Among the emerging technologies in this space, digital twins play a critical role in driving automation in manufacturing operations. A recent survey found that 71% of companies have already leveraged digital twins technology. About 58% of the respondents ranked the use of digital twins as “very important.” Behind automotive and heavy equipment, the manufacturing sector was the third-most likely industry to use this technology.

What Are Digital Twins in Manufacturing?

As the name suggests, a digital twin is essentially a digital “replica” of any process, system, or physical asset. In manufacturing, a digital twin serves as a “virtual representation” of any manufacturing asset, production and packaging line, or end product. The idea of such visual representation is to illustrate a physical object accurately.

Effectively, digital twins enable manufacturers to merge the physical and digital worlds. With this technology, manufacturers can produce a complete digital footprint of their product lifecycle — from design to the end-of-life.

But why exactly are digital twins important in modern manufacturing and packaging operations?

For a start, companies can unlock business opportunities by accelerating their go-to-market (GTM) strategy through faster product releases. Digital twins can help manufacturers identify inefficiencies in their manual or automated packaging process. This helps them resolve any bottlenecks and predict process outcomes more accurately. In effect, using digital twins allows these companies to fail virtually first so they can succeed in real life on the factory floor.

How Are Digital Twins Driving Automation in Manufacturing?
Smart manufacturing relies heavily on manufacturing data extracted from factories, supply chains, and manufacturing equipment. With virtual models, digital twin technology provides manufacturers with real-time data from their operations.

Thanks to these real-time data insights, manufacturers can make faster decisions and avoid delays associated with manufacturing processes (including product design, development, and packaging).

Digital twins also help drive automation to improve production efficiency. Using digital twin technology, production teams can continuously monitor their existing processes and systems. If they are not performing at optimum efficiency, manufacturers can identify areas of improvement and take measures to proactively address anomalies and work towards improving the workflows.

Notably, manufacturers can leverage digital twin technology by integrating it with IoT-enabled devices and systems. In this IoT environment, machine data is directly fed into integrated digital twin and business intelligence solutions.

As more IoT sensors collect real-time data from manufacturing equipment, a digital twin (for each machine) can help optimize maintenance costs and resources. This technology is a cost-effective addition to an environment of optimized machines and processes.

Gartner outlines that by “combining the twin data with business rules, optimization algorithms or other prescriptive analytics technologies, digital twins can support human decisions or even automate decision making.”

Roy Schulte of Gartner points out that “traditional approaches waste both time and resources because of overlapping and redundant data.” Hence, it’s no surprise that 24% of companies that had implemented (or were planning to implement) IoT solutions in the pre-COVID era were already using digital twins. This percentage would be even higher today, given the increasing sophistication of the technology.

In addition to production, manufacturers are deploying digital twins in areas like supply chains, operations, and quality management. Through “virtual” simulation & testing, manufacturers are minimizing supply chain and operational disruptions.

Besides, with digital twins, manufacturers can now customize their products and packaging for individual customers. This reduces prototyping costs and helps in improving the customer experience.

Future of Digital Twins in Manufacturing
Enabled by digital twins, supply chains of the future can create more resilient, efficient, and environmentally sustainable global trades. Supply chain companies will have real-time visibility into shipments and improve decision-making through “What-If” scenarios.

Similarly, we could witness an increased integration of digital twin technology into edge computing. This enables real-time data analytics and decision-making, by which manufacturers can respond quickly to changing market conditions. This integration is critical in the areas of industrial automation, smart cities, and autonomous vehicles.

Going ahead, digital twins can enable innovative business models like the “Product-as-a-Service” model. Digital twin technology, along with predictive analytics, can accelerate product servicing and maintenance. This directly translates into benefits like lower downtime and maintenance costs.

Overall, digital twins are bringing a fundamental change to existing business models in manufacturing. Considering the asset-intensive nature of manufacturing settings, digital twins can certainly disrupt existing models, and for all the right reasons.

With the increasing cognitive sophistication, digital twin technology is here to stay. With their enhanced capabilities, digital twins will continue generating real-time insights needed for better asset management and process optimization.

Wrapping Up
Digital twins are projected to reach a market value of $110.1 billion by 2028. Using this technology, smart manufacturers can streamline their shopfloor and production facilities for improved efficiency.

Over the years, NextFirst has delivered a variety of automation solutions for its customers in the manufacturing domain. Using state-of-the-art technology, we design engineering solutions in line with Industry 4.0 requirements. Interested in learning more about how we can help? Get in touch with us today.

At a time when manufacturing companies are under immense pressure to meet customer demands, a shortage of labor can impede the company’s growth. That’s why packaging automation is so helpful.

Packaging automation helps in:

• Accelerating the packaging speed 
• Reducing errors by catching nearly 100% of errors and improving the quality of packaging 
• Saving manual intervention and enabling the workforce to focus on tasks requiring specialized skills

While packaging automation improves productivity and saves cost and time, it can sometimes fail to deliver the expected value. A single issue in packaging automation can delay or bring operations to a standstill.

Let’s find out why that’s the case and what manufacturing companies can do to optimize the value of packaging automation.

1.  Increasing Operational Costs
   Automation is often seen as a solution to reduce labor costs and accelerate the packaging process. However, the high cost of automation can outweigh the savings in labor costs, making it a less viable option. Additionally, automation can lead to increased energy costs as automated machines consume more energy than manual labor.Besides these direct costs, there are also indirect costs associated with automation. These include the cost of training employees on how to use automation and the cost of downtime when automation is not working properly.Manufacturing companies must do a thorough cost-benefit analysis to determine if automation will save operational costs and generate revenue. They must opt for automation only if the cost justifies the value it delivers.
2. Not Factoring in Overall Equipment EffectivenessOverall Equipment Effectiveness (OEE) measures the packaging equipment’s performance. It measures how long the equipment is available to run, the speed and output of the equipment when it’s running, and the number of defective products it produces.By optimizing OEE, manufacturing companies can run the packaging lines more efficiently, produce more products, and reduce waste. It can also significantly increase the company’s profits. Ignoring OEE could result in financial losses and lost opportunities to generate more revenue due to poor equipment performance and availability and higher maintenance costs.
3. High Maintenance CostAccording to research by PMMI, 26.3% of the instances of machine downtime occur due to general wear and tear, 22.1% due to product changeover, and 21.1% due to operator errors.The purpose of using packaging automation is to accelerate the packaging process and meet the client’s demands. However, unexpected downtime can delay the packaging process and deliveries. Moreover, a lack of preventive maintenance and unplanned downtime could increase the maintenance cost and impact the company’s bottom line due to interruptions in business continuity.Frequent preventative maintenance is, therefore, the only way to reduce wear and tear and maintain the machine’s health.
4. Using a One-Size-Fits-All Packaging ApproachThere’s no doubt that packaging automation can improve the productivity and quality of the overall packaging process. Every machinery, from conveyors to palletizing robots, streamlines and accelerates the packaging speed. While various packaging automation tools are available, a one-size-fits-all automation approach will not work for every manufacturing company.For example, a palletizing robot that places and stacks goods onto a pallet may be ideal for large manufacturing units. Similarly, they can invest in multi-disciplinary robots to perform various steps simultaneously. However, smaller manufacturing companies may lack the infrastructure or investment capabilities to use advanced automation machinery. This could prevent them from making the most of automation capabilities.
5. Lack of IntegrationsAutomating packaging operations faces a challenge due to the lack of integration between picking, packing, and shipping automation solutions. This can cause bottlenecks and hinder companies from fully benefiting from automation.Integration is crucial for successful packaging automation projects. It ensures seamless communication, increases efficiency, and improves flexibility. By getting the integration right, companies can reduce bottlenecks and fully realize the benefits of automation.

How To Optimize the Value of Packaging Automation

The benefits of packaging automation are numerous, but as we saw, not prioritizing preventive maintenance, using the wrong packaging automation products, or not doing a thorough cost-benefit analysis before automation can render packaging automation useless. It could also lead to productivity loss and unnecessary complexities.

Therefore, companies must define the automation’s scope, re-engineer the existing processes to incorporate automation seamlessly, and analyze the benefits of packaging automation before opting for it.

But more importantly, manufacturing companies must choose the right products to make packaging automation successful. A wrong packaging automation product that does not meet the objective, goes over budget, or is not designed for specific areas can lead the company to losses.

At NextFirst, we understand the significance of packaging automation. That’s why we have designed a fit-for-purpose product suite that improves the performance of your packaging, assembling, testing, and inspecting systems. It can improve speed and productivity without disrupting operations.

Manufacturing companies can change and configure product specifications to meet specific packaging needs for a wide range of products. For example, a case label applicator can be used to apply labels on cases for product identification and traceability. An End of Arm Tooling (EOAT) can be used to fold and form a box from a non-folded carton blank.

Contact us to know which automation tools can automate your packaging process and deliver value. We will be happy to help.

3PLs must invest in existing relationships while taking on new clients to survive an intensely competitive market as the industry grows. However, this is becoming increasingly challenging without the aid of technology. Historically, 3PLs have desisted from significant technology investments. 

Why then aren’t 3PLs implementing more automation technologies for their operations?

The primary obstacle is the lack of long-term visibility and predictability. Most 3PL contracts last for a year or two, making it easy for customers to switch to a provider that better suits their needs. Moreover, customers can switch the items sent to 3PLs based on their requirements – there is no guarantee of a steady supply of the same items. As a result, it is difficult to develop good estimates for the number of products the 3PLs will distribute. It is also not easy to justify investing in automation solutions for a product or even a customer that may not be available in the near future.

Another issue that poses challenges for automation is that clients have pre-existing order processing platforms and insist that the 3PLs adopt them. This expectation makes it difficult for the 3PLs to deviate from a customer-specific system to a more standardized one. Moreover, it isn’t feasible to automate procedures for individual customers – automation is usually planned across a group of customers to distribute costs.

Despite these real challenges, the gap between client expectations and 3PL outputs continues to grow. At the same time, 3PLs are under intense pressure to compete effectively in a low-margin market. 

Making a case for automation 

Automating operations can potentially ease some of the challenges but is not an easy decision to make. However, 3PLs must consider automation on a case-to-case basis as its gains are too significant to ignore. So, how should 3PLs decide if the investment is worth it?

Repeatable processes – if your center handles multiple clients and has set up customized processes for them, check if the smaller processes are repeatable. If yes, automation makes sense, especially flexible solutions that can be configured for different use cases easily. Some examples of automating repeatable processes include handling of items using conveyors, robotic grippers and picking robots. 

Dedicated Facility: When a 3PL plans a new warehouse, check if the center will be for a single material handling procedure across clients or if it caters to a customer that will consume 90 percent of the space and volume. If yes, then large-scale automation is justified. For instance, in a warehouse for grocery firms and supermarkets, faster fresh food delivery is essential for customers. Therefore, automation solutions that ensure high throughput and are cold-room ready make sense in this context. 

3PLs considering automation must evaluate the feasibility using these two aspects and arrive at a decision that will be fruitful for their business as well as its customers. 

In this context, automation can play a vital role. Read on to find answers to the most common questions related to the automation of material handling systems.

• What are the different types of material handling systems prevalent today? What is the application for each system?The most common systems in use today are –Bulk material handling system – these pertain to storage, inspection and transport of bulk and loose-shaped material. For the horizontal movement, the conveyor belt is commonly used to manipulate bulk material, while elevators work better for vertical movement.Examples of equipment: Buckets and grain lifts, conveyor belts, silos and hoppers, reclaimers, stackers.Industrial Trucks –

  Industrial trucks (material handling trucks) refer to the various transportation equipment and vehicles used for efficient loading (or unloading) of heavy objects on delivery trucks. These trucks have a range of features to make them suitable for various operations. Small hand-operated trucks, pallet jacks, and different kinds of forklifts are examples of features attached to these transportation devices. Some trucks have forks or a flat surface to lift objects, as in a forklift, whereas some trucks need a separate piece of loading equipment. Trucks can also be manual or powered lifts, and it is possible to walk or ride service, requiring a user to drive them manually or ride on the truck. A stack truck can be used to stack objects, whereas a non-stack truck is usually used for transport and not for loading. Some systems can be driven while others, such as pallet trucks, can add mobility.

  Examples of equipment: AGV and platform, pallets and platform trucks, walking stacker, side loader.

  Storage and handling equipment – these include pallets, racks or shelves. Space optimization is a critical aspect in any production or storage environment as it directly correlates to efficiency.

  Examples of equipment: Drive-in rack, pallet rack, shelf, stacking frame, sliding rack

  Engineered systems – Typically, this type of material handling equipment is an automated unit that works together to allow efficient storage and transport of large materials or large volumes of materials around the production floor. An example of an engineered system is “Automatic Storage and Retrieval System” (ASRS). ASRS is a large data-driven automated unit with shelves, racks and aisles. The item movement in ASRS happens with shuttles (a mechanized vehicle) and vertical lifts. ASRS can be integrated with the current production WMS to maintain efficient inventory management and other logistics processes. This can be incorporated into additional production stages to automate as much as possible.

  Autonomous Mobile Robots (AMR) are another prime example of engineered systems. AMRs come in many different varieties that can be used in several ways in order-fulfilment operations, including transporting product and freight within the facility, assisting in the pick-up process, facilitating sorting, increasing inventory visibility.

  Examples of equipment: ASRS, robot delivery system, conveyor system.

• Why is automation necessary in material handling? To what extent can each process be automated?In the logistics and supply chain industry, every aspect of efficiency matters, incentivizing many facility managers and decision-makers to turn to automated material handling. Automation brings in operational flexibility and efficiency and enables a reduction in manufacturing lead times and faster shipping. In today’s age of rapid growth in the eCommerce arena, factories and warehouses can handle a significant increase in volumes with greater ease by opting for automation.The graphic shows that many areas can be automated.Source: MMH
• What are the factors to be considered while evaluating automated material handling systems?A Peerless Research Group report gives insights on the crucial factors that play a role while choosing an automated material handling solution.  Durability and reliability, support services and cost of ownership are the top three considerations among buyers.

Concluding thoughts

The rapid growth in manufacturing and warehouse operations in recent years worldwide has shown that the material and handling industry needs to invest in automation as a part of its long-term growth strategy. In fact, it is a must to ensure they thrive in an increasingly competitive and challenging environment.

Contact us to discuss your automation requirements, email us at info@nextfirst.com and request a detailed look at our material handling automation solutions.

A prime example of large-scale adoption of material handling automation solutions is the implementation of a compact, high throughput ASRS system for a major e-commerce company that improved topline and bottom-line. Read more

In May 2020, a survey found that 93% of respondents desired to improve their supply chain resilience in the coming months. A case in point is the retail and e-commerce segments where online sales have surged and expected to increase by almost 20% in the US this year. Distribution centers and eCommerce fulfillment centers are struggling to handle the increase. Not only has the number of orders increased, the complexity, variety of products and delivery speed have also risen. In this context, warehouses play a critical role in helping retailers and eCommerce firms deliver to the customer in a timely and satisfactory manner.

Clearly, for businesses to survive and thrive, they must accept the “now is normal” and adapt to the changing situation swiftly.

Understanding the role of a warehouse management system (WMS), warehouse execution system (WES) and warehouse control system (WCS) in this context is therefore essential. Gaining an understanding of the function of each of these systems helps determine the most suitable one for your operating environment.

What do these systems do?

WMS

A software solution that has been in use for a while, the WMS mainly controls the effective movement of warehouse inventory. Especially relevant in the eCommerce world, it books orders, forecasts, manages inventory and even interfaces with the customer front-end. A  WMS takes decisions at the warehouse level and cannot communicate at the machine level.

WES

A WES can manage multiple lines and multiple automation processes within a line, including some of WMS and all aspects of WCS. Investment in WES alone may suffice for small to medium-sized retailers to automate their operations and improve their performance.

WCS

With a narrower focus, the WCS orchestrates the automation and movement of individual items such as cartons and pallets. Automation can be in the form of AS/RS, conveyors, goods-to-person systems, sorters, decasing lines and so on. Operating on top of the PLC, a WCS takes warehouse-level instructions and converts it to machine-level instructions and vice-versa, all in real-time. In this way, it optimizes investment by integrating real-time operations intelligence into the warehouse processes.

 How do they work together?

A warehouse with large-scale operations can benefit from investments in a WMS, WES and WCS.

The WMS operates at the warehouse level to process orders and balance the load by taking important decisions on aspects such as freight forwarders, the location and shipping line. Control then shifts to a WES, which breaks down these decisions into instructions for each line, such as the dock and packaging line to use. From here, the AS/RS takes over when it receives the instructions on which barcode to pick up and which packaging and shipping line to forward to. A WCS can convert the SKU details from the AS / RS to machine instructions that decide which robot will be involved in the picking process. A typical scenario plays out as follows –

In this way, the three systems act in tandem to process orders productively in a warehouse.

Considerations for the buyers

It is not easy to decide on which systems or all systems to invest in for your warehouse. NextFirst experts suggest asking these questions to make an informed decision –

1. Does the automation solution have a WCS? A WCS implies that the solution was designed with a warehouse in mind and not just manufacturing equipment. A WCS will address communication and integration aspects, critical considerations in a warehouse.
2. Is the information exchange easy to integrate with the same and next level of the communications architecture? Decisions have to be made in real-time, and seamless information exchange is a prerequisite.
3. A high-volume, fast-paced operation with a high degree of variety is likely to have an evolved WMS. Will the WCS integrate with the existing WMS?

Answers to these questions will point you in the right direction to take. Undoubtedly, a WMS, WES and WCS will help you address the demands of your supply chain and meet the exacting standards expected by your customers. However, take the time to understand the role of each system and how it will work in your operating environment and ensure the systems will align with your current and future goals.

To explore more about appropriate warehouse automation solutions suitable for your industry, reach out to info@nextfirst.com

NextFirst and Bricspac jointly organized a thought-leadership conference to discuss the implications for warehouses in the new normal. Specifically, smart warehousing focused on appropriate automation, analytics, interoperability, emerging market dynamics on new supply chain business models, and procurement management in retail, manufacturing, and logistics sectors. The virtual event was a massive success with over 200 supply chain and procurement industry practitioners attending it.

This virtual business meet covered a diverse range of topics:

• Leading the new wave of warehouse automation
• Changing fundamentals in supply chain management
• Appropriate automation – your tool for the new normal
• Defining the new normal in supply chain and warehousing

Our speakers included eminent industry experts:

• Arif Siddiqui, Director of Coign Consulting
• Rajul Jain, Co-Founder & CEO of Increff
• Jayendran Balasubramanian, CEO of NextFirst
• Atul Holkar, Head of SCM, Varun Beverages
• V. Raju, SVP 3PL, and Contract Logistics, Avvashya Cci
• Kumar Gaurav, GM of Consumer Supply Chain, Infiniti Retail
• Samrat Ghosh, GM of Head Supply Chain, Welspun Group
• Jasmeet Marwah, Sr. Director of Supply Chain, Moglix

The five significant takeaways from the conference were:

1. Warehouse not a cost center but a necessity

   It’s important to understand that efficient supply chains and smart warehouses are becoming critical to business in the new age. The reality today is that companies can no longer make solely economic-based supply-chain decisions but need to factor in various disruptions, including geopolitical, weather, and health.

   Simulations must be conducted to address business continuity issues and determine the impact on plans. Proactiveness is becoming mission-critical, even if the current working environment is constrained.

   Companies must capitalize on the evolving scenario to acquire a competitive edge and optimally calibrate their acts in building a forward-looking smart supply chain. More than ever, supply chains must react quickly and responsibly, having the right perspective at the right moment, and keep iterating. The right approach is to implement the appropriate strategies, exploit technological skills, and harness supply chain analytics. Such an approach will help businesses adapt quickly to the new norm and address delays, anomalies, and forecasting difficulties.

   In this context, warehouses need to become smarter so that they can ably support the business. The smart warehouse will help companies to optimize the supply chain and improve efficiencies in say inventory management.

2. Impact on supply chain fundamentals

   That supply chain today is mission-critical is a well-established fact.  Cost, quality, scale, speed, and agility are the five fundamentals. But, over time, the priorities shift depending on the circumstances.

   Ecommerce brought new nuances like infinite variety, speed of shipment, and delivery to many more addresses every day. The next big thing will be the rise of the hyper-local concept.  Together, e-commerce and hyperlocal will disrupt the entire middle chain, ensuring that items do not involve multiple entities before reaching the consumer.

3. Hyperlocal the next big thing

   Hyperlocal will regain importance, as it allows incredibly high delivery speed at relatively low costs. Decentralizing a centralized warehouse will also become a trend to cater to COVID related demands. In turn, decentralization will support e-commerce and hyperlocal trends too.

   The new normal is looking different, and it is an exciting time for the global supply chain industry.

4. Agile and adaptable supply chains

   As organizations make efforts to regain market share as demand recovers, they must watch out for overproduction and operating expenses. At the same time, they must be alert to new and emerging opportunities and adapt to them. The relations regarding supply chain strategy, vendors and procurement strategies, distribution networks, and warehouses need to be revisited.

   In these situations, demand forecasting technologies and network realignment are useful for pre-planning. Companies must also address supplier risk management, as it will become a critical component for business continuity. In short, business flexibility will be the main expectation, and supply chains need agility, adaptability, alignment.

5. Key considerations for warehouse automation

   The business case for warehouse automation gains is strong today. The four main factors to consider when studying warehouse automation are:

   • Automation is not a binary option – there is scope for best-fit solutions based on your needs
   • Automation is not an afterthought – instead, let automation be part of your growth strategy
   • Automation can not be performed ad-hoc – it requires expertise, structure, and careful planning
   • A warehouse management system (WMS) adds value – exploit the synergies of a WMS and a warehouse execution system to your advantage

Final thoughts

Warehouses are complex operations, overseeing various processes and tasks for inventory control, material handling, and distribution. Today, market dynamics are evolving faster than ever, dictating a whole new standard of efficient and reliable operations. Clearly, warehouse automation can support your business growth plans while uplifting efficiencies in operations.

NextFirst creates cohesive warehouse automation systems to address the most demanding supply chain and distribution channels. Our warehouse automation solutions handle your needs for speed, flexibility, and efficiency while reducing costs.

Reach out to info@nextfirst.com today to find out how we can help you tackle the new normal.