At times, the audience at the GS1 Logistics Talks at Logistics & Automation in Zurich was packed to capacity when the topic of robotization and automation was discussed. In the past, automated processes were considered "inflexible." Is this changing with AI—and who will gain the upper hand?

In fact, until a few years ago, it was argued that the relatively high costs of robotization often stood in the way of the actual benefits, and thus the return on investment (ROI) was not commensurate with the actual benefits. Now, the opportunities and possibilities attributed to "artificial intelligence" are enticing, with faster adaptation to changing conditions, as well as increasing "plug & play" installations that no longer require special programming knowledge but can be set up via an app. Especially when service work, commissioning via ChatGPT, and "live"-controlled remote access are no longer magic.

Photos: klk.

The levels at which logistics processes can be developed and optimized are still quite diverse. This was also evident in the panel discussion moderated by GS1 logistics specialist Jan Eberle, featuring Daniel Gilgen, Stefan Mahler (Swisslog), and Norman Peuker, Head of Logistics at Lidl Switzerland.

At Lidl, for example, most picking processes in its Weinfelden distribution center, which has been operating for eight years, are still carried out manually. This isn't because Lidl lacks the necessary technical expertise, explains Norman Peuker, but rather because a higher level of automation doesn't always make sense, and the handling and flexibility provided by human employees are still highly beneficial.

Daniel Gilgen also points to different levels of automation, and Swisslog Sales Director Stefan Mahler notes that this is still a matter of weighing things up, "because many factors play a role here." On the other hand, as the coronavirus pandemic has shown, "high volumes of goods can no longer be managed without automation" (Daniel Gilgen). At the same time, it must be acknowledged "that certain processes are better done manually."

The question of which areas will see the most rapid development of robotization and digitally integrated processes in the coming years is outlined by the demands in areas such as the pharmaceutical sector and online shopping in the food sector. Many jobs in these areas are likely to be lost in the next three to five years. However, given the rapidly worsening labor shortage, this is not simply a disadvantage.

J. Eberle, D. Gilgen

"We're open to new technologies here," explains Peuker, who draws attention to successful Lidl projects in Denmark, for example. EU regulations sometimes leave no choice but to comply with demanding requirements.

Jan Eberle raises an interesting question: Could the belief that manual processes are inherently "easier" also be misleading? After all, with all work processes, innovations, and changes, the team, the group of people working there, has to be "taken along" and accustomed to new procedures until the process quality is sufficient. "That can be quite exhausting, right?"

Logistics and automation providers also don't have a completely "free choice," it turns out, because demographic change is taking its toll. Older employees, for example, struggle with physically repetitive tasks like lifting heavy loads, which can be taken over or at least made easier by robot- and IT-supported systems.

St. Mahler (Swisslog)

Saving costs on personnel who, over time, are no longer available seems to be one thing. Whether that's enough to recoup the costs of systems that, in turn, require maintenance and service to keep them running isn't automatically guaranteed. However, intralogistics system providers also offer different levels of after-sales service. "For some, a hotline is sufficient when problems arise. Others want nothing more to do with it and opt for full service," says Stefan Mahler.

No universal remedy

Operating costs, electricity prices, and the availability of spare parts play a major role here, adds Daniel Gilgen. Rushing to decide on one option or the other, full or partial automation, "can also go wrong."

However, automation cannot generally serve as a key factor in solving labor shortages, although it is already very helpful in many areas. Applications further advanced by AI are now even helping lawyers, if they use artificial intelligence instead of another legal trainee, who costs 400 francs per hour, to illuminate the context of a legal issue. In intralogistics, a larger number of companies are now benefiting from the new possibilities of AI-supported demand forecasts in predictive warehousing, in the training of new employees, as well as current voice-assisted systems.

N. Peuker (Lidl)

The panel discussion inevitably turns to cyber risks. Prevention against hacker attacks is becoming increasingly important. "If someone doesn't have access to the system for two months, it can be ruinous," says Daniel Gilgen, explaining the importance of effective security measures against IT intruders. "The positive and negative aspects are closely linked here," explains Swisslog panelist Stefan Mahler, explaining modern risks of the digital age.

After all, many companies have protected themselves against attacks over the past ten years with the help of software specialists. And humans won't become obsolete anytime soon. Daniel Gilgen: "We still have enough cases that need to be solved by humans." Stefan Mahler agrees that new career fields with expanded skills and abilities will emerge for logistics professionals. "There aren't just five cases that I can program so that an AI can solve them."

klk / www.gs1.ch

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