The Benefits When Considering Automation

The Benefits When Considering Automation

AutoStoreIn today’s ever-changing market, automation is the leading edge most companies are using to gain a competitive advantage. Companies delaying automation will fall behind, primarily due to the brisk speed at which innovation is already being adopted in the market. The pandemic showed the world that the current supply chain model was modeled after a world that does not exist anymore. Customers demand easy access to products, speed of delivery, and high-touch customer service. However, many executives are unsure of where to begin with automation, what products are right for them, or even what company they should be using, causing them to delay the process altogether. By automating your business, you can execute operational activities more efficiently. Robotics take care of monotonous tasks while employees can focus on main business processes and more complex tasks. The below highlights some key benefits to automation:

Autonomous Mobile Robots Reduce Human Movement & Injury

OTTO AMRPULSE Integration partnered with OTTO Motors to complete the largest at scale deployments of AMR technology in North America. During the study, PULSE compared AMR performance to existing technologies and human load factors. The result, AMRs represented 10% of the equivalent manual handling labor costs and 20% of the cost of a forklift.  It is important to note the situational aspects associated with this study. At higher speeds and with advanced safety features, AMRs outperformed manual carrying, and driver operated pallet loaders over long distances. However, humans have more agility moving goods for short distances or around stations.  It was determined that a blend of both would create the optimum result with output and efficiency. AMRs would conduct the heavy lifting and repetitive labor while humans would operate at stations carrying out tasks of picking, sorting, or quality control. Reducing the number of people moving around a facility compounded with the risks of human driver error, and injury related to repetitive “heavy lifting” tasks helped alleviate some of the many key hazards companies continue to face leading to costly accidents in their facilities. Due to materials handling automation, the repetitive task of pushing product is assumed by the vehicle, while more value-added tasks are left for the workers. Injuries decrease and overall company injury related costs decrease as well.

Integration Into Existing Equipment

WMSWhile researching supply chain automation, it is important to consider solutions that complement the equipment you already have or plan to buy. Some autonomous vehicles, including those from OTTO Motors, integrate with a warehouse management system (WMS) to reduce unnecessary steps. Compatibility between equipment makes the installation of new products more efficient.

Scalability

Scaling a business can be a complicated process. There are many variables that add to a business’s operational costs when it’s being scaled. The more manual process your business has, the harder it is to scale that business. When you automate your processes though, scalability becomes easier. All a company needs to do is make sure that systems can accommodate that growth. If not, minor upgrades are all that is needed.  System’s like AutoStore are easily scalable solutions for retail and e-commerce applications.

Increased Collaboration

An added benefit to automation solutions is that it allows increased collaboration among teams. Many believe automation results in job loss and less teamwork. However, it’s the exact opposite. When repeated tasks are automated, staff will have more time to focus on more integral aspects of the business. Instead of doing mindless repetitive tasks, they’ll work together to make the business better. When business processes are done manually, teams will have to dedicate all of their efforts just to keep things moving. This results in wasted human potential and allocating the valuable brainpower and creativity where it is not utilized effectively.

Accountability

AccountabilityWhen a business is automated and streamlined properly, it’s easier to assess responsibility. This comes as a result of having clear, well-defined tasks, with all the minor tasks automated. If your business has many small tasks that are not automated, they tend to become “nobody’s responsibility”, as none of the staff is directly responsible for them. When these tasks are automated, you end up with the few important tasks where staff members are directly responsible. Having this clear responsibility distribution increases the staff’s accountability for work done and makes quality control easier.

Trackability

Automated and digitalized processes are much easier to track. Your system knows exactly the time, effort and resources required to carry out a specific task. Using the right tools, you can get valuable business insights that’ll help you make it better.

Top Material Handling System Solution Provider

Top Material Handling System Solution Provider

Leading Material Handling System Solution Provider

PULSE Integration has been featured as a top material handling system solution provider for 2021 by Logistics Tech Outlook Magazine.

Logistic Tech Outlook provides an annual listing of 10 companies that are at the forefront of providing material handling system solutions and transforming businesses.  The magazine is read by over 68,000 subscribers who are key decision-makers in the logistics sector.

The magazine also features contributory articles from senior management executives from distribution, warehousing, manufacturing, supply chain experts, logistics professionals, and other technology decision makers on how material handling solutions improved operational performance in their organizations.

Read The Article Here

PULSE Welcomes You To ProMat DX

PULSE Welcomes You To ProMat DX

ProMatDX
ProMatDX, held April 12-16, 2021, is the new digital event experience designed to power up manufacturing and supply chain professionals from the U.S. and over 140 countries with critical access to the latest solutions they need now to improve the resiliency and agility of their operations.
ProMatDX combines the power of the connections, solution-sourcing and education that only ProMat can deliver with the latest digital event technology in a five-day event that will be the most important week of 2021 for the manufacturing and supply chain industry.
Attending ProMatDX is your unrivaled opportunity in 2021 to find solutions, connect with your peers and leading solution-providers and learn the latest trends and technologies that will take your supply chain to the next level of success. PULSE will be featuring state of the art order fulfillment technology at the upcoming virtual show. Make it a point to visit us

Click Here To Visit Our Showcase

Brittain Ladd, Andrew Benzinger of AutoStoreDon’t Miss Out On These PROMAT DX Educational Sessions!

Micro-fulfillment is one of the most talked about but least understood solutions on the market. Attend this session to learn the Who, What, When, Where and Why of Micro-Fulfillment.
PULSE’s own Chief Marketing Officer, Brittain Ladd, will be co-presenting with AutoStore’s Andrew Benzinger on the topic Why Micro-Fulfillment Is a Must Have.
Learn how combining additional technologies will supercharge your fulfillment strategy and create a competitive advantage
Mark your calendar for this revolutionary educational seminar held April 12, 2021 from 1:30 PM – 2:00 PM CT
Matt Chang and Matt RendallPULSE Integration’s Chief of Strategy & Innovation, Matthew Chang, and OTTO Motors CEO and Co-Founder, Matthew Rendall, share information about The Business case for AMRs in Manufacturing vs. forklifts, conveyors, and other modes of material handling at both greenfield and brownfield facilities.

This session is focused on providing a detailed discussion on the value of AMRs within a corporate supply chain.

Speaker Matt Chang, one of the most experienced experts on the topics of AMRs, will introduce content specific to the importance of companies adopting AMRs and the business case for doing so. Real world examples of how AMRs have been introduced will be provided. Check out more about PULSE’s AMR deployments here. Read our Business Case for AMR’s in Manufacturing here.
Mark your calendar for this revolutionary educational seminar held April 14, 2021 from 9:30 AM – 10:00 AM CT

Don’t Forget to View PULSE’s Product Demos at the Show….

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Software Solutions
April 14, 2021
10:00 AM CT
AMR Solutions
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AMR Solutions
April 13, 2021
10:00 AM CT
PULSE Solutions
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April 12, 2021
10:00 AM CT
Largest AMR Fleet Deployment

Largest AMR Fleet Deployment

PULSE Integration partnered OTTO Motors, to undertake what is the world’s first in-depth analysis of automated mobile robots (AMRs) deployed at scale in industrial facilities. With hundreds of facilities across North America, this billion dollar organization is a household name in Consumer Packaged Goods. In 2 facilities spanning over 1.7M sq ft, this Fortune 500 company is 100% reliant on OTTO technology for their material transport.

Watch the video here

View the business case here

The Biggest Opportunity In Retail

The Biggest Opportunity In Retail

I often write about the topic of retail strategy because I find the topic interesting, and I have a way of coming up with ideas that generate a lot of interest from Wall Street, retail analysts, business executives and casual followers of the retail industry. For example, I recently wrote an article about the retail industry and it proved to be wildly popular with readers. Why? Because I’m not afraid to share my opinion or publicly state what I believe certain companies should do.

The retail industry is in a funk. Several large retailers like Walmart, Target and Amazon are doing very well. However, many other retailers have either filed for bankruptcy, closed stores, or gone out of business. The best retailers are those companies that have an executive team carefully analyzing market trends and the needs of their customers. Retailers go out of business due to a lack of leadership, imagination and innovation, and not because of a lack of products on their shelves.

Although the retail industry is struggling, there are unique opportunities that I believe should embraced. For example,

  • Facebook or Shopify should acquire Instacart
  • Amazon should divest Whole Foods and acquire Kohl’s
  • Zoom should acquire a gaming company like Electronic Arts or Activision Blizzard
  • Tesla should acquire Jeep

On the surface, the opportunities I listed may not make sense to some people because they’re counterintuitive to what they already know the companies I listed. Amazon divest Whole Foods? Why? Didn’t Amazon just acquire Whole Foods?, are questions I’m confident many readers are asking themselves. Let’s dive deeper into this recommendation.

I am recognized as being one of the first people to recommend to Amazon to acquire Whole Foods. I outlined my argument in this 2013 research paper. At the time I wrote the paper, I believed that Whole Foods was strategic to Amazon. However, in subsequent articles I wrote about Amazon’s acquisition of Whole Foods, I made it clear that Amazon should sell CPG branded products at Whole Foods to increase customers and sales. That didn’t occur. Instead, Amazon is building their own 35,000 square feet supermarkets selling all of the traditional products found in supermarkets. Amazon is also selling organic products in the stores.

Here’s the problem. Amazon acquired Whole Foods but Amazon hasn’t improved Whole Foods. The percentage of customers shopping at Whole Foods has decreased. Amazon’s grocery stores, however, are very popular and highly rated by retail analysts. Amazon is creating a business model where they will sell more groceries in their Amazon Fresh stores then at Whole Foods. In fact, it’s logical to conclude that Whole Foods sales will decrease or remain stagnant.

Whole Foods is no longer strategic to Amazon. What should Amazon do?

Amazon should divest Whole Foods. The company that should own Whole Foods is Target. Whole Foods customers overwhelmingly shop at Target, and Target must improve its grocery business. If Target acquires Whole Foods, it can open Whole Foods Markets inside its Target stores. Whole Foods is strategic to Target. If Target doesn’t acquire Whole Foods, they should explore a merger with Kroger or assess selling their grocery business. (I have encouraged Amazon to acquire Target since 2018. Among the reasons for doing so is that Amazon can open Whole Foods Markets inside each Target store. I believe Amazon will acquire Kohl’s, not Target).

Not everyone will agree with my recommendation.

CVS Pharmacy And The Biggest Opportunity In Retail

In 2015, Target made the decision to sell its pharmacy business to CVS for $1.9B. Most retail and Wall Street analysts supported Target’s decision. This link provides an overview of CVS.

I believe CVS should consider making a decision similar to Target. Specifically, I believe the biggest opportunity in retail is for CVS to sell the retail portion of their stores while maintaining ownership of the pharmacies in each store. CVS operates 9,900 stores including pharmacies inside Target’s stores. Here’s why.

Walk into most retail pharmacies and what do you see? Usually its a mixture of products often with no rhyme or reason. CVS Pharmacy, for example, advertises itself as a ‘Pharmacy and drugstore which fills prescriptions and sells health products, snacks, and basic groceries.’ The problem is that CVS isn’t a grocery store or a traditional convenience store.

The focus at CVS is on fulfilling prescriptions. It appears that the products in the stores are there to fill space and entice customers waiting for their prescriptions to be filled to buy something. Anything. And that’s a problem. It’s also an opportunity. Selling their retail operations will generate generate a significant sum for CVS, and allow the company to focus exclusively on their pharmacy business.

The following is a list of companies that could potentially be interested in acquiring most if not all of CVS’ retail locations:

  1. Amazon could open AmazonGo and Amazon Go Market stores inside each of CVS Pharmacy’s retail locations except where CVS operates pharmacies inside Target’s stores. Amazon is at the top of the list of the companies I believe that should acquire CVS Pharmacy’s retail operations.
  2. Instacart could partner with CVS to design, implement and manage all retail within the stores; Instacart leverages the stores as grocery drop off locations. It’s plausible that Instacart would be interested in opening Instacart-branded stores complete with a CVS pharmacy inside each.
  3. Shopify could opens a new form of retail store focused on displaying and selling products from Direct to Consumer brands. Not my favorite option but the idea has potential.
  4. Walmart would certainly be interested in extending its reach with a new retail format.
  5. Grocery retailers would certainly be interested in the opportunity to leverage the stores. Lidl should jump at the chance of acquiring CVS locations.
  6. Couche-Tard, the owner of Circle K convenience stores, would be able to do some very interesting things if they acquired CVS’ retail business. (The weakness in the convenience store industry is the lack of a format that includes pharmacies).

There are other companies I can name, but one name stands above the rest and that’s Target. Because of their relationship, I believe Target is the ideal company to approach CVS about either acquiring their retail operations, or forming a partnership with CVS for Target to open a small retail format inside their stores. CVS Target. I like the sound of that. However, AmazonGo stores are likely the best fit hence the reason why I rank Amazon over Target.

The Wild Card – Google acquires CVS’ retail operations and reimagines the retail experience across nearly 10,000 locations. Google’s focus on enabling retail isn’t thinking big. I strongly encourage to start making acquisitions. Instacart, TikTok, Target, the list is nearly endless. Partner with Shopify. Do something BIG, Google.

If CVS keeps their retail operations, I encourage the company to consider making an acquisition of goPuff and/or Sprouts Farmers Market. Another option is partnering with the Russian retailer VkusVill. CVS must create a better experience for their customers which should include an increased selection of groceries and also delivery. I also encourage CVS to go big into private label brands for better pricing. What’s certain is this: CVS cannot maintain the status quo in their stores.

I encourage CVS, and any retailer that would acquire the retail business from CVS, to introduce the use of micro-fulfillment centers across the CVS retail store ecosystem. Due to the small size of the stores, leveraging micro-fulfillment will accelerate the ability to carry less inventory in the stores while maintaining high in-stock levels through rapid replenishment. CVS is making a mistake by not already implementing micro-fulfillment centers.

Read more articles like this from PULSE’s Chief Marketing Officer, Brittain Ladd