The Key Factors for Successful Automation Projects at Lorenz

In a nutshell: We at Lorenz know from our own experience how challenging automation projects in logistics can be – especially when it comes to selecting a suitable warehouse system. In this article, I'll show you how we approach logistics expansions and which steps are, in our experience, essential. My goal is to support you with practical tips and guidance so that you can successfully implement similar projects. 

Rigid manual processes and persistently high inventory levels – not just seasonally, but year-round – are challenges that many logistics managers are familiar with. We at Lorenz engage intensively with these issues as well. Our snacks are produced around the clock and must be reliably made available. Outsourcing to external off-site warehouses, however, is not an option for us – too costly, too inefficient, and above all not sustainable. We therefore need to explore how we can optimize the handling of our goods at our existing site over the long term, and are consequently focusing on the automation of our logistics. 

The path to the right Solution can, however, be very complex and depends on various factors: Which technologies are even viable? Which criteria are decisive? And above all: How do you involve employees so that the new Solution works not only technically, but also in practice? These 5 key factors are critical to the successful implementation of your automation project: 

1. Network and Needs Analysis 

Before a Solution can be implemented, it must be clear exactly what needs to be optimized. A comprehensive analysis is essential for this: 

• Factor in storage space requirements during growth: Where do we stand today? What forecasts exist for the future? Where do we want to be in the long term?
• Define optimal inventory coverage: Short retrieval times must be guaranteed to ensure efficient delivery readiness.
• Set clear objectives: Do we want to reduce costs, improve accuracy, increase efficiency, or operate more sustainably?
• Involve relevant stakeholders early: In addition to logistics and management, IT, planning, production, and engineering are also critical to the success of the project. 

2. Technology Selection 

The analysis is followed by the decision on a suitable warehouse system. Various factors must be taken into account here: 

• Evaluate automated warehouse systems: What systems are available, and which one best fits our requirements?
• Create an evaluation matrix using the following criteria:
• Investment costs: How high are the one-time acquisition costs, and what ongoing operating costs will be incurred? Potential subsidies or tax benefits must also be considered here.
• Accessibility: How easily can goods be retrieved or added during ongoing operations? Are there any restrictions imposed by the system?
• Throughput: How many inbound and outbound movements can the system handle within a given time frame? Does this match the required capacity?
• Flexibility: Can the system be adapted to changing requirements (e.g., growth, new product lines), or is it too rigid?
• Space and floor area utilization: Does the system make optimal use of the available space, or are there alternatives that enable more efficient utilization?
• Floor quality requirements: Some systems require special flooring or load-bearing capacities – an important point in the planning phase.
• Factor in additional technologies: Selecting the warehouse system is only part of the Solution. Equally important is alignment with other technologies:
• Warehouse Management Systems (WMS): A modern WMS must be able to interact seamlessly with the warehouse system. It is important to check which Vendors offer suitable interfaces and how flexibly these systems can be customized.
• IoT Solutions: Sensors, real-time tracking, and automated data capture can significantly optimize processes. The question is how well the chosen system supports these technologies and how data is integrated.
• Robotics: Are conveyor systems or autonomous transport robots being integrated? What control software is required, and how can these Solutions be incorporated into existing systems? 

Which warehouse system is best suited cannot therefore be answered in general terms and depends on your specific requirements. 

3. Knowledge Transfer and Experience Sharing 

Successful automation projects are built on solid knowledge and practical experience: 

• Stakeholder involvement: Employees from IT, logistics, and management should be included in the decision-making process to ensure all relevant perspectives are considered.
• External exchange: Looking beyond your own organization is enormously helpful. Conversations with companies that already operate automated warehouse systems make it possible to learn from best practices.
• Bring knowledge into the organization: Missing know-how can be offset through targeted new hires or training programs.
• Compare experience values: Comparing different Solutions is often not straightforward, as systems perform differently in different environments. Comparison platforms such as even logistics can be helpful here for drawing on real-world experience.  

4. Footprint Requirements and Site Selection 

The best technology is of little use if there is no space for it. For this reason, we have already had to abandon more than one project. In parallel with the technology selection process, it is therefore necessary to assess what floor space is available.  

• High-bay racking as a space-saver: Especially in urban areas or where space is limited