It all started some months ago when I visited one of our biggest exhibitions in Germany. I reached the SSI Schaefer stand and saw “it” for the first time: The SSI Autocruiser, our latest product. “THAT thing over there is our latest bestseller?!” – I thought my German colleagues wanted to pull my leg…

Looking back at it now I have to admit that I was wrong. That product actually is genius! Seriously. Let me explain you why.

We all had a Carrera race course or toy train when we were young, hadn`t we? I spent hours of building more and more sophisticated race courses with loop-the-loops, curves that only my cars could cope with and drove my mother mad. She could barely enter my nursery which was built up with track switches, cars and tiny plastic trees.

Got the idea? Ok, let`s get back to the SSI Autocruiser.

I personally think that everybody can assemble this system. All you need are a couple of preconfigured components like carriages, guide rails, cams, track switches, a domestic socket outlet, a simple instruction manual and common sense. First step: Clip the driving route together. Second step: No wiring, no complicated control system! The SSI Autocruiser possesses a stand-alone peripheral control system integrated into the carriages operated on it. In detail: Those carriages feature batteries; the governing is carried out through destination cards to a predefined position. And: The throughput is nothing to sneeze at. 50 till 300 transport units per hour.

In other words: The set-up of the SSI Autocruiser works without external consultants, without a planning department, without engineering, sophisticated IT and an interface to external systems. It almost runs in the same way as your Carrera race course back then, does not it?! – I am pretty sure our Marketing Managers and Product Developers will chop my head off for this comparison…

Still not convinced? – There you go: The price per meter is unbeatably beneficial. It is roughly a quarter of a conventional conveyor system or less – depending of the configuration. Furthermore the SSI Autocruiser might be the first step into automation. Again, Automation does NOT (only) mean high bay warehouses or Miniload cranes. Why starting with complex, cost intensive solutions when you can start safe and uncomplicated? We all know that automation areas exists, in which merely a transportation of one container from place A to place B is needed. Another possible setting is the connection of numerous workplaces where manual assembling is done. These processes require a simple transport solution. The SSI Autocruiser might be a reasonable answer in that scenario.

Let’s sum it up. The SSI Autocruiser is a free scalable, uncomplicated, flexible, low-risky investment that could help you into the transition of Automating your Supply Chain. As it is easy to set up, you can quickly dismantle it and built it up somewhere else in your warehouse tomorrow. Why being stressed every day? Take it easy. Use technology. Simply watch the video!

Frabelle Cold Storage Corporation (FCSC), one of the country’s leading cold storage providers, has gone a step further: they have installed a state-of-the-art mobile racking system in their newly-expanded facility in Caloocan City. Unlike ordinary racking systems, where many aisles are needed in order to access stored goods resulting to loss of space and waste of electricity, mobile racking allows one aisle at a time to be opened, leading to more space devoted to storing palletized goods. A dedicated electric-powered mobile racking system allows access to racks which contain the goods that need to be picked.

We talked to FCSC’s General Manager, Engr. Willy Salazar, about this expansion project and what is next for his company.

Why did Frabelle decide to expand its facilities?

Given the continuous growth of different food industries, from meat, poultry, fruits and vegetables, to processed foods, and as well as the requirements of logistics providers, our recent expansion is not only in response to market demand but also to address the changing role of refrigerated warehousing. We did it to broaden our capacity, efficiency and flexibility — to be the solutions to our clients’ needs.

How much capacity was added in this expansion?

FCSC had a capacity of 1,500 MT in 1996. It is made of block stacking using a pallet tower. We added 500 MT in 2008 and another 3,000 MT in 2009. Later we installed drive in racks in these facilities and gave us a combined storage capacity of 5,000 MT.  The new facility that we are building now will add another 6,000 MT.

Why did you decide to use mobile racking in your new facility?

The main factor we considered before going into mobile racking is the availability of land. We foresee another expansion in the near future; we’re targeting to build 12,000 MT or more in one roof. When we were doing the planning and study we realized that only with a mobile racking system we can achieve the target MT in the land area available.

What advantages did you see in going mobile rather than the traditional racking?

Since mobile racking is new in the Philippines — in fact, none was built after the first cold storage warehouse with mobile racking system was constructed more than ten years ago — I had apprehensions before: too costly, expertise in construction and complexity in operation. However, as we went on with our studies, we realized the following:

• Considering the cost of land and the bigger space required in the usual stacking system, the mobile racking appears lower in cost.
• On construction, thorough technical studies with our project partners (building contractors, rack supplier), surveys and analyses came out of suited structural design.
• We conducted a time sampling on the actual operation of the usual stacking system, as well as a simulation of the mobile racking system, and we saw an advantage in the latter.

Thus, we expect advantages on construction cost per pallet, an increase in efficiency with 100% accessibility of the products, flexibility, and faster stock handling.

What are Frabelle’s plans for the future moving forward?

FCSC plans to have the biggest cold storage facility in one roof; to have better efficiency through use of better systems that will improve our efficiencies and capacities; and to build satellite cold storage facilities in various regions.

With increased demand and more intricate requirements, the challenges the cold storage industry is facing may seem daunting. With cold storage assuming a more important position in the supply chain, there is a greater need for flexibility to adapt to ever-changing needs, while at the same time keeping costs down for everyone involved. Thankfully, technology nowadays makes this need easier to fulfill than ever before.

Henrik Batallones

SSI SCHAEFER Philippines

See other case studies of cold storage from SSI SCHAEFER.

Automated storage reduces space requirements and increases safety

It is proven that automated storage and order picking systems both improve storage and operating processes in Distribution Centres, while also delivering substantial savings.

The Upside

You can see the benefits from the moment goods arrive in your automated facility for storage. Stocks are stored efficiently, utilizing all available space in your warehouse: maximised headroom and minimised aisle widths, as well as systems that optimise available shelf space. Also, there is a smaller chance of human error and damages caused by mishandling.

Managing stored goods is also made easier. With the increasing emphasis on occupational health and safety, as well as a prevalence of an ageing workforce, it is more important to make working conditions safe and comfortable. The need to manually lift goods, as well as the need to walk to particular areas of the DC, is eliminated, cutting down on injuries and lost time that could have been used to fulfill orders.

Automated storage systems also provide a degree of flexibility not seen in manual systems. It can fulfill both small and large orders with one streamlined process, eliminating the need for multiple systems to cope with multiple products. Also, alongside its ability to handle a higher capacity of goods on a smaller space, automated systems help extend the life of your existing facility, and can delay the need to extend your facility or move to a new one altogether.

When the need to deploy goods arises, automated picking systems also offer a greater degree of flexibility, giving you the ability to fulfill different order specifications with the same consistency and quality. Response times also improve, leading to faster order fulfillment.

The Downside

Implementing automated storage and picking systems require a higher amount of investment. Maintenance costs are also higher: preventive maintenance, breakdown support and spare part purchase can run up to 10% of your initial investment annually. However, the savings incurred in the long run may justify these expenses.

Bigger savings in the long run

For one, labour expenses are reduced significantly: the systems’ flexibility and ease of use impact on costs that you may incur in recruiting and training personnel. You can also retain staff for longer periods, with increased productivity and a smaller chance of injury. This works best in situations where there is either a scarcity of labour, or a high turnover of staff.

The smaller operating footprint of automated systems – and the extended life span that it provides to your existing facility – can defer the need to expand your building or move to a new one altogether. When the need to increase capacity to cope with higher demand, you can just add new storage equipment and systems, increasing savings and productivity that could be lost when you choose to move to a new facility instead.

The efficiencies and savings that automated systems provide will ultimately lead to higher customer satisfaction, and finally, increased sales.

Brad Welsman

SSI Schaefer Australia

I am proud to present a Tech Center at Tuas offices, Singapore, at an investment cost of close to S$1 million. The purpose of the centre is to show-case the company’s range of piece picking technologies, which can be integrated with conventional storage systems to help increase efficiency in the warehouse.

Our clients are always seeking ways to reduce the cost of their warehouse operations. Simple reduction in cost is no longer an option, as most storage systems have very little value-added cost, as a large proportion of the cost is steel. However, we believe that with the introduction of a higher degree of piece and case picking technology within the warehouse, real savings can be made in staffing and operational levels.

Our objective in planning this centre is to let our customers see and test at first hand, concepts we are proposing. We have called this Integrated Storage Solutions (ISS)…where a combination of storage systems with picking and conveying technology can provide an optimum solution and offer companies an excellent ROI (return on investment).

Obviously 2012 with the Euro crisis, and the general weakness of the US market will seriously affect countries which are heavily reliant on exports, however I am confident that Asia will bounce back, as in 2009, stronger and in better shape. Logistics Directors are now realizing that low cost labour is not the long-term solution, and are now embarking on upgrading their facilities.

Our centre is open to any visitor: be it manufacturers, 3PL operators, end users, students reading Logistics Programs, or, in fact, to everyone. Simply give us a call on +65-6863-0168, and ask to make an appointment between the hours of 8 am to 5pm any working day.

Mr. Brian Miles
Managing Director, APAC & Middle East

To read more about the Tech Center, visit:
Schaefer Singapore Opens IT Tech Centre

Review of Tech Center, picking technologies by Supply Chain Asia.

System Assembly line for Conveyor inside Malaysia ISS factory

Schaefer enjoyed a growth of almost 25% in 2011, with all markets performing to or above budgets, the company’s 2 factories ran at 100% capacity producing a total of 38,000 metric tons of steel.

This growth did not come without its problems, with deliveries extending to 8-10 weeks in the 3^rd QTR, which has lead to the company installing a second paint line and building a 2000m² extension to the warehouse equipped with 3 loading docks.

By the end of 2011 with the new paint line fully operational, deliveries were back to 3-4 weeks for standard product

2011 also saw the opening of a 5000m² production hall in our Malaysian Integrated Storage Solutions (ISS) plant for conveyor assembly; this factory is now producing orders for projects in Australia and Philippines.

One major contract was the award of a rack clad fully automated warehouse for Gudang Garam, in Kediri, Surabaya. Following this award the company have subsequently been awarded 4 further similar fully automated warehouses totaling 160,000 pallets, to be installed over the next 2 years.

To meet the demands of the Logistics Industry, the company is now offering Integrated Storage Solutions, combining standard Industrial storage systems with a degree of technology to reduce operational costs in the warehouse by improving picking efficiency and accuracy.

To assist our customers to understand how these systems can benefit their operations, we have built a small Tech Centre with conference facilities in our Tuas warehouse. Whilst we approach 2012 with some trepidation, we are confident that with the companies diversified range of products, coupled with strong representation throughout Asia we will weather any potential fall out from the Euro-zone crisis.

Mr. Brian Miles

Managing Director, APAC & Middle East