Swisslog is driven by the strong demand for automation

Swisslog AG, specialized in automation in intralogistics, is currently experiencing a positive phase. The pressure for automation in logistics is increasing and has been exacerbated by the COVID-19 crisis. This benefits Swisslog, which is part of the Kuka Group. This is reflected less in the results than in the current and future order situation.

(Buchs/AG Switzerland) Swisslog AG is one of the leading companies in the field of data- and robot-driven automated logistics solutions. Currently, the Swiss intralogistics provider is going through a good phase. There are several reasons for this. First, there are the general efforts towards digitalization and automation. A second driver is the boom in online shopping, which has been further intensified by COVID-19, thus also boosting Swisslog’s business. This is not yet reflected in the results, as Swisslog also suffered, especially in the first half of the year, due to the COVID-19 crisis. Some projects were postponed.

Dr. Christian Baur, COO of Swisslog Group & CEO of Swisslog, is pleased with the good business performance: “The demand, and especially the pent-up demand for automation solutions in intralogistics, is very high. When else would one want to automate if not now?” The necessity for automation is indeed so great that those who miss the boat in this area will have poor prospects in the future. This applies to the picking and distribution of all companies, regardless of the industry they operate in. At the same time, it is also important to be able to respond quickly to the ever-changing market demands. “Swisslog can flexibly respond to market changes with its solutions, allowing our customers to stay current and on-trend,” explains Dr. Baur.

Swisslog’s customers primarily include companies from the consumer goods, e-commerce, and retail sectors. These are industries where the offerings and products are constantly changing.

Concrete Examples:

1. ItemPiQ solution (robot-based picking for small parts warehouses)

Elektro-Material AG (EM), Zurich, Switzerland’s market leader in electrical wholesale, is relying on a Swisslog AutoStore warehouse to further optimize its logistics processes: for the third consecutive time. After installations in Geneva and Basel in 2014 and 2016, the new facility will now be built in Zurich’s Altstetten district by autumn 2020. Elektro-Material makes a delivery promise to its customers, stating that 95 percent of all products, depending on the order time, will reach their destination on the same day or at the latest the following day. In a pilot project, the ItemPiQ robotic solution is being used as a connection to AutoStore for fully automated small parts picking. ItemPiQ is a Swiss market innovation that expands automation towards applied artificial intelligence.

2. ACPaQ solution (automatic palletizing of mixed pallets)

ACPaQ is modular and scalable for small, medium, and large distribution centers with a throughput of up to 500,000 items per day. With Swisslog’s palletizing software, the sequence of palletizing can be adjusted to increase efficiency in shelf replenishment in stores. ACPaQ can be used under normal environmental conditions and in refrigerated storage areas of the retail and beverage industries. This application is used, for example, by DM, XPO (Nestlé), or Coca-Cola.

A Kukla robot programmed by Swisslog in use at DM in Wustermark / © Swisslog; Paul Gaertner

3. AutoStore

A good example from the e-commerce sector is the online retailer Brack.ch. COVID-19 has further fueled sales and significantly increased logistics demand: The Competec Group, headquartered in Mägenwil, Aargau, is considered the most successful independent e-commerce company in Switzerland and has been a customer of Swisslog AG, Buchs, for many years. After the initial installation of the then world’s largest AutoStore system in 2012, a second and third AutoStore system have followed, providing a total of 375,380 container storage spaces and operated by 318 robots. To meet the current pandemic-related order boom, this capacity has now been expanded by an additional 40,000 containers and 48 robots – an investment of 1.65 million Swiss francs (approximately 1.53 million euros).

“I have been in online retail since 1994, but I have never experienced a situation like this,” says Roland Brack, founder and owner of Competec, emphasizing, “I am very glad that Swisslog supported us so quickly, enabling us to meet the extraordinary demand.” Within just fourteen days after the order was placed in March, new robots were already deployed in the existing system. And in a period of only three months, the total expansion of the third AutoStore system, including grid, containers, and workstations, was put into operation. The go-live was in June of this year.

Swisslog Healthcare AG

The healthcare sector is managed separately by Swisslog Healthcare AG. Swisslog Healthcare supports hospitals and health systems in optimizing their processes. The combination of transport and pharmacy automation is a unique selling point and strengthens their position as one of the world’s leading providers of medication management. By networking the two areas with software and analytics solutions, transparency is increased and efficiency is enhanced across departments.

25 Years Under the Name Swisslog AG

Swisslog emerged in 1995 from the former Sprecher + Schuh AG, a group that was split in the 1980s and 1990s and then focused on its current core business, automation technology. The company currently employs 3,500 people worldwide, while the entire Kuka Group has 14,000.

Since 2015, Swisslog has been part of the German Kuka Group (a member of the Chinese Midea Group), which is one of the world’s leading providers of robotics and plant and system technology. Swisslog CEO Dr. Baur on this constellation: “By being part of Kuka, we source the required robotics directly from the group. This simplifies procurement.” Baur himself has also been with Swisslog since 2015, having come from Kuka to Switzerland at that time.

The COVID-19 Crisis Also Affected Kuka and Swisslog

Swisslog does not disclose any figures. The results can be found in the reports of the Kuka Group.

Reports 2019 and for the first half of 2020 from the Kuka Group

Robots from the parent company Kuka are used in many applications at Swisslog / © Swisslog; Andreas Hackl

Swisslog Supports “Experience Logistics” at the Swiss Transport Museum

Swisslog supports the “Transport Museum” in Lucerne, Switzerland’s most popular museum with over 500,000 visitors per year, with an AutoStore exhibit. The fully functional museum piece is part of the new focus exhibition “Experience Logistics!” and offers visitors exciting, interactive experiences around the theme of modern and automated small parts logistics. “We are very proud to represent Switzerland’s logistics expertise with our AutoStore at the Transport Museum,” says Daniel Hauser, Head of Region Central Europe at Swisslog.

The AutoStore exhibit in the “Experience Logistics!” exhibition covers 64 square meters, includes 216 containers, and is operated by six AutoStore robots. Built as an elevated, freestanding stage structure, it is not only highly visible but can also be circled and walked through. To ensure that museum visitors can clearly see and understand all the automation processes, the exhibit is completely glassed in. The highlight: The robots can be easily set in motion via touchscreen – transporting up to ten containers at nine fictional ports.

With this initiative, Swisslog also emphasizes the Swiss in its company name.

Well Positioned for the Future

Swisslog is well positioned and also set for the near and distant future in a growing market. Automation in intralogistics will increase, and Swisslog is well placed due to its long-standing experience and is well-known in the industry. Through collaboration with various universities and the Fraunhofer Institute, it also engages in future research, thus staying up-to-date with the latest developments.

Title image: © Swisslog/ The headquarters of Swisslog in Buchs/AG, Switzerland

Dr. Christian Baur

After his training, Dr. Christian Baur held senior positions in several companies, including top management consulting firms such as Droege International Group and Alvarez & Marsal. In 2013, he joined KUKA AG, a global leader in robotics, as Head of Corporate Development and M&A.

In this role, he led the acquisition process of Swisslog in 2014 before taking over as Chief Operating Officer (COO) of the Swisslog Group in February 2015. In August 2015, he was appointed Chief Executive Officer (CEO) of Swisslog Logistics Automation. Chris, who is passionate about data- and robot-driven solutions, is a leader who sets the standard for innovative thinking in digitized solutions.

Chris Baur is married and has two children. In his free time, he enjoys sailing.

www.swisslog.com