STORES Magazine - June 2008 - (Page 64)

NUTS AND BOLTS / SUPPLY CHAIN Carnegie Mellon University’s Mobile Robot Lab, Pittsburgh-based Seegrid uses intelligent software and its Industrial Mobile Robotics (IMR) technology to provide low-cost, adaptable robotic solutions for warehousing. Seegrid’s flagship robot, the GT3, is a vision-guided automatic tug/tow tractor that has a 3,000-pound capacity and uses no tapes, lasers or wires. The GT3 is capable of storing 15 miles of routes, and software allows the robot and operators to know where the GT3 and the products are at all times. Unlike conveyor systems, nothing is permanently anchored to the warehouse, so paths and operations can be easily changed as SKU counts grow. Giant Eagle utilizes Seegrid robots at a distribution center, and spokesman Daniel Donovan says that the robots have increased efficiencies and created a safer working environment. Efficiency, reduced labor costs Grimsby, Ontario-based RMT Robotics uses gantry-style robots for a Robotic Picking System that automatically picks layers from palletized products and builds rainbow pallets. Suited for high-rate, high-SKU layer-picking applications, it touts efficiency and reduction in labor costs. Bill Torrens, RMT director of sales and marketing, says that in conventional warehouses, picks are typically made in a sequence that is easier for the human picker. In an automated warehouse, picks are made in a manner that is best for trailer and pallet loading. Robots allow a vast inventory of forward picked products to be released in whatever sequence is desired, maximizing efficiency throughout the line. “One of the advantages of automation is that SKU growth is seamless,” Torrens says. “We can keep track of hundreds or thousands of SKUs. In the manual situation, you need more labor, more manpower and more physical space to accommodate [picking and distribution] 64 STORES / JUNE 2008 requests by the retailers.” Robots are generally cheaper than traditional conveyor systems. Seegrid’s units start at $45,000 and, while a large warehouse could use dozens of robots, the costs are still small compared to other options. “All of that hardware and software has just gotten cheaper, faster and much more affordable,” says Seegrid executive vice president Greg Cronin. “Robots used to be a lot more expensive but prices are really coming down.” Because of their flexibility, the capacity of robotic solutions can be changed without significant capital investments. In the past, retailers like Walgreens managed growth through large-scale projects that required planning for new buildings three to five years in advance. A modular approach allows retailers to start small and grow robot-by-robot. “It’s a very flexible way to add capacity to your distribution network,” Mountz says. “For a company that is growing year in and year out, adding hundreds of stores per year, the ability to have something that can grow as your business grows is a huge strategic part of staying on top.” Humans vs. robots DC and warehouse workers may become defensive at the idea that they will eventually be replaced by robots. Therefore, education and training for working with and among robots is critical to successful implementation, Rosenberg says. He points out that low-level warehouse workers typically have a high turnover rate and that many customers find they are limited in their growth because of labor availability. Humans who remain in the factory often report a less stressful and less hectic work environment because the robots are the ones doing the grunt work, often in a more efficient and timely manner than human workers. “It creates a better work environment and it’s much more fun,” Rosenberg says. “Go to a Kiva factory and it sounds like a library because there’s nothing but electric battery-powered robots running around.” Seegrid robots typically handle the mundane, non-productive work like moving something long distances across the warehouse on a regular basis, Cronin says. He points out that new technologies and software will continually allow robots to become better, faster and smarter. Robots also can work endless hours at a constant level and don’t get bored, tired or frustrated. Cronin said that human workers in the factory can leverage and manage robots to take less work out of their own jobs. “It’s not a human replacement, it’s just adding increased productivity for the human,” he says. “Everywhere we grow, workers have become attached to their robots because it just keeps working and does the work that people don’t like to do.” And, as the cost of doing business grows in North America and throughout the western world, automation will become even more important, Torrens says. “The automation is actually keeping many of these companies viable,” he says. “They might have one of the most efficient factories in the world and it’s in Pennsylvania. The only way they can stay competitive and prevent the operation from going offshore is to become more efficient, and automation faciliStORES tates that.” WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - June 2008

STORES Magazine - June 2008 Contents Executive Editor's Page President's Page Tesco Tests Carbon Labels What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Boom - or Bust Green Retailing Concept2Watch Online Marketing Building Traffic Water Management Branding Digital Marketing Loyalty Programs Special Report: Taking on Teens Supply Chain - Robo Crop Human Resources Supply Chain - Directory Assistance Loeb Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - June 2008

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