INSPIRATION

SWISSLOG WAREHOUSE & DISTRIBUTION SOLUTIONS

WELCOME TO
TOMORROW
GLOBAL MAGAZINE ISSUE TWO

PLUS:
E-COMMERCE // EMERGING NATIONS // SELF DRIVE // HISTORY OF INNOVATION
 INSPIRATION

// PAGE 3 WELCOME
// PAGE 4 IN THE PROCESS OF CHANGE
// PAGE 6 A HISTORY OF INNOVATION
// PAGE 8 E-COMMERCE & BEST PRACTICE
// PAGE 10 NATURAL SELECTION
// PAGE 12 BEST PRACTICE: SULSER GROUP
// PAGE 14 EMERGING NATIONS
// PAGE 16 SELF DRIVE
// PAGE 18 UNDERGROUND CARGO
// PAGE 20 FINANCE
// PAGE 22 SEASONAL LOGISTICS

DESIGN
DEVELOP
DELIVER
02
 WELCOME

WELCOME

Welcome to our second issue of Inspiration

magazine. We were delighted with the
response to our first issue on the Future of
E-commerce, and this time we look to the
past, present and the future.

We examine the history of automation and

past trends, as well as current issues in
different markets and where we might be
heading in the near future. From under-
ground transportation to driverless cars,
Christmas shopping to cash handling, its
all here!

It is amazing to consider how far we have

come in the last few years, let alone in
the 20 years since the Swisslog name first
appeared. It has been 30 years since our
precursors Sprecher & Schuh Automation AG
came into being and our first fully auto-
mated project took place, back in 1967.

We hope you enjoy this issue and as always

welcome your inspirational feedback!
Contact us via Twitter @swisslogInspire or
via email: inspiration.wds@swisslog.com

Joe Doering
Division President
Warehouse and Distribution Solutions

03
 INSPIRATION
ANDREW MANSHIP: EMEA
How well known is
automation in your
territory?
Europe has had a significant adaption rate
of automation, far ahead of that in the
Middle East, but we see signs that this too,
is set to change.
Having spoken recently with a number of
professionals at the Materials Handling
Middle East exhibition, it is clear that there
is a lot of interest, excitement and enthu-
siasm surrounding the increased take-up
of automation within the region. However,
this is expected to be at a fairly basic semi-
automated level as confidence builds.
How quickly is the market developing?
In Europe we see steady growth. It is a rel-
atively mature market. Here, a continuous
improvement culture focuses on developing
operations in order to tighten efficiency
and evolve with the changes brought about
by factors such as multichannel operations
and more stringent customer expectations.
We see the quickest change currently
taking place in the Middle East where the
majority of warehouses have manual ma-
terials handling operations. This market has
experienced an on-going period of prosper-
ity and demand with significant levels of
investment in the fast track development of
its warehousing facilities.
Which businesses are showing interest?
Swisslogs solutions and services are tar-
geted at storage, picking and replenishment
for all industries. We tend to focus primarily
04
IN THE PROCESS
OF CHANGE
WHAT FACTORS ARE DRIVING THE WAREHOUSE OF
TOMORROW? WE SPOKE TO OUR REGIONAL MDRs
TO FIND OUT.
on the retail, food & beverage and pharma- What support is most appreciated?
ceutical industries, although we experi- Service agreements with guarantees or
ence interest throughout a wide range of several Key Performance Indicators are
markets including banking, manufacturing, becoming more prevalent; these KPI agree-
automotive and paper and print. ments provide the customer with peace of
mind as the service provider will also feel
E-commerce appears to be the fastest the pain should critical equipment not
growing sector in the market and many perform as expected.
organizations are still coming to terms with
the challenges presented by multichannel Many companies are also reviewing the
logistics; here we find a great deal of inter- life expectancy of existing equipment; we
est in Swisslogs solutions. typically find that companies are looking
to extend the operational effectiveness of
How important are legal, environmental, their current equipment by three to five
safety considerations? years beyond their original plans, sweating
Benefits related to health and safety are a their assets to the maximum level.
top priority for our customers. Automation
reduces the number of personnel in the What are the next challenges for businesses
warehouse and allows those operators utilizing automation?
remaining to work within an ergonomic Top pressures which drive automation are:
environment. Energy efficiency is high on companies running out of space, needing
the agenda for most companies due to both to fulfill orders faster and having to tackle
economic and Corporate Social Responsi- the high cost and/or low availability of
bility (CSR) factors. labor.
Customers are asking up front about ener-
gy usage and it is an important criterion
for evaluating systems and business
cases.
Automated warehousing systems
also support companies in the phar-
maceutical and food & beverage
industries to adhere to stringent
regulatory requirements thanks
to its ability to perform continu-
ous quality control and distribute
products efficiently, accurately and
securely.

MARKUS SCHMIDT: USA
How well known is
automation in your
territory?
The largest part of the market is case con-
veyor based with solutions that are often
less complex than ASRS type applications.
Those conveyor / sortation solutions are
well known and accepted. The automation
level we promote with ASRS and goods-
to-person picking is less common in the
market. However the trend is toward more
advanced solutions, providing end users
with higher-performance systems which
deliver lower overall life time costs.
How quickly is the market developing?
The North American materials handling
market is growing by around 6% a year at
present. The trend is for more sophisticated
solutions and the market we serve is likely
to outgrow the wider market developments.
RUDOLF HAUSLADEN: APAC
How well known is
automation in your
territory?
Generally, it is well accepted around the
Asia-Pacific region. Pallet technology is
common, the light goods sector is appear-
ing slowly.
How quickly is the market developing?
China, Korea and Singapore have embraced
automation and are showing good poten-
tial for growth. Thailand and Indonesia
are emerging countries, which are devel-
oping fast, and growth in automation will
increase mid-term.
Australia is a quite mature market where
automation has been used for some time.
Given the smaller population there, demand
is growing slower.
Which type of businesses are showing
interest?
This depends on the solution. Pallet ASRS
types mostly in food & beverage applica-
tions, while goods-to-person very much in
retail and e-commerce applications.
How important are legal, environmental,
safety considerations?
Legal and safety considerations are must-
haves, while environmental aspects can
give Swisslog an edge in some cases.
What factor is land availability playing in
the take-up of automation?
Land in the US is generally still available.
However, when investment in automation
helps avoid expansion, value is generated.
What support is most appreciated?
Customers demand that operations be
supported on a 24x7 basis. In addition, our
support team now proactively monitors
our customers installations to anticipate
Which type of businesses are showing
interest?
There is interest across all industries and
hence good opportunities for automated
solutions in areas where land is scarce,
labor costs high or growing rapidly,
and throughput challenges require automa-
tion to solve complexity.
If we talk about scarcity of land, for exam-
ple, mega-cities such as Singapore, Hong
Kong, Shanghai, Beijing or Seoul come to
mind. On top of that, land prices are grow-
ing fast, hence companies want to make the
most effective use of a given plot of land.
How important are legal, environmental
and safety considerations?
All are important, but the magnitude de-
pends on the circumstances. Working time
restrictions in deep-freeze environments,
IN THE PROCESS OF CHANGE
potential issues before they can impact op-
erations. Customers also want to be able to
adapt and upgrade their aging systems in
line with their business. Support in enabling
this change is the second most important
stream.
What are the next challenges for businesses
utilizing automation?
The challenge for customers is clearly
financial justification for automation. With
labor rates still relatively low and land
almost free, the justification is not quite as
easy as in Europe.
There is a clear drive towards better control
and tracking of inventory and automation
helps with this tremendously.
At the same time we see an increase in
orders with a decrease in order size. This
makes the control and tracking topic even
more pressing.
for example, is very important, environ-
mental and energy saving concerns are
important everywhere, while safety issues
are particularly important in Australia.
What support is most appreciated?
Delivering turnkey solutions and providing
after-sales service are very much appre-
ciated. It means the customers can focus
on their own business without delaying
progress.
What are the next challenges for businesses
utilizing automation?
Highly flexible automation, that is, being
able to scale up or down your automated
system as you go. As e-commerce, m-com-
merce and other types of retail become
more prevalent, the ability to respond to
changes in SKU ranges, throughput, peak
days, etc. becomes even more important.
05
 INSPIRATION
A HISTORY OF INNOVATION
SWISSLOG TRACES ITS ROOTS BACK TO THREE
DIFFERENT COMPANIES, MERGED TOGETHER OVER
THE YEARS INTO THE BUSINESS WE KNOW TODAY.
In 1902, Specher & Schuh
produced the first electrome-
chanical switch-gear for low
and high level voltage.
By the 1950s, it had begun production of
electronic switches and controls, including
complete cabinets. As technology
progressed and Specher & Schuhs division,
Indumation AG, introduced the first
computer-controlled system, the automa-
tion business side became more and more
important to the parent company.
In 1986, the middle and high voltage switch
gear business was sold off to Alstrom (then
called Sprecher Energie AG). The funds
were then used to invest in Digitron AG
and Translift AG, bringing together three
pioneers in the materials flow sector.
Seven years later, with the spin-off of the
low voltage equipment department to
Rockwell, the organizations involvement in
electrical switch gear came to an end, and
the company Swisslog was born.
06
What followed was a number of
acquisitions (including Buchs-based
business, OWL AG), joint ventures and
technological developments that helped
make Swisslog a global leader in the
provision of integrated logistics solutions
for warehouses, distribution centers and
hospitals.
Headquartered in Switzerland, Swisslog
today has over 2 100 employees in more
than 20 countries on four continents.
Our comprehensive portfolio ranges from
building complex warehouses and
distribution centers, including the
implementation of Swisslogs own software.
Swisslog also delivers in-house logistics
solutions for hospitals and pharmacies.
Benefiting from its comprehensive logistics
know-how and broad project experience,
Swisslog is focusing on the industry seg-
ments of food & beverage, retail, including
e-commerce and multichannel,
pharmaceuticals, and healthcare.
The Next Level
Swisslog has always been faced with
adapting to fulfill customer require-
ments in the best way.
As a result we have learned to become
the expert in integration, and that
it is important to have our own key
technology.
As a dynamic company we aim to
keep the balance between our own key
proven technology and 3rd party inte-
gration, as well as the balance between
standardization & customization.
Ultimately, we look to keep the good
technology and practices, while adding
innovation and new ideas.
In doing so, we are able to understand
complex requirements and bring auto-
mation to the next level.
Our key challenges today are to:
Focus on market trends, providing
inspired solutions to meet the market
demands
Invest further in full automation and
establish the best strategic partner-
ships
Enhance our offering for our valued
customers
 A HISTORY OF INNOVATION

ROCK OF AGES
SWISSLOGS PREHISTORIC ROCK, WERNER
WOODTLI HAS TWO DECADES OF EXPERIENCE IN
LOGISTICS AUTOMATION. AS FAR AS INNOVATION
IS CONCERNED, IF ITS HAPPENED, HES SEEN IT
DEVELOP AND WAS PART OF IT.

What is the origin of Logistics?
You can argue logistics was always part of
human activities; good examples are trad-
ers of cities such as Venice controlling the
Mediterranean Sea, or later Hamburg with
the Hanseatic league.
How did you join the industry?
I started my career at Sprecher+Schuh Con-
trols in Suhr, near Aarau. My main projects
were the cooling water treatment for the
Goesgen nuclear power plant close to
Aarau, and the complete controls equip-
ment for a cement factory in Nigeria.
It was a good learning experience. One
example was the machine producing starch
flour from potatoes. The machines inner
section stopped, but not the potato feeding
part, completely stuffing up the machine
with potatoes and making it hard to clean.
We never forgot the basic potato princi-
ple of material flow, stopping conveyors
backwards in response to the flow!
Additionally, we introduced a new way of
communicating with these PLCs, not by
digital signals but by readable telegrams
(that later lead us to LAN technology). By
introducing Beckhoff IPCs in the last two
years, we closed a big circle from the early
1980s to 2010. We increased our order
volume from 5 million CHF in 1980 to close
to 400 million CHF today, a 30-year journey
that I am still proud to have been part of.
Which ideas made the biggest impact?
Computer Integrating Manufacturing and
Just-In-Time (JIT) were two streams of
thinking that accompanied me during my
career. When JIT was coming along, we saw
What will the future hold?
The industry has matured greatly since my
first days in 1980. When I started in logis-
tics automation the focus changed from
developing base technology to solutions.
Today we have access to immense comput-
ing power and excellent control systems
that was unimaginable only a few years
ago. We can achieve automation levels to-
day that we couldnt imagine were possible.
Weve achieved the automated order
assembly for crates; cartons of different
sizes on pallets or rollcages are the next
challenge. Vision technology, indoor posi-

How did automation break through?

Sprecher+Schuh was already active in
material flow controls as far back as 1967
for the Brunegg warehouse close by (still in
operation today).
The real break-through was the introduc-
tion of the Tandem NonStop computer
in 1980, a fail-safe computer with no
single point of failure. At the same time we
introduced the Sprecher+Schuh PLC, we
used the PLC as a micro-computer and it
was based on one of Intels first 8080-CPU
chips.
many challenges ahead; we really feared
that warehouses could become obsolete!
Now, just the opposite seems to be correct.
Logistics has developed constantly, with
warehouses taking over the role of buffers
between Far East production and Western
consumption, and companies have out-
sourced their own logistics needs.
tioning systems, robotics, communication
technology - all have been, or are about to
be, integrated into our solutions.
Customers are aware of these options, and
their expectations have increased too. Chal-
lenges remain as in the first days, perhaps
on a higher level. But after all, the potato
principal is still valid!

07
 INSPIRATION
THE CHALLENGES
OF E-COMMERCE
ONLINE SHOPPING IS DRIVING MANY OF THE
INNOVATIONS EXPECTED IN THE WAREHOUSE
OF TOMORROW. ADRIAN ILIESCU ASSESSES THE
CHALLENGES FOR RETAILERS.
To what extent is e-commerce affecting
retail logistics?
E-commerce is changing the traditional
pallet and case replenishment processes
in existing supply chains, to an item based
pick system. This is requiring additional
space as it is often undertaken alongside
store replenishment. Some retailers are
picking in shops then delivering to home,
but have much higher distribution costs
than those who pick from the warehouse
to homes.
Who are the winners and how do you avoid
becoming a loser?
The success of the big boys perhaps
distracts us from the fact that many
established players have either disappeared
entirely, or are in severe trouble. The win-
ners have had to change from a big-build,
fixed-cost mentality to one which is able of
responding swiftly to trends in the market
and new opportunities.
Crucial to this success is picking speed.
Being able to respond to individual orders
with the same efficiency (if not greater)
as bulk or palletized orders is key for the
winners. It stands to reason that having
flexible, efficient and fast picking, is the
best way to avoid having to increase staff
numbers and extend delivery times, in order
to meet an increasing number of orders.
How do you define multichannel?
Researchers define multichannel as
consumers who use more than one
channel, such as a store, online platform,
catalog or contact center before making a
purchase.
08
For the retailer, the same term is used for
the ability to fulfill orders made via those
different channels. These orders may be
for delivery direct to the consumer, driving
the need for the ability to pick single or a
smaller number of stock items, or it could
mean delivery to stores and collection
points, hence the combination of palletized
and smaller packages.
How important is multichannel?
If recent reports are to be believed,
multichannel shoppers spend over 80%
more in each transaction than those who
only shop in-store. Researchers for the
accounting firm Deloitte found that
multichannel customers buying in the
clothing, home and electrical categories
spend on average 116 per transaction
compared to 64 for those who only buy
in-store.
What about reverse logistics?
Often returns represent 20% - 30% of
shipped items, which all need to be checked
and reintroduced as stock. Besides tying
up cash, and causing cash flow problems
to many starters, this creates an enormous
burden on warehouse operations. Both
manpower and equipment need to be sized
to cater for the additional capacity that
returns require. A good returns solution
enables the items to be returned to
inventory at the earliest opportunity.
Swisslogs AutoStore and SmartCarrier
technologies offer automated return
solutions that shorten the time between
returned items being received and once
again being available as stock.
Adrian Iliescu
Ensuring accurate order fulfillment in the
first place can reduce returns, but free
postage returns is a balancing act between
promoting sales and encouraging custom-
ers to buy multiple items for comparison
at home. Seasonal promotions, such as
free postage on returns, drive online sales,
yet the cost of this to e-retailers and the
disruption it can cause to the supply chain
can quickly become crippling without the
right tools and processes in place.
How are customer expectations shaping
future e-commerce?
A change in customer lifestyles and Internet
advances meant expectations were high, but
delivery poor. Now we are approaching the
tipping point as customers attitudes align
with the capabilities of grocery retailers
such as Ocado, Peapod, Mathem, even
Amazon.
Will there be any e-commerce surprises?
eBay may present a new challenge. The
online retailer is currently trialing same-day
delivery in the US, via the mobile eBay Now
app. The move has led some commentators
to suggest: What Walmart and Target
started, Amazon and eBay will finish. And
if you still remain unconvinced about the
way things are heading, this final statistic
may give you pause for thought.
Did you know: According to the news
agency www.xinhuanet.com there were
242 million people shopping online in
China in 2012. And the Chinese are just
getting started.

RISING TO THE CHALLENGES: HOW SWISSLOG
IS HELPING ONE LEADING ONLINE BUSINESS.
Two factors were particularly important
for Competec, said Rolf Gutjahr, Swisslog
Project Manager. How expandable is the
concept, and how easy would it be to
integrate into the existing space?
AutoStore could fulfill both of these expec-
tations.
Maximizing efficiency in e-commerce
fulfillment centers is accelerated by an
efficient use of space, both in footprint to
minimize travel, and going vertically 3D, to
maximize cube storage, explained Gutjahr.
E-COMMERCE
WELCOME
The AutoStore system provides the highest
density of cubic space utilization of all
automated storage and picking systems.
The system allows up to 24 small parts bins
to be stacked on top of each other, per
column.
Each bin has a maximum load of 30 kg.
Robots, whose quantity can be increased or
reduced as and when required, travel along
this grid with a speed of up to 3.1 m per Competec is a leading Swiss
second. electronics retailer.
Did you know... In France, 33 % of
consumers who have never bought
groceries online say they would
probably or certainly begin to do
so within the next six months if the
service were available in their area. In
Spain, that figure is even higher, at
49 %.
09
 INSPIRATION

NATURAL SELECTION
ALNATURA STAY TRUE TO THEIR ROOTS WITH AN
IMPRESSIVE FUTURE-ORIENTED ORGANIC FOOD
DISTRIBUTION CENTER.

Few high-bay facilities are as

impressive as the new
distribution center operated by
Alnatura Produktions- und
Handels GmbH in Lorsch,
Germany. It rises 17.5 meters
into the sky and, this is the
most extraordinary part, it is
entirely made of wood.

The high-capacity high-bay warehouse is

the only one of its kind anywhere in the
world, Alnatura points out with some pride,
and an external faade that is also made of
wood will soon be added to the ecologi-
cal concept. The goal of the construction
project is to build a cutting-edge extension
onto an existing organic food distribution
center.
through trade partners in Germany and
abroad. Lorsch has been one of Alnaturas
key logistics centers for many years, but it
is now outgrowing its capacity, due to the
retailers strong growth.

Whats extraordinary is that the project
is in line with Alnaturas principles, which
are based on systematic sustainability and
environmental protection, comments
Dr. Volker Jungbluth, Managing Director
of Swisslog Germany. The organic food
retailer can still rely on modern technolo-
gy, he adds, since the warehouse will soon
be automated.
Handling dry goods
Headquartered in Bickenbach, Alnatura has
been distributing organic foods since the
mid-1980s, including dry cereals and other
grains, sandwich spreads, dairy products,
fruit and vegetables, to name but a few.
The company maintains 80 stores in
Germany and also distributes its goods
Because of the great need to expand,
Alnatura decided to construct a new
building in 2012. Swisslog is now building a
new distribution center for dry goods on a
footprint of 9 000 m as general contractor
for Alnatura.
We want to set an example,
The new structure will be a fully automat- combining ecology and
ed high-bay warehouse connected to an economy with attractive
adjacent building, which will provide the design
interface to the existing logistics space.
Mr Link, Head of Finance Alnatura
A sophisticated concept
The order from Alnatura not only covers sophisticated energy concept. In keeping
the storage systems and conveyors, control with Alnaturas motto, Sensible products
technology and warehouse management, for people and the planet, the new logis-
says Heinz Ennen, Swisslogs Head of Sales, tics center will cut CO2 emissions wherever
describing the work specifications the possible: by saving energy, using renewable
milestones also include construction and a resources and building with wood.

10

We deliberately chose to use one of the
most sustainable building materials, says
Prof. Dr. Gtz E. Rehn, Alnaturas Founder
and CEO. Wood is a renewable resource.
Alnatura wants to set an example by
combining ecology and economic feasibility
with attractive design.
Ecology and Technology
The high-bay facility is made of PEFC
certified spruce and therefore comes
from sustainably managed forests. It is an
eight-story, 18 m load-bearing structure
with 65 570 m3 of shelf supports.
The facade features PEFC-certified larch
wood. Thanks to good insulation and
natural cooling, the logistics center requires
neither heating nor artificial refrigeration.
To do this, the building was sunk 2.5 meters
into the ground, which allows it to use the
natural cooling effect of the surrounding
earth. A photovoltaic system will be in-
stalled on the roof, so that the building will
be operated with additional green electrici-
ty once it is completed.
A total of 3 800 m2 of open storm water
infiltration basins collect rainwater from
THE FUTURE
Understanding customer needs:
Swisslog helps Alnatura achieve
their ambitions for an eco-friendly
DC. (Distribution Center).
both the roof of the high-bay warehouse
and all yard areas, preventing rainwater
from contaminating the public drainage
ditch. Extensive landscaping of the property
rounds out the ecological concept.
The new 137 m x 67 m x 20 m warehouse
and distribution center will have a func-
tionality and dynamics shaped largely by
automation technology: 9 Swisslog Vectura
stacker cranes will serve up to 31 000 pallet
locations.
Pallet conveyors, picking robots, extensive
peripheral and safety components as well
as modern software control systems make
the Alnatura warehouse an extremely safe
and high-performance environment.
An unrivaled solution
We are delighted to give our customer
a solution that is beyond compare, says
Volker Jungbluth, and adds that any com-
plex logistics system can rightly claim to be
unique if it actually attempts to meet the
users personal needs.
11
 INSPIRATION

A VISION TO SUCCEED
SULSER GROUP IS A SUCCESS STORY THATS CLOSE TO SWISSLOGS HEART.
HAVING TAKEN ON THE DC OWNED BY A PREVIOUS CUSTOMER OF SWISSLOG
IN 2000, SULSER GROUP SET ABOUT ADAPTING IT INTO A NEW LOGISTICS OP-
ERATION. THE SEAMLESS TRANSITION, AND SWISSLOGS ABILITY TO UNDER-
STAND THEIR NEEDS, MEANT WE BECAME A FIRM FAVORITE.

Oliver Lindenberger, Managing Director
Sulser Logistics Solutions AG, explains
how Swisslog became a valued partner,
helping them to succeed and realize
their vision.
What was your early business model?
When the Sulser company was founded in
1954 by the father of our owner, Jrg Suls-
er, we were a pure transport business. Man-
ufacturers would still maintain warehouses
on their own and need transport services
mostly in order to move their goods and
carry out trade.
For us business changed in the early 1980s,
when lean management appeared. Toyota
still serves here as the benchmark for this
organizational structure worldwide. Mean-
while, lean management, along with its
core idea of creating value without waste,
has been put into practice across many
sectors.
Our company experienced a substantial
change at that time: from a classic hauler
to a shipping company with its own ware-
housing and transhipment facilities.
Customers are confronted time and again
with the challenge of providing their
services faster and more cost-effectively,
downsizing, closing their warehouses, or
outsourcing.
providers that, in addition to classic ship-
ping, transhipment and warehousing, also
offer value added services, thus evolving
into an established third party between
customer and supplier.
Depending on the customers requirements,
we select the most appropriate measures
to put together a package out of it for the
customer. The entire supply chain, includ-
ing consulting, is reproduced: to achieve
this, we identify potentials across the
whole value chain and develop concepts of
continuous improvement together with our
customers.
What were the early issues that led you
to consider changing your business?
An increasingly significant role is played
by value added services and IT has become
more and more important. In globally
networked logistics, nothing can work
without IT. Data accompanying goods on
their way through the world, allowing their
unambiguous assignment and permanent
tracking. We realized this very early on,
and were one of the first providers to map
our logistics services to ERP systems. We
possess specialized infrastructure and
know-how across diverse sectors of indus-
try and commerce. Today our core business
encompasses holistic logistics and transport
solutions: from procurement logistics to
production-related value added logistics
services delivery.
We were there in the first
hour when automation
started and we support Sulsers
Groups success by helping
them realize their logistics
vision.
Daniel Hauser Managing Director
CH, AT, ME
What has been the greatest impact of
automation on your business overall?
It is the complexity of our business, and the
related, constantly growing requirements
for our workers. On the one hand, they have
a logistics task that is quite easily definable:
handling of goods, transport of merchan-
dise from A to B. On the other hand, we
have to be capable of understanding and

Ever shorter product lifecycles and a

greater diversity of variants require industry
and company-specific solutions. This has
resulted in the emergence of logistics

12

WORKING WITH SWISSLOG
The pace of technological developments in logistics is very fast. Stoppage is a step backwards is an old saying, but considering
the qualifications of people who work in logistics today, it is more relevant than ever. With Swisslog, we have a long-term part-
ner that understands our strategy and delivers proven technology and modernization. Its a partnership that has worked for many
years, from our early years as a transport company, right up to the efficient logistics operation we have today.
operating complex IT systems. We find
highly qualified personnel to be a prerequi-
site for the efficient and customer-oriented
provision of high-end logistics services.
What do customized solutions mean to
your business?
One of these approaches is Vendor Man-
aged Inventory, a concept where we take
charge of our customers warehouses. In
addition, stock and demand data are shown
and maximum and minimum stock levels
are agreed for each item.
Based on this data we manage our cus-
tomers stocks on our own. Data is fed into
the inventory monitor directly from our
ERP system and updated on a daily basis
so that dispatchers on both sides can plan
using the same information. Our customers
have powerful tools at their disposal which
enable them to quickly address on-going
situations: which and how many parts have
to be delivered can be established in no
time.
Where do you see the future of
intralogistics going?
In recent times we have been attracting
more customers that outsource large por-
tions of their business to us. We see three
factors at play:
BEST PRACTICE SULSER
WELCOME
GROUP
The demographic developments will cause
the potential pool of highly qualified
MILESTONES
personnel to shrink in the future.
1968 - Founding of TOURA market,
Secondly, the growing efficiency of
one of the biggest and established
automation. The complexity of todays
distribution centers in Switzerland.
processes and the related need for the
service orientation of market players are
1971 - The first automated distri-
other drivers of automation technology.
bution center completed by Swisslog
Thirdly, the challenge for the future is
forerunner, Sprecher & Schuh.
system integration. Processes will be
even more interlocked. The diversity of
1986 - Modernization of the control
processes keeps growing, whereas quality
system from Sprecher & Schuh.
requirements are increasingly higher.
1993 - New warehouse expansion,
So long as we consumers want to have
with an elevator over 3 floors and a
fresh roses from Kenya, Chardonnay from
transfer car, implementation of new
Chile or fresh scallops served in a moun-
control software for the conveyor
tain hotel, the worlds trade volume will
system and more than 2 000 different
continue to grow thanks to globalization.
modifications / optimizations.
At present, the annual growth rates range
from 6.5 % to 8 %. Logistics provides a sort
2000 - Sulser Logistics AG buys distri-
of backbone for that, and demand for such
bution center.
systems will keep growing.
2013 - Huge modernization project
delivered to meet Sulsers immediate
Consumers still want roses
and future needs.
from Kenya and wine from
Chile.
13
 INSPIRATION

EMERGING INTO
THE LIGHT
EMERGING MARKETS ARE SOME OF THE FASTEST GROWING WHEN IT COMES
TO THE TAKE-UP OF AUTOMATION. BUT HOW DO YOU DEFINE EMERGING
MARKETS AND WHY ARE THEY MOVING SO FAST?

Emerging markets were defined variety of industries, needing improvements competitive pressures will intensify as
by their greater potential for in their infrastructure, and having the efficiencies spread in new markets, perhaps
profit, as well as risk. By the resources to do something about it. causing the center of economic gravity to
end of the 20th century, some Investments in roads, water and waste shift to new regions.
of those former less developed water facilities, airport facilities, and power
countries were emerging into plants will undoubtedly drive the direct use Of course, the great advantage of being
of automation equipment in these indus- later into the market is the benefit of seeing
the light - the BRIC grouping of
tries as well as others supporting them. what works. For emerging economies, the
Brazil, Russia, India, and China
ability to see the greater results brought
chief among them.
The rapidly expanding middle class in Asia, about by investment in automation, makes
Eastern Europe and Latin America is also these ventures much more attractive in
Today, the more positive term Emerging
creating tremendous demand for new the future. As analysts from the market
Economies defines not only a group of
products. This new middle class is research firm Frost & Sullivan found, regu-
rapidly expanding countries (Mexico, South
purchasing goods across all segments, but lations are a key factor.
Africa, Peru, Poland, Estonia, Bulgaria,
many of these will no doubt be unexpect-
Turkey and Indonesia, that is, countries
edly popular. The growth in consumption The need to boost safety through auto-
appearing on an attempted definitive list
will benefit industry overall, increasing mation, meet industrial standards and reg-
by the International Monetary Fund), but
demands on logistics and, it is thought, for ulations, and ease workflow operation has
also refers to countries generally seen as
more automation. aided market development, states Senior
vital to the global economys turnaround,
Research Analyst Vandhana Venkatesan.
following the great recession of 2009.
With global growth, comes global In addition, globalization has compelled
pressures. Already we have seen how emerging sectors in the region to catch up
The truth is that no one knows exactly who
Western brands are put under the spotlight with already developed end-user seg-
to include in the emerging nations bracket
by Asian production practices. Likewise, ments, forcing them to turn to automation
(Thailand? Taiwan? Poland?) but the per-
ceived wisdom is that the main developing
economies are still the primary markets for
the spread of automation. Countries such
as China and India are investing heavily in a

14
 EMERGING NATIONS

Brazil is hosting the World Cup in

and control solutions. It is perhaps 2014 and the Olympics in 2016 and
an over-simplification to consider a is a key emerging nation.
growth of cheap, low-cost Chinese
goods as the template for future
markets. Certainly, low-quality / low-
price has a market, but it is the added
competition that drives costs down.

Just as automation businesses educate

end-users on the benefits of quality
solutions that reduce machinery
downtime, so too will customers be
willing to pay for quality products
produced in exotic locations, so long
as it proves good value. In truth, this is
already happening.

Its just that at the moment, Apple,

Microsoft, Lexus, Samsung, et al, use a
veil of Western design sophistication to
obscure it. But maybe the end of that
too will soon emerge from the growth
of a new world order.

15
 INSPIRATION

CRUISE CONTROL
AUTONOMOUS CARS MIGHT SOUND LIKE SOMETHING FROM THE REALM OF
SCIENCE FICTION AND YET, THEYVE ACTUALLY BEEN AROUND FOR ALMOST A
DECADE. AS LONG-TIME SUPPORTER OF THE AUTOMOBILE MANUFACTURING
INDUSTRY, SWISSLOG INVESTIGATES THIS NEW TECHNOLOGY.

Leading the way in the future
of car design is a company not
known for its automotive tech-
nology. Googles driverless car,
developed by the co-inventor
of street view, won a prize for
innovation as far back as 2005.
Googles robotic test cars have about
$150 000 in equipment including a $70 000
laser radar system. The system drives at the
speed limit it has stored on its maps and
maintains its distance from other vehicles
using its system of sensors. An override
allows a driver to take control of the car by
stepping on the brake or turning the wheel,
similar to cruise control. Recently, the com-
pany has suggested a fleet of autonomous
RoboTaxis.
Nissan already works with top universities in Uber, a popular ride-sharing software
including MIT, Stanford and Oxford, and be- used to connect passengers with drivers of
lieves the safety benefits will be immense. vehicles for hire. Many saw the investment
The statistics are certainly staggering: six as a $258 million bet that the future of
million crashes in the US alone every year, driving is renting, rather than ownership.
costing $160 billion, the biggest killers of
4- to 34-year-olds, 93% of which are due That may indeed prove the case, but some
to human error. see a different motivation. Forbes magazine
believes that Google likes the concept of
Laser scanners, Around View Monitor cam- repurposing Uber to work with its
eras, advanced artificial intelligence and own same day
actuators allow Nissans test car to drive
autonomously on a highway, sticking to
or changing lanes and avoiding collisions,
without a map.
The Japanese car giant may have
been spurred on by Googles
largest-ever investment

Meanwhile a number of US states have

already passed laws enabling the testing of
autonomous cars on public roads. Perhaps
the biggest signpost of the way ahead came
from Nissan, which announced in August
that it will be ready with revolutionary
commercially-viable Autonomous Drive in
multiple vehicles by the year 2020.

16
 SELF DRIVE/AMAG

LIFE IN THE
FAST LANE
AMAG Automobil is the main Swiss importer
for the VW, Seat, Skoda and Audi brands, and a
Swisslog customer.

e-commerce delivery service. The idea of
Googles Shopping Express is to create a
near-seamless way to go from a one-click
purchase to the knock of a delivery driver at
your front door.
Google may in fact be counting on Ubers
app, technology, and engineering exper-
tise to give it the edge on the information
superhighway, as well as on the road.
Since 1957 the company has operat-
ed the largest automobile spare parts
warehouse in Switzerland, at Buchs near
Zurich.
The number of spare parts kept available
in Buchs has increased enormously over
the years, now totaling around 150 000
different articles.
Every day, up to 14 000 lines, up to 50 tons
in weight, leave the warehouse in more
than 100 delivery vehicles.
industry-standard pallet or one base-sup-
port pallet with a skid. During store input
and output, the pallets pass through air
locks.
In the pre-store area of the high-bay ware-
house there are four circulatory picking sta-
tions based on a goods to-man principle,
and three goods receiving stations.
In addition, using a shuttle trolley, fast
movers are put onto 25 presentation tracks
for picking.

With growth on the horizon, AMAG wanted

to expand the capabilities of the existing
site and process an increased volume of
orders without the need for additional staff.

New automatic conveyor systems were in-

stalled to link together the individual areas
of the site and to speed up the internal flow
of goods. The second phase of the project
covered the building of a new automated
small parts store and the introduction of
a new warehouse management system. In
the third phase, stocks were built up within
the existing building and a fully-automated
high-bay warehouse installed.

Did you know...

As a result of the expansion project, AMAG
Electric cars are equipped
has doubled its warehousing capacity while
with computers, sensors, and
further optimizing its internal logistics. The
wireless connections that allow
new high-bay warehouse provides space
drivers to voluntarily share infor-
for 25 200 pallet locations.
mation on their driving and charging
habits.
Each of the six stacker cranes with their
dual load acceptance mechanisms can
transport either two Euro pallets, one

17
 INSPIRATION

GOING
UNDERGROUND
ITS NOT JUST THE WAREHOUSE THATS CHANGING.
HOW THE CARGO ARRIVES IS ALSO CHANGING,
Robert Vogel, BOTH ABOVE AND BELOW GROUND.
Senior Partner, CargoTube AG

At least 20 million containers are

currently crossing the world on a
fleet of ships that we, for the most
part, rarely think twice about.

The Danish shipping company, Maersk, by

itself is said to own enough containers for
60 miles worth of trucks.

With so much traffic to contend with, its

little wonder that capsule pipelines are
now being re-visited. A deceptively simple
system, up to three pallets can be placed in Small transport containers take up to
a small container and propelled along an three pallet loads at a time and propel
underground pipeline. them along the pipeline.

The first implementation of the technology

was in Victorian telegram conveyors. These messages between important locations automatically receive and deliver the freight
used small diameter pipelines to move within cities. Such systems formed an and autonomously lead to the destination.
important part of communications The concept combines important logistics
networks until the mid-20th century. The and underground shopping centers
In England, the Victorians started to
Victorians also built a number of larger together and requires no additional land
introduce tube transfer systems into
diameter pneumatic dispatch systems. use.
shops in around 1840. Such systems
These were designed to move freight (and
remain in common use in shops,
in some cases passengers) around cities Freight is clearly a priority, as CargoTube AG
offices and hospitals. They are used to
but were less successful than telegram are convinced underground cargo is the
transport cash and other small items
conveyors. answer to the worsening capacity overload
within large buildings.
in transportation infrastructure. In addition,
But the idea is once again taking off, with transport costs can be saved, emissions can
New technologies designed to make
the idea of subterranean roads relieving the be reduced and the quality of life of those
large diameter pneumatic systems a
worlds congested roads. CargoTube AG are above ground can be increased.
viable mode of freight transport. Air
at the forefront of what they call low-tech
is not the only means of propelling
approaches to provide an efficient, Users get the possibility to individually
capsules. Various types of alternative
subsurface network for goods transport their freight on standardized
propulsion have been developed,
transportation, as well as for media and and automated tunnel vehicles, says the
including water and magnetic induc-
energy. company. Alternatively, logistics service
tion.
providers take over the transport with a
The fully automated system utilizes fleet of vehicles and integrate the needs of
driverless transport vehicles, which several customers.

18

Tunnel Vision
During WWII, Rembrandts The
Night Watch was hidden in
tunnels beneath Maastricht.
Guanajuato city in
Mexico was built
over old silver
mines, some of
which are used
as roads.
The oldest
subway system
in South Amer-
ica is in Buenos
Aires. Until this
year, it used Bel-
gian-made rolling stock
built in the early 1900s.
The company is now advocating an
underground route in Switzerland, where
a magnetic levitation rail network is also
under consideration. The first leg of the
CargoTube project has the potential for an
expansion into an underground
transportation system.
This system will relieve pressure from the
congested East-West Axis and from there in
the direction to Basel and Lucerne. Further-
more, city logistics aspects are worked on:
goods could be delivered from distribution
centers with underground connection via
electric vehicles into the city centers. This
would have a very positive influence on the
UNDERGROUND CARGO
London is the mother of them
all: the first underground railway
opened there in 1863.
Gibraltar has a longer
length of road under-
ground than it does
on the surface.
Montreals
Underground City
has the Hyperloop or
largest under-
ground city net- Hyperbole?
work in the world.
The USs first dedicated high-speed rail
line has struggled to get off the drawing
board. Despite first being approved in
2009, the $70bn California high-speed rail
initiative is still not scheduled for com-
pletion until 2028. South Korea, Taiwan
and Uzbekistan have all added high-speed
infrastructure, and the UK plans to open
its second line in 2026.
An unusual spin-off from Californias
delay was to inspire a new fifth form of
transport from the American business
magnate and inventor Elon Musk.
The 42-year-old co-founder of PayPal is
the CEO of electric powertrain and car
company, Tesla Motors, and the head of
the private space transport agent, SpaceX.
His vision is a self-powering tube, called
overall traffic situation of densely populat-
the Hyperloop, which could transport
ed areas.
travelers and even cars at speeds of
800 mph.
The possibility to influence the system
design, has already been offered to
Musk has said that the Hyperloop design
businesses, who are naturally interested in
is a cross between a Concorde, a railgun
how the system may benefit Swiss retailers,
and an air hockey table. He told Busi-
as well as logistics, academics,
nessweek that the design looks like a
infrastructure and construction industries.
shotgun with the tubes running side by
Swisslog is proud to be involved in ongoing
side for most of the journey and closing
conceptual work concerning all aspects of
the loop at either end. The $6bn price tag
automation. Our know-how and decades
for the LA to San Francisco line may put
of experience in design, planning and im-
off investors and make Hyperloop look
plementation gives us unique insight into
like an impossible fantasy, but then the
complex logistics solutions, as we assess
same might once have been said about
the feasibility of future technology.
high-speed rail...
19
 INSPIRATION
CREDIT WHERE
CREDIT IS DUE
AS AN EIGHT YEAR OLD ON HOLIDAY IN THE 1960s,
BRIAN WHALE ENJOYED MANY VISITS TO THE
AMUSEMENT ARCADES PUTTING SPARE PENNIES IN
THE SLOT MACHINES.
Obviously destined to be an engineer, it was
essential to discover how these machines
worked by investing all of my holiday
money to the cause. In short, day 2 of 14
and Im broke... and still dont understand
how they work.
To maintain a constant
supply of ice cream,
sweets and other treats
for the remaining 12
days a new strategy is
required. Negotiating
credit with the Bank of
Mum & Dad is the only
available next step, my
sister having already
written me off as a bad credit risk!
Having access to cash and credit has been
necessary to work your way through life, a
bank loan to buy your first car, a mortgage
20
CASH HANDLING WITH
SWISSLOG
Today, cash handling is much easier
to take care of. Swisslog offers a cash
handling solution for retail, supermar-
kets, airport parking and other applica-
tions. The application of fast, efficient
and secure transport for customers and
staff.
Swisslog systems efficiently transport
carriers at high speeds with proven
reliability. Tube systems provide air
cushioned transport with soft delivery.
for your home and finally a credit card to Swisslog offers total system design,
buy everything else. Today you are able to manufacturing, installation and cus-
buy anything you need, or want, on credit. tomer support - providing you with a
complete supply chain management
I have now joined the young generation approach to your logistics challenges.
and find myself buying online, on credit.
The system offers maximum secu-
It started with the occa- rity for customers and staff, faster
sional book, electronic reconciliation of cash receipts, prevents
gadgets, then groceries criminal access and optimizes internal
and now I find that cash logistics.
one of my friends has
recently purchased a system. Who would have thought that
Land Rover on eBay... logistics engineers and bankers would have
quite how the postman so much in common, let alone have to talk
will get that through the with each other.
letter box is a mystery!
Im now looking forward to buying my
The logistics of delivering such a large next car, where I shall offer the salesman
range of items to home has resulted in the my credit card, accompanied by the phrase
development of the automated distribution Stick it on that mate! and by the way 40
center and its integration with the banking years on, Im still broke.

PREDICTING
FUTURE TRENDS
WILL THE MAJOR INFLUENCES OF TODAYS
WAREHOUSE OPERATION BE THE SAME TOMORROW?
OUR EXPERTS MAKE AN EDUCATED GUESS.
Ergonomics, land prices, legal issues,
political agendas, employee availability,
technology, economics all have a role to
play in shaping the future of logistics and
automation.
It may be stating the obvious, but the big-
gest factor is what the market demands,
says Swisslogs Innovation Manager, Mike
Hatrick. If history tells us anything, it is
that commerce has a way of getting around
the obstacles laid before it if the desire is
there.
Todays issues, will therefore maintain to in-
fluence the way we develop our systems for
tomorrow, believes Mike, although new and
exciting developments are always around
the corner. Very few would have predict-
ed the way e-commerce has influenced
logistics further down the line. We are still
to see the real impact of mobile technology
on personalization, return logistics and
customer expectations.
Clearly, the growing acceptance of au-
tomation and its encroachment into new
areas of our lives can only help its devel-
opment. Competition is also increasing as
more countries make a claim to be more
than just manufacturers of products, but
also brand builders on a par with traditional
powers. Perhaps the safest prediction is to
say an organisations ability to remain
flexible, super-efficient and responsive, can
only get more important as time goes on.
Did you know... In June 2010, a study
found 73% of smartphone owners in the
UK who bought items in store were going
into shops every week. By April 2013, that
figure stood at 47%.
WELCOME
FINANCE
Bill Leber Mike Hatrick
Swisslog USs Director of Business Develop-
ment, Bill Leber, believes the availability of
space is still a key driver in the development
of future warehousing. There are not a
lot of alternatives available to a business
that is landlocked and facing high land or
relocation costs, says Leber. Even where
land is available, the additional costs can be
exponentially high, and few want to take
those kind of risks when the potential for
a dip in sales or seasonal variations come
into play.
Typically, adds Leber, the first types of
businesses to recognize the benefits of
automation are already operating on a
24/7 basis, at least in their peak seasons.
The initial price of automated systems,
initially higher compared to conventional
warehousing, compares favorably over the
operational horizon of most installations.
Lower rates for capital and ever increasing
personnel and facility related costs mean
that returns on investment for the fixed
cost of automation continue to rise. Max-
imizing the utilization of assets will begin
to be the driving force to minimize unit
handling costs, while providing ever better
service levels demanded by consumers.
In the past, advanced automation was
seen as attractive only in niche applications
where labor and/or land was in limited
supply. Now, integrated automation will
become more and more the standard to
insure sustainable success, in an ever more
competitive operating environment.
21
 INSPIRATION

SEASONAL CHANGES
CHRISTMAS CARDS, HALLOWEEN CANDY, COFFEE AND ICE CREAM ARE
ALL AFFECTED BY SEASONALITY. EVEN SO, SOME REMAIN UNCONVINCED
OF THE BENEFITS OF CHRISTMAS.

Joel Waldfogel, Professor of

Applied Economics at the
University of Minnesota, is the
leading proponent of
Scroogenomics.

Of an estimated $70 billion Americans

spend on holiday gift-giving, Waldfogel
argues $14 billion is wasted. Thats because
the gift recipient values the item on aver-
age 20 per cent less than what the stressed
shopper paid.
Lawn and garden care products
The idea is that people shop sensibly when show strong seasonality, with
it comes to choosing items for themselves, demand varying based on differing
but less so when picking out gifts. Retailers temperature and weather patterns.
have created a whole industry of novelty
gifts and useless gadgets to take advantage
of this phenomenon.
Increased volume, holiday deals and ship-
ping promotions frequently require retailers
And yet, many believe as much as 10 %
to be able to fulfill fluctuating volumes of
of jobs in many communities are tied to
online orders for delivery on a real-time
the retail industry alone, making Christmas
basis. In addition to scheduled store de-
essential to the future success of many
liveries of pallets and cases, retailers must
businesses.
factor split-case picking, item-level touches
and multi-line item sortation into their
At no time of year is retail order fulfillment
fulfillment processes to accommodate for
more important than the holiday season. It
demand fluctuations.
is no secret that e-commerce shoppers ex-
pect to receive items quickly. Since retailers
Food & beverage sectors clearly have
frequently offer comparable products at
seasonal demands, with some foods being
similar prices, speed of delivery is becoming
almost Christmas-only. Trees, cards, and, of
an increasingly important factor for many
course, presents, all get that festive boost,
holiday online shoppers.
year-on-year. Retailers, clearly have to take
Christmas into account, with the larger
During the holidays, distribution centers
e-tailers, such as Amazon, adding as many
serve as the primary connection between
as 50,000 members to its staff roster. While
company and customer, adding additional
the company said it expects thousands of
strain on already busy facilities.
seasonal workers to be hired to full-time

22

positions after the holidays are over, there
is no guarantee and few statistics available
on these hiring methods from past years.
Order fulfillment involves physically taxing,
repetitive movements including lifting, car-
rying and bending. Workers are responsible
for large volumes of orders each day, and in
larger warehouse facilities with traditional
operations, automated sortation and/or
intra-DC transport, pickers may walk more
than 15 miles each day.
In smaller distribution centers, operators
may walk up to five miles over the course
of a shift. As workers age, excessive bend-
ing and stretching can lead to higher rates
of injury and associated workmans com-
pensation expense. In addition, fatigued
workers are less efficient and more prone
to error.
New technological and ergonomic advances
can help retailers improve the worker
environment while meeting e-commerce
demand. Automation has become more
affordable and productive than ever, and
companies around the globe are leverag-
ing such technology in their warehouses
to improve the distribution center work
environment. Human interface with mod-
ern robotic systems present very little risk
SELLING CHRISTMAS PAST
1960s: In the US, the term Black Friday
was coined in the 1960s to mark the
kickoff to the Christmas shopping season,
when stores moved from being in the red,
to the black.
1961: Mattel introduces the Ken Doll to
its best-selling Barbie range. Hes named
in honor of the son of legendary company
president, Ruth Handler.
1964: Hasbro introduced a hard plastic
body for Mr. Potato Head. For the preced-
ing 21 years parents had to supply real
potatoes for the body.
1972: The first video arcade game, Pong
was introduced by Atari. A decade later,
compared to the arbitrary nature of such
warehouse equipment as the forklift, jack
truck and other manually guided power
equipment.
Typical fixed aisle ASRS technology and
systems with high-speed robots for put
the companys Pac-Man game sold
7 million copies.
1985: Sales of He-Man dolls take off,
generating $400m in sales.
2011: Lego produced 381 million tires,
more than twice as much as any of
the other tire companies, including
Bridgestone, Michelin, and Goodyear.
Enough Lego bricks have been produced
since 1949 to give 62 to every person on
the planet.
2012: A third of shoppers planned to
make Christmas purchases after the event
in order to make the most of the sales.
SEASONAL LOGISTICS
Opinion is divided but e-commerce
is surely a new Christmas tradition.
Monday, December 2nd was said to
be the biggest online shopping day
of 2013.
away and storage are designed to work in
confines that are limited or even completely
off-limits to workers.
With the latest automated storage and
retrieval technologies such as AutoStore in
place, operators merely insert bins into the
storage cube via one or more receiving sta-
tions. Robots bring inventory to pickers for
order fulfillment selection and then replace
any remaining material back into storage.
This saves time, increases productivity and
eliminates thousands of miles of walking
for pickers in a typical fulfillment center.
Automated fulfillment systems leverage
faster robotic technology, data inventory
systems and a re-examined strategy of how
warehouse space is utilized.
They also rethink the sometimes harsh labor
conditions that e-commerce has caused,
and can save workers time and energy.
As e-commerce demand grows, companies
need to consider automated storage and
retrieval technologies especially to accom-
modate holiday fulfillment and simultane-
ously improve workers quality of life.
23
 INSPIRATION
ONE YEAR LATER...
ITS ALMOST A YEAR SINCE JOE DOERING BECAME
PRESIDENT OF OUR WAREHOUSE & DISTRIBUTION
SOLUTIONS DIVISION. WE GOT HIS TAKE ON A
BUSY YEAR.
Mechanical engineer, father, biker...
however you describe our WDS head,
the 43-year-old cant be accused of
standing still. Joe lives in Zurich with
his wife Rola and 9-year-old daughter
Leonie, loves to read, go on bike rides
with the family or hit the highways on
his motorbike.
As well as his engineering degree from
Berlin University, Joe also studied Busi-
ness Administration there and at the
prestigious Haas School of Business at
the University of California, Berkeley.
He was previously Head of the Eurasia
business for Nokia Siemens Networks.
Hi Joe, how was 2013 for you?
The first thing that comes to mind is -
Wow! That year went by in a flash!
You joined Swisslog on January 1. What
were your first impressions?
Meeting Swisslog colleagues from all over
the globe it was immediately obvious how
much they take pride in their work and
achievements. Everyone helped me to get
up to speed fast and learn about the man-
agement teams, which was great.
NEXT ISSUE
How would you describe yourself to
those that havent met you yet?
Focused, passionate and hopefully capable.
I take great satisfaction in discovering,
developing and winning opportunities
within a team. I like the satisfaction of
breaking down obstacles and have always
taken on fresh challenges in various parts
of the world. Privately, I enjoy my free time
with my family, the outdoors and talking to
friends from around the world.
What are the main challenges?
We have ambitious targets for the WDS
division for the coming years. We are build-
ing a strong base for our future, looking
at new developments and changes in the
environment. In parallel we are focusing on
selected market segments and investing in
technology and adding value. The challenge
is to deliver profit and economic value
while investing in our future portfolio.
Do you see any parallels with your previ-
ous employer, Nokia Siemens?
Some. Swisslog and Nokia Siemens
Networks both have project business that
combines hardware and software with 3rd
party elements via design and project man-
TRENDS IN CUSTOMER
SERVICE
agement. There are significant differences,
too, however. We have a lean, decentralized
approach, while NSN, a company with
almost 60,000 employees, has a centralized
approach with more horizontal, global
governance applied.
What does the head of WDS spend most
of his time doing?
Aside from answering questions, you
mean? Naturally we have many meetings to
discuss strategies and the practical running
of the division. With a global company like
ours, there are many logistical issues to
face simply to make sure people are well in-
formed and in the loop. Im also lucky to be
able to meet with suppliers and customers
and get a sense of where the whole focus
is heading.
What are Swisslogs key strengths?
We have some fantastic, knowledgeable
people. Our experience in the sector is sec-
ond to none, while we are a driven, highly
entrepreneurial organization. Our sales,
marketing, manufacturing, realization,
customer service and support processes
are highly tuned. This helps in cost matters
and global rollouts, but challenges local
accountability and drive.
Are there any areas where automation is
taking off?
Weve had great successes in the US and
UK. Our business in Asia Pacific is contrib-
uting close to 20% of our sales. We want to
grow the business further in the retail and
e-commerce segment plus food & beverage.
China offers us a large market potential,
as well as the tobacco industry. Additional
business opportunities have arisen from
our development work in South Korea, and
we have strong momentum in Singapore
and Malaysia, as well as signs of growth in
Australia.
How would you explain Inspired
Solutions?
Inspired solutions let our customers feel
the knowledge, experience and spirit of all
Swisslog employees and partner companies
who make these solutions a reality.
Swisslog WDS
www.swisslog.com
inspiration.wds@swisslog.com