Robust communication networks are the linchpin of contemporary logistics operations. As market forces, societal shifts and modern standards change on an almost daily basis, companies must leverage agility and efficiency to help maintain pace and profitability.
The recent heady mix of societal, political and financial upheavals has enforced a paradigm shift in the way companies operate and interact with their up- and downstream value chains.
Nowhere have these changes been more acutely felt than in the warehouse and logistics sectors, which have almost had to reinvent themselves to not only match increased and more-variable consumer demand, but also to fit within commerce’s new digitalized ecosystem.
It therefore comes as no surprise that the warehouse automation market is projected to grow at a CAGR of 13.6%, with its value in 2026 being predicted to be €30.15 billion 1. A subsector in this discipline, which is also in rude health, is automated guided vehicles (AGV), which should see its 2020 market valuation of €3.1 billion rise to some €10-15 billion by 2028, with demand expected to exceed 300,000 units per annum 2,3,4.
From a technological and business perspective this is fantastic news for downstream customers, who can expect greater speed, throughput, accuracy and traceability, but operators faced a raft of challenges which must be overcome, otherwise all the operational gains from automation become moot.
Maximise OEE
Top of the tree is the need to maintain overall efficiency, and this can be achieved by improving operational equipment effectiveness (OEE), reducing downtime and deploying new ways of making uptime more efficient.
It is reckoned that one hour of unplanned downtime in today’s market costs roughly 50% more than it did two years ago. As well be being a very sobering thought, this also illustrates the efficiency shift we have seen in operational capabilities. In the automotive industry process an hour of downtime is costed at $2 million, which feeds into a figure from Fortune Global 500 companies that estimates that 11% of revenue is lost to unplanned downtime.
With so much riding on digital backbones, network health and uptime play a huge role in combatting these losses. Downtime can manifest in a number of ways. One type is caused by improper layout/dimensioning of the machines and their communication infrastructure (i.e. wireless). Whenever there are changes in the environment (nodes added, interruption by unplanned EMC or changed operation field conditions) wireless communication can becomes unstable. A second type is due to the age of the machinery. With increased throughput comes increased wear and therefore the need for predictive maintenance services to keep the system’s operation optimized. Finally, accidents or IT security issues in the factory can occur, but these can be prevented by incorporating functional safety as well as security within critical automation devices. All the three downtime factors are addressed by HMS products: Robust wireless connectivity (+services), Network and device monitoring with possibility for secure remote diagnosis and safety-related communication.
In order to combat maximum network issues and boost uptime, we break it down into four areas: network segmentation, permanent monitoring of both IE and fieldbus networks and then exploitation of the insights delivered by networking tools. And alongside the tools and software that enable all these, we also offer a raft of education, training and technical serves to help ensure our users get maximum value and uptime from our solutions.
Improve business sustainability
Modern wireless communication systems have a crucial role to play in business resilience too. By replacing expensive copper cabling with wireless solutions, companies not only realise significant operational cost benefits through reduced maintenance, but they see far higher flexibility and easier scalability – a core tenet of modern agile operations. This flexibility manifests in many ways, but primarily it covers faster and easier installation and commissioning, greater flexibility for modifications and easier integration of devices into existing networks.
Making the switch… if necessary
While wireless technology is becoming increasingly prevalent, but physical cabling still dominates the industrial landscape. A pragmatic approach is to mix the two. If cables are working well with a hard-wired machine, then keep them in place; but if you’re looking to expand/scale or build a new site, check to see if wireless technology would be the better long-term option.
Equally, consider replacing cables with wireless technology if you encounter any of the following issues:
Difficulties connecting to moving or hard-to-reach machines,
Frequent cable or connector failures, or
Encountering issues accessing machine data.
By combining cables and wireless technology, companies can enjoy the best of both worlds.
And migrating hard-wired solutions to wireless networks is not as hard as many think, indeed cable-replacement exercises are commonplace for HMS and are supported by tools that help with MAC cloning and Layer 2 tunnelling. Our wireless field application engineering (FAE) service can help with site surveys followed by solution, implementation and verification assistance – with the end result being networks and hardware tailored to your needs in terms of shape, speed, roaming and time sensitivity. Although the initial cost outlay may be slightly higher than a cabled equivalent, the operational costs are lower and once the break-even point has been passed it is all savings from that point onwards.
Standards, security and safety
The final challenges are to ensure worker safety, secure networks and to adhere to local, national and international standards and legislation. And these are all moving targets! As technology evolves and working practices change, safety, the cyberthreat landscape and legislation have to evolve with them. As such flexible and scalable solutions are essential for medium- and long-term operational capabilities.
Of particular relevance is the new EU machinery regulation, which applies to all solutions that want CE certification. This latest revision has many changes, but of particular importance to the warehousing industry is the explicit addition of mobile machines (AGV), to include secure remote supervision and safe remote control (stop/restart). Companies also have to consider the cascade affect as many standards feed off the directive and if the directive changes, so do these standards. As I said before, it is a moving target.
Security is also a major concern of Logistics and Material Handling (LMH) end-users. As the backbone of production operations, any LMH disturbances will have a cascade affect that will strongly affects all of a company's operations. This makes LMH a ripe target for hackers. As with all digital transformation activities, securing these networks while at the same time provide access to the required data for remote diagnosis or remote operation is a huge challenge. Proprietary solutions are becoming less accepted in the market as IT security standards such as ISO 27100 or IEC 62443 become more and more common.
Maximum added value
It is the flexibility and agility of our networking solutions that create a rather unique value proposition, including answers to the updated directive relating to AGVs. We can offer a very broad set of solutions for multiple industrial protocols – both safety and non-safety, a comprehensive wireless portfolio backed by in-house technology competence all of which is supported by advanced networks diagnostics & monitoring solutions. Add in our experience with safety & cybersecurity standards and the fact that we are ourselves in a unique position as a user and a maker, and we feel we truly can offer everything you need to take your operations to the next level.
We know the pain points of system integrators and end users. Our solutions are futureproof too, as we know which standards are relevant in the future for safety and security and prepare our products accordingly. An integrator using HMS solutions can be sure today that not only will their application be running properly, but that it will also be prepared for upcoming future trends in safety, security, and legislation.
Information and connectivity
Data and connectivity are the two most important tools available to companies today, not just for local operation and efficiencies, but also for the bigger picture. The digital chain from start to end, from farm to fork or whatever idiom suits your industry, is the link that drives everything, and the enabling technology at machine, cell, line or plant level delivers so many other advantages too.
A robust, optimally designed logistics network will help you gain and maintain efficiency, improve flexibility and mobility, and will help keep standards in check, sites secure and workers safe. And not just now, but well into the future too – no matter what technology, standards, society and politics do to try and derail you.
2 Infographics - Autonomous Mobile Robots Market (www.fortunebusinessinsights.com)
3 Infographics - Automated Guided Vehicle (AGV) Market (www.fortunebusinessinsights.com)
4 Automated Guided Vehicle Market Size, Analysis 2020-2027 (www.alliedmarketresearch.com)