With labour and energy costs on the rise and the number of drinks and drink formats multiplying, the task of storing products and supplying retailers has become more complex and expensive.
ITW Warehouse Automation is being launched to tackle this problem in the beverage industry and elsewhere in the consumer goods sector.
Next cost saving frontier
Scott Smith, ITW marketing director, told this publication: “Industry has been wanting for some time to take as much cost out of packaging materials as possible. Warehousing is now the next frontier for cost savings and process optimisation.”
ITW Automation aims to increase warehouse cost efficiency and improve order accuracy with a range of products including high density storage and retrieval systems as well as case picking products and order processing software.
Its products will be offered for both new ‘greenfield’ sites and established warehouses but the focus will be on the latter. Smith explained that installing its systems can save customers from the need to construct new buildings.
The formation of ITW Automation follows the acquisition a year ago of Vertique – a warehousing company based in North Carolina.
Business structure
Within the structure of ITW, the new business will be part of the Consumer Packaging and Supply Solutions Group that includes companies like Hartness International and Hi-Cone.
Bern McPheely, president of Hartness, said that the move into warehousing enables the group to offer customers more complete services.
McPheely said: “We are rare in our ability to offer our clients an integrated solution from the packaging line through the warehouse”
ITW Warehouse Automation will be headed by Doug Stambaugh, previously a senior manager at Hartness.