Edited by Eamonn Ryan
With the 2024 GCCA Cold Chain Conference in Cape Town fast approaching, Cold Link will be reviewing some of last year’s presentations to prepare us for what is to come. The following is by Sheldon Uys, general manager of SSI Schaefer, referencing a cold chain warehouse automation project in the Philippines for ORCA Cold Chain Solutions. It is Part 1 of a three-part article.
In the ever-evolving landscape of automation within the HVAC&R industry, the term ‘flexible automation’ has emerged as a leading innovation. Automation is multifaceted and adaptable to diverse cold chain operations, but in the context of a developing nation has to be economically viable.
The history of cold chain management dates back to static racking in the 1970s. The progression towards modernisation accelerated with the advent of Y2K (the millennium computer bug) and the internet, paving the way for 3D advancements. This progression involves the holistic integration of innovation and technology, encompassing production, distribution centres (DC) and transportation.
Mega trends shaping the industry: a survey snapshot
A recent survey by Schaefer highlighted several mega trends set to reshape the industry. Notable among them were:
- Internet of things (IoT) and artificial intelligence (AI): Projections indicated an 8% increase in IoT adoption and a substantial 14% leap in AI implementation by 2027.
- Robotics and predictive analytics: The industry is witnessing a surge in spending on robotics and predictive analytics, with data emerging as a cornerstone for future predictions.
- Supply chain challenges: There are critical challenges facing supply chains, including disruptions, worker retention and customer expectations. These emphasise the need to make the workplace appealing to the younger workforce, notably Generation Z.
The best approach to automation is via a pragmatic perspective on its cost-effectiveness by means of evaluating fixed costs, including losses, damages, security, power and forklift-related expenses. The tipping point for automation’s financial viability was identified as the stage where savings offset these costs, leading to improved accuracy and efficiency.
Customer-centricity has emerged as a pivotal focus, aligning with the growing trend of placing customers at the core of operational decisions. Transparency in inventory management, forecasting accuracy and pricing dynamics are essential components to meet evolving customer demands.
Of importance is education in understanding the myriad technologies available: disruption is inevitable, and companies must educate themselves to navigate the evolving landscape successfully.
The research data indicated a substantial increase in supply chain investments by major corporations. While not explicitly indicating automation, this trend signifies a widespread recognition of the need for technological advancements in supply chain processes.