RISE OF THE ROBOTS: INSPIRATION AN EXCITING FUTURE SWISSLOG WAREHOUSE & DISTRIBUTION SOLUTIONS GLOBAL MAGAZINE ISSUE FIVE

PLUS: UNDER NEW LEADERSHIP // FASHION LOGISTICS // U.S. GROWTH // HEALTHCARE TECHNOLOGY INSPIRATION

// PAGE 3 WELCOME // PAGE 4 NEW ERA FOR WDS // PAGE 6 Automation powerhouse // PAGE 8 FUTURE roboTICS: WHERE ARE WE HEADING? // PAGE 10 united in the states // PAGE 12 SUCCESS STORY: db schenker // PAGE 14 ON-TIME fashion logistics // PAGE 16 WHEN HEALTH MATTERS // PAGE 18 LIVzon mothership // PAGE 20 FIVE years of tornado // PAGE 22 A NEW RETAIL ERA // Page 24 EYE on tomorrow

DESIGN. DEVELOP. DELIVER.

02 WELCOME

WELCOME

Welcome to the latest issue of our Inspiration magazine.

What a time to be alive! The future has never been so exciting, particularly in the world of Automation, Industry 4.0 and the synergies and new directions we're taking together with our new parent company, KUKA.

For us, this is where the future starts, taking new directions and walking new paths as we combine the experiences and competen- ces of our old and new friends to build a new power in the sector - an Automation Powerhouse.

This magazine is about innovation and advancement. We're forecasting future technologies, how robotics will impact intralogistics and the advantages we see on the horizon, while also looking at some of the successes already achieved. We hope you enjoy reading it!

Dr. Christian Baur Swisslog Warehouse and Distribution Solutions

03 INSPIRATION

christian baur appointed division president

Christian believes Swisslog will focus on new developments and innovation - using synergies derived from being part of KUKA - to evaluate new market entries and drive technology forward.

04 DR CHRISTIAN BAUR NEW BOSS In July 2015, Swisslog joined forces with robotics business, KUKA. Now, we're proud to have a new leader at the helm.

Christian Baur has been President of the Warehouse & Distribution Dr. Christian Baur has been Solutions division (WDS) since September 2015. We interrupted his busy Chief Operating Officer of schedule to ask him a few questions on what the new role means for the Swisslog Group since customers... February 2015 What is your typical day like? Among other things, he is responsible CB: Of course, part of my work at present involves the integration of for Operational Excellence, M&A, Swisslog within the wider KUKA organization. Generally my job is liaising purchasing and IT. In addition, since with customers, shareholders, key suppliers and, of course, the rest of the September 2015 he has been President management team to ensure we are focused on delivering the right things of the Warehouse & Distribution to customers. In my position, it is important to listen to my team to Solutions division (WDS). understand their needs. It's crucial that we understand what is required to drive our developments in the right direction. From 2013 to January 2015 he was Head of Corporate Development and How would you describe your management style? M&A at KUKA AG, Augsburg, Germany. CB: That's probably a question to ask those around me, but I try to create an Previously, he worked as a manage- atmosphere that allows people to flourish. We have fantastically talented ment consultant. Christian studied people, building great things. mechanical engineering at the Technical University of Munich and Is President of WDS a challenging role? received a doctoral degree from the CB: I think the best answer is "Yes, but in all the right ways!" Integrating Technical University of Karlsruhe. two successful organizations is always going to be a challenge, but both KUKA and Swisslog are already alike in many ways. Both are driven by technology with a high focus on quality and technology. It is great to be bringing people together to build a business worthy of the title automation powerhouse!

How have recent developments impacted on performance? CB: Generally, very well. We are excited by the prospects presented by our strong new partners and the technical know-how that they bring. We continue to work on innovation projects. Research and technology is incredibly important to us, and there are many more exciting times ahead.

Where do you see Swisslog in two or three years' time? CB: Our vision is to become an Automation Powerhouse. We already have considerable experience from our work across the globe, and you can expect more from us soon. For major businesses looking to push to the next level, we have a powerful message. From e-commerce to food & beverage, our wealth of knowledge covers multiple industries. We should be their first port of call and, as ever, it is in the application of the new technology, bringing it all together, that we find real customer benefit. That’s the exciting bit!  www.swisslog.com/WDS 05 INSPIRATION

power station THE COMING-TOGETHER OF TWO MAJOR INNOVATORS POINts to an exciting future for customers.

Since building its first industrial robot in 1977, KUKA has earned an international reputation for robotic excellence.

KUKA robots are utilized in a diverse range of industries, including the appliance, automotive, aerospace, consumer goods, logistics, food, pharmaceutical, medical, foundry and plastics industries, as well as multiple applications, including material handling, machine loading, assembly, packaging, palletizing, welding, bending, Together, Swisslog and KUKA are on a the entire supply chain, from design to pro- joining, and surface finishing. mission to build a business worthy of the duction, storage and shipping for the areas term Automation Powerhouse. of retail e-commerce , food & beverage, pharmaceuticals , automotive, aerospace & To understand our goals, it's worth con- electronics. KUKA Facts and Figures sidering the nature of the fast-moving sectors benefitting from our technology • Complimentary fit – We are two and services. like-minded organizations, primarily serving customers in fast-growing, but comple- 14 455 A number of megatrends are driving the mentary markets. Together, the aim is to The company was founded in 1898 in Augsburg, Germany, by Johann Josef demands, which are leading to greater create a new, global supplier of integrat- Keller and Jacob Knappich. Initially, the demand in the Automation sector. ed automation solutions for numerous business produced house and street industries. lights. Today it employs 14 455 people While the future may not be completely in 25 countries. predictable, many of the trends influenc- • Bundle of know-how and service - A new ing today’s modern warehousing are well single source with the best solutions. Our known. We know that technology, the en- integrated approach means less hassle, a 90% vironment, globalization and demographic single point of contact and knowledge- The number one supplier in automotive changes are all influential factors. All these able partner. The combination of strong solutions, KUKA has seen a 90% growth factors makes automation necessary and innovation expertise and cutting-edge in robotics from 2010-2014. appropriate. solutions opens up further opportunities to all customers. The Automation Powerhouse offers a strong future-driven partnership, developing • Organizational advantages - We are 21 000 intelligent, sensitive and mobile systems, to already able to meet our objectives faster, In 2014, 21 000 robots were produced, meet the needs of tomorrow, today. and therefore seize development oppor- including the super-fast KR AGILUS series and the touch sensitive LBR iiwa. tunities for our customers. We have a Through proven reliability and maximum stronger international presence, putting us productivity, we continue to eliminate closer in both a geographical and techno- risk and deliver total confidence for your logical sense, allowing us to provide greater business. We offer a complete solution for insights into what drives local markets.

06 AUTOMATION POWERHOUSE

MAN VERSUS MACHINE:

German table tennis champ, Timo Boll, helped demonstrate the remarkable capabilities of the fastest robot on earth: the KR AGILUS.

The original Duel movie pitched Timo versus the robot in a highly polished promo, created to celebrate the opening of KUKA’s first ever plant in Shanghai in 2014.

This year saw Timo take up a second challenge; he turned his hand to music (sort of!), billed as The Revenge! Together the two videos have racked up more than 7 million YouTube views!

07 INSPIRATION

the human side of robotics

HELP AT HOME Additional mobility is already enabling initial solutions in the area of professional service robotics – for use in both the work environment and at home.

08 INDUSTRY 4.0 future ROBOTs where are we heading?

Internet, smartphones, tablets: what just a few years ago was completely new and unknown on the market, has today become a natural part of our lives.

The term “digital natives” applies to a generation that is growing up in and with the digital world as a matter of course. KUKA sees a similar devel- opment occurring in robotics. While today robots are used primarily in industrial manufacturing, they will gradually conquer other areas of life. And this will lead to future generations growing up as “robotic natives” as "Robotics will exhibit a they are surrounded by highly diverse types of automation technologies similar disruptive force in and systems. the next 50 years as the Internet in the last half an ageing society century. It will penetrate and The ageing of society due to demographic change, extreme product demand enrich every aspect of life in and accompanying high demand for logistics solutions are just a few of the challenges that we will have to face in the coming century. The solution: the world." robots increasingly providing support in all areas of life. Moving beyond industry, robots will establish themselves as modern production assistants Dominik Bösl, through sensitive capabilities and new safety technologies. Corporate Innovation industrial settings Manager, KUKA In order for the development of robotics to reach this point, new technol- ogies must be developed. In the coming years, innovative solutions will be developed in industrial settings – including for direct cooperation between humans and robots, so-called “human-robot collaboration.” These solutions will simultaneously make initial professional service robotics scenarios possible. The keywords driving this development are “Industry 4.0,” the “Internet of Things” and the “Smart Factory.” The networking of IT technol- ogies and industrial automation give the Smart Factory maximum flexibility. Beyond this, the interoperability of the individual components plays an essential role in success.

CYbER-PHYSICAL SYSTEMS Together with strong partners, KUKA will offer solutions based on stand- ardized, high-performance infrastructures. The technological innovations in industrial manufacturing will also lead to the establishment of robots in other areas. If, in the future, robots become everyday objects that simplify people’s lives, then a new generation will grow up in a world enriched by the use of every kind of robot.

This Generation “R” will no longer be afraid of interacting directly with robotic systems of all kinds – be they self-driving cars, automated logistics solutions, independent service robots or robots in retail. For them, robots will be as natural as our interaction with the Internet, smartphones and tablets is today.

 www.swisslog.com

09 INSPIRATION UNITED STRENGTHS IN AMERICA FORTE’s Legacy of Excellence and Innovation

For more than 35 years, FORTE of client satisfaction. According to Schultz, has been laser-focused on “FORTE’s long-standing expertise in conveyor and sortation systems and case- optimizing distribution centers and-piece picking perfectly complements for many of the fastest growing Swisslog. companies in North America. FORTE also opens up new avenues to serve In April 2015, Swisslog completed the the vast middle market of companies that acquisition of this trusted warehouse are candidates for automation, but not automation system integrator located in necessarily Swisslog levels of automation. Mason, Ohio, USA. "FORTE is a company OPPORTUNITIES & SYNERGIES with a strong culture and Founder and former CEO Gene Forte At the same time, we are already seeing commitment to excellence. opportunities for FORTE clients to take handed over the management reins of When Markus Schmidt FORTE to A.K. Schultz, previously vice advantage of Swisslog’s expertise in highly president of customer services for Swisslog automated goods-to-person technologies. and I met the management WDS in North America. team, we were impressed The synergies between the two companies not only by their experience CLIENT SATISFACTION are very strong and we have collaborated and expertise in integrated As managing director of FORTE, Schultz on a number of new client opportunities in pallet and case conveyor leads a team of experienced professio- just our first few months together.” systems but also by their nals dedicated to completing warehouse commitment to becoming automation projects to the highest level Schultz added, “FORTE is a company with a part of Swisslog."

AK Schultz, FORTE Managing Director

The FORTE team is experienced in: ƒƒ Omni-channel fulfillment ƒƒ Pick and pass ƒƒ Pick to belt ƒƒ Pick to light ƒƒ Sorters and merges ƒƒ Pack stations ƒƒ Receiving ƒƒ Order consolidation ƒƒ Wave management ƒƒ Waveless picking

10 FORTE

strong culture and commitment to excel- lence. When Markus Schmidt and I met the RESHAPING THE USA management team, we were impressed not only by their experience and expertise in E-commerce, omni-channel, fulfill- integrated pallet and case conveyor systems but also by their commitment to becoming ment replenishment and last-mile part of Swisslog. FORTE is particularly logistics are reshaping today's strong in e-commerce and multi-channel retail fulfillment operations, which distribution facilities, and nowhere strengthens our capabilities in North is that more apparent than in the America in a key focus area.” USA. A.K. Schultz, vice president of Swisslog Americas and managing SCALABLE We are seeing that many e-commerce director of Swisslog's subsidiary, clients cannot afford a fully automated FORTE, believes the wealth of system upfront but they may need a knowledge at the company's solution that is still scalable and designed with the future in mind. By combining disposal means the future is bright FORTE and Swisslog we can now address in one of the world's most impor- FORTE’s long-standing expertise in conveyor and both of these needs and levels of auto- sortation systems and case-and-piece picking tant retail markets. perfectly complements Swisslog. FORTE also mation. No matter the size, our experts opens up new avenues to serve companies such will know how to serve our clients to build as a Fortune 500 office products business or the warehouses of the future. Furthermore, name behind the Nivea skincare brand, that are we believe many of the best solutions will candidates for automation, but not necessarily combine various levels of automation. Swisslog levels of automation. Designing these hybrid systems will allow greater flexibility for both Swisslog and FORTE clients. 11 INSPIRATION

a new solution for toy retailer

Lekmer.com is the largest online store for children and young families in the Nordic countries. Lekmer.com was established in 2006 and acquired by the CDON Group in 2010. The company has online stores in Sweden, Norway, Denmark, Finland and the Netherlands, as well as a brick and mortar store in Barkarby, Sweden.

12 DB SCHENKER Db sCHENKER a new warehouse for DB Schenker Logistics in Arlandastad, Sweden.

The global logistics provider will be the first to implement the pioneering CarryPick solution, part of the Swisslog Click&Pick e-commerce portfolio, for its "Together with Swisslog, we customer Lekmer.com, Scandinavia’s largest online toy have developed an inventory retailer. management solution that is unique for online businesses "This order is a breakthrough for us in many ways," says Hans Sparf, in Europe. It is designed to Swisslog's Head of Nordic Sales & Consulting. “Not only are we excited deliver levels of productivity to be delivering our first CarryPick solution, we are also delighted to that exceed all manual work together with DB Schenker Logistics in implementing this unique solutions in the industry," automated solution in their Logistics Center in Arlandastad.” says Anders Holmberg, The CarryPick solution consists of 65 Automated Guided Vehicles (AGVs), Business Development 1 500 mobile racking units and seven ergonomic workstations, installed Manager of DB Schenker together with Swisslog's proprietary control systems, WarehouseManager. Logistics. This is the first time the full scale CarryPick solution will be implemented; designed together with DB Schenker Logistics to provide Lekmer.com with an automated supply chain that guarantees faster order processing and Facts and Figures higher quality as well as lower handling costs.

PRODUCTIVITY LEVELS "Together with Swisslog, we have developed an inventory management 2 billion solution that is unique for online businesses in Europe. It is designed DB stands for Deutsche Bahn (literally "Ger- to deliver levels of productivity that exceed all manual solutions in the man Railway"). DB Schenker is the largest railway operator and infrastructure owner in industry," says Anders Holmberg, Business Development Manager of DB Europe, carrying 2 billion passengers a year. Schenker Logistics. hARDWARE AND SOFTWARE CarryPick combines transportable racks, robots and warehouse 59 000 management software with mobile multi-functional workstations, With nearly 59 000 employees and sales providing retailers with a flexible, scalable solution that can adjust quickly totaling 14.3 billion euros, the Logistics Business Unit of DB Schenker is one of the to their changing requirements. The automated storage and goods-to- world’s leading service providers in this person order fulfillment system is specifically designed for the intralogistics important industry. requirements of e-commerce businesses, where product variability, delivery times and cost efficiency are daily challenges.

"We are very excited to be rolling out this solution," concludes Dr Jungbluth, $438

"not just because we know it will greatly benefit the customer, but also The UK spends more on toys annually than because it is a fantastic application of automation technology and shows a any other nation - $438 per child. new level of progress within the logistics sector."  http://swisslog.com/en/Products/WDS/Storage-Systems/CarryPick

13 INSPIRATION

major order from norwegian fashion brand

Cutting edge technology for Varner: everything from a single source.

14 VARNER GROUP FASHION PARADE Automation IS a driving force in fashion retail, with easy delivery and returnS attractING new, young, tech-savvy shoppers.

The Varner Group is a leading retailer of strong fashion brands in Scandinavia. Based in Norway, the company is taking advantage of the latest technology to ensure The Varner Group is a major their orders do not arrive fashionably late. player in the clothing and textile industry and has 12 chain store concepts with Innovative material handling solutions for Varner, including a system operation contract, has helped to further cement Swisslog's position as a a total of 1 500 stores in 9 leading provider of automated intralogistics solutions for the retail and countries. e-commerce industry. THE PROJECT Swisslog is acting as general contractor for the material handling elements ƒƒ 50 000 m2 site in Vänersborg, Sweden of a new distribution center, this time in Vänersborg, Sweden. The solution ƒƒ 30 m high bay warehouse with 7 Vectura comprises cranes and conveyors for pallets and light goods, a crossbelt stacker cranes for 48 000 pallet locations sorter, a hanging garment solution and Swisslog’s proprietary warehouse ƒƒ Automatic palletizers and depalletizers in management software and controls systems. Varner chose Swisslog as it front of HBW was able to provide everything from a single source - from consulting to ƒƒ ProMove pallet conveyors cutting-edge technology, implementation to after-sales service. With a clear ƒƒ Miniload buffer storage with 22 Tornado understanding of the growth strategy Swisslog was able to focus on both miniload cranes for 330 000 dynamic carton locations short and long-term capabilities. ƒƒ AutoStore with 80 robots and 60 000 bin locations high storage volumes ƒƒ QuickMove light goods conveyors The storage volume of the DC amounts to 48 000 pallet locations in a ƒƒ Cross-belt sorter high-bay warehouse, 330 000 dynamic locations in the miniload system ƒƒ 18 telescopic conveyors for unloading/ as well as 60 000 bins in an AutoStore small parts storage system. System loading operation services performed by Swisslog’s on-site engineers are also part ƒƒ Equipment for hanging garments of the contract. Integration of the material handling systems is due to start in April 2015 and hand-over to the customer is expected for summer 2016. fashionable brands “We were looking Based in Norway, the Varner Group is a leading and fast growing fashion for a scalable, cost retailer with a turnover of over one billion euros and more than 1 500 efficient, ergonomic stores throughout Scandinavia, Finland, Germany, Iceland and Poland. It owns fashion brands such as BikBok, Carlings, Cubus, Dressmann, Wow, Volt and green solution,” and Urban. In order to be well prepared for the future, Varner will insource explains Anders and consolidate its logistics operations from six third-party warehouses Eriksson, Head of (3PL) to one state-of-the-art DC in Sweden from where they will supply their entire European market. “We were looking for a scalable, cost efficient, Logistics at Varner ergonomic and green solution,” explains Anders Eriksson, Head of Logistics Retail AB. “Swisslog’s at Varner Retail AB. “Swisslog’s innovative solution design was the final innovative solution convincing factor.” design was the final  www.swisslog.com convincing factor.”

15 INSPIRATION UNDER THE MICROSCOPE science is giving us new medications that are more difficult to manufacture and require special handling.

The pharmaceutical industry is ly. Automated systems also offer signifi- Michiel Veenman facing enormous changes. New cantly more effective handling processes in Having studied logistics, Michiel has regulations, increasingly more the warehouse and verifiably lower error experience working for the Dutch complex products, steadily rates in goods deliveries.” Department of Defense and in expanding product portfolios automation systems simulation and and ever smaller batches To meet the requirements associated with analysis. Before joining Swisslog, he increase costs and risks in international compliance regulations, spent 5 years optimizing warehouse logistical processes. Swisslog’s software solutions, implementa- operations and IT systems for a tion processes and know-how allow pharmaceutical wholesaler. With its Place&Trace solution portfolio, pharmaceutical companies to validate their Swisslog is expanding its expertise in this systems efficiently. Providing validated field with approaches that combine specific supplies allow customers to carefully know-how in pharmaceutical logistics with document all drug-specific information. state-of-the-art logistics systems devel- Place&Trace also makes it possible to trace oped for e-commerce logistics. and log all drugs, both at the batch and product level. Passion for your work is sales channels essential! I have always The trend towards ever smaller batch sizes THE VALUE OF EXPERIENCE enjoyed the complexity of is keeping the industry on its toes. New "The pharma world is fairly conservative," modern intralogistics drugs with modified – sometimes even says Michiel, "and experience is greatly solutions. personalized – ingredients are being valued. Swisslog helps customers to find an brought to market. Production logistics is optimal, proven solution that is also tailored becoming more complex than ever. to their needs. Pharma companies are, of course, very knowledgeable regarding their At the same time, the traditional sales own business, but the details of implement- channels, via wholesalers are coming under ing automated warehouse solutions in their the microscope. To obtain better control environment are often new, so our advice over the supply chain and for drugs to can be of great use." reach pharmacies even more quickly, the pharmaceutical industry needs multichan- With new generation software that is nel logistics systems. modular, configurable and pre-tested, the opportunities to reduce implementation The Place&Trace solution is an automated and maintenance efforts are now also at logistics system that can be expanded as hand. "It's an exciting time," concludes needed by modular components, exactly Michiel. "As always in material handling, what is needed. “The benefits of this complex moving machines attract attention, solution are clear to see,” says Michiel and manufacturers are more interested Veenman, pharma expert at Swisslog. than ever in advanced robotic solutions for “Compared to manual pallet warehouses, handling products around production lines." automated logistics systems use existing warehouse space up to 60% more efficient-  http://www.swisslog.com/en/HCS

16 PharmaceuticalPOWER SHIFT

A HEALTHY FUTURE: Michiel considers how the future of pharma solutions will differ from today...

"The development of new solutions in pharma will be evolutionary, not revolutionary. I would expect to see the trend for handling smaller quan- tities to endure.

New generations of AGVs will offer greater flexibility in factory schedul- ing and layout changes and because of the multi-channel trend, im- proved multi-channel solutions are being developed.

The growth of generic drugs and government programs to reduce healthcare costs have all put pres- sure on cost. Saving manpower helps to reduce costs. Maybe even more importantly, automated processes are less prone to errors."

17 INSPIRATION THE MIGHTY MOTHERSHIP Livzon Pharmaceutical Group Inc., founded in 1985, is a comprehensive pharmaceutical enterprise integrating development & research, production and sales of pharmaceutical products.

North of Macao lies Zhuhai, high-bay warehouse. After a strict selection at the same time. Meanwhile, AGVs one of China's impressive process, Swisslog was selected with work automatically recharge when power is low economic marvels, a Special beginning at the end of 2012. Following or during off peak times, allowing 24-hour the installation and trial run phases, continuous production. Economic Zone that has seen its final acceptance was made in April 2014, population rocket from a few with the new factory delivering annual The storage solution, designed and hundred thousand in the late production levels up to 10 billion RMB. implemented by Swisslog, consists of a 1970s, to over 2 million less 23.5m high-bay warehouse managed than 20 years later. The overall design of Livzon Industrial Park by WMS; infeed and outfeed conveyor is said to be in the shape of a "mothership" and shuttle car systems; finished goods with the high-bay warehouse in the middle palletizing robot; case conveyors; automatic Zhuhai is also home to the latest and the production plant in a separate guided vehicles (AGVs); pallet washing factory of the Livzon Pharmaceutical building. To increase efficiency and save Group Inc., founded in 1985, as a labor, Swisslog used AGVs to transport comprehensive business integrating materials between the two. research and development, production and pharmaceutical sales. PICKING STATIONS We express our deep As the WMS receives a production order, gratitude to Swisslog’s TOP ten Company corresponding raw materials and wrapping project management After 30 years of development, the Livzon materials are transported to the picking team. Group is ranked amongst the Top 10 station. of Chinese Listed Enterprises with an established sales network covering the Pickers scan the correct SKU with an RF domestic market and a rapidly increasing terminal while the AGV transports raw Li Yan, Head of Supply Chain annual turnover. In 2011, the company materials to the receiving station in the of Livzon Pharmaceutical invited several suppliers to bid for the production area. Palletized finished goods design and installation of a new automatic are then taken back to the warehouse

machine; semi-automatic picking system and quick roller shutter door system.

The racking area alone covers 6 000 m² and is equipped with 15 single-deep SRMs, able to store 25 620 pallets, in 3 temperature- controlled areas (ambient, cool, and chilled).

The warehouse is connected to production and dispatch areas via a conveyor and shuttle car system. Picking stations are located between the storage and

18 livzon

production areas, achieving highly accurate levels of picking for production. AGVs transport materials around the site, while 78 dynamic picking locations are Facts and Figures configured for rapid order picking.

The WMS allocates picking locations according to the dispatch order, and 1st Class corresponding SKUs are transported via The 427 000 m² first-class modern conveyor, LoopCarrier and linear shuttle car pharmaceutical production base includes to those picking locations. an automatic logistics system and high-bay warehouse.  www.livzon.com.cn

6 000m² The racking area alone covers 6 000 m² and is equipped with 15 single-deep SRMs.

 www.swisslog.com

19 INSPIRATION five year success the Tornado MINILOAD crane celebrates its fifth birthday. the dutch arm of Wärtsilä was there on day one...

Swisslog's Tornado miniload payload, we reach uptimes and availability cranes have been in service figures that we had never expected, and for just five years, and already this consistently for the last five years.” they have achieved some mind- Now 30 installations later (and another128 blowing statistics. cranes) the benefits for our customers are more than clear... The total number of cartons already handled, when placed side by side, is longer energy-efficient, Dynamic design than the Yangtze River... Speeds of up to 6 With its lightweight construction, the m per second are already possible... Almost Tornado is one of the fastest miniload half a million storage locations can be cranes in its class. Under standard served with just one Tornado... operating conditions, the reduced weight results in lower energy consumption. The first 10 cranes were snapped up by the Advanced drive technology also contributes Dutch subsidiary of Wärtsilä, which saw the to a decrease in energy consumption. potential in what, at the time, was a yet to Our Tornados do their be proven concept: Load capacity and height job, day in and day out, The stiff and scalable mast consists without creating any "The Tornado cranes are operating reliably of standard sections and allows us hassle for our and hassle free," says Ad de Feijter, to implement storage solutions with Teamleader/Resident Engineer at Wärtsilä. impressive aisle heights (more than 20 m to customers. "Considering that this is the first date) and payloads (up to 250 kg to date). installation of the Tornado and that we This supports compact warehouse designs, Michael Garstenauer have cranes with 18 m height and 100 kg ensures compatibility with a wide load Product Manager

The outstanding new CartonLoader Load handling units include solutions with telescope tables to store standard trays as well as carton solutions. Our newly introduced CartonLoader is an innovative carton storage concept for which Swisslog has three patents. It offers superior reliability, flexible support for a variety of load types as well as outstanding performance, greatly expanding the applications for which Tornado cranes can be used.

20 tornado

Facts and Figures 6

The speed in meters per second of 8 Tornados installed at a Norwegian book distributor. Roughly 21.6 kph. 14

Tornado installations have been completed in 14 different countries in just 5 years.

20m

The tallest Tornado installation stands over 20 m in Northern Italy, coincidentally next to the shortest at just over 5 m.

42

The distance traveled by our Tornado installations - approximately 1.7million kilometers - is the equivalent of 42 trips around the Earth!

47

The total number of parts required by all Tornados combined, outside their regular maintenance plan. spectrum, and minimizes storage space – a highly reliable solution, demonstrated by 120 kg crucial aspect in installations subject to the tiny number of parts required outside space restrictions. of normal maintenance plans (see Facts & Payloads up to 120 kg and beyond are Figures opposite). routinely achieved.

Reliability and maximum In fact, we have successfully replaced availability units from competitors that cause Our Tornados do their job day in and day recurring problems with our own Tornados, 452 000 out without hassle for our customers. That significantly increasing the reliability of The number of storage locations at the is the feedback we consistently receive an entire facility. With its expertise in world's largest Tornado installation - 22 from all our installations. This is made providing holistic solutions, the Swisslog aisles for a Swedish omni-channel fashion possible by an intelligent mechanical miniload team is able to quickly and business. concept that eliminates virtually all load- efficiently accommodate specialized use bearing weld seams, a simple yet precise cases – from special bin types to the drive solution, and careful selection of handling of bin stacks.  www.swisslog.com/tornado components and modules. The result is a

21 INSPIRATION A BRIGHT NEW ERA? we can now shop from our PC at home or mobile devices anytime and anywhere. Truly a paradise for customers and businesses – or is it? ASKS Executive Management Advisor, BERND KRATZ.

Before the Internet, a mere of 2015. 39% of the orders were placed automation always required standards and 20 years ago, people thumbed from mobile devices. Convenient apps on hence severely restricted flexibility and the through catalogs (some with smartphones and tablets make it easier response to quantity fluctuations. than ever for consumers. 1,000 pages or more), combed In addition, it often took several years through special “who supplies RISING EXPECTATIONS before high investments could be fully what” publications, used trade As the expectations of online buyers are utilized because the rigid automation directories or simply went into growing, logistics is beginning to play an solution could not be scaled to adapt stores hoping to find what they even more important role. Amazon has to changing sales. Relatively long needed. set the benchmark in this respect: ordered implementation times in a dynamic today, delivered tomorrow, even during the environment often contributed to the The range of products available to time window requested by the customer. In decision to forgo automation. The main customers was limited, and often people some metropolitan areas, same-day delivery bought something that didn’t fully meet is already available, often within 90 minutes their needs just to avoid having to drive of order receipt. to yet another store. “Needed – found – purchased.” Returns were the exception For distribution centers, this highly or distribution centers, rather than the rule. dynamic development means that orders this highly dynamic are no longer collected in larger batches development means that Today, a purchase is just a mouse click to optimize picking routes. E-commerce orders are no longer away. Tablet in hand without straying from demands the shortest order throughput collected in larger the couch, we spend our evenings browsing times in logistics centers and hence real- batches to optimize through a worldwide selection of products time processing. picking routes. or searching Google, at times finding something we didn’t even know existed. In principle this development would require additional warehouse personnel and ONLINE MARKETPLACES increase the costs of logistical fulfillment, If we still can’t find the product we want, thus contradicting the urgent demand for then it’s on to Amazon, eBay or other lower logistics costs. online marketplaces. Clicked, ordered, argument against automation remained the delivered – and if we don’t like it, we can PERSONNEL COSTS lack of flexibility – in the dynamic world send it back. All that without budging from Regardless of the need to reduce personnel of e-commerce we see today, rigid and the sofa. It’s straightforward and to the costs, it is becoming increasingly difficult to inflexible fulfillment can be the death knell. point although lacking the buzz of buying recruit employees for operational logistics in a brick-and-mortar store. But it’s easy – even on the commercial side, workers are In response, Swisslog has introduced and convenient. More and more people getting harder to find. For this reason, the CarryPick, an innovative goods to-person are buying even traditional products, like trend is shifting toward greater automation system. It offers automation without groceries, through the Internet. Revenue of in distribution centers. standardization, few flexibility limitations, LeShop.ch, a subsidiary of Migros, totaled energy efficiency, system scalability, flexible 165 million Swiss francs last year. Sales Until now, this strategy was adopted with ergonomic workplace design, and much grew another 7.8% during the first half a certain degree of hesitation because more.

22 e-commerce

SYMBIOTIC UNION? Does the customer want the item shipped With such perfect online commerce, will to her home or would she rather try on the the city centers become moribund or will actual outfit in the boutique the next day online and offline sales form a symbiotic so the sales consultant can provide input? union? In some areas, the Internet could Offline and online commerce can energize brick-and-mortar commerce, such enhance each other; the technology, as in clothing boutiques. A small boutique communications and logistics means are can carry only a basic selection. Customers already in place. could be scanned in 3D, try on a virtual outfit and see how it looks in a digital Brick-and-mortar businesses will be called mirror, even checking the fit as they move – upon to recognize and take advantage of all of this digitally. the opportunities that present themselves. Bernd Kratz, Managing Partner of EMA GmbH – Executive Salespersons take on a different role. They Even in the digital world of the future, Management Advisors become style consultants with access to a face-to-face communication in the store worldwide range of products and the latest will be of value. After more than 25 years as an fashion trends. Once the customer has executive in distance selling / digitally found the right outfit “offline,” i.e. e-commerce, the last 10 years as in the store, she can use her iPhone to send  www.swisslog.com/ecommerce MD for Conrad Electronic SE, a picture to a friend for a second opinion. Bernd Kratz struck out on his own Then logistics takes over. in the e-commerce world as the founder of EMA GmbH.

Kratz is also co-founder and co-partner of the Institut des Interaktiven Handels GmbH as well as eCONment GmbH.

His activities are focused on strategic and logistics issues in multichannel sales and e-commerce.

23 INSPIRATION

AN EYE ON TOMORROW VoLker Jungbluth, head of strategic r&d, OFFERS HIS THOUGHTS ON THE FUTURE OF AUTOMATION.

Is technology changing the business CarryPick solution will be implemented, robot, LBR iiwa [Ed: pronounced “Eva”], to faster than ever? providing an automated supply chain that create the first-ever interactive human- guarantees faster order processing and robot picking station. iiwa is covered with We’ve certainly seen a lot of interest in higher quality as well as lower handling sensors to react to any kind of human automation as e-commerce has really taken costs and maximum flexibility. contact. It can also operate in an isolated hold. Our positioning has changed from environment for even higher throughput. being perceived mainly as a provider of Swisslog is at the forefront of pallet-based solutions to now having the Human-Robotics Interaction (HRI) in Is this the future of intralogistics? widest portfolio of intralogistics automa- logistics. What exactly is it and what Automation increasingly working hand tion solutions on the market. does it offer for modern warehouse in hand with warehouse operators? operations? This is in large part driven by the growth of Well, yes and no. Successful automation e-commerce, first, and then the recent Even just a few years ago, the notion of adopters aren’t just looking to replace development of what we now think of as humans and robots working closely people, there’s much more to be gained omni-channel retailing. In other words, the side-by-side to achieve better results was from an integrated system that works to way our Internet, mobile and bricks-and- nothing but a futuristic idea. Safety was a automation’s wider strengths. HRI bridges a mortar shopping habits have changed have key concern, and public acceptance could gap for those who are not able to created a need but also opened up peoples’ not be taken for granted. completely move to automation, and are thinking when it comes to logistics. struggling to maintain competitiveness by Today there is a groundswell of opinion purely manual means. Swisslog’s recent work with DB Schenker that the development of HRI technology Logistics has been described as "unique will help mankind, not overtake it! Our Full automation does not automatically for online businesses in Europe." How is newly developed Automated Item Pick mean greater efficiency. If we can handle that working? workstation has made the vision a reality. the basic throughput via robots and add people to the process in peak times, we Our collaboration with DB Schenker has How is the Automated Item Pick have raised flexibility to a new level. The been aimed at providing advanced technology different? USP is a combination of a clever concept inventory management capabilities for with a smart product portfolio. Scandinavia’s largest online toy retailer, It’s designed to work alongside operators, Lekmer. The technology behind the fully not replace them. It’s perfectly suited for automated storage and order fulfillment industrial applications, as it combines two Swisslog WDS solution has been proven in similar automated storage and picking systems www.swisslog.com installations across the world. This is the from Swisslog, CarryPick and AutoStore, [email protected] first time, however, that the full-scale with KUKA’s collaborative lightweight