**Netherlands**: Amid a tight labour market, logistics firms are increasingly adopting automation to enhance efficiency. Experts discuss challenges like diminishing migrant labour, rising demand for innovative storage solutions, and the potential of technologies like autonomous mobile robots and digital twins in this evolving landscape.
The logistics sector is currently facing significant challenges driven by a tight labour market, prompting companies to increasingly seek automation and robotisation within their supply chains. In a recent Dutch-language SCM Podcast hosted by Martijn Lofvers, editor-in-chief of Supply Chain Movement, experts Jack Pool from consultancy firm Districon and Alain Beerens from Groenewout explored these trends.
The conversation highlighted that the past decade has seen dramatic growth in the variety of storage and order-picking systems available. Pool noted that the tight labour market has introduced new challenges that fuel innovation, with the shortage expected to worsen due to the ageing population and diminishing availability of migrant labour from countries such as Poland. “This has led to new issues and is driving innovation,” Pool stated, emphasising that companies are faced with two choices: sourcing labour from more distant countries or enhancing operational efficiency through smarter work practices.
Beerens elaborated on the increasing complexity of distribution channels and order profiles. He indicated that changes in shipment sizes have led to heightened demand for labour, exacerbating the shortage. Furthermore, Beerens pointed out that external factors such as the nitrogen issue and electricity grid congestion also hinder the construction of new warehouses. “We see companies looking for ways to increase storage and order-processing capacity within the four walls of their existing warehouse much faster than before,” he explained, underscoring a shift toward automation.
The podcast also delved into the maturity levels and adoption rates of various automation solutions. Lofvers presented data from McKinsey illustrating this landscape, where warehouse management software is regarded as highly mature and widely adopted, while automation solutions for unloading containers remain less established. Pool remarked on the investment challenges in this area, explaining, “There are quite a few developments in this area, but the number of people employed in unloading goods is limited,” which complicates the justification for automation.
Amidst these discussions, Beerens noted the surge in interest surrounding autonomous mobile robots (AMRs), which are increasingly being employed for internal transport and sorting activities. He added that hybrid solutions combining multiple systems are gaining traction, as no single system can address the diverse needs of all products.
Despite the advancements, logistics service providers are reportedly cautious regarding automation investments. Pool attributed this hesitation to the nature of short-term contracts in the logistics industry, which can discourage providers from investing in long-term automation solutions. He stated, “Automation and robotisation require a different way of working together with a long-term vision,” explaining that providers hesitate to commit significant resources without assurance of continuity from their clients.
Highlighting practical implementations, Pool discussed the successful collaboration with Hunkemöller, a lingerie chain that established a new distribution centre in Almere, integrating Geek+ mobile robots into its operations. He emphasised that setting up a robotised warehouse is more complex than a manual one, particularly in coordinating robot suppliers and IT systems during the early phases.
Moreover, Beerens shared insights regarding an assignment with My Jewellery, which is set to employ Geek+ robots in its new distribution centre in Den Bosch. Initially, the jeweller aimed to replicate its existing manual processes in a larger facility. However, with Groenewout’s intervention, they are now leveraging mobile robots to improve storage density and order processing capabilities.
The discussion concluded with the potential benefits of digital twins in warehouse management. Beerens proposed that digital twins could facilitate regular assessments of warehouse configuration, ensuring it remains relevant over time. Pool acknowledged the opportunities presented by digital twins while advising caution before immediate implementation, suggesting that many warehouses could optimise productivity by 5% to 10% through improved item placement alone.
This dialogue on the current state of logistics automation highlights the ongoing evolution of the sector amidst challenges, providing insights into how companies are adapting to maintain efficiency and competitiveness in a rapidly changing environment.
Source: Noah Wire Services
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