induction bending services will not be successful. One will end up wasting a lot of money on some shiny new tools that ultimately will not deliver what was being expected. But if one can get over that hurdle, the rest is smooth sailing by comparison.

Hire a Good Coach

To identify the cultural changes the manufacturing organization is going to need to make, it is essential to hire a qualified coach. Comparable to a fitness trainer, a good coach stays for six months or more to teach everything required to know to get into lean shape. They will evaluate the current organizational structure, identify areas of inefficiency, teach teams ways to recognize the importance of communication, coach them through the business transformation, and get everybody working on a continuous improvement path.

Prepare for the Journey

Be ready for the long haul. Once the inefficiencies are identified, develop new repeatable processes designed to eliminate that waste. This includes creating revised roles and responsibilities and ensuring everybody knows their place in the new organizational structure. From there, move on to value stream mapping, where every step of a given process is diagrammed including updating standard work roles and responsibilities for everyone within the company. And do not forget to incorporate suppliers into the new processes. Their symbiotic cooperation will help to strengthen the existing relationship and further propel manufacturing operations. And lastly, strive for continuous improvement, because doing so will uncover never-ending opportunities to improve the company.

Closing Thoughts

Lean manufacturing is a paradigm shift. During that transformation, manufacturers and steel fabrication Australia will find that some employees are set in their ways and will question the need for change. However, once the new organizational mechanics are in place, expect employee morale to improve significantly, because everyone at all layers in the company will feel like valued contributors, which leads to improved productivity. However, it is important to understand that lean manufacturing is not something that happens overnight. Remember, this is a journey, not a sprint!

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The Role of Conveyor Systems

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Warehouses are the lynchpin of the logistics industry where efficiency, productivity and safety intertwine. However, in many warehouses there is still a reliance on manual labour and heavy lifting which can put workers at risk, especially for large weight products such as pressure vessels. This is where conveyor systems can completely revolutionise a warehouse operation, alleviating the strain on staff and improving productivity and efficiency. With the right powertrain, a manufacturer will not have to worry about maintenance and repairs for a long time. This blog delves into this topic in more detail.

Applications of Conveyor Systems

There are various roles conveyor systems hold within the warehouse logistic space and therefore numerous reasons that they are considered a vital part of any automation project. These roles include:

  • Material movement – The most obvious role is the movement of goods within the warehouse without the need for manual labour. This can reduce the amount of time spent meaning the processes become more productive
  • Continuous operations – Conveyor systems, unlike their human counterparts, can work continually 24/7 without getting tired, slowing down or risking injury. This enables a smooth, organised, and consistent movement of inventory, minimising bottlenecks in the workflow and reducing manufacturing cycle times.
  • Space optimisation – Conveyor systems are able to utilise both vertical and horizontal space effectively, therefore maximising warehouse capacity. This allows for better organisation and storage by optimising the layout for improved accessibility.
  • Automation integration – Conveyor systems integrate seamlessly with other automation technology. They can be synchronized with other machinery (such as mining plant and equipment) and sorting systems, contributing to a fully automated warehouse environment with minimum inconvenience.

Benefits of Conveyor Systems

Incorporating conveyor systems into warehouse operations can be a complete game changer for any business with several quick-win benefits including:

  • Increased efficiency – Conveyor systems streamline warehouse logistics by optimising material flow, reducing manual labour, and minimising handling time. This efficiency translates into faster order fulfilment and reduced operational costs.
  • Enhanced accuracy – Automation in intralogistics brings benefits by minimising errors and improving accuracy in inventory management and order processing.
  • Improved staff safety – Reducing the number of manual handling tasks decreases the risk of workplace injuries. Introducing conveyor systems can additionally free up workers to use their skills on more complex tasks.
  • Scalability – Conveyor systems are scalable and adaptable to evolving warehouse needs. As businesses grow or change, conveyor systems with geared motors can be modified or expanded to accommodate increased demands.
  • Greater Adaptability – When configuring a unique conveyor system, it is important to find the right geared motor for the precise project requirements. It is important to use a range of electric motors that are specifically designed to meet the robust demands of various industrial environments.

Final Thoughts

It can thus be observed that conveyor systems play an important role in warehouse operations by increasing efficiency and reducing manual labour. An ideal conveyor system should have a high torque output, making it ideal for powering conveyor systems handling heavy loads or those requiring a significant amount of force for movement. With the rise of Industry 4.0 technologies and AI, conveyor systems are likely to get integrated into smart factory operations. Thus, whether it is warehouse automation or supply chain streamlining, conveyor systems are here to stay!

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DHL Supply Chain and AutoStore Expand Global Warehousing Automation

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DHL Supply Chain, global leader in contract logistics, and AutoStore, a pioneering robotic technology company specialising in automated storage and retrieval systems, are expanding their partnership in a move set to further automate warehouse operations on a global scale. DHL Supply Chain, already involved in nine operational AutoStore warehouse projects with four more in the planning stage, is poised to become one of AutoStore’s largest 3PL clients, reinforcing their commitment to digitalisation and automation in the metal fabrication industry. The nine existing systems effectively operate 800,000 AutoStore bins, with the forthcoming four systems increasing the total number of bins to a remarkable 1.2 million. In the future, DHL intends to construct five more facilities in addition to those already in operation or planning. The innovative automated storage and retrieval system (AS/RS) technology has been developed to efficiently manage and optimise mining plant and equipment inventory using vastly reduced space within warehouses. Its highly modular and scalable design makes it a preferred solution for e-commerce and businesses handling smaller products such as fashion and tech items.

The strategic aim of DHL and AutoStore through this partnership is to accelerate the implementation of this ground-breaking technology that enhances abilities to meet diverse client needs. Markus Voss, COO and CIO at DHL Supply Chain, emphasised the importance of this collaboration stating “We are pleased to expand our existing relationship with AutoStore as we continue to implement our digitalisation and automation strategy in a growing number of warehouses, allowing us to serve our customers better and faster. AutoStore’s standardised and modular technology perfectly aligns with our aim to make our steel fabrication operations more efficient, enabling swift scalability and adaptability across various use cases and end-markets – a crucial factor for us as a third-party logistics provider. Through a standardised approach and dedicated stock availability we will be able to significantly drive down implementation times. Additionally, the AutoStore network of partners is invaluable in supporting our growth strategy across multiple geographies.”

Since 2012, DHL Supply Chain and AutoStore have partnered to implement cutting-edge solutions across sites in Singapore, Poland, Germany, Australia, and the US. The ongoing collaboration has already led to implementation of augmented reality solutions at all operational sites, resulting in a fleet of more than 1,000 robots worldwide that significantly increase operational efficiency and throughput. “Our longstanding collaboration with DHL Supply Chain has showcased the strength, reliability, and efficiency of AutoStore technology,” said Mats Hovland Vikse, CEO of AutoStore. “We are excited about the significant growth opportunity that this represents for AutoStore, as we continue to drive innovation in the world of logistics.” This expanded partnership between DHL Supply Chain and AutoStore promises to redefine the future of warehousing, offering scalable, adaptable, and efficient solutions that cater to the ever-evolving needs of customers worldwide.

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