PACKAGING & LOGISTICS
LOGISTICS COMPANIES THINKING OUTSIDE THE BOX ON AUTOMATION
With margins under pressure and labour in short supply, forward thinking logistics service providers are taking a new, radical approach to winning business using flexible automation.
here is an emerging sea change in the traditional 3PL–client relationship around automation. Whereas a 3PL would normally win a contract first and then possibly install automation if it was thought appropriate for efficient and profitable execution, now some 3PLs are looking to invest in automation first and then pitch their solutions to potential clients. The risks associated with automation for the
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3PL have always been regarded as too high – particularly, with the predominance of short contract lengths. So what’s changed? The catalyst has been the emergence of readily available, low- Capex and highly flexible automation – the likes of intelligent mobile robots and advanced fit-to- size packaging systems. A typical contract with a client is for around two
or three years, and now with so much uncertainty in the economy, clients tend to be looking for shorter rather than longer commitments. That would almost certainly be less than the time required to achieve a positive Return on Investment (RoI) for many traditional forms of automation.
The risk for the 3PL has always been that if
the automation is tailored to the needs of a specific client, and that client doesn’t renew – or worse, goes out of business – the 3PL may not achieve as fast an RoI as expected. Even if the client is retained, volumes achieved in
existing or renewed contracts may well be lower than planned – positive RoI is delayed, and the equipment may not easily allow for the needs of an additional customer taking up the now spare capacity. That at least has been the traditional thinking.
Now, however, highly flexible automation is changing the dynamics of the warehouse, particularly around ecommerce operations – and this is reshaping how 3PLs can present their
service offerings. Autonomous Mobile Robots (AMRs) are transforming order picking processes and within the packing area, a common pain point for both throughput and labour, advanced automated fit-to-size packaging systems are offering scale at peak and flexibility to cater for a wide variety of order profiles – and that can be across several clients. Automated fit-to-size packaging systems
not only offer the efficiencies of high volume throughput, low labour content, improved material use and better transport efficiency that 3PLs and their clients demand, but critically, they also provide the essential flexibility that will future-proof the investment. Looking at efficiencies, put simply, advanced
right-sized packaging systems, such as Sparck Technologies’ CVP Everest and Impack machines, 3D scan the item or items, work out the optimal shape and size of box, and cut, build, seal and label each package at speeds of up to 1,100 packages per hour. Both solutions can have up to three card mills feeding continuous fanfold card of different widths (60cm, 80cm, 100cm for example), which ensures optimal use of card ‘on the fly’, reducing waste and minimising cost. Or in the case of a 3PL, the three card mills could hold individually branded card feeds allowing multiple brands (clients) to be packed by a single machine. Over the last couple of years Sparck
30 DECEMBER/JANUARY 2023 | FACTORY&HANDLINGSOLUTIONS
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