Intralogistics

Course Description 

When physical goods are purchased, stored or sold the performance of intralogistics always has a significant impact on the success of the stakeholders in supply chain. The principles of smart warehousing and well-working intralogistics apply to web shops, manufacturing industry, retail sector and companies providing logistics services. Suitable intralogistics processes and technologies are a competitive advantage as well in domestic markets as in global supply chains. In this course, you will get familiar with warehousing and intralogistics practices, processes and technologies that make it possible for supply chains to offer fast and high-quality services.  
 
In this course you will learn  
– Meaning of intralogistics and warehousing for businesses,  
– Suitability of different warehousing solutions,  
– Integration of the intralogistics process with other company processes  
– Principles about utilization of warehouse technology and automation  
 
After completing this course, you will understand the basics of effective intralogistics, are able to evaluate the differences between different warehouse technologies, and know the steps and implications of an intralogistics process for other operations in supply chain. 

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Inventories and related information systems

Introduction to Intralogistics: An Overview 

Intralogistics refers to the internal flow of materials and information within a defined company or organization. Intralogistics involves everything from receiving raw materials, managing inventories, and transferring materials, to packing, order picking, and shipping finished goods. Essentially, intralogistics is the internal supply chain, ensuring that material and information move smoothly from the arrival of raw materials to the release of finished products. 

The core operations in intralogistics include goods receiving, inventory replenishment, material transfers, storage, order picking, packing, and shipping. In addition to these physical movements, data and inventory management also play a crucial role, involving tasks like inventory level tracking, order status updates, and managing inventory locations. 

The Importance and Benefits of Intralogistics

Effective intralogistics is vital for business success. If intralogistics fails, it can lead to production stoppages due to missing components, empty retail shelves, unsorted parcels stuck in terminals, and ultimately, lost revenue because goods are not shipped or invoiced. Good intralogistics keeps production running, shelves stocked, transportation efficient, and cash flow steady. 

Customer service is at the heart of intralogistics. Faster throughput times mean quicker deliveries to customers, whether they are internal (other departments) or external (consumers and other businesses). Operations such as working hours, automation, and processes must align with customer needs. Lead time is a key performance indicator in intralogistics, measuring how quickly an order is processed from placement to delivery.  

The Role of Inventories and Information Systems 

Inventories serve several critical purposes in intralogistics. They help companies maintain high customer service by ensuring product availability, adapt to supplier performance issues, reduce costs by buying or producing in economical quantities, buffer demand fluctuations, and support production processes that require storage (such as aging whiskey). 

Inventories also help companies adapt to unpredictable supplier performance, long lead times, or incomplete and inaccurate deliveries. However, high inventory levels can sometimes indicate underlying problems, such as inefficiencies or poor data accuracy. 

Accurate data is crucial for inventory management. Companies rely on software systems to track inventory balances, and errors can lead to overstocking or stockouts. Regular inventory counts can help correct balances, but the goal is to build robust processes that minimize errors in the first place. 

ERP and WMS in Intralogistics 

Enterprise Resource Planning (ERP) systems integrate and manage core business processes across an organization, providing a centralized database and suite of applications. ERP modules cover areas like accounting, inventory, sales, procurement, and manufacturing, ensuring that real-time information is available to all departments. 

Warehouse Management Systems (WMS) are specialized software applications for managing warehouse operations: inventory, order fulfillment, receiving, picking, packing, and shipping. While WMS can be part of an ERP, stand-alone WMS solutions often offer more advanced features for intralogistics operations. The two systems must work together—WMS optimizes operational work, while ERP manages the company’s master data and overall business processes. 

Conclusion 

Intralogistics is a critical function that connects all parts of a company’s supply chain, ensuring smooth, efficient, and accurate movement of goods and information. Success depends on understanding and applying lean management principles, maintaining accurate inventory data, and leveraging robust information systems like ERP and WMS. As customer expectations for speed and accuracy continue to rise, companies must continually adapt their intralogistics strategies to stay competitive and responsive in today’s fast-paced market. 

Intralogistics process and warehousing principles 

Inbound Intralogistics: From Receiving to Putaway

The inbound process starts with goods receiving, where shipments arrive from suppliers based on purchase orders. This involves unloading, unpacking, counting items, and handling waybills and packing lists. It’s crucial to verify that the received goods match the order in quantity and quality, and any discrepancies must be flagged immediately—especially damages, which must be noted on the waybill before signing. Otherwise, claims for compensation may not be honored. 

Quality checks are sometimes necessary, particularly when working with new suppliers or those known for inconsistent quality. Though time-consuming, these checks help prevent future problems. After receiving, transactions are recorded in the company’s ERP or warehouse management system (WMS), updating inventory levels and values. Accurate documentation is essential, as errors can lead to downstream problems in the supply chain and accounting. 

Putaway involves selecting the best warehouse location for each item and moving goods accordingly. Proper recording of the location in ERP/WMS is vital. Putaway strategies may use reserve and replenishment methods. Zoning the warehouse and demand-based product locating are common practices, optimizing picking efficiency and travel times for workers. 

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Outbound Intralogistics: Picking, Packing, and Shipping 

Outbound processes are tightly linked to sales, beginning with picking goods for customer orders. Picking is often the most time-intensive warehouse activity, and various methods are used to optimize it, including order, zone, batch, cluster, and wave picking. These may be combined depending on warehouse layout and technology.  

Packing follows picking, ensuring goods are protected, efficiently stacked, and ready for transportation. Packaging serves multiple purposes: protecting goods during transit, meeting environmental standards, and optimizing space utilization. Pallet standards vary by region, and selecting the right type is crucial for compatibility with handling equipment and racking 

Conclusion

Effective intralogistics integrates inbound and outbound operations, employing smart strategies for receiving, putaway, product locating, picking, packing, and shipping. Leveraging technologies and analytical methods, companies can boost warehouse productivity, minimize errors, and enhance customer satisfaction. As supply chains become more complex, intralogistics remains a critical component in achieving timely, accurate, and cost-efficient delivery of goods. 

Warehousing technology

Essential Racking Types in Warehousing 

Choosing the right racking solutions for a warehouse depends on the size, quantity, and nature of stored items. The main types include pallet racks for goods stored on pallets, small item racks for items with low volume or small size, and special solutions for odd-sized items or bulk materials such as minerals or liquids. Some warehouses use a combination of different racking types to meet various needs.  

For example, facilities storing car parts may require both small item racks for numerous small components and larger racks for bulky items like car bodies or fragile parts such as windows and engines. 

The most common racking solution is the selective pallet rack, valued for its affordability, simplicity, and adaptability. Typically operated by forklifts, these racks can be customized in height and length and are often built double-sided to maximize aisle usage. Small item racks share many features with selective pallet racks but are scaled-down and highly flexible. Both types, however, consume a significant amount of floor space due to aisle requirements, which can lead to inefficiencies. 

To address space limitations, very narrow aisle (VNA) can be used. This design increases storage density by fitting more racks in the same area, although it may cause operational bottlenecks. 

Mobile racking systems further optimize space by placing racks on motorized bases that slide along rails, creating a single working aisle as needed. These systems suit slow-moving items and offer direct access to stored goods, although access is limited compared to selective or VNA racks. 

Other notable racking options include flow-thru racks, which use gravity rollers for efficient FIFO operations and reduce aisle space; pushback racks, which store multiple pallets in a single aisle using inclined rails (LIFO); and drive-in racks, which provide very high storage density but limit SKU access and use only LIFO. Pallet shuttles automate the movement of pallets within racks, offering modern solutions for high-density storage. 

Warehouse Layout and Material Flow

Material flow within a warehouse depends on the chosen layout, which should ideally match operational needs and available space. Layout design affects work efficiency, space utilization, and lead time. Ideal models exist, but practical constraints often dictate modifications. 

Different layouts offer distinct benefits and challenges. For instance, more compact layouts maximize storage density but may slow down retrieval times. Conversely, layouts with wider aisles facilitate easier access but use more space. 

Addressing and Locating Products Efficiently 

Efficient product retrieval relies on a robust warehouse location address system. Each product’s location is recorded in a warehouse management system (WMS) or enterprise resource planning (ERP) software. This information is used to generate picking lists sorted for optimal picking order, reducing wasted time searching for items. 

Recap: Choosing Your Racking Solution

To sum up, the optimal racking solution hinges on warehouse operational needs, available space, and product characteristics. Selective pallet racks and small item racks are versatile and widely used, while VNA, mobile, flow-thru, pushback, drive-in, and pallet shuttle systems offer targeted benefits for specific scenarios. Each type varies in accessibility, storage density, and equipment requirements. Efficient warehouse management also depends on thoughtful layout planning and a clear address system to ensure fast, reliable product handling and retrieval. 

Automation & Robotics in Intralogistics

Automation and robotics are rapidly transforming intralogistics within warehouses and distribution centers. Advances in automated vehicles, packing automation, robotics, and robotic process automation (RPA) are enhancing efficiency, improving safety, and driving significant shifts in how warehouse operations are managed.  

Digital and Physical Automation 

Automation in intralogistics can be categorized into digital and physical solutions. Digital automation leverages software and data-driven technologies to reduce manual workflows and improve accuracy. For example, Automatic Identification and Data Capture (AIDC) technologies such as mobile barcoding streamline warehouse operations, reduce human error, and integrate with enterprise resource planning (ERP) systems. 

Physical automation uses machines and technology to perform repetitive or physically demanding tasks. Examples include stretch wrap machines, conveyor systems, Automated Storage and Retrieval Systems (ASRS), Autonomous Mobile Robots (AMRs), and Automated Guided Vehicles (AGVs). These technologies boost productivity, consistency, and safety while reducing operational costs. 

Automation is most beneficial in constant, repetitive processes, whereas digitalization or standardization may suffice for less predictable tasks. Successful automation requires careful adaptation and integration of technology, people, and processes. 

Robotics in Intralogistics

Robotics has long played a crucial role in industrial settings, assisting with tasks that require speed, precision, or the handling of heavy loads. Traditionally, industrial robots operated in isolated zones for safety. The latest trend is collaborative robotics, where robots (cobots) work alongside humans, providing greater flexibility and new possibilities for task automation. Cobots feature advanced safety systems and are designed for shared spaces with workers. 

Automated Vehicles: AGV and AMR

Both Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) are used for material transfers. AGVs require fixed routes and can handle heavier loads, making them suitable for predictable environments. Their navigation is based on technologies like laser guidance, magnetic tape, and inductive wire guidance. However, AGVs lack flexibility to adapt to route changes or obstacles. 

AMRs represent a newer, more flexible class of mobile robots. They utilize advanced navigation such as Simultaneous Localization and Mapping (SLAM) to learn their surroundings and find alternative routes when necessary. AMRs are easier to deploy and can adapt to changes in warehouse layout, making them ideal for dynamic environments. They typically handle lighter loads and are well-suited for high-frequency, small package transfers. 

Industrial Robots and Collaborative Robots (Cobots) 

Industrial robots are fast and powerful, capable of performing tasks such as picking, moving, welding, and assembling components. For safety, traditional robots require isolation from human workers. Cobots, on the other hand, are designed to operate safely in tandem with humans, featuring smaller payloads and reach but greater adaptability.  

Recent innovations combine cobots with machine vision and AI, enabling self-learning robots that can pick items without advance teaching and share learning across units. Such systems are rapidly implemented and provide higher flexibility and speed in warehouse operations. 

Palletizing and Packing Automation 

Robots and cobots can be used for example palletizing and depalletizing, tasks that benefit from automation due to their repetitive nature. Machine vision enhances these processes by enabling robots to recognize and handle parcels without relying on fixed positions. 

Packing automation encompasses carton forming, sizing, sealing, weighing, and labeling. Advanced systems can scan products and create fit-to-size boxes, reducing empty space, packing material usage, and transportation costs. These solutions are particularly attractive for e-commerce operations with small, frequently shipped items. 

Robotic Process Automation (RPA)

RPA applies automation to office-based tasks by using software bots to perform repetitive, rule-based activities such as reading and sending emails, logging into systems, data entry, and verification. While not robotics in the traditional sense, RPA streamlines routine workflows and can be enhanced with artificial intelligence for more complex tasks. Its widespread use in large organizations reflects its effectiveness for high-volume, repetitive processes. 

Conclusion 

Automation and robotics in intralogistics encompass a diverse array of technologies—from digital workflow automation and advanced robotics to exoskeletons and RPA. Implementing these solutions requires careful evaluation of operational needs, process consistency, and integration with existing systems and personnel. As robotics and automation continue to evolve, their role in intralogistics will expand, driving new efficiencies and transforming how warehouses and distribution centers operate.

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