Today’s Class:

Improve energy efficiency in cold storage warehouses

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Thomas Goldsby

Professor

James A. Haslam, II Chair of Logistics

The University of Tennessee Knoxville

Speakers

Jon Kuerschner

Vice President

Supply Chain Consulting

Körber Supply Chain

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Why are we here? What are we trying to accomplish?

Class Schedule:

• June 9: Cold storage and e-grocers: Changing environments (On-Demand)

• June 11: Traceability and food safety in cold storage (On-Demand)

• June 16: Labor recruitment challenges in cold storage (On-Demand)

• June 18: Improve energy efficiency in cold storage warehouses

• June 23: How does automation drive cold storage efficiencies

Supply Chain Master Class: Cold Storage Trends

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All phone lines are muted

Recording of today’s class and slides will be email to you within 48 hours

Questions:

• Ask questions during today’s class in the GoToWebinar Questions window

• Questions will be addressed at the end of today’s class or we will follow up with questions via email after class

Handout: 15 ways to boost sustainability – How to make your supply chain greener

Poll Question: In what area(s) of your business do you measure for sustainability or energy efficiency?

Housekeeping

“Globally, cold storage facilities have the highest energy demand per cubic foot and the third highest energy

consumption of any industrial category,

spending over $30 billion annually.”

- Progressive Grocer

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56

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Ambient Warehouse Classroom Building Retail Store Cold Storage Warehouse

kWh/sq.ft.

Cold Storage Clobbers Other Commercial Facilities w.r.t. Energy

Source: Iota Communications 7

Relating kWh to $/sq.ft.

$0.95/sq.ft

$5.20/sq.ft

Ambient

Storage

Cold

Storage

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Energy Consumption is Incessant in Cold StorageD

em

an

d (

kW

)

De

ma

nd

(kW

)24-hour Period (midnight to midnight) 24-hour Period (midnight to midnight)

Non-Refrigerated Warehouse Refrigerated Warehouse

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• Market Defines Solutions in Two Main Categories• Supply Chain Planning

• Supply Chain Execution

• Energy Savings/Impacts• Saved time/money/energy

• Reduced miles

• CO2 Reductions

Supply Chain Systems

Planning Drives Execution

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• Planning Enables Downstream Energy Savings

• If you are a distributor, accurate forecasting delivers right products to DC at right time Reduces carrying costs and associated cooling times (if applicable)

Reduces transportation mileage w/ option for consolidated/planned deliveries

• If you are making product, accurate demand planning delivers right raw materials into the manufacturing recipe at right time Shortens manufacturing cycles, saving energy

Reduces cycle times and associated cooling times for raw materials

Ensures overall freshness of ingredients into recipe

Energy Efficiency in Supply Chain Planning

Planning Drives Execution

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• Distributed order management ensures product originates from best positioned inventory Complex business rules drive selection of correct origin of customer and supplier orders

Common “most important” rule is transportation cost (typically calculated by least miles)

• DC Simulation creates best layouts, processes and labor plans Facilitates less equipment travel = less propane or battery

Creates optimal travel/best material flow = less time on task and less overall energy consumption

Defines best yard layout to minimize shunter drive time

Energy Efficiency in Supply Chain Planning

Flawless Execution Returns Dividends

18 June 2020Legal Entity – Presentation Title – Footer Text 12

• YMS• Reduces carrier wait/idle time on arrival/departure

• Optimizes the right product to doors based on demand

• Tracks the reefer temperature to ensure optimal temp (expensive to re-cool)

• Interleaves shunter activity to reduce miles in yard

• LMS• Reduces process variation – facilitates KIS

• Incents operators to be efficient with time and equipment

Energy Efficiency in Supply Chain Execution

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• TMS• Consolidates orders into routes to reduce miles/product delivered

• Automates settlement to reduce paper invoicing

• Captures driver e-logs to remove paper

• Creates e-copies of OTR documents to eliminate paper copies

• Slotting• Fastest movers in optimal pick locations

• Less picker travel (at pick and stage) reduces time and equipment impact

• Focused on reduced support labor = less equipment travel/energy

Energy Efficiency in Supply Chain ExecutionFlawless Execution Returns Dividends

Flawless Execution Returns Dividends

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• WMS• Optimizes all directed workflow = less steps/less equipment travel

Example - 100 users doing that process 1000 times a day at 3 seconds faster per transaction

-Saves 300,000 seconds, 5,000 minutes, 83 manhours/day – and corresponding energy

- Client example – WMS automates slipsheet receipts and spacer inserts to speed cooling of pallet

• Removes paper from equation = less energy to make and recycle wood products

Energy Efficiency in Supply Chain Execution

Flawless Execution Returns Dividends

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Energy Efficiency in Supply Chain Execution

• DC Automation• Robotics

Example - Goods to man automation

More done in shorter time by eliminating walk-time

• Material Handling

Example – Conveyor/Sortation

Move thousands of orders to shipping w/out “touch”

• WCS

Optimizes overall material flow across material handling equipment

Identifies constraints and finds “most economical” re-route

Questions & Discussion

June 23:

How does automation drive cold storage efficiencies

Adding automation to your cold storage facility brings a wealth of benefits and added value with a strong return on investment. From driving energy consumption down, to utilizing vertical space, automation in cold storage can reduce the dependency on manpower in harsh conditions where labor recruitment is difficult. Additionally, as the regulations of the track and trace of frozen goods increase, it’s important to utilize automation solutions to correctly.

Join us to learn more about how automation and material handling solutions can offer a large ROI in cold storage.

Contributor:

Mark Vogt

Head of International Sales and Marketing

Aberle Gmb

Next Supply Chain Master Class

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