Ferag Managing Director and Head of Region APAC, Karl Friesenbichler, talks about the company’s warehousing solutions.
Ferag is a global company with its APAC head office based in Sydney and its global headquarters in Hinwil/Zurich.
It is a Swiss family-owned group and has been the global market leader in conveying and processing systems in the graphical industry for over 65 years.
Ferag has now shifted focus to Intralogistics and offers end-to-end solutions, from initial consultancy to system integration, project delivery, service and support.
Ferag’s product offerings encompass cutting-edge UCS (WMS/ WCS / WES) software, sortation systems, AMRs and AGVs, as well as service and support to ensure optimal performance.
With a strong emphasis on innovation and technology, Ferag maintains a global presence, represented by 19 sales and service companies, delivering tailored solutions designed to address warehousing demands.
During peak demand periods like Black Friday or promotional events, warehouses often struggle to meet capacity needs, despite the urgent requirement for fast order fulfillment in e-commerce.
As the Managing Director of Ferag APAC, Karl Friesenbichler, explains, this is a key issue – balancing cost efficiency with the need for speedy delivery to satisfy emotionally invested customers.
“The problem with e-commerce is the emotional journey of the buyer,” says Karl. “Once you purchase something, your money is gone, and you feel ownership of the product, even though it’s not yet in your hands. This is the big issue with e-commerce: the emotional aspect.
“As your supplier, I’m in a difficult position because I haven’t yet fulfilled my promise. I must deliver it as soon as possible because of this emotional attachment.”
When considering methods to manage these operations, some of the options are zone routing and automated storage and retrieval systems (AS/RS).
But as Karl explains, the uses for AS/RS systems are situational and a hybrid approach typically offers the best results.
“For large, bulky items, AS/RS can be inefficient, and for fast-moving stock, AS/RS may cause double handling, making it less suitable,” adds Karl.
“AS/RS excels in storage density, fitting many products into a small space, but during peak demand, it may lack the capacity to retrieve stock quickly enough.
“A well-designed warehouse typically combines different systems: fast-moving products are efficiently handled with a conveyor-based system or zone routing, while slower-moving, or less frequent items, can be stored in AS/RS.”
Success stories
Karl says that The Iconic, an online retailer, exemplifies the effective mix of manual and automated picking systems.
“The Iconic is a prime example of mixing manual picking areas with automated picking systems, using multiple different automated systems to meet various product requirements,” he continues.
“Cosmetics, perfumes, or high-value items are stored differently than super fast-moving fashion items, and fragile or dangerous goods require their own handling methods”.
“As an online retailer, The Iconic effectively uses an eclectic mix of systems tailored to their diverse product mix.”
Each system’s validity in the warehouse is crucial, but interconnection is key.
Traditionally, conveyors were used but had issues with space and fire exits. Recently, pouch sorters utilising ceiling space have become popular.
Automated packing integrates seamlessly, eliminating human interaction and easing peak day pressures.
ferag.doWarehouse advanced software further enhances efficiency by predictively moving stock into the pouch system before peak days, reducing peak demand.
These systems can ultimately handle up to 100,000 pouches, processing 30,000 pieces per hour, outperforming conveyors.
“Instead of occupying a large floor area where orders wait for pieces to be gathered from different areas, they utilise pouch sorting,” says Karl.
“This method eliminates restrictions on the number of orders that can be processed simultaneously, allowing operations to scale with demand.”
Demand forecasting
Karl highlights the challenge of forecasting and predicting warehousing demand, noting its propensity for inaccuracies.
Predicting merchandise behaviour proves challenging, but at Ferag, we can analyse product trends and historical data effectively.
“Using doWarehouse’s AI and machine learning, we identify patterns and enhance our forecasts,” says Karl.
“Our data science team supplements this with additional data such as weather patterns, holidays, migration trends, and customer demographics. These factors help predict if a product will sell faster each week, enriching forecasts provided by our customers, our merchandise or sales teams.
“For example, consider soft drinks: sales increase significantly during sunny weekends compared to rainy weather. For fashion items, online sales might spike on rainy winter days when people prefer shopping indoors. Our forecasting models account for these variables to optimise which products are stocked in our systems.”
Ferag have effectively implemented these predictive measures for their clients, namely, Mayoral.
It not only places orders but also collaborates closely with Ferag to continually enhance its systems. It also assesses whether actions were correct or if products need repositioning within an ASRS.
This feedback loop is crucial as it allows ferag.doWarehouse’s machine-learning algorithms to improve over time by learning from successes and failures.
systems is called SkyFall | Image: Ferag
Ferag SkyFall
One of Ferag’s flagship systems is called SkyFall. This is an innovative overhead conveyor system that utilises gravity and the third dimension.
It features a straightforward rail profile with roller bodies, enabling a range of items weighing up to 20 kilograms to be transported from point A to point B.
As Karl explains, the beauty of implementing a system like this is that it causes little disruption to processes.
“When considering how to integrate a significant level of automation into an existing warehouse with minimal disruption, our approach is designed to utilise space efficiently,” he says.
“By constructing automation systems beneath the ceiling, we require minimal floor space. This allows us to integrate new solutions seamlessly with existing infrastructure, minimising disruption.”
Karl says that the Skyfall system has a proven legacy of precision and robust engineering.
“The chain utilised in the SkyFall system has its roots in the graphics industry, initially developed for overhead transportation of newspapers,” he says.
“This gives a vivid image of newspapers gliding across the ceiling, which is essentially what our systems achieve. The technology behind the chain used in these systems has been refined over six decades.”
The technology embedded in these chains has ultimately undergone continuous refinement over six decades, embodying Ferag’s longstanding commitment to engineering excellence.
“There’s this current hype in the market around pouch systems,” says Karl. “It’s intriguing for me to highlight that while SkyFall isn’t a pouch system, the underlying technology that powers it predates this trend by six decades.
“It’s fascinating to witness the reliability, engineering prowess, and the innovative ideas that have shaped our systems through years of learning. These qualities are evident and constitute major feedback from our customers.”
Read more about Ferag APAC here