All posts by Arturo

A different automatic warehouse

In this post I want to talk about an automatic warehouse in the corrugated cardboard sector.

Normally when we think of an automated warehouse, an ASRS or a Miniload, we think of the storage of pallets or boxes. But not all automatic warehouses are designed to store pallets or boxes.

In this case, it is an intermediate warehouse for corrugated cardboard stacks, this warehouse serves as a buffer between the corrugator (machine where the cardboard is produced) and the machines where the cardboard sheets are converted into boxes.

At the exit of the corrugator, the machine sends the data from the cardboard stacks to the warehouse computer system. This data includes the number and height of the piles and the number of plates. The warehouse is connected to the company’s ERP, allowing it to anticipate the programming of the machines where the cardboard boxes are manufactured. When the warehouse receives the signal, the stacker moves to the position where the stacks are located, picks them up and sends them to the box machine.

What are the advantages of automatic warehouse?

  • Optimal use of space.
  • Total control of stock.
  • Reduction in direct labor.

What disadvantages does it have?

  • Initial investment is very high.
  • Need of a very robust information system.
  • High cost of maintenance.

Supermarkets and Electric Vehicles

After knowing if electric trucks were possible or not, the alternatives that exist today and their limitations, I had doubts about whether any of the supermarkets in Spain were using them.

Right now in Spain there are 3 supermarkets that already use electric vehicles to deliver orders. Carrefour, Lidl and Mercadona have decided to start working with electric vehicles.

The most striking case is Carrefour, the French brand began to use an electric vehicle for deliveries in the center of Madrid. This vehicle is a kind of motorcycle-van, has an autonomy of 8 hours and has solar panels for recharging. The name is Scoobic light, it is 100% electric. As it is approved as a scooter, it can be parked in motorcycle areas and has a removable system that allows loading and unloading in an agile way. In addition, it is an efficient transport since it can carry a volume of 1,400 liters of load.

Lidl and Mercadona have started testing Man’s electric model, the TGM 26.30E. With this alternative they avoid the fossil fuel restrictions that we are beginning to see in big cities like Madrid. In addition, being electric is perfect for night-time discharges, as it does not make any noise.

Mercadona is also testing another vehicle for the delivery of its online store. This new vehicle, designed in collaboration with the specialist body supplier Subiela, the specialist supplier of refrigeration equipment Thermoking and the specialist supplier of engines Maxus, has a capacity to transport 7 orders per trip, and its interior is similar to the rest of the trucks that make up the fleet of this online shopping service.

Electric trucks ¿It is possible?

As we know, climate change is a real societal problem and governments are gradually taking action.  Thinking about these measures, I have paid attention to vehicles. More and more users are being urged to buy 100% electric cars, but what about commercial vehicles? These vehicles make thousands of journeys every day and we do not see an increase in the use of electric cars in industrial sectors.

From here, I have become curious and I have researched a little about the alternatives on the market and whether some companies are already putting these vehicles into practice or testing them.

VOLVO FE and FL Electric

These two models have been the first two launched by the Swedish brand. The difference between both is the load capacity, being the FE the one destined to the heaviest operations. They will be able to support a gross weight between 15 and 27 tons depending on the model

The first Volvo FE Electric, in a garbage collection version with a superstructure developed together with Europe’s largest bodybuilder, Faun, started operating in early 2019 in Germany’s second largest city, Hamburg..

Composed by two electric motors that offer a maximum power of 370 Kw. They have a range between 200 and 300 km. They take an hour and a half to charge.

Mercedes Eactros

The Mercedes proposal is called Eactros and is a truck with a range of 200 km and a maximum gross weight of 18 and 25 tons depending on the model.

Man TGM 26.30E

Is a vehicle with an electric motor located in the centre of the frame, generating 264 kW maximum load is 26 Tn. The truck offers a range of 180. According to the manufacturer, this vehicle, designed for use in urban logistics.

Mitsubishi Fuso Ecanter

Fuso is the commercial variant of the Mitsubishi brand and the Fuso Ecanter is this manufacturer’s light truck. It has a range of 100 km and an MMA of 6 tons. Mitsubishi has put 500 units into circulation in Europe, the USA and Japan. It is possible to see them circulating in New York with the UPS company.

So, it is possible??

The answer is yes and no at the same time. As I mentioned earlier, there are electric models available and in circulation in some cities. There are 2 main problems with these vehicles:

Firstly, the problem we find in all electric vehicles, autonomy. Right now there are no trucks on the market capable of meeting the needs of transport companies for long journeys, so their use is intended for small deliveries.

Second and most importantly, none of the models are already in line production. Volvo will launch production at the end of 2019 and has only put a few models like the Hamburg one into operation. Mercedes will not do the same until 2021 and the 500 trucks distributed by Fuso are rented with a duration of 2 years. During 2019 Fuso will launch series production. Man will not manufacture this model until the middle of the next decade. Therefore, little by little we will see how these vehicles are appearing in the urban deliveries but there is still much to see them on long distances.

Amazon Vs Correos: How logistic are changing in Spain

Amazon is known worldwide for the speed and efficiency of its deliveries. Since it started selling books online, it has been adding divisions to its business and has experienced tremendous growth. In 2019 it is one of the most valuable brands along with apple and google. This great economic power has allowed it to make large investments in maximizing the efficiency of its logistics network. Currently it is possible to buy thousands of products from their website and receive them in less than 24 hours at home, but amazon does not make any of these deliveries personally, they always subcontract this part of the service to companies specializing in deliveries such as Seur, Correos, MRW.

Correos is a public company that was born in Spain in 1716 dedicated according to themselves to “being a provider of physical, digital and parcel communications”. This company, unlike amazon is a company dedicated exclusively to logistics. Correos has not been able to integrate new technologies as quickly as amazon and we can see how little by little is including new features.

I would like to give you two examples of how such different companies try to innovate in order to become as competitive as possible.

Amazon Lockers Vs Citypaq

Amazon Locker

This solution has been implemented by both companies. It consists of lockers to which the customer can send their packages and pick them up during 24 hours (depending on the location of the lockers). This shipping method allows both companies to reduce their logistics costs since it is the customer who moves to the collection point, consolidating many deliveries in one.

Citypaq

Both amazon and Correos, offer discounts on shipping costs and faster delivery if we choose this option. In Valencia, amazon lockers are located in repsol and GALP stations and in shopping malls such as CC el Saler or Gran turia. Citypaq are located in repsol and GALP, also in many supermarkets as Consum, Vidal or El Corte inglés, also there is one in UPV.

Correos Market, The “Amazon” of Correos

Correos has launched an online sales channel called “Correos Market”. In this Marketplace, Correos wants to sell local products, made in Spain.

Through this channel, Correos will sell products of food, drink, textiles and handicrafts of Spanish producers. In other words, Correos will be the intermediary between suppliers and customers. With this proposal, Correos wants to attack a new market taking advantage of its extensive logistics network. Correos Market will charge a commission to suppliers for each product they sell on their website. Customers will be offered free shipping costs, the possibility of consolidating different shipments and a delivery within 24-72h.

The great advantage for Correos is that it will offer a new service without any added cost to those it already has. That is to say, mail will only be an intermediary between supplier and customer, the storage of the products will be done by the supplier, the supplier will make the shipment as any shipment managed by mail and the customer will receive your order as any order managed by mail. We will see how many suppliers are able to attract mail and how this new service works

Takkyubin: How to speed up the flow of people

When you have a very saturated warehouse, with a very high number of movements, all you have to do is find a way to speed up these movements. Japan is one of the countries with the highest population density, has a total of 126 million people, with an average of 339.5 people per km2. Yamato, a Japanese parcel company, wanted to use its logistical know-how to make life easier for Japanese people and tourists visiting the country.

This service is popularly known as Takkyubin and consists of sending suitcases from one point to another in Japan. Simply fill out a form with the address of the destination and the date of delivery (minimum 24h). You can ask the company to pick up the luggage at the hotel or you can take them to one of the offices in the train stations.

The cost of this service is really reduced and allows the Japanese and the tourist to travel without worrying about their luggage. For example, sending suitcases from Kyoto to Tokyo (460km) costs between 8 – 17 euros depending on the size.

This service allows the flow of people on public transport to be much more agile. It is so useful and important that even the government of Japan has begun to publicize it through its tourism agency among visitors to the country as “Japan hands free travel”.