HUB logistics is a pioneer in service logistics, embracing new technologies, testing their functionality with a low barrier to entry, and scaling up their use when benefits are identified. This includes Automated Guided Vehicles (AGV), a development path undertaken in collaboration with Toyota Material Handling.
For a year, Toyota’s AGV has operated at HUB logistics’ Vantaa Hakkila logistics center. It was acquired to resolve congestion at the intersection of incoming and outgoing traffic flows. The AGV solves this issue by transporting pallets from receiving to storage locations via a detour, thereby reducing traffic in high-congestion areas.
“When the AGV handles part of the incoming flow to our high-storage area, it improves safety by reducing collision risks in congested zones,” says Anssi Tura, Development Director at HUB logistics.
Continuous improvement in operations
HUB logistics created its first AGV plan in 2017.
“We initially aimed too high, considering multiple machines for various tasks. This would have significantly increased the investment and risks,” Tura explains.
The approach shifted towards HUB’s continuous improvement principle, with a focus on manageable steps.
“We calculated a realistic payback period for the investment. The goal was to start small to learn AGV operations and assess its benefits.”
AGV development aligns with HUB logistics’ numerous industrial internal logistics clients, where AGVs can play a crucial role.
Goals vs. Reality
When the AGV was introduced in September 2023, its target was clear: an average of 93 pallets per day, based on manually handled volumes suitable for AGV operations. This workload projected a payback period of two years and three months.
“We anticipated challenges with certain pallets, understood their frequency, and prepared solutions.”
While these challenges have materialized, the target hasn’t been fully achieved yet. A year later, the AGV averages 75 pallets daily over two shifts, translating to a payback period of three years, with a minimum operational life of ten years.
“Initially, daily volumes were 20-30 pallets. Now, peak days reach 113 pallets, which is satisfactory for us so far.”
Adaptation among employees
The increase in pallet handling has been influenced primarily by the workforce learning to integrate the AGV into their work environment. If the device stops and starts flashing lights, employees have learned they can restart it themselves instead of waiting for someone else to do so.
Everyone working in the receiving area has received basic training in AGV safety and operation.
“Our entire receiving team has learned how to work with the AGV: how pallets need to be prepared for it and how to attach barcodes so the AGV can read them correctly. Both Toyota’s trainers and our primary operator, Mika Uotinen, have provided additional training to the staff following the AGV’s implementation,” says Tura.
Development specialist Mika Uotinen, as the AGV’s primary operator, has completed Toyota’s comprehensive training program, familiarized himself with all stages of integrating the device with the warehouse management system, and trained employees to work with the AGV.
“After the implementation and testing phases, there has been very little need to intervene with the device’s operation,” Uotinen explains.
Initially, employees were apprehensive about using the AGV during the first few months. Over time, however, this has changed. After a year of experience, the device has seamlessly become a part of daily production. It no longer attracts attention as long as it operates as expected.
“If there are disruptions, they are addressed just like any other task,” Tura concludes.
Work of one employee
Tura sees the benefits of the AGV in the everyday operations of the logistics center.
“It has a surprisingly significant impact on workflow efficiency when forklift drivers don’t have to worry about congestion or who should go first. It’s great that we now have more space in the aisles, and forklifts can cover long distances without the risk of causing traffic jams.”
Tura explains that changes made over the year—including the introduction of the AGV—have allowed the same number of employees to handle more material.
“The AGV roughly does the work of one employee.”
In addition to improved safety and efficiency, the AGV performs its tasks with high quality.
“The AGV automatically follows its assigned route and stops if necessary. A great feature is that it can easily operate an entire shift without needing to recharge,” says Uotinen.
Mistakes can occur if the AGV is given incorrect instructions, which has happened a few times.
“One of our employees provided the WMS with the wrong pallet size. The pallet location the AGV was directed to was too low — a 160 cm pallet ended up in a 120 cm space. The AGV’s sensor immediately detected that the pallet wouldn’t fit and stopped the operation,” Tura explains.
To prevent such rare and human errors, all drop-off locations have been adjusted to accommodate sufficient heights. In the future, a potential solution could be a measurement point along the AGV’s route, where a sensor measures the pallet height and informs the AGV if the pallet is suitable for its intended location.
Anticipating exceptions
The project taught HUB logistics’ development team a lot even before implementation. Considerable work was required to integrate the Astro warehouse management system (WMS) with the AGV.
“Various exceptions required attention. We figured out how to handle scenarios like a charging failure, an occupied pallet space, the AGV failing to lift a pallet, or being unable to read a barcode. We reviewed all potential situations and devised operating models for the AGV to manage issues,” Tura says.
Mika Uotinen, Development Specialist and primary operator of the AGV, was closely involved in the integration process.
“Our WMS fully controls the AGV. Based on the product and pallet size, it assigns a location as close as possible to the product’s storage area,” Uotinen explains.
New ideas during use
A year of development with the AGV has inspired new ideas on how the machine can be utilized. Currently operating between receiving and high-storage areas, the AGV is being considered for a second route, transporting incoming goods to a feeding point for the storage automation system. This is feasible given the AGV’s capacity.
At present, the AGV reads barcodes printed by the Astro WMS and attached to pallets to determine the designated pallet location in the high-storage area. In the future, the barcode could indicate whether the AGV should head to the high-storage area or the feeding point for the storage automation system.
Currently, the high-storage locations the AGV serves are floor spaces, from which employees manually lift pallets to higher shelves. Future plans include enabling the AGV to handle these tasks as well.
Ten AGVs within five years
Experiences with the AGV prompt Tura to envision broader possibilities, aligning with HUB logistics’ role as an industry trailblazer.
“Within five years, we’ll have ten AGVs. Not all will be here in Vantaa; some will be in other locations and enhancing the efficiency of our clients’ internal logistics.”
In Vantaa, a second automated forklift will likely join soon, particularly when it is tasked with moving pallets from the high-storage floor locations to higher shelf positions.
Article was originally published at Toyota Material Handling Finland’s website.
