Solution for SMEs

Joachim Kieninger, mm,

No reservations about automation and digital transformation

Automation and digitalization are unavoidable and present small and medium-sized enterprises (SMEs) with both challenges and great opportunities for greater competitiveness, cost savings and increased sales. Entry-level scenarios are flexible solutions that grow with the company at both hardware and software level.

A.R.T. Components relies on Element Logic as its automation partner in Hohenbrunn, south-east of Munich. © Element Logic

Around 2,000 square meters of storage space are available at the company headquarters, which A.R.T. Components GmbH moved into in Hohenbrunn, south-east of Munich, at the end of 2024. As one of the leading regional suppliers of electromechanical components, the company stocks the majority of its standard range there. To optimize warehouse processes and speed up order processing, the medium-sized company opted for automation when it moved to the new location. After comparing various automation solutions and providers, the choice fell on AutoStore technology and system integrator Element Logic as the project planner and implementer. In order to make optimum use of the storage space, Element Logic built the system with 7,340 storage locations at A.R.T. Components on a steel construction platform. The space below the facility is available for further storage options, picking processes, dispatch production and provision. With the Element Logic solution, A.R.T. Components has tripled its capacity for small parts storage and has five times more storage space available for pallets. The automation has also enabled the construction parts wholesaler to significantly increase its throughput and noticeably speed up order processing.

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Increases in performance and productivity

The example of this compact, efficient solution shows that automation also makes sense for small and medium-sized companies. Despite such successes, small and medium-sized enterprises (SMEs) still have some catching up to do when it comes to digitalization and automation of intralogistics. However, process automation is essential for SMEs to remain competitive. It replaces repetitive activities with software-based processes using devices and systems. Automation thus opens up significant increases in performance and productivity. With the use of information and communication technology (digitalization), i.e. the recording, archiving and analysis of process and article data, SMEs are also positioning themselves competitively for the future. They optimize their business models, the use of resources, data exchange with partner companies and suppliers - and they can generate reliable forecasts about the development of various business areas. These advantages of digitalization and automation have now been accepted by SMEs. However, they are struggling with fundamental challenges when it comes to implementation.

© Element Logic

Enormous efficiency potential unused

When it comes to automation, these are characterized in particular by the right choice of future-proof systems and the associated investment costs. According to current studies and surveys, such as the digitalization study by digital consultancy Maximal.Digital, the Bitkom study report "Digitalization of the economy 2025" or the SME study by the Technical University of Central Hesse, around 80 percent of companies still operate with predominantly manual or partially automated processes. As a result, data collection, process documentation and data analysis as well as data-driven decisions and innovations remain underdeveloped. As a result, enormous efficiency potential remains untapped.

Corporate cultural resistance

This could often be changed quickly by implementing modular warehouse management software. However, a lack of digital skills, established, stubborn structures and, in some cases, a shortage of IT specialists are slowing down the digital transformation in many companies. Around every second SME struggles with corporate cultural resistance during the digital transformation. This ranges from difficulties in justifying investments internally to a lack of support from top management and conflicts between IT and specialist departments. Moreover, the majority of SMEs do not have a designated digitalization budget and are unable to determine the profitability of any digitalization investments. This means that cost savings and sales increases in the double-digit percentage range remain untapped.

Solutions that grow with you for a smooth start

Against this backdrop, flexibility is a fundamental aspect of both automation and digitalization projects. The flexibility of both hardware and software systems offers future viability through automation solutions that grow with the company and a smooth entry into the digital transformation. AutoStore technology is a successful example in the area of hardware. As the world's first and leading AutoStore integrator, Element Logic has implemented almost 500 AutoStore systems since 2003. Based on the technology and connected peripheral systems, all processes from goods receipt to dispatch preparation can be automated - step by step if required. The success of AutoStore technology is guaranteed by the universal scalability of all components. As a scalable solution with high process speed, storage density and accuracy for storage and picking, the storage system also offers medium-sized companies in particular optimum conditions and a future-proof entry into automation. A flexibly configurable aluminum grid opens up maximum storage capacity and provides the framework for the storage locations. They are arranged vertically in shafts in which the system containers are stacked on top of each other and the products are stored. Autonomous robots, which travel on the grid and take care of storage, transfer and retrieval, ensure high efficiency and system availability. Picking takes place at integrated work stations, the so-called ports. The overall system offers up to 70 percent better space utilization compared to static pallet racks in conjunction with shelving racks. The system layout can be adapted precisely to any structural conditions and can be scaled during operation with additional robots, ports or bays as performance or capacity requirements increase.

Broad spectrum for further expansion stages

With additional automation components ranging from conveyor technology from Element Logic's ELCON modular system to automated guided vehicles (AGVs) or autonomous mobile robots (AMRs) from proven robotics specialists and the eOperator robot picking solution developed in-house, Element Logic offers a broad spectrum for further expansion stages of automation in intralogistics. With the proven warehouse management system (WMS) SuPCIS-L8 from its subsidiary S&P Computersysteme, Element Logic also covers the software sector for intelligent digitization with complete solutions from a single source. As a central platform for intralogistics, the modular WMS already covers all functions for efficient warehouse management as standard.

Stable, high-performance IT platform

Warehouse processes can be implemented digitally, paperless and automated with SuPCIS-L8. Automated warehouse systems can be connected across manufacturers via two different interface variants. The process-guiding software system ensures transparent warehouse management and coordinated process control of all automation components in the warehouse. The direct connection automatically synchronizes the data between the WMS and the AutoStore system in real time, for example. SuPCIS-L8 offers a proven, stable and high-performance platform that grows effortlessly with logistical requirements. Intralogistics IT solutions of any size can be realized on the basis of the system's modular components - standard implementations for SMEs in just a few weeks. This also ensures a high level of flexibility and efficiency in the IT sector. As a standard system, SuPCIS-L8 can be implemented quickly and customized as required with the individual modules. Additional functionalities are simply added as requirements grow.

Training courses and comprehensive after-sales services

Based on the modular system concepts, large teams of technicians and IT specialists are no longer required for the hardware and software systems to ensure high system availability on site. System integrators such as Element Logic offer appropriate training courses and comprehensive after-sales services. Software companies such as S&P generally offer pre-configured and functionally expandable standard solutions, including from the cloud. SMEs can use them to control, digitally map and analyse their basic processes and also make a smooth entry into digitalization in the IT sector. The Fraunhofer IML's "warehouse logistics" platform also supports system selection and tailoring.

Seeing digitalization as an opportunity

These examples show that Automation and digital transformation go hand in hand. Nobody needs to be afraid of their implementation. On the contrary. System integrators and software developers offer customized, flexible and future-proof solutions that can be integrated into future technological developments. If you don't act now, you risk being left behind. Digital change is not waiting for SMEs. By seeing digitalization as an opportunity and actively tackling it, SMEs can maximize their growth potential and strengthen their competitiveness. Companies that invest in automation and digitalization now will secure an immediate advantage and also lay the foundations for future growth and innovation.

Realization partner at eye level

However, the integration of new solutions requires careful planning and implementation to ensure a smooth transition. When getting started with automation, it is therefore advisable to start with small projects and then gradually scale up, adding new workflows, expanding the fleet and so on. Solution providers such as Element Logic support SMEs at an early stage in project planning, system selection and project implementation as an implementation partner at eye level if required.

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