Welcome to Day 1 of ProMatDX

Tip of the iceberg is probably an overused cliché, but sometimes clichés work because we all understand what they mean. In this instance, it means that as big as that hunk of floating ice may look above the surface, there’s a lot more going on under the water that isn’t visible to the naked eye.

That could sum up the state of the materials handling industry asProMatDXlaunches this morning as a virtual event. Over the last two weeks, I talked to executives from 16 industry-leading providers of materials handling solutions, including systems integrators, robotics companies, packaging companies and design and engineering consulting firms. The takeaway from those conversations is that we’re seeing a number of really interesting projects from end users who are willing to talk about them; but some of the most innovative projects I heard about are happening out of public view, with end users – your ProMatDX peers – who aren’t yet ready to talk about them.

Over the next few days, my colleagueRoberto Micheland I will write a series of articles based on our interviews and observations. For today’s article, I’m focusing on three systems integrators:Dematic,MHSandSwisslog. Executives at those firms identified a number of trends impacting the industry right now, some of which were echoed in other interviews.

Demand is a mixed blessing: “The industry is going gangbusters right now,” said Dave Trice, senior director At Material Handling Systems, Inc., or MHS. In normal times, getting orders for lots of stuff is a good thing, but in the midst of a pandemic, it’s been a mixed blessing. “One of the side effects is that it’s put a lot of pressure on the supply chain in terms of lead times.” For instance, while a firm like MHS may have the raw materials and components in inventory to manufacturer conveyor, today’s materials handling systems rely on some of the same chips that are in short supply, leading to the shutdown of automotive manufacturing. The long lead times identified by Trice are being felt across the industry.

MROis front and center: Trice also noted that maintenance, or MRO services, is also experiencing an increase in demand at a time when experienced technicians are in short supply. MRO is a core service at MHS. Trice was not the only person to identify the importance of MRO today. As more companies transition from conventional solutions to more complex automation, “there’s a requirement to make the client comfortable with operating and maintain the systems,” said Michael Larsson, the newly-appointed executive vice president of the Americas Region at Dematic. “There’s going to be a need for more resident technicians and outsourced maintenance,” he predicted. “The feedback we’re getting is that there’s a need for us to be part of long-term maintenance.”

Micro-fulfillment is on everyone’s mind: At the last ProMat, robotics was the hot technology. As you’ll see in a moment, that’s still true, but I think at the top of almost every system integrator’s list ismicro-fulfillment. That involves creating scaled-down but still highly-automated solutions designed for small distribution centers of say 25,000 square feet or less for same day and next day delivery; or, the hot market for 6,000 to 12,000 square feet goods-to-person solutions for e-grocery fulfillment. As Larsson pointed out, “right now online grocery is about 4% of sales, but down the road, it’s expected to be 20% of sales, and as much as a $200 billion market.” As Larsson pointed out “the level of automation is increasing generally in our industry, and that is driving down into micro-fulfillment at the end of the days because you need to automate that piece picking.” Markus Schmidt, president, Swisslog Americas, and his colleagues pointed out that doing micro-fulfillment successfully involves more than just the automation platform. It’s also a software play, Schmidt said, because “the traditional large WMS platforms aren’t geared for micro-fulfillment” or some aspects of grocery, like items that are sold by the pound – where catch weight is important – rather than by the packaged item. “If you order 3 apples, we put them on a scale at the pick station to capture the catch weight, and the order is updated in the ERP. Before this, we never thought of selling things by the pound, so the software is evolving in this space,” Schmidt said. And, if you think about the farm-to-table movement, Schmidt noted that Swisslog is adapting its solutions to vertical farming – perhaps another new market for our industry.

Robots and more robots:仅仅因为micro-fulfillment冷杉st solutions mentioned by Swisslog and Dematic, robotics was a quick second. It’s a market chock full of startups – and will be explored in an article tomorrow – it’s also a space where MHS, Dematic and Swisslog are putting down markers. To me the most notable trend in this space is that robotics appears to be transitioning from a product into a solution. What I mean is that the early iterations in our space were point solutions – an autonomous mobile robot travels to a pick location, then to a pack station and back to a pick station – today, leading systems integrators are working with them as components of a more holistic solution. This is where more is going on below the surface than meets the eye. “Technology is driving innovation across the board,” is the way MHS’s Trice put it. Swisslog’s Schmidt described a potential solution where an AutoStore system delivers a tote to a goods-to-robot piece picking station in a batch pick environment; from the pick station, the items are sorted to packing using a t-Sort fromTompkins Roboticsrather than a more conventional solution, like a cross-belt, tilt-tray or bomb bay sorter. Don’t be surprised to see AMR’s and other mobile solutions replacing traditional conveyors in the future because of their scalability and flexibility, suggested Dematic’s Larsson.

One final note: I’m publishing an article devoted to micro-fulfillment on Thursday. I’ll also be moderating two group discussions on the topic this evening and on Wednesday at 5:30 PM ET. These are interactive events – you’re the show, so come prepared to share your views. If you’re interested in participatingclick here.