How to automate lift trucks

It's becoming a classic Catch-22 for material handling and logistics managers. They need to increase distribution center productivity to keep labor costs under control but, in many cases, they're also being forced to cancel or postpone capital investment. For many companies this squeeze has ruled out the possibility of using automated solutions such as automated storage and retrieval (AS/RS). Some have been looking into using their existing equipment to reduce the investment required to automate warehouse operations.

One such alternative involves equipping standard lift trucks with automation kits so that the trucks follow the operator to each picking location and deliver the pallets to dispatch when full. Lift trucks automated in this way can also perform other unmanned tasks such as delivering incoming goods to the proper location in the warehouse and returning empty pallets to the inbound dock. Existing voice systems can continue to be used by the operator. This new approach can also use the existing warehouse management system (WMS) or be applied to other equipment such as reach trucks.

Challenging Business Environment

Distribution centers face a business environment filled with unprecedented challenges. Retail sales have been very soft and retailers have responded by cutting inventories drastically. The brightest segment of the retail market has been, not surprisingly, private label merchandise, as consumers and businesses switch to lower cost products. Retail sales for 2009 were down 6.2 percent from 2008. Factory utilization has dropped to levels not seen since the great depression. The transportation industry has also seen substantial drops in traffic. Transportation costs were 20.2% lower than 2008 levels, with all modes of transportation being negatively affected.

The Material Handling Industry of America (MHIA) reported that inventory-carrying costs fell by 2% in 2009 due to a 4.6% decline in inventory and a plunge in interest rates. “Although early 2008 saw warehouses full of inventory, by mid-year goods had been drawn down or relocated, leaving facilities with empty space,” the MHIA said.

With sales lower and inventory lower, investment in distribution center automation has naturally taken a major hit. The MHIA estimates that sales of material handling equipment dropped by 35% in 2009 although sales seemed to pick up somewhat in the last half of 2009 and first half of 2010. It's clear that in this challenging environment distribution centers are being forced to reduce costs. Yet few distribution centers will be able to obtain funding for large-scale investments in automation equipment.

One innovative solution that substantially reduces the amount of investment required is upgrading existing equipment, compared to the alternative of starting from scratch. Standard lift trucks from existing suppliers can be upgraded with automation kits that enable them to be automatically dispatched to any area of the warehouse. The automation does not replace the operator but takes over the routine task of driving. This enables the operator to focus on picking goods, which is more difficult and expensive to automate. The lift truck automatically follows pickers from point to point and moves the forks to the correct height. Productivity gains of up to 100% are possible.

Automating Forklifts from Existing Suppliers

A key advantage of this approach is its ability to seamlessly integrate with existing equipment in the distribution center. The automation kits can be installed on all popular makes and models of lift trucks. This is important because most distribution centers have a service contract with one or two lift truck suppliers that typically extends for a considerable period of time. The new approach makes it possible to maintain this contract and continue to work with the same lift trucks covered under the contract, and known to the distribution centers service technicians and operators.

The automation kits provide support for all vehicle types including order pickers, stackers, reach trucks, turret trucks and large counterbalanced lift trucks. The kits support all major navigation techniques including laser, vision, spot and pilot line guidance along with multi-navigation approaches that combine various methods. The kits can support nearly any application so the automated forklifts can continue to be used when needs change, or even be transferred to a different facility.

In addition, automation kits can be installed on the same make and model that the distribution center would normally purchase. Several of the leading lift truck manufacturers are installing the automation kits as factory-installed optional equipment. Installation can also be performed by the automation kit vendor.