Food Logistics serves the entire food supply chain industry with targeted content for manufacturers, retailers, and distributors.
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www.foodlogistics.com FOOD LOGISTICS • JANUARY/FEBRUARY 2015 19 With operating costs rising (especially labor) and omni-channel distribution creat- ing new demands, supply chain decision makers realize they need to improve distribu- tion capabilities and efficiencies. By making an operation more efficient, automation can allow a warehouse to support faster growth, increase productivity, reduce labor, maximize space, improve sustainability and meet stricter government product track- ing rules. While there are no statistics on the cur- rent level of automation in f&b; warehouses, system providers agree most f&b; warehouses primarily rely on manual processes. One reason is that companies involved in the production of food and beverages have long favored production improvements over investing in warehousing. Anoth- er reason is that companies focused on f&b; distribution have long viewed the warehouse as a cost more than a profitability tool. In addition, the cost of automation has been hard for companies to justify, given that payback has historically been five years or more. This article examines market trends that impact warehouse inventory management and some of the new technologies designed to help f&b; decision makers address current and future needs. Not every warehouse has use for every type of automation. Some com- panies don't need or can't yet afford a fully- automated warehouse. Others will thrive as a result of automating every possible element. "The trick to warehousing is eliminating human touches," says Tony Vercillo, Ph.D., who operates IFMC, Inc., a Yorba Linda, Calif.-based supply chain consultancy. "Every time a human touches a pallet or a case, an expense occurs. Technology should be used to reduce the number of touches and steps within the warehouse process." "Automation has provided an easier method of getting our products to our cus- tomers," says Karen Mathews, senior program manager of warehouse automation at The Coca-Cola Co.'s Grand Rapid, • Witron's palletizing machine streamlines orders in a warehouse. Witron