The Future-Proof Warehouse Rethinking Logistics for What’s Next | Spotlight Series
In this Retail Technology Spotlight series, Chris Walton sits down with Julian Sellan, Senior Supply Chain Engineer at Southern Glazer's Wine & Spirits, and Nick Cianfarani, Senior Account Manager at Dematic, to explore one of the biggest questions facing supply chain leaders today: How do you decide when it's time to upgrade your logistics network and when is it smarter to start over? Through the lens of Southern Glazer's ongoing network transformation, Julian and Nick break down what goes into evaluating aging facilities, consolidating distribution centers, and designing an operation that can meet today's demand without becoming obsolete tomorrow.
From modular pick modules and miles of conveyor to warehouse software that acts as the "brain" behind the operation, the conversation explores what it takes to build flexibility into a logistics network from day one. Julian and Nick also dig into the often overlooked human side of automation, including why standardization, employee buy-in, knowledge transfer, and "hypercare" can make or break a successful go-live. And the results are already beginning to show, with Southern Glazer's Louisiana operation doubling throughput and reducing delivery frequency from five days a week to four.
From deciding between retrofit and greenfield facilities to designing warehouses that can evolve alongside changing consumer demand, this episode offers a practical look inside what it really takes to modernize a logistics network without designing yourself into the next problem.
Key Topics Covered:
- 00:03:50 - Why Southern Glazer's began reevaluating its logistics network
- 00:05:46 - How to decide between upgrading an existing facility or building new
- 00:09:18 - Why consolidation can reduce complexity and unlock new efficiencies
- 00:11:09 - How to right-size a facility for today's demand and tomorrow's growth
- 00:14:14 - Inside the modular automation system designed for Southern Glazer's
- 00:19:57 - Why warehouse software is the "brain" behind automation
- 00:24:13 - Why software alignment needs to happen before the hardware goes in
- 00:25:18 - How standardization makes new facility rollouts easier over time
- 00:27:54 - The biggest watch-outs when designing and launching an automated facility
- 00:33:53 - Why "hypercare" and employee buy-in are critical to a successful go-live
- 00:35:35 - The results Southern Glazer's is already seeing from its new network
- 00:37:18 - How continuous partnership helps supply chain teams prepare for what's next
Want to learn more about Southern Glazer's automation journey? Check out these additional resources:
- Scalable Beverage Distribution: How Southern Glazer's Modernized Fulfillment with Dematic
- System Report: Perfecting the Automation Mix at Southern Glazer's, Modern Materials Handling
Over 8 years and nearly 200 episodes, the Retail Technology Spotlight Series has featured some of the biggest names and boldest thinkers in retail. Explore the full archive here: https://omnitalk.blog/category/spotlight-series-podcast/
Sponsored Content
00:00 - Untitled
00:09 - Exploring Logistical Network Upgrades
03:15 - Exploring Logistics Network Optimization
14:14 - Designing Modular Warehouses for Scalability
19:40 - The Importance of Software in Warehouse Operations
27:53 - Lessons Learned in Automation System Design
39:41 - Closing Thoughts and Future Directions
This Retail Technology Spotlight series podcast is brought to you by the Omnitalk retail Podcast Network.
Speaker AHello everyone.
Speaker AI am Chris Walton, your host for today's interview.
Speaker AAn interview in which we are going to explore the question of how do you decide when and how to upgrade your logistical network?
Speaker ABecause meeting today's demand while scaling for the future always brings with it strategic questions.
Speaker AQuestions like, do you build new facilities?
Speaker ADo you upgrade existing ones?
Speaker AAnd we're going to have this conversation through the lens of a real life case study of Southern Glaciers Wine and spirits, the premier beverage distributor for wines, spirits, beer and non alcoholic products in the US And Canada, who has led to work through these questions.
Speaker AAmid all the ongoing trends surrounding alcohol consumption, as well as the challenges that come from varying state regulations, the WCS.
Speaker BProvides real time visibility, so the warehouse operations leadership, they can be more proactive in how they run the operation.
Speaker CWe were also able to reduce our delivery frequency from five days a week to four days a week.
Speaker BAll the equipment and machinery that we just talked about, right, that's the hands and feet of the machine.
Speaker BBut the warehouse control software, that's the mind behind it.
Speaker BFor us, it's all about scalability.
Speaker CWe've built a good relationship with Domatic even.
Speaker CWell, back into the Glazers days.
Speaker CVolumes going up, consumption is changing,.
Speaker ALarge or small, new or expand.
Speaker AThose are the dilemmas I'm going to explore with today's guest, Julian Sayan, a senior supply chain engineer at Southern Glazers.
Speaker AJulian, welcome.
Speaker CHey, Chris, good morning.
Speaker CThank you for having us.
Speaker AYeah, I'm excited to have this conversation.
Speaker AAnd Nick San Frani, a senior account manager at Domatic.
Speaker ANick, how are you?
Speaker BHey, Chris, I'm doing great, Happy to be here.
Speaker BThank you.
Speaker AYeah, I know.
Speaker AExciting, exciting.
Speaker ASo, Julian, I'm curious, you know, how long have you been in the, the alcohol and beverage business?
Speaker CYeah, so I actually started at Southern about four years ago.
Speaker AOkay.
Speaker CSo yeah, not, not, not too long in the grand scheme of things, but about half my career I've been, I've been in the alcohol space.
Speaker ANice.
Speaker AAnd where do we, where, where do we find you today?
Speaker AWhere are you?
Speaker CI am in rainy and sunny South Florida, actually.
Speaker ASouth.
Speaker ASouth Florida.
Speaker AOkay.
Speaker AGosh, I'm jealous already.
Speaker AAll right.
Speaker AAnd Nick, how long, how long have you been in the logistics business?
Speaker BWell, so I have been with Thematic for all of my almost 20 year career at this point, so.
Speaker COh my God, really?
Speaker AOkay, start.
Speaker BI started with Dometic as an intern actually when I was in engineering school and I never left.
Speaker BSo I have Been here almost.
Speaker BLike I said, almost 20 years now.
Speaker BYeah.
Speaker AWow.
Speaker AWow, that's impressive.
Speaker AAnd where do you.
Speaker AWhere do you call home, Nick?
Speaker BYeah, so I am in the oven of Dallas, Texas right now.
Speaker BSo it is very, very hot.
Speaker BAnd I'm just waiting for a break at this point.
Speaker AAll right, so we got Dallas, Florida and Minnesota for today's Spotlight podcast.
Speaker AAll right, that's a.
Speaker AThat's a nice little triangle we got going on there, you two.
Speaker AJulian, let's start with you.
Speaker AI think let's set the table.
Speaker AI mentioned at the outset that we're going to do a case study on Southern Glaciers.
Speaker AYou know, the effort it's done to revamp its logistics network over the past few years.
Speaker AAnd so in preparing for the conversation today, one of the things I uncovered is that Southern Glaciers has had a really interesting past 10 years, and that history partly explains why we're here having this conversation that we are today.
Speaker ASo can you set the table for our audience with all the background needed to understand why upgrading your logistics network became so top of mind for you all at Southern Glazers?
Speaker CYeah, so like you mentioned, 10 years ago, we had the merger between Southern and Glazers, and after that happened, you know, we went and started re evaluating our network across our 47 different sites, different markets, rather.
Speaker CAnd, you know, in some of those markets, we did have two, three DCs, and, you know, we wanted to see how we could best support our customers and, you know, provide that value to them and to the company itself.
Speaker BRight.
Speaker CSo we wanted to revisit our current network and see how can we best expand and scale our current network to make sure that we are able to serve our customers, you know, 20 to 30 years down the line as market trends do evolve, things have changed rapidly since 2020.
Speaker CWe had the pandemic.
Speaker CConsumption had changed.
Speaker CRight.
Speaker CEverybody was.
Speaker CWas drinking heavily during that time.
Speaker CAnd then now, you know, now we've gone through the.
Speaker CIt's almost like a health, I guess, realization where, you know, being in shape and being healthy is.
Speaker CIs at the.
Speaker CThe forefront of everybody's mind.
Speaker CSo, you know, they're the.
Speaker CThe consumption has changed from how they were drinking in the past versus how they're.
Speaker CHow they're drinking today.
Speaker AYeah, the industry's definitely seen a lot of change, particularly, particularly since the pandemic over the last 10 years, too.
Speaker AWell, I'm curious, Julian.
Speaker ASo, like, so as you're going through that kind of analysis internally of, you know, you've combined these two entities, you've got these two Existing logistical infrastructures in place and you have to decide where to take it next in response to those trends.
Speaker ASo like talk us through for the audience's sake.
Speaker AHow do you decide what goes into deciding whether or not you're going to upgrade a facility versus maybe building a brand new facility, greenfield.
Speaker ALike where are the puts and takes in that analysis?
Speaker CYeah, so, and that's a, that's a good point.
Speaker CRight.
Speaker CSo we, you know, I'll take our, our state, Louisiana for example, where we recently did, where we did a project with, with Dematic.
Speaker CYou know, at the very beginning, we look at our, there in Louisiana, we had two, two DCs, we had one in St. Rose and one in Lafayette.
Speaker CRight.
Speaker CAnd we go and we look to see, okay, how are we currently serving our customers and what does that look like in the future.
Speaker CRight.
Speaker CUsually when we, when we start thinking about this, our, our existing DCs are already at capacity, if you will, for inventory.
Speaker CYou know, we're maxing out on, on cases sorted per hour and you know, there's not much room for expansion there without major distrib disruptions to our, you know, our operation.
Speaker CRight.
Speaker CSo, you know, we, we have to take that into account when deciding, hey, do we want to be down for a couple of months in order to optimize this and make it better, or do we want to just combine both of these DCs into one, right.
Speaker CIn a brand new building with no interruption to our, our current production so we can keep selling and keep providing to our customers and set ourselves up for, you know, 15, 20, 30 years down.
Speaker CAs, you know, the market does evolve.
Speaker BYeah, that's a great point, Julian.
Speaker BAnd I was just going to add too, from the, from the Domatic side, you know, Southern Glaciers first of all, has a fantastic engineering team at their corporate headquarters.
Speaker BJulian's a big part of that team.
Speaker BBut typically they have a really clear definition of the operational needs of, of their market well in advance of coming to a partner like Domatic for assistance.
Speaker BBut they will already know the needs from a capacity, a storage or a throughput requirement for what this market needs long term for their future success.
Speaker BRight.
Speaker BSo then they can bring those details to Domatic and we can work with them to translate that into a working design and ultimately a cost so that they can use that, you know, kind of quantifiable data to do a proper ROI analysis.
Speaker BSo, so to Julian's point, the, the market in Louisiana, there we actually worked together to look at both approaches.
Speaker BWe developed a design and a solution for how would we expand, modernize and retrofit one of their existing facilities?
Speaker BAnd what would be the cost and the operational impact of doing that versus if we were to build a greenfield facility, what would the design and the cost and the timeline look like for that approach?
Speaker BAnd we can provide the, you know, again, the quantifiable data for both of those approaches so that Southern glaziers and their leadership can make the best decision from an ROI and from a business perspective.
Speaker AGot it.
Speaker AGot.
Speaker AJulian, I'm curious then, based on what, based on what Nick just said then too, as you look at the logistics network as a whole outside of just even Louisiana, did you end up focusing in any one particular area more so than another?
Speaker ADid did you go more towards like a larger size, trying to expand the size of the average warehouse operation?
Speaker AOr how did you think about that?
Speaker CYeah, so I think it, it depends, right?
Speaker CUsually at some point we get to this, to the stage where the buildings are at end of life, close to the end of life.
Speaker CRight.
Speaker CYou know, the buildings in Louisiana I think are probably 20, 25 years old at this point.
Speaker CSo the automation and everything inside of it, you know, was preventing us from being as efficient as possible.
Speaker CAnd I guess to add to that, you know, we had those two buildings and since those two buildings were already maxed out as far as inventory goes, we were, we did have an off site storage as well, just simply because we couldn't fit all of the inventory inside of the two buildings.
Speaker CSo that was also another major factor.
Speaker CIt's hey, we have these three buildings that we're paying for, right?
Speaker CTo house our inventory.
Speaker CMaybe we consolidate under one roof.
Speaker CAnd not only do we save money on, you know, not having to pay for the, you know, the, the building itself, right?
Speaker CThree different buildings, we just pay for one.
Speaker CBut we also reduce the complexity of, you know, moving product from our overflow storage to either one of the two DCs.
Speaker CRight now we keep everything under one roof and you know, if we need to get certain product, it's just a 10 to 15 minute drive through the warehouse versus 20 to 30 minutes across town to bring product from a different warehouse to another.
Speaker BRight.
Speaker AI'm curious though, Julian, like that'll make sense.
Speaker ABut then at this, by the same token, like, you know, if you're expanding your facilities, like there's going to be more capacity that you and more demand that you need to meet to get the throughput in that facility operating to the level that you want.
Speaker AI'm curious, like, how, how do you best Meet that need going forward.
Speaker ALike what other, what things you have to think about to, to make sure that you're not running with an unproductive building down the line.
Speaker AAnd Nick, I'm gonna have the same question for you too.
Speaker CYeah.
Speaker CSo, you know, we obviously take the, the data that we do have right from, from both of our warehouses and we, and we say, hey, how do we, what does the system look like right.
Speaker CIn a new greenfield building, what rates do we need to hit?
Speaker CAnd that's a big part of, you know, the relationship and partnership that we have with Dematic.
Speaker CRight.
Speaker CWe bring them, hey, you know, Dematic, thankfully was in both of our Louisiana, our St. Rose and Lafayette buildings.
Speaker CSo they were very familiar with our current business in that market.
Speaker AHelps.
Speaker CYeah.
Speaker CSo basically we go, hey, we've got these two facilities that you guys are very familiar with and we want to combine them into one.
Speaker CWhat does that look like from, you know, an automation perspective on, on your guys's side?
Speaker CLet's, you know, here's, here's the canvas, if you will, of the building shell.
Speaker CLet's, you know, let's put together the best system that we possibly can to make sure that we're meeting the rate that we need to get our operations team in and out of the building on time.
Speaker CRight.
Speaker CWe don't want to be working 15, 16, 17 hour shifts.
Speaker CLet's consolidate that to 10 hours maybe, you know, on the high end, eight hours on the, on the low end and get everybody door.
Speaker BThe, the other big piece of your question there of how do you make sure that you're right sizing the, the building and right.
Speaker BSizing the automation system for what you need.
Speaker BFor us, it's all about scalability, right.
Speaker BSo, okay, when we work with Southern Glazers, it's, it's standard operating procedure for us when we, when it comes to the design that we're going to design for a system that's capable of supporting them for, let's say 20, 30 years, but that's not necessarily what we're going to build day one.
Speaker BRight.
Speaker BSo, for example, in Louisiana, we built a system that the backbone can support 30 years of expected growth and volume.
Speaker BBut day one, we only put in about half of the capacity throughput that they need today.
Speaker BAnd that'll get them to, you know, 10 plus years and then at that point we can add additional shipping downlines, we can add additional picking capacity.
Speaker BSo, so we try to build these systems modularly.
Speaker BIs that a word, modularly?
Speaker BI think so.
Speaker BBuild them in modules so that we can add those pieces down the line as the operation grows into them.
Speaker BRight?
Speaker AYeah.
Speaker ASo Nick, paint the pictures for me then.
Speaker ASo like what, so what actually, what actually goes into that building?
Speaker ANow you, and you mentioned a little bit on like what can come later, but even go into that in more depth too, because I'm curious.
Speaker AI'd love the examples from audience too, of like, if you're designing a new flexible warehouse and you're thinking about it that way, where you're trying to build modularity into the design, what hardware and infrastructure goes into it today in the case of Southern Glaciers, and then what are you leaving open for tomorrow?
Speaker BYeah, absolutely.
Speaker BSo ultimately the, the solution that we designed and implemented for Southern Glaciers in multiple of their facilities, it.
Speaker BIt's what we would refer to as a conveyance sort system.
Speaker BRight.
Speaker BSo, so what that consists of is multiple different functional areas.
Speaker BSo you would have various types of pick modules where order fulfillment is taking place.
Speaker BYou would have main merges where product is being sequenced and singulated.
Speaker BAnd you have shipping solutions like a shipping main shipping distribution sorter and downlines that feed their shipping dock.
Speaker BAnd connecting all of those different pieces is somewhere between two and three miles of carton conveyor.
Speaker BRight.
Speaker BSo essentially, if you can imagine, one of Southern Glacier's customers, a bar or a restaurant, orders a case of whiskey, that whiskey is going to be stored in a pick module within their facility and a picking operator is going to pick up that case and place it on a dometic conveyor.
Speaker BThat case has been routed through the facility from their picking area to their shipping dock.
Speaker BIt's routed through a merge that does the, that gets consolidated with all of the other cases that have been picked in other areas of the building and sequences them in the right order to then feed the shipping dock, get it on the right truck at the right time so that it can be delivered to their customer.
Speaker BYou know what, what we've done to provide the modularity and expansion is adding additional pick module space for the future.
Speaker BRight?
Speaker BSo in, in day one, there's two pick modules.
Speaker BThere's room to add two more in the future.
Speaker BThere's also additional doc space.
Speaker BRight.
Speaker BSo day one, I'll be Julian.
Speaker BThere's 12 downlines, I think in Louisiana, In Louisiana, there's expansion capacity to make that 18 in the future.
Speaker BThe, the main shipping sorter is its full length, but only the doors that are needed for today are actually have equipment installed.
Speaker BDoes that make sense?
Speaker AIt does, it does.
Speaker AAnd you know, oftentimes I get folks from you know, marketing and every walk of life listening to these conversations too.
Speaker ASo, so when you say a pick module, what is a pick module?
Speaker ANick?
Speaker BYeah, no, sorry, I, I forget sometimes that I'm so deep in the weeds on the.
Speaker ANo, it's okay.
Speaker AIt's great.
Speaker BA pick module is essentially a rack structure somewhere between two and four levels tall with mezzanine on each level that, that an operator can work in.
Speaker BAnd those rack structures house either pallets of product or carton flow with product in it.
Speaker BAnd essentially it's a way to shrink down the travel path that a picker needs to travel in order to pick the orders that they need to fulfill for a day.
Speaker BRight.
Speaker BSo all of those products are condensed into one smaller footprint as opposed to having that person drive around the rack aisles of an entire warehouse.
Speaker AGot it, got it.
Speaker AThat's great.
Speaker AThat's great, Nick.
Speaker AThanks for that color.
Speaker AAnd so it sounds like, it sounds like for, for all intents and purposes, there's a lot of capacity that you can still get out of the building should you decide to tap into it down the line.
Speaker AJulian, let's bring you now back into the conversation.
Speaker ALike, how did you decide, you know, what level of flexibility to still allow versus, you know, how much you wanted to put into operation today?
Speaker CYeah, so that, that goes back to, to, to the data.
Speaker CRight.
Speaker CWe, we see, hey, we have an expected growth, you know, 20 years down the line.
Speaker CAnd we extrapolate, we extrapolate that based off of, you know, market trends and we say, okay, in 2035, right.
Speaker CWe expect to be selling this much product in a given day.
Speaker CSo we plan for that.
Speaker CAnd that's kind of the, the what we give ourselves day one versus year 10 versus year 20.
Speaker CSo, you know, and like Nick was saying, we try to be flexible and modular in that sense where, so in, for example, where Nick was mentioning, you know, we have the room expand and add another pick module.
Speaker CYes.
Speaker CLater, 20 years down the line, that'll be a four level pick module.
Speaker CBut today, you know, we use that to, to store product.
Speaker CRight.
Speaker CWe'll do, we'll do three high floor bulk in that whole area.
Speaker CSo like, like you said, we're not, you know, we don't have an unproductive or, or wasted space in the warehouse or, you know, we'll do a, a ground level conveyor line.
Speaker CRight.
Speaker CConveyor pick module.
Speaker CWe'll only do the first level where we don't need the rack structure like Nick was mentioning.
Speaker CAnd you know, we're still being productive with that space.
Speaker CYeah, we don't, we don't like too much, too much empty space in our warehouses and, and neither does leadership.
Speaker BYep.
Speaker AYeah, no, I don't think anyone does.
Speaker AThat's probably, that's probably, that's probably a good bet.
Speaker AUnless, unless you just turn it through it so quickly.
Speaker ABut, but no, that's a great point there and I think it's good to go into, because, you know, the, the building's making the return that it needs to now and then still can make that return in the long run should the building need to expand its capacity and throughput.
Speaker ABut the other point of this too that it brings up for me is we've just talked about the physical infrastructure side of it.
Speaker ALike the software's got to be a key piece of this too, Nick.
Speaker ARight?
Speaker ALike, like, especially with everything going on on the software side of things today.
Speaker ASo like what, what happened on the software upgrade side of building a new facility?
Speaker BYeah, no, you're exactly right.
Speaker BSo you know, the way that I like to think of it is all the, all the equipment and machinery that we just talked about, right.
Speaker BThat, that's the hands and feet of the machine.
Speaker BBut the warehouse control software, that's the mind behind the machine.
Speaker BRight?
Speaker BSo Dometics WCS warehouse control software, that is what's making all the decisions regarding what to pick, when to pick it, how to get the right sequence of product to keep the operation moving smoothly.
Speaker CRight.
Speaker BAnd the WCS also provides real time visibility.
Speaker BSo you know, the, the warehouse operations leadership, they can be more proactive in how they run the operation.
Speaker BThey, you know, for an example, they can, they can see that one operator in a pick module is falling behind and they can see, oh hey, he's getting a lot more work than someone in another area.
Speaker BI'm going to move somebody over there to help him so that we can keep things moving slowly and we don't end up with bottlenecks or things falling behind.
Speaker BSo from within the facility and within the automation system, the WCS really is the brain.
Speaker BBut I, I'd maybe lean on Julian a little bit to talk about the other side, the reverse side of the software coin.
Speaker BBecause the wms, the warehouse management system, I'd say is just as important to get right as the wcs.
Speaker BRight, Julian?
Speaker CYeah, yeah, and I hate to be the one to talk up software.
Speaker CI'm a mechanical engineer by trade.
Speaker CSo unfortunately this is the dark side for us.
Speaker CBut yeah, no, that's so great.
Speaker CIt's true.
Speaker CThe software is so critical.
Speaker BRight.
Speaker CAnd that's what's giving us the insights and data that we need in real time throughout production.
Speaker CAnd like Nick was mentioning, our wms, basically our inventory control and management, right, it communicates with the Domatic WCs and, you know, they're sending messages throughout the whole night.
Speaker CAnd.
Speaker CAnd basically in our wms, in a normal production night, right, we'll have all the orders that are supposed to go out for any given day.
Speaker CAnd as Dematic is sorting these cases down and they get scanned through our scan tunnel, they divert down to the doors, and they get scanned by our dock scanner to confirm that they were actually loaded on the truck.
Speaker CA message will get sent from the WCS to the WMS saying, hey, this case was actually loaded on the truck.
Speaker CIt's good to go.
Speaker CYou're good to send the invoice once the entire.
Speaker COnce we think the entire order is.
Speaker CIs complete.
Speaker CRight.
Speaker CAnd this allows us to, you know, make sure our customers, number one, get the products that they actually ordered and make sure that we're billing them for the stuff that they're actually getting.
Speaker CRight.
Speaker CAnd not for, hey, this wasn't actually shipped to you, but we're billing you for it anyway.
Speaker CSo, you know, it kind of keeps everybody honest.
Speaker CAnd, you know, there's no guessing on what did you get, what were you charged?
Speaker CAnd then from there, as, you know, as we market on truck, it also will adjust the inventory and say, hey, you.
Speaker CYou lost the case from this location.
Speaker CAnd this is what your.
Speaker CYour new inventory count should be.
Speaker CWherever in the warehouse.
Speaker AYeah, Julia, this is really good stuff.
Speaker AI mean, my.
Speaker AThe mark of a good podcast for me is always when I, like, have an epiphany in the moment as I'm talking to.
Speaker ATo.
Speaker ATo the people I'm interviewing.
Speaker AAnd I. I just.
Speaker AI just kind of had one.
Speaker AAnd, you know, it's.
Speaker AAs you.
Speaker AAs you guys are talking about what we just.
Speaker AWhat you just discussed and relaying it to me, like, it.
Speaker AJulian, it breaks a mind to me.
Speaker ALike, you have to really understand how your.
Speaker AHow your systems are working before you go and put the hardware into the building.
Speaker ASo for the executives that are listening that are managing a process similar to you, what advice you have for them to make sure that they get that step right.
Speaker AThat's something I've never overtly talked about.
Speaker AThe marriage on the front end of the software before you even put a piece of hardware into the building.
Speaker CYeah.
Speaker CAnd, you know, these.
Speaker CThese projects aren't.
Speaker CAren't short by any means.
Speaker ANo, they're definitely not.
Speaker CI think Nick and I Have spent probably the, my whole career I think here at Southern has been spent with Nick by my side on, on these projects.
Speaker CSo you know, we thankfully, you know, we've built a good relationship with Domatic even well back into the Glazers days.
Speaker CRight.
Speaker CWhere we have that, that communication on the software side on what messaging needs to get back and forth, get sent back and forth.
Speaker CYou know, we get our IT teams involved because it's, it's a lot on their side too.
Speaker CRight.
Speaker CTo make sure that, you know, all the, the types of messagings that get sent back and forth are, are correct and what Domatic is looking for and what our WMS is looking for.
Speaker CSo it really, it's just making sure you're aligned very early on in the process and know exactly what you're looking for and getting the right people involved and you know, kind of talking through it.
Speaker CRight.
Speaker CAnd that's from our side.
Speaker CNick, do you have anything to add on that front?
Speaker BYeah, I would just say the biggest thing that's made our software lives easier is standardization.
Speaker BRight.
Speaker BSo on both sides of the fence there within the wcs.
Speaker BI'll talk about that.
Speaker BFirst we try to standardize that software interface, that software UI and how we communicate to the WMS to be the same in every project we do.
Speaker BRight.
Speaker BOr as close to the same as we can.
Speaker BRight.
Speaker BObviously there's some customizations.
Speaker BNot every site is the same, everybody knows that.
Speaker BBut if we can keep the message interfaces as similar and consistent as possible, it makes things so much easier as you go.
Speaker BRight.
Speaker BSo I'm just thinking back to our history over the last 10 or so years.
Speaker BNow the first site that we put Domatics WCS in talking to southern glaciers WMS was in Columbus, Ohio and we knew that there was going to be some challenges there that the first time you do it, it, it's a little bit harder.
Speaker BSo we had more support, we, we had more hyper care.
Speaker BRight.
Speaker BAnd after we got through that first site, the second site was a little bit easier.
Speaker BThird site was even easier than that.
Speaker BAnd by the time we got to Louisiana, it's basically a rollout.
Speaker BRight.
Speaker AWhere that makes sense.
Speaker BWe all know how we're going to talk to each other.
Speaker BIt makes things so much easier.
Speaker AYeah.
Speaker BSo that would, that would be my recommendation is standardization is key.
Speaker BThe bet the more you can.
Speaker BYeah.
Speaker AAnd keep a long steady relationship too.
Speaker AI mean that's the other thing that sounds key in that too because you got to have the long standing trust in each other too to make that work.
Speaker AThe way you're describing Nick.
Speaker AYeah, the other part that makes me think about too, Julian, you made the joke about being an engineer, but man, you got to be an engineer because that's a lot of detail to sift through that you got to get right.
Speaker AYou got to like the details and engineers tend to like the details as well, so.
Speaker AAll right, well, as we close things out, I'm curious too.
Speaker AAnd it sounds like you guys have worked very closely for a long period of time together.
Speaker AWhat were, what were some of the biggest lessons you learned, you know, over the time trying to either rebuild or improve, you know, your existing infrastructure?
Speaker AWhat were some of the potential, maybe even lessons, but like watch outs that you also uncovered during these processes.
Speaker ANick, let's go back to you on this one.
Speaker BI can think of two things off the bat.
Speaker BThe first one I would say is a watch out around IT software and more importantly, IT infrastructure, right?
Speaker BSo what I mean by that is it's very easy for us when we're working on designing an automation system, right?
Speaker BIt's very easy to get in the weeds of the machines, the conveyors, the sorters, where they're going to go and organizing and designing that solution.
Speaker BBut oftentimes, especially in a greenfield environment like in Louisiana, the general contractor is working in parallel designing a building and all of the infrastructure that goes into that building.
Speaker BThey need to take into account what's needed for the automation system too.
Speaker BGod forbid, the worst case scenario is we go and build this automation system and the GC didn't bring enough power into the building to run it right or something.
Speaker BSo that was number one for me.
Speaker BThe second thing I can think of is really a credit to Julian and the Southern Glazers team because they do this better than just about anybody I've ever worked with.
Speaker BAnd that is the hypercare support that we give to a site when they go live.
Speaker BSo this goes back to that standardization piece, but it makes it much easier when we go to turn on a new system at a new site.
Speaker BSouthern Glazers will bring an army of people.
Speaker BThey will bring representatives from every discipline experts from, from all parts of, of their business to site and we will live there.
Speaker BAnd we're, and of course Domatic brings, brings every discipline from our side too.
Speaker BAnd we will live there and work with, side by side with the site for the first couple of weeks as they get, get used to running the system.
Speaker BBut, but the big thing that they will also be able to do is bring super users from some of their other facilities that are already working with this system that have lived and breathed the, you know, the domatic WCS or the WMS or ran this process in one of their other facilities and they will hold the hand of the people that now have to learn how to run this, this process and teach them in real time.
Speaker BIt's just amazing.
Speaker BAnd it made our Go Live activities so much smoother and the handoff and the ownership of the site came much, much faster.
Speaker AThat's really interesting too, Nick, because the Hypercare approach you're just describing, I never thought about this too, but you talked a lot about standardization.
Speaker ABut standardization comes also from having human insight baked in and the knowledge that can come with the humans transferred from, you know, facility to facility too.
Speaker AIt's not just software and infrastructure, it's actually people and standardizing the approaches that the management takes to whatever you're trying to do as well.
Speaker AJulian, what, what, what, what would you add here?
Speaker AWhat are some of the watch outs or lessons on your side?
Speaker CYeah, and like, like you guys mentioned, that is, that's the beauty of standardization, right?
Speaker CIs we're able to take somebody from Columbus or Kentucky or you know, any of our sites where we do have the Domatic WCs and we can bring them over to, you know, Louisiana or South Carolina where we recently rolled out and say, hey, you know, these, you guys are living and breathing this system.
Speaker CYou guys know the ins and ins and outs of it even better than we do.
Speaker CRight?
Speaker CBecause they live it every single day and you know, they can help train, you know, the guys that are new coming into it.
Speaker CI guess in addition to that though, as far as lessons learned, it's important to get your automation vendor in as early as possible with the GC coordination because like Nick was mentioning, you know, they have to design a building around the system, right?
Speaker CAnd if you don't know what the system looks like before you get too far ahead on the building construction, now you are reducing some of that flexibility in your overall design, right?
Speaker CI know one example in Louisiana we had this.
Speaker CThere was an egress issue where we had the whole system designed, right?
Speaker CIt was good to go, we thought we were good.
Speaker CAnd the fire marshal comes in and says, hey, you are 410ft away from your nearest exit and you need to be 400ft.
Speaker CAnd we're like, oh no, we got to gain 10ft somewhere, right?
Speaker CAnd the whole system is in a perfect spot in the warehouse.
Speaker CEverything's designed around it, right?
Speaker CSo we got to get creative.
Speaker CAnd now we're reducing what offices look like we have some funky stair designs to try to make the egress work so that way we don't have to revamp, you know, the entire system.
Speaker CSo thankfully, you know, we had a little bit of flexibility there.
Speaker CHad we gotten them maybe in a little earlier we would have had a little more flexibility and could have avoided some of that, that heartburn.
Speaker CYeah, it was, it was brutal for sure on, on that front.
Speaker AWell, better, better you than me.
Speaker AThat's why I'm an entrepreneur now, my friend.
Speaker ABut I want to go back, I want to go back to the hypercare thing because I want to play devil's advocate for a second.
Speaker AYou know, it's kind of one things I take Pride in at OmniTalk is, you know, asking you guys as frank and candid questions I can.
Speaker ASo the hypercare approach, like, there's probably some people out there that are like, why would I bring people from different facilities?
Speaker ALike, why wouldn't I just create a system that can work day one and just see what happens?
Speaker ALike, But Julian, you obviously don't think that's the right approach.
Speaker ASo why do you think it's worth the investment to send those people to the new facility to help them get it off the ground?
Speaker CI think that ramp up is the hardest part of, you know, go live and ramp up is the hardest part and where you really need the buy in of the new workers, right?
Speaker CIf, if you don't have a good ramp up, that's all anybody remembers, right?
Speaker CFrom a go live, everything beforehand could have gone perfectly smooth.
Speaker CAnd once you ramp up, it blows up.
Speaker CEverybody only remembers the blow up, right?
Speaker CSo I think for us, when we bring in, you know, those product experts from other sites, it gives the new employees comfort in knowing, hey, these guys are really invested in me learning this new software and you know, it may give them a little bit of pride and want to own it, right?
Speaker CIt's like, hey, this is really important.
Speaker CI need to buy in and, you know, do my part to make sure that this is successful, right?
Speaker CThis is my new workplace and I want to be proud to work here, right?
Speaker CYou know, if we were to just roll it out and kind of say, hey, good luck, they're going to hate it.
Speaker CThey're not going to buy in, productivity is going to tank and now we're struggling on our ramp up.
Speaker CYou know, when we just did a huge go live and you know, that's never, that's never the, the outcome that, that we're looking for.
Speaker CFor sure.
Speaker AIt's a, it's A great answer and I think it's a great answer because the softer side of management does really matter when you look at long term success, you know.
Speaker AAnd on that note, Julian, I'm curious, what, what are some of the results you've seen thus far as we close things out here around the overall network design?
Speaker ALike what are some of the results you can share and, and where do you think things are going next for you all?
Speaker CYeah, so I know I can, I can speak for Louisiana, South Carolina.
Speaker CWe just went live was this May six months ago.
Speaker CSo we're still kind of, you know, putting the data together but everything's looking promising there.
Speaker CBut for, for Louisiana we've been live for a little over a year and a half now and we were actually able to double our throughput as far as cases sorted per hour.
Speaker CYou know, due to this consolidation and automation in the new facility.
Speaker CBecause of this, you know, throughput increase, we were also able to reduce our delivery frequency from five days a week to four days a week.
Speaker CSo now you know, we're doing the same thing we were doing before in less amount of time.
Speaker CSo that means, you know, a little bit more work life balance for, for everybody involved, which is great.
Speaker CRight.
Speaker CSo where do things go next?
Speaker CSo yeah, I mean thankfully we have the, the expansion capability right in, in our, in our facility.
Speaker CSo we'll, we'll obviously monitor market trends as the years go by and you know, we'll reach back out to Domatic and say hey, we need a, we need to, to add another couple downlines here because you know, volumes going up, consumption is changing and you know, we have that to look to on, on the horizon and then.
Speaker CYeah and you know, we're always working with thematic and, and trying to, to come up with, you know, what, what the next best thing is.
Speaker CRight.
Speaker CEventually all of our facilities will go come to the point where hey, it's time for either an expansion or you know, we need to reconsider what the automation is looking like in the building to, to make sure that we're servicing our customers the best that we can.
Speaker AYeah.
Speaker ANick, how are you?
Speaker AHow are you stay.
Speaker ALet's close it out here.
Speaker AHow are you staying in front of everything?
Speaker ATrying to get prepared for the future on the dramatic side?
Speaker BWell, I mean, sounds like a good problem to have.
Speaker ANever would.
Speaker BIt is.
Speaker BYeah.
Speaker BI think we all know though that you know, the automation and robotics industry is moving at light speed right now.
Speaker BSo it takes right.
Speaker BConstant, constant communication and I would say, you know, between Julian and I and the rest of the Southern Glaciers team, we're always evaluating emerging technologies.
Speaker BSo just right now I can think of.
Speaker BThere's probably four or five different initiatives that we're evaluating for possible new technologies to solve a problem within the building.
Speaker BSo it really does just require that continuous partnership, the constant communication and openness to talk about what are the problems, what are the new problems that we're facing, and, you know, what are the new emerging technologies out there that could potentially help be a fit?
Speaker BAnd at the end of the day, nine times out of 10, it might not be a fit, but.
Speaker BBut we won't know that unless we have the conversation and we.
Speaker BAnd we talk about it.
Speaker BRight?
Speaker ARight.
Speaker AYeah, you have that conversation, you implement what you think you need, and then that becomes the roadmap for the next standardization of the next building down the road.
Speaker ARight, Nick?
Speaker ASo.
Speaker BExactly.
Speaker AWell, that was great, you guys.
Speaker AI. I really enjoyed that conversation.
Speaker AYou know, I always ask at this point of the interview, too, like, if people found it equally as engaging as I did, what's the best way for people to get in touch with you?
Speaker ANick, let's start with you and then, Julian.
Speaker BYeah, Yeah, I would say LinkedIn's probably the best way to connect if you want to reach out.
Speaker BI would mention that we've Domatic has put together a really nice case study on the work that we've done with Southern Glacier, so I'd be happy to share that as well for anybody that like to learn more.
Speaker BBut yeah, reach out to me.
Speaker BConnect on LinkedIn and happy to continue the conversation.
Speaker AAwesome.
Speaker AAnd Julian.
Speaker CYeah, same for me.
Speaker CYou know, feel free to reach out on LinkedIn and if you have any questions about, you know, our recent projects or, you know, what our.
Speaker COur roadmap is looking like, you know, always happy to chat about it and give you a little bit of insight as to, you know, what we're doing on our side.
Speaker AAll right, excellent.
Speaker AWell, thank you both again.
Speaker AThank you so much.
Speaker AThat wraps up today's Spotlight series podcast.
Speaker AAnd today's podcast was, of course, produced with the help of Ella Seward, and on behalf of Ella, myself, and everyone at Omnitalk Retail.
Speaker AAs always, be careful out there.