When one thinks of a complex “ecosystem,” a grocery distribution center probably isn’t the first thing that comes to mind. But the similarities are more substantial than you realize. Like an ecosystem with diverse climates for different species, a grocery distribution center must maintain diverse temperature zones, from cold to humid. Ecosystems also have specialized niches for organisms, just as distribution centers have areas for specific tasks like receiving areas or shipping docks. The “biodiversity” is reflected across thousands of SKUs, each requiring unique handling, storage, and transportation. To keep things thriving, grocery warehouses need a central “nervous system” to coordinate it all and a network of “arteries” to transport goods efficiently. This is where a superior shuttle system comes in.
What is a shuttle system?
If a grocer isn’t yet using a modern shuttle system, they’re probably relying on manual methods or older automated systems, which have traditionally included:
· Manual forklift and pallet storage systems
· Conveyor belt systems
· Static shelving with manual picking
· Drive-in or drive-through racking
· Cranes and carousels
· Basic picking carts or bins
These methods worked at one point, but as expectations have shifted, grocers face inefficiencies, higher costs, and increased demand. A modern shuttle system is a type of automated storage and retrieval system (ASRS) that optimizes warehouse operations through the efficient storing and retrieving of goods. It’s extremely useful for high-density, high-throughput environments like grocery logistics. As the name implies, a shuttle system is comprised of multiple pieces and parts but typically includes:
- Shuttles (automated carts): Robotic devices that travel along a rail system to move goods between storage and picking locations.
- Storage racks: Multi-level organizational racks for dense vertical storage, so warehouse space is maximized.
- Lifts/Elevators: A fast, efficient way to transfer goods between levels so shuttles can operate across different verticals.
- Control software: The heart of it all — a warehouse management system (WMS) that orchestrates the shuttles’ activities for smooth operations, efficient routing, and accurate order fulfillment.
The challenges of grocery logistics
Today’s consumers expect what they want when they want it — and (shocker) they want it FAST. A survey by Statista found that 41% of global shoppers now expect their only orders to be delivered within 24 hours. That pressure for same-day or next-day delivery is felt across many industries, especially in food retail. There’s also increasing SKU diversity based on those consumer preferences since no two shoppers are alike. In the 1960s, the average grocery store offered around 6,000 SKUs. From organic and gluten-free to specialty and imported goods, the numbers have climbed to over 30,000 — and that doesn’t even include the private labels many major grocery retailers offer online. The choices continue to grow, which can be a lot to manage from an operations standpoint.
As the list of available goods expands, space only gets smaller. How can distributors hold more with less and leave room for growth? Meanwhile, the race against the clock to maintain cold chain integrity for fresh and frozen products means every second counts. Grocers need to modernize their logistics systems to keep up, stay ahead, and grow their business.
Key benefits of shuttle systems
Once implemented, grocers can immediately see the benefits of a modern shuttle system in four key areas — efficiency, space optimization, and scalability. A well-designed ASRS provides faster order picking and replenishment. It also helps distribution centers manage high order volumes during peak seasons (think holidays). So, those consumers with “give it to me now” attitudes? A shuttle system makes meeting their demands much easier and keeping those positive reviews coming in.
Space optimization is also a significant benefit of a shuttle system. Rather than just relying on the horizontal footprint of a warehouse, the sky’s the limit — or in this case, the ceiling. Vertical storage capabilities maximize what limited space is available. Many of the micro-fulfillment centers close to urban hubs employ shuttle systems with vertical organizational capabilities so that same-day or next-day order fulfillment is an option.
Grocers often deal with fluctuating demand and seasonal spikes or have their sights set on long-term expansion plans. Shuttle systems are designed to grow and adapt to a business. Their modular components make adding more shuttles, racks, or levels easy as needed. Starting small and scaling up is easy.
Temperature check
The varying climates within a grocery logistics center can prove challenging because these aren’t small degrees of difference. One warehouse can range in temperature from -30 degrees to +24 degrees Celsius. That’s a huge swing! Not only do food retailers need warehouse equipment that can perform in that environment, but also solutions that help improve working conditions and ensure product quality. A superior shuttle system knows how to deliver anywhere:
Deep Freeze Areas
Deep freeze storage solutions from leaders like TGW Logistics include zero-touch picking to reduce the employee workload within these harsh conditions.
Chilled Areas
Products like meat and fish have strict temperature requirements to guarantee their freshness. With fully automated picking, employees can adequately handle these sensitive goods.
Fresh Areas
Fruit, vegetables, butter, and cheese are just a few temperature-sensitive items that must stay regulated throughout the entire cooling chain. Reliable shuttle systems help food retailers avoid errors and accidents.
Ambient Areas
The fulfillment of packaged goods gets even more efficient with automated storage systems, which can help reduce labor costs and maximize capacity.
Evaluating your options as a food retailer
Hopefully, as you’ve been reading, you’ve also been reflecting on your food retail or grocery logistics needs. If it’s been a while since you’ve updated operations or invested in more modern tools, now’s the time to do it. Ask yourself these questions to see if you might be ready for a smarter shuttle system:
- Are you meeting our current order fulfillment speeds, or are there frequent delays?
- How much time and labor is spent manually picking, sorting, and replenishing?
- Think about your last big holiday season. Did you experience any operational bottlenecks?
- Do you have a high volume of SKUs that require different handling and storage needs?
- How well do you maximize the horizontal and vertical space in your facility?
- Are inventory inaccuracies or mispicks a recurring issue?
- Is there a risk of spoilage due to inefficiencies in your temperature-controlled zones?
- Are you dealing with labor shortages, high turnover, or rising costs associated with staffing?
- Would a shuttle system integrate well with your existing tools and processes?
- How much are you spending on labor, equipment, maintenance, and energy costs? Would automation help reduce that number?
- What are your competitors doing?
- Consider your customer reviews. Are they being impacted by frequent stockouts or delays in shipping?
These questions will help you identify pain points in your operations to determine if investing in a shuttle system makes sense for you and your business. While change can be scary, it can also open you up to more opportunities for growth. If you’re experiencing success now, imagine what things could be like if you had the most modern shuttle system. It could be the difference between getting by and getting ahead.
Also Read : How Branded Packaging Uplifts Your Food Start-Up
