The following presentation was delivered at the 2023 GCCA Cold Chain Conference in Cape Town , by Sheldon Uys , general manager of SSI Schaefer , referencing a cold chain warehouse automation project in the Philippines for ORCA Cold Chain Solutions .
ASSOCIATIONS
Revolutionising cold store automation in a developing nation : a case study Edited by Eamonn Ryan
The following presentation was delivered at the 2023 GCCA Cold Chain Conference in Cape Town , by Sheldon Uys , general manager of SSI Schaefer , referencing a cold chain warehouse automation project in the Philippines for ORCA Cold Chain Solutions .
In the ever-evolving landscape of automation within the HVAC & R industry , the term ‘ flexible automation ’ has emerged as a leading innovation . Automation is multifaceted and adaptable to diverse cold chain operations , but in the context of a developing nation has to be economically viable .
The history of cold chain management dates back to static racking in the 1970s . The progression towards modernisation accelerated with the advent of Y2K ( the millennium computer bug ) and the internet , paving the way for 3D advancements . This progression involves the holistic integration of innovation and technology , encompassing production , distribution centres ( DC ) and transportation .
MEGA TRENDS SHAPING THE INDUSTRY : A SURVEY SNAPSHOT
A recent survey by Schaefer highlighted several mega trends set to reshape the industry . Notable among them were :
• Internet of things ( IoT ) and artificial intelligence ( AI ): Projections indicated an 8 % increase in IoT adoption and a substantial 14 % leap in AI implementation by 2027 .
• Robotics and predictive analytics : The industry is witnessing a surge in spending on robotics and predictive analytics , with data emerging as a cornerstone for future predictions .
• Supply chain challenges : There are critical challenges facing supply chains , including disruptions , worker retention and customer expectations . These emphasise the need to make the workplace appealing to the younger workforce , notably Generation Z .
The best approach to automation is via a pragmatic perspective on its cost-effectiveness by means of evaluating fixed costs , including losses , damages , security , power and forkliftrelated expenses . The tipping point for automation ' s financial viability was identified as the stage where savings offset these costs , leading to improved accuracy and efficiency .
Customer-centricity has emerged as a pivotal focus , aligning with the growing trend of placing customers at the core of operational decisions . Transparency in inventory management , forecasting accuracy and pricing dynamics are essential components to meet evolving customer demands .
Of importance is education in understanding the myriad technologies available : disruption is inevitable , and companies must educate themselves to navigate the evolving landscape successfully .
The research data indicated a substantial increase in supply chain investments by major corporations . While not explicitly indicating automation , this trend signifies a widespread recognition of the need for technological advancements in supply chain processes .
THE CASE STUDY IN THE PHILIPPINES : A 16-MONTH JOURNEY
A pertinent case study of a recent operation in the Philippines was focused on the cold chain in an urban landscape . It emphasises the need for tailored solutions in developing nations encompassing the intricacies of the process and the
Part of the presentation .
The audience in Cape Town .
Images by © Cold Link Africa
Lizelle van der Berg , past director of GCCA Africa , introducing the speaker . unique challenges posed by the country ' s geography and infrastructure .
Schaefer undertook the design and implementation of a state-of-the-art cold storage facility in the Philippines . With over 10 000 pallet positions and a high throughput of pallets per hour , the facility boasted a 100 % stock accuracy rate . The success of this project underlined the potential of automation to enhance operational efficiency and accuracy .
The conceptualisation and design process spanned over 16 months . Contrary to misconceptions about automation being a swift computer-based solution , more important is the interfacing with customers , ensuring a thorough understanding of their needs and crafting solutions collaboratively .
Key challenges faced during the project included a lack of national payment service providers , executives ' appreciation for automation , vision clarity , proper planning , inventory management and the absence of one-stop ancillary solutions . The project aimed not only to resolve these issues but also to scientifically design solutions that would withstand uncertainties .
The Philippines ' unique geography comprises 7 641 islands , highlighting the importance of a national monitoring system to ensure the comprehensive coverage of the cold chain . The vision was not solely about cost-effectiveness or cheap labour but centred around food security , leveraging the availability of affordable labour and addressing the high cost of property .
6 www . coldlinkafrica . co . za COLD LINK AFRICA • June 2024