Automation again dominated Australia’s largest logistics, warehousing and materials handling show, CeMAT Australia.

In the opening keynote in the Knowledge Theatre, Peter Jones, managing director at Prological, spoke about “a revolution in the supply chain”.

His research shows that today’s warehouse is “the heart of a company’s efficiency and the engine room to impact sustainability objectives”. 

The next-generation warehouse will use vertical space and automation, and will become “the power station providing the energy to operate the facility and a fleet of electric vehicles”, he predicted.

Jones also participated in a panel discussion which I facilitated on the impact of automation on human roles in the supply chain.

Jones said people are always a consideration when automation projects are first discussed. “They’re generally seen as a priority at the start, but sadly, they become less of a priority for big projects that get going. Often, they get forgotten and that requires an enormous amount of corrective action after the automation has been put in.”

Jason Wu, business development manager, ANZ at AutoStore, stressed that people are always going to be involved in logistics. “But goods-to-person systems try to eliminate the repetitive parts - like walking, which doesn’t really bring value to the business,” he explained.

Tabitha West, founder & principal of Reimagine Talent, noted that while automation strips out some entry-level roles, there may be long-term consequences. “You’re essentially stripping out a layer of people who would potentially have been promoted to more senior roles in time. So where are we going to find talent in future?”, she asked, noting that organisations are also losing a lot of intellectual property that people gained “while walking around”.

Jens Nikolai, national sales manager, SSI Schaefer, predicted ongoing human roles in warehousing, noting that “there is a range of solutions from fully automated to fully manual. So, there are combinations of manual (and[3] ) automated, and more possibilities than ever.” In addition, automation brings new roles in maintenance, IT, and services. But there will still be a need for forklift drivers, he said.

In another panel discussion on warehouse automation for small and medium enterprises, Rakesh Bandipelli, director, Supply Chain & Logistics Association of Australia (SCLAA), noted that many in the industry struggle to see the relevance of automation which is generally pitched at large organisations.

Brett Thirup, managing director Australia and New Zealand at SSI Schaefer, stressed that while “robots have a place within the solution, it’s about the whole process”.

He pointed out that many logistics processes can be improved without adding technology and that organisations should start by looking at what others are doing.

Archival Garcia, founder and CEO at Ensemble Solutions, pointed out that automation is not a last resort, but it is an enabler which addresses a range of challenges. “There is a risk of putting in automation for the sake of automation, so start with a problem statement and a forecast for the future, based on facts - on data.”

Amy Griffith, senior manager at Grant Thornton, added that cost and perceived complexity are potential barriers for automation adoption by businesses of any size.

“It’s important to work out where you start, with so many solutions out there,” she said, urging the audience to educate themselves and to find someone they can trust and learn from their experience.

The panellists urged anyone in doubt to seek information from their networks, visit warehouses and talk to a wide variety of vendors.

A later session pondered whether “Automation is the Key to Mastering Business Growth for SMEs”.

Grant Smith, ANZ director of business development, AutoStore at Kardex, presented an automation case study involving pharmaceutical company Douglas. For that exporter, automation was indeed an enabler.

Francis Meier, executive director of Trios Consulting, said he was surprised by how often customers don’t know their own data. “So, you have to start by helping them understand their business”, so they can plan based on data, their aspirations and the business environment.

“The start of the journey is sometimes IT, rather than robots,” he noted, saying that for some, a good WMS coupled by RFID stock tracking is enough ‘automation’.

Arthur Dardoumbas, executive director of ThreeSixty, suggested that anyone start with a supply chain strategy and network and understand their inventory. “Volume will determine your need for automation - which might not be appropriate in all situations,” he explained. “There are lots of variables: operational, technical and financial.”

A live podcast by Manufacturing Tech Australia also heard about the need to engage early with suppliers. Sean Ledbury, head of sales and consulting for Australia & New Zealand at Swisslog, argued that customers want to do more with less, generally involving smaller footprints and fewer people. 

“There’s been an explosion of new technology for all levels of industry - and there are various types of automation available,” he explained. 

Sean Hewat, head of operations ANZ at Tompkins Robotics of Australia, pointed out that automation is not just for the big end of town, noting that his company gets many requests from smaller operations that might not have the budgets for ‘big bang’ automation.

There were warnings from the panel that the falling barriers to entry in warehouse automation have led to a proliferation of new products, some with dubious provenance.

“Look at companies in detail. Be careful about the people involved - their background, their experience and their resources,” Michael Kemeny, managing director, Knapp Australia, suggested.

The experts agreed that vendors should be contacted very early in the automation planning process.

“If you’re already looking to build a warehouse, it may already be too late,” Kemeny warned.

In the panel I hosted on Future Fuel, Hans van Pelt, director and principal of Affairs of State, predicted a rapidly ageing fleet as people fear making a decision over the next couple of years. “The electrification of forklifts is obvious and we should be doing it,” he said.

Roy Zou, managing director of Alta Battery Technology, also stressed that “decarbonisation is coming and is going to hit every industry. So, you need to prepare for it - and to look far and wide to see what’s available”.

For equipment hirer Coates, product bought today will remain in service for many years. Dan Goodfellow, Coates group manager - products & fleet trading, explained that his company will “always consider battery when it’s available”. Where it doesn’t stack up, Coates aims for hybrid solutions.

The warning from Ian Christensen, managing director of iMove, was that Australia is already becoming a dumping ground for machines that don’t meet the rising standards in other markets. “That will persist until we set standards, and this is an opportunity for government effectively to lead, but it would also help if industry could coalesce on standards,” he said.

For the second year, CeMAT Australia hosted the Australian Forklift Championships, which was won by Andrew Galea of Krost Business Furniture.

The final round saw four contestants following a course in a warehouse environment using a recently released Hyundai 20BE-X 2 T forklift.

Besides winning his trophy, Galea raised nearly AUD5,000 for Healthy Heads in Trucks and Sheds in fundraising efforts in the lead-up to the finals.

• Next week: Exhibitor insights

Be sure to visit our CeMAT AUSTRALIA gallery.