Warehouse

Approaching automation

AGVs spark interest in improving warehouse operations

By Lauren Sabetta

(Image courtesy of Dematic)

Minority owner of the Dallas Mavericks and co-owner of 2929 Entertainment, businessman and TV personality Mark Cuban is quoted for saying: “We have to face the fact that countries are going to lose jobs to robotics. The only question that needs to be answered is which country will create and own the best robotic technology and have the infrastructure necessary to enable it.”

As far as automation in beverage warehousing goes, experts note that automated guided vehicles (AGV) are continuing to see consistent growth and interest, as operations consider how automation can either replace manual forklift tasks or augment that part of warehouse operations. 

Kyle Smart, sales manager of emerging technology for Yale Lift Truck Technologies, Greenville, N.C., considers labor shortages as a key factor driving interest in AGVs.

Ultimately, the labor shortage has driven high interest in automated lift trucks and other automated solutions and is expected to continue driving that interest in the years to come,” he says. “The 2025 MHI Industry Report states that 39% of operations will adopt autonomous vehicles within the next five years. 

“As of now, however, many operations are hesitant to pull the trigger on automation due to the high cost and complexity of implementing these solutions,” Smart continues. “According to the same report, only 25% of operations have adopted autonomous vehicles to date.”

Moreover, Smart notes that sourcing lift-truck operators is not the only labor challenge facing warehouses. As warehouses deploy automation to help address that issue, they run into another challenge, finding the software engineering skillsets typically required to implement and manage those systems, he explains.  

“We launched a new approach to lift truck automation earlier this year, called Yale Relay,” Smart says. “It does not require coding, nor does it require the traditional CapEx model.

Yale Relay features an intuitive drag-and-drop portal, which enables fast deployment and easy, on-the-fly changes without the need for custom programming, Kyle Smart notes.

(Image courtesy of Yale Lift Truck Technologies)

“It’s a completely new approach designed to help warehouses overcome barriers that may have prevented them from adopting automation previously,” he continues. “Yale Relay features an intuitive drag-and-drop portal, which enables fast deployment and easy, on-the-fly changes without the need for custom programming.”

Todd DeVries, manager of vertical markets at Dematic, Atlanta, also considers labor challenges as having a significant impact on beverage warehouses and the AGV market.

“Labor continues to be the No. 1 component of most business cases,” he says. “A lack of desire to work in cold or uncomfortable environments, coupled with a shrinking labor pool, is impacting operations significantly. These impacts are translating into more companies (small, medium and large) turning to various kinds of automation to supplement the labor shortage.

Yale’s Smart echoes similar sentiments, noting that difficulty finding and retaining warehouse workers remains a major challenge. 

“The most recent MHI Industry Report showed that doing so remains the top challenge that warehouses are facing right now, with an overall talent shortage ranking second,” he explains. “But there’s a secondary labor challenge that has made it particularly difficult for warehouses to solve that challenge with automated lift trucks: a shortage of software engineers that can implement them. 

“Traditional automated lift truck solutions require coding to implement and adjust routes, and without a pricey, hard-to-find team of software engineers, these solutions may not be a realistic option to fill the labor gap,” Smart continues. “In other words, operations are caught between a rock and a hard place: they need automation to fill labor gaps, but a different labor gap makes it difficult to automate.”

Alongside labor challenges, Smart points to SKU proliferation as another trend impacting the AGV market.

“More so than almost any other industry, beverage warehouses see a constant influx of new SKUs that can require reorganization and adjustments to workflows,” he says. “These processes favor automated lift trucks that can be easily adjusted with new travel paths and other changes to meet the requirements of these updated workflows.”

Similarly, Dematic’s DeVries explains that SKU proliferation creates higher selectivity requirements within warehouse operations. 

“This trend strengthens the ROI for mobile automation, as AGVs are often more efficient than manual operators when interfacing with a growing number of pick faces,” he says. “They can also help reduce product damage and shrinkage.”

“Consumers tend to fall back on bottled waters for their perceived safety and better taste compared to tap water. Safety, health and convenience perks will drive continued growth of bottled waters.”

– Julia Mills, food and drink analyst at Mintel

“Labor continues to be the No. 1 component of most business cases. A lack of desire to work in cold or uncomfortable environments, coupled with a shrinking labor pool, is impacting operations significantly. These impacts are translating into more companies (small, medium and large) turning to various kinds of automation to supplement the labor shortage.

– Todd DeVries, manager of vertical markets at Dematic

Automation advantages

With beverage warehouses continuing to face challenges, experts highlight some of the benefits of adopting AGVs.

“The primary benefit of automated lift trucks is the ability to plug labor gaps amid a yearslong labor shortage and allow employees to focus on more rewarding, high-responsibility work that leverages their skills and experience,” Yale’s Smart says. “Relieving workers from the monotony of repetitive tasks can not only help employees stay focused but increase overall job satisfaction.”

Dematic DeVries notes how beverage warehouses can benefit from AGVs, given the constant influx of new SKUs.

“Despite SKU growth, SKUs on hand are typically lower than other vertical markets, allowing for high density solutions that can often be created with narrow aisle or very narrow aisle AGVs,” he explains.

As for improvements that have taken place with AGVs over the years, DeVries notes that automation today has become more cost efficient for beverage operations.

“Many AGV OEMs are using standardized, mass-produced Class I, II and III person-aboard platforms to reduce Capx and ownership costs, making mobile automation solutions more affordable,” he says. “Additionally, guidance and traffic management software has come a long way in terms of implementation, management and safety, making traffic pattern changes simple for the end user.” 

Yale’s Smart explains how today’s AGVs can assist in employee retention.

“Major improvements have been targeted at addressing the needs of customers who are experiencing the difficulties of finding and retaining qualified warehouse labor but have found automation too complex to successfully implement in their warehouse,” he says. “Our Yale Relay automated lift truck platform is designed to tackle both of those pain points and make automation a reality for these operations. 

“With this platform, automation can be implemented in as little as one day and mapping the facility is as easy as manually operating the equipment along the desired route,” Smart continues. “If you wish to change your lift truck’s route, it’s as easy as dragging and dropping waypoints with your mouse and keyboard — no coding required.”

As far as what warehouse decision-makers should consider before investing in or upgrading their AGVs, Smart highlights some key points.

According to a recent MHI/Interact Analysis report, economic uncertainty is expected to lead to a slowdown in automation investment,” he explains. “That’s on top of a market that had already seen three years of dampened investment due to high interest rates. As a result, lowering the financial barrier to entry is an appealing prospect for those considering automation, as is getting real-world information on how automation performs in their operation — not just projections.

“Another consideration should be the culture change that comes with implementing automated lift trucks,” Smart continues. “Typically, the adoption of automated lift trucks requires operations to adjust their workflows and redirect their labor. For example, workers who may have grown accustomed to driving a tow tractor and hitching/unhitching carts at either end of the run may instead move to a role focused on loading and unloading carts and hitching carts to automated units.”

Dematic’s DeVries explains that before investing in or upgrading AGVs, materials to be handled need to have good integrity, as well as the pallets themselves to reduce interventions and disruptions. 

“For brownfield projects where a user would like to replace a manual forklift fleet, the existing storage system (rack), floor conditions, ramps, environment and traffic aisle dimensions should be understood so the entire Capx picture can be defined,” he explains.

For what the future holds for AGVs in beverage warehouses, DeVries says thatthe future is strong for AGV application in beverage warehouses due to the high volume of pallet moves, as well as the friendliness of the materials to be handled.

Yale’s Smart expects to see a further streamlining of the implementation process and improved cost-effectiveness in the future.

“At the end of the day, automated lift trucks are still a relatively new addition to the warehouse technology arsenal, and as such, they’re going to continue to become more accessible and more reliable,” he concludes.