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Transforming cold storage automation: a case study from a developing nation

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 2 of a three-part article.

Part of the presentation.
Part of the presentation. ©Cold Link Africa

…continued from Part 1.

 

The case study in the Philippines: a 16-month journey

A pertinent case study of a recent operation in the Philippines was focused on the cold chain in an urban landscape. It emphasises the need for tailored solutions in developing nations encompassing the intricacies of the process and the unique challenges posed by the country’s geography and infrastructure.

Schaefer undertook the design and implementation of a state-of-the-art cold storage facility in the Philippines. With over 10 000 pallet positions and a high throughput of pallets per hour, the facility boasted a 100% stock accuracy rate. The success of this project underlined the potential of automation to enhance operational efficiency and accuracy.

The conceptualisation and design process spanned over 16 months. Contrary to misconceptions about automation being a swift computer-based solution, more important is the interfacing with customers, ensuring a thorough understanding of their needs and crafting solutions collaboratively.

Key challenges faced during the project included a lack of national payment service providers, executives’ appreciation for automation, vision clarity, proper planning, inventory management and the absence of one-stop ancillary solutions. The project aimed not only to resolve these issues but also to scientifically design solutions that would withstand uncertainties.

The Philippines’ unique geography comprises 7 641 islands, highlighting the importance of a national monitoring system to ensure the comprehensive coverage of the cold chain. The vision was not solely about cost-effectiveness or cheap labour but centred around food security, leveraging the availability of affordable labour and addressing the high cost of property.

The client’s vision extended beyond automation to provide a one-stop solution, offering end-to-end services across the country. Emphasising the need for infrastructure and integration, the case study underscored the significance of a unified Warehouse Management System (WMS) that seamlessly operates from pickup to distribution.

The project was a pioneering initiative in establishing one of the largest national organised cold chain plants in the Philippines and the country’s first smart warehouse. Automation and technology played a pivotal role in achieving this, ensuring the efficient management of the cold chain and positioning the Philippines as a leader in the field. The facility’s frozen storage has a capacity of nearly 20 000 pallet locations and covers approximately one hectare in footprint.

Operating in a seismic zone and experiencing close to 20 typhoons each year in the Philippines, the ORCA 45m-high facility was built with a rack clad designed to prevent destruction from wind or seismic activities.

Future developments may potentially include the incorporation of electric vehicles, aligning with the global push towards sustainability. Underscoring the significance of exploring cost-effective options is the example of ESB, a company outside Africa, which has already embraced electric vehicles to enhance sustainability.

Continued in Part 3…