Nothing happens for two days, but then a small brown parcel arrives on my doorstep. I don’t know exactly what happens between my click and the delivery. But Professor Domenik Kaever, from the Institute of Logistics Engineering at TU Graz, whose research focuses on goods transport, among other things, knows exactly what goes on.
News+Stories: What exactly is logistics engineering, Professor Kaever?
Domenik Kaever: Logistics basically involves the transport of things that have to arrive at a certain place at a certain time, in the right quantity and in the specified condition. These can be goods as we know them from trade, but also, for example, bulk-volume goods as we mine and transport them for energy production, among other things. All of this is logistics. At the Institute of Logistics Engineering, we deal with the actual technology in logistics, i.e. material flow technology, belt conveyors, chutes, roller containers, lifting platforms and sorting systems, as well as the system behind it. For instance, with the organisation of a parcel distribution centre and the transport vehicles as well as the national and international networks in which our goods move. This is because many of our goods – both those that we order online and those in the shop around the corner – have often travelled a long way. They come from a production facility or a packaging location in a faraway country, are transported from one distribution centre to the next, sorted and grouped several times until they are finally delivered to your doorstep by a delivery service.
Virtual engineering is a major topic at your institute. What is it exactly?
Kaever: We digitally map the processes and interrelationships of goods transport and can thus identify the need for optimisation, but also test new ideas and concepts virtually before they are implemented in an actual distribution centre. In particular, we look at how the different packaging and loads interact with the conveyor technology. For example, polybags are a very big topic – the soft plastic bags that have been used by many large online shops. They of course behave completely differently to rigid cardboard packages. For some time now, however, suppliers have also been using paper bags, which once again work together with conveyor technology in a completely new way. This field is very dynamic and things are changing very quickly. Shipping service providers must be prepared for this. This is also a major issue for Österreichische Post AG (Austrian postal service). As a “designated operator” appointed by the Universal Postal Union (UPU), the Austrian postal service must be able to process all types of consignments. Private companies can set rules and guidelines here, but Österreichische Post cannot. Our simulations are of course important here. We can look at everything from the overall system down to the individual programme.
What trends have you seen in past years?
Kaever: Of course, we can see that the volume of parcel consignments is increasing all the time and this is likely to continue in the coming years. We also see the peak loads for despatch companies – around the Christmas holidays, for example. Capacities have to be increased enormously for a short period of time – companies have to hire employees temporarily and expand their machines and space. This requires a high degree of flexibility because the peaks only occur at certain times (Christmas, Black Friday, etc.).
You have already mentioned the staff. All areas of life and business are being automated – including logistics. Is there still a place for humans?
Kaever: Absolutely. We are even seeing an increasing focus on people and their health. Not least the European Commission is calling for this “people centricity” with its definition of Industry 5.0. Questions such as “How can I organise the working environment better? What effect do shift schedules have? What noise level are my employees exposed to? And what do the routes look like?” are becoming increasingly important.
Machines will not be able to take over all tasks in the future either, but they can support people in logistics centres in their work and are also well suited to cushioning peaks in demand thanks to their scalability. Machines are not yet able to carry out some selected loading and unloading tasks. Similarly, the famous last mile is a task that is still a challenge for automation – the final step between the delivery vehicle and your front door. This is therefore a very cost-intensive working step, and transport companies are giving a lot of thought to how to ensure that a parcel only has to be delivered once by means of deposit authorisations, parcel boxes and the like.
How can a distribution centre be designed with people in mind?
Kaever: I’ve already touched on a few topics with the shift plans, walking routes and workplace ergonomics. One topic that I think is very promising is the use of wood as a material. Wood is not only pleasant to the touch (haptics) and smells good, it is also very promising in terms of reducing vibrations. The use of wood could help to make conveyor technology quieter. Noise in particular is a major burden for people in the logistics centre.
Despite all the focus on people, automation is still a big issue, isn’t it?
Kaever: Yes. We are also investigating driverless transport systems, which are already in use today to varying degrees. These are autonomous vehicles that can, for example, independently transport roll containers within a centre or goods between buildings. Automated guided vehicles help to increase the level of automation, make logistics centres a safer working environment and relieve people of repetitive tasks. This allows people to devote themselves to more demanding tasks where their flexibility and creativity are important.
Are robots also involved?
Kaever: Of course. Robots can already take on many loading and unloading tasks. Simple processes with the same packages are particularly easy to learn. But everyday life is not like that. Everyday working life requires flexibility and spontaneous handling when completely different parcel consignments suddenly arrive. We can only dream of standardising the range of consignments in parcel logistics.
Why is it actually necessary for us to transport goods around the world?
Kaever: Because we can. That is the simple answer. Using your mobile phone, it is very easy to order from anywhere at any time. If going to a local shop is more expensive than ordering online, then many people are naturally more likely to order online. And we are still a very price-conscious society. A lot is changing for environmental reasons, but the masses are still primarily looking at the price. And then items are ordered from Asia because they are cheaper despite the shipping costs. Even frozen products come from Asia. This is possible because the wage structure in other countries is completely different to ours and so the goods are still cheaper, even though they have travelled around the world.
What about the future?
Kaever: I think that parcel volumes will continue to increase and that capacities in the distribution centres will have to grow. Because it is becoming increasingly difficult for environmental reasons to find new areas for distribution centres, vertical sorting concepts are a major topic that presents us with completely new challenges in research. Completely new concepts in conveyor technology have to be thought out. One of the reasons for this is that the packaging and filling of postal items will continue to change.
I also asked myself what would happen if these forecasts did not materialise and many investments were in vain. After all, shipping companies have to react today in order to be able to provide the necessary capacities tomorrow. And if that doesn’t turn out to be the case, then a lot will have been for nothing.
Oh I’ve just remembered something... I have to order something. (Laughs).
