Article

Optimizing Intralogistics: A Path to Efficiency and Cost Savings

Logistics activities, often labor-intensive, offer substantial potential for efficiency improvements and cost savings. In today's rapidly evolving industrial landscape, optimizing intralogistics processes is no longer optional – it's essential for staying competitive. A structured, four-step approach can help businesses transform their intralogistics operations.

Companies face a multitude of challenges such as a shortage of qualified labor, rising personnel costs, and the need for greater flexibility and scalability. In manufacturing companies, these challenges become particularly visible in production and the surrounding areas such as intralogistics. 

Most logistics activities are labor-intensive without directly adding value, thus improvements to achieve efficiency and reduce costs have a particularly high impact. To cut intralogistics costs, start by defining a clear target picture for the future. This helps narrow down the solution space and focus on the essentials. Subsequently the current situation can be analyzed in detail before the processes are optimized in a second step. In the third step, organizational adjustments must be made to reduce inefficiencies coming from redundant organizational structures and unclear responsibilities. Once the processes and organization have been streamlined, the automation of individual processes and tasks can be examined to further reduce personnel demand and costs in intralogistics. 

Step 1: Analysis – Identifying Inefficiencies

In most companies, long transportation routes, extensive search times or frequent and small-scale deliveries are main drivers for inefficient material supply processes. Relevant KPIs such as throughput times, error rates or inventory turnover rates provide an initial indication on where to start. For detailed insights, a value stream analysis should be carried out based on the actual material flows or goods movements in order to improve transparency about the root causes of inefficiencies. With the help of existing data from various systems in the production environment, the main drivers for inefficient intralogistics processes can be precisely identified. Supplemented by observations on the shopfloor, the basis for the development of targeted improvement levers is set. In addition, the personnel demand and costs per process step should be specified to create transparency and reveal the major cost and effort drivers. 

Step 2: Process Optimization – Streamlining Workflows

Before new technology is implemented, it is worth taking a look at existing processes. In many companies, workflows have grown historically and no longer fit the current requirements. As a result, processes are inefficient and error-prone. Tasks often lack clear responsibilities and are sometimes performed twice. 

A proven lever to improve logistic processes lies in the reduction of search and travel times. This can be achieved through an intelligent storage location strategy. More frequently used items identified with an ABC analysis should be stored closer to the picking zone. Items that are less frequently used are stored further from the picking zone. By strategically positioning inventory and utilizing clear labeling intralogistics operations can significantly improve efficiency. This strategy is reflected in the concept of the supermarket approach. The materials are positioned closer to the point of use, similar to how products are displayed in a supermarket. This approach allows for a just-in-time supply system where operators or machines can "shop" for components as needed, reducing stock levels, minimizing waste, and streamlining workflows. By creating organized, easily accessible storage points, the supermarket concept enhances efficiency and responsiveness in dynamic production environments. 

Step 3: Organizational Adjustments – Structuring for Success

When aiming to reduce costs in intralogistics, optimizing organizational structures is key. Two major optimization levers are reducing overall personnel demand and lowering personnel costs without compromising performance or operational stability.  

With regards to personnel demand, a common source of inefficiency is an unclear understanding of the actual personnel requirements. A thorough analysis of workload distribution helps to identify surplus capacity that can be reallocated or reduced. Additionally, overlapping responsibilities or duplicated efforts across departments often go unnoticed and hold enormous potential. Bundling similar or related tasks under single roles helps to streamline operations and decrease headcount without overburdening staff. 

Once the personnel demand is optimized, existing roles and responsibilities must be made more cost-effective. It is not just about how many people are needed, but also about who performs which tasks, and at what cost. Rethinking how tasks are distributed based on required skill levels can have a significant impact. Highly qualified (and costly) specialists should not perform simple, repetitive tasks. Instead, delegating such activities to support staff frees experts to focus on value-adding tasks that match their qualifications. Consequently, highly qualified workers in production should be involved as little as possible in material supply and disposal activities.  

Another option to cut personnel costs is outsourcing specific tasks or functions. In intralogistics, the areas of warehousing, internal transport, or material provisioning to production lines are particularly relevant. External providers can often deliver these services more efficiently, at lower costs and with higher flexibility. If activities are to be outsourced, clear service agreements, transparent interfaces and regular coordination lay the foundation for successful cooperation with external service providers. 

Step 4: Technical Solutions – Leveraging Automation

In addition to process- and organization-oriented solutions, automation of logistics tasks becomes increasingly relevant to be able to reduce personnel demand and logistics cost. Modern logistics technologies make it possible to reduce manual processes, lower error rates and shorten throughput times at the same time. One key technology for intralogistics are automated guided vehicles (AGV). 

AGVs handle the internal transportation of goods completely autonomously. Equipped with sensors, navigation technologies and central control, these vehicles move through warehouses or production halls on fixed or dynamically calculated routes. The major advantage lies in their continuous availability: AGVs work around the clock, do not cause fatigue failures and significantly minimize the risk of accidents compared to conventional forklift trucks. The transport processes can be flexibly adapted for example, in the event of changes to the layout or production logic. The downside is the technological and financial outlay. The introduction of an AGV requires a stable IT infrastructure, precise route planning and investment in vehicles, loading infrastructure and control systems. In addition, the spatial conditions must provide space for the AGV and the required infrastructure, and the safety aspect in the interaction between workers and AGV must be ensured. 

In recent years, technological advances have made AGVs increasingly powerful and versatile. Further advances in software development and hardware also ensure that AGVs are not only more efficient but can also be integrated more flexibly into tasks. This continuous technological development at constant to slightly falling prices makes AGVs an increasingly indispensable component in modern production and logistics environments.  

In summary, optimizing intralogistics requires a holistic approach that combines data-driven analysis, lean process improvements, strategic organizational decisions, and the targeted use of technology. By first understanding existing inefficiencies and aligning all measures with the specific needs of the company, businesses can significantly reduce costs, increase flexibility, and improve overall performance. Whether through streamlined workflows, intelligent outsourcing, or advanced automation solutions, the path to efficient intralogistics lies in making informed, well-coordinated changes that deliver sustainable value to operations. 

Ready to transform your intralogistics? 

 

Drüppel, M. / Orléa, K. / Weigelt, Y.