Leaning on AGVs to Drive the Future of Commerce

Summary

While some might consider technology that’s more than 50 years old to be outdated, Automated Guided Vehicles (AGVs) have evolved and are making a resurgence as a low-entry automation application. For warehouses and distribution centers (DCs) considering automation, the AGV benefits—improved safety, reduced operating and labor costs, use in undesirable locations, and decreased product damage—are hard to pass up. Read on to see if AGVs are right for your business.
 
The pandemic put our industry in the spotlight as automation quickly became the hero of supply chains across the world. Today, the market is still facing labor shortages and supply chain delays. But now with increasing inflationary costs and amplified demand from consumers, warehouses and distribution centers (DCs) are increasingly turning to flexible automation to address these stressors. Automated Guided Vehicles (AGVs) have provided automation support for decades, but I believe they’re the effective solution the industry needs to address the pressures of today and challenges of the future.

Modern AGVs

AGVs are driverless robots that operate on a designated path. They have been used for more than half a century to move materials within manufacturing facilities, warehouses, and DCs. Technology has since evolved to include dynamic routing, 3D sensors, and simulations of how AGVs interact with humans in a working environment. Modern AGVs use laser guides, magnetics, magnetic spots, inductive wires, and optical points to navigate. Today, AGVs of all types have a variety of applications, including receiving, picking, shipping, long-haul transportation, storage and retrieval, truck loading and end-of-line transport.

• Are relatively quick and cost-effective to implement and can be integrated with other supply chain systems, so you can see benefits without facing headwinds.
• Have proved to reduce operating costs.
• Can seamlessly integrate safely with your staff.
• Significantly decrease product damage and enhance product traceability while better using space in your warehouse.
• Improve inventory accuracy
• Can store pallets in racking at heights over 40 feet
• Enable the automation of non-value-added labor, freeing workers up for value-added projects.

Cold storage applications

AGVs are particularly beneficial in the food and beverage industry for use in environments that are not suitable for humans for extended periods of time, such as freezers. Many cold storage warehouses operate in sub-freezing temperatures—imagine the challenges you’d face working in –20°F all day! According to an industry analysis by Grand View Research, the cold storage industry is projected to grow 13.4% by 2030. With industry growth comes increasing pressure from government regulations and rising demand, so many cold storage warehouses are turning to automation to help alleviate the strain.
 
While AGVs have been used for decades, automating an entire warehouse is still a daunting task for many DC managers. So, what should a company that’s interested in exploring automation look for in an AGV provider? If you’re not ready to build a new, fully automated warehouse, fortunately, you can still take advantage of this technology by retrofitting an existing facility. Experienced AGV providers can help a company save millions of dollars by surveying, mapping, and digitizing their current warehouse to program AGV paths. This is a critical step for cold storage facilities, which often require high storage and narrow aisles to make the necessary routes for smooth operations. Cold storage companies can benefit from implementing AGVs in an existing warehouse because the equipment is conducive to sub-freezing temperatures.
 
To get an inside look at how AGVs can be applied in the “real world,” one example is Oxford Cold Storage, a 3PL company with more than 400 employees that needed to increase efficiency and reduce operating costs amid tightened margins. Dematic deployed a trial of five AGVs that were optimized specifically for the company’s warehouse. Our experts worked alongside Oxford Cold Storage to prepare for implementation and establish clear lines of communication between their warehouse management software and our AGV software. These AGVs use a laser scanner to measure the angles and distances to reflectors mounted on walls and racking, allowing the AGVs to determine their position within the warehouse and navigate to where they need to be. The goal is for Oxford Cold Storage’s AGVs to handle 90% of the company’s freight. Once fully implemented, the five AGVs will eventually move 4,000 pallets per day, potentially saving Oxford Cold Storage millions of dollars over time.

Safety considerations

Many of us are familiar with the old adage, “Safety doesn’t happen by accident.” When designing AGV systems to operate alongside employees in the warehouse, safety must be the number one priority. Fortunately, AGVs are designed to provide a safe working environment with safety features such as navigational laser scanners, an emergency stop button, safety field sensors, and load counterweights. AGVs are also equipped with other safeguards like limited speeds, highly accurate load placement, and defined paths that are fully optimized for a specific environment to prevent collision and damage to loads. With the ability to run 24 hours a day and in a variety of environments, AGVs reduce occupational health and safety concerns, and operating errors.
 
Unfortunately, there’s a misconception about AGVs that they aren’t a safe alternative to manual labor. However, with a decades-long history of use in warehouses and DCs, AGVs are a time-tested technology that exceeds the demands of international safety standards. These standards (including UL 3100 Standard for Automated Mobile Platforms (AMPs), ANSI/ITSDF B56.5-2019 Safety Standard for Driverless, and more) outline the procedure for manufacturers and operators to maintain a safe environment when working alongside AGVs. AGVs keep workers safe and out of harsh conditions, complying with OSHA regulations and protecting human workers from danger. For those interested in implementing AGV technology, it’s important to work with an expert in the automation space that offers a comprehensive safety package with personnel training.
 
As we look ahead to the future, the growth of e-commerce and shortage of warehouse workers will increase demand for automated solutions that are efficient and cost-effective. Warehouse managers can benefit now by taking this opportunity to integrate AGVs into their operations. By beginning to explore the idea of working alongside AGVs, you can help relieve pressure on your employees, while simultaneously improving safety, reducing costs, and increasing efficiency. AGVs may have already been automating facilities for decades, but as we navigate the challenges of today’s market, they will become even more effective in powering the future of commerce.