'SCM Agendaen' on Automation in Logistics (in Danish)

The need for automation is significant for all types of companies – trading and wholesale businesses, manufacturing companies – and across both small and medium-sized enterprises as well as large corporations. The primary driver for automation is efficiency. It’s about eliminating manual workflows and instead allowing robots to carry out the work. This also brings a number of benefits to employees in the form of improved ergonomics and working conditions. Warehouse work has evolved from being physically exhausting to a job with good conditions, where heavy lifting is now handled by robots. Businesses need to keep up – first by automating areas with manual tasks, then by maintaining and further developing their automation solutions.

‘The availability of labour in this sector has also been under pressure, which became particularly apparent during the COVID-19 crisis. However, time has shown that logistics proved resilient during COVID-19 because the systems we use are robust’, says Lars Bek Jensen from Langebæk A/S. The companies that were ahead in terms of technological investment were much more resilient to the pandemic. It’s also important to remember that automation should not be implemented for its own sake – it should be a means to achieve a healthy and competitive operation.

Podcast hosts Tina Højrup Kjær and Jan Stentoft visited Netto’s distribution centre in Køge to discuss automation with Brian Sværke, Head of Supply Chain & Logistics at Netto Denmark, and Partner Lars Bek Jensen from Langebæk A/S.

Many Degrees of Automation

The podcast explores why automation in logistics is important and shares concrete experiences and key success factors for implementing automation solutions. It’s vital first to understand what task or tasks are to be solved through automation. Businesses require varying degrees of automation. Some operate with fluctuating customer demands and many small orders, which call for one type of cost-effective automation solution, while others need to handle more standardised, high-volume tasks that require a different approach. Automation exists on several levels – from large, fully automated storage systems to quick, easy-to-deploy solutions. Automation has become more scalable with smaller, autonomous systems that can be integrated into a broader solution.

Lars Bek Jensen talks about trends in automation, such as the automation of crate storage – particularly relevant to e-commerce. Another trend is the growing need for bulk storage, especially in locations where space is limited. There is also a strong focus on picking goods efficiently and accurately, which places high demands on reliable picking systems. Among manufacturing firms, there is increasing focus on solving internal transport tasks using AGVs. Finally, Lars Bek Jensen points out that 3PL (third-party logistics) companies are starting to make strategic investments in automation to gain competitive advantages.

Remember to Involve Employees

A typical project begins with a kick-off meeting focused on the area to be automated. This leads to an analysis phase, where relevant data is gathered and processed into a business case, which then needs to be approved. Once approved, the search begins for suppliers – whether for buildings, mechanics, or equipment. Once the right suppliers have been selected, a contract is signed. Then the design is finalised with drawings and specifications, and production of robots, conveyors, racks, etc., can begin. According to Lars Bek Jensen, it’s essential to remember that the human element – change management – is just as important as the technical aspects.

It’s crucial to involve employees and prepare them for new workflows. Brian Sværke fully supports this and provides an example of how managers are introduced to new solutions early in the process, ahead of implementation. Finally, Lars Bek Jensen stresses the importance of ensuring that implementation projects (and their business cases) allow enough time for ramp-up. Time must be set aside to fine-tune systems and solutions. ‘Earlier projects, for instance, have highlighted the importance of good-quality pallets in automation solutions’, says Brian Sværke. ‘Automation is a challenge if the pallets are not in order. It’s almost more important than valid master data’, he emphasises.

Participants:

• Brian Sværke, Head of Supply Chain & Logistics, Netto Denmark, and Lars Bek Jensen, Partner, Langebæk A/S.
• Hosts: Professor Jan Stentoft and Communications Consultant Tina Højrup Kjær from the University of Southern Denmark, Kolding.