TransTire – The next generation of tire logistics

Tire producers manufacture billions of tires in a year. This means a lot of space, time, and manpower is dedicated to storage, movement, and delivery of each tire. Due to the evolution of the latest in digital technology, this is an area of the industry ready for a complete overhaul, and tire manufacturers to have more efficiency in their distribution operations.  

Pesmel has developed a dedicated, intelligent warehousing system for the tire industry that revolutionizes movement and storage of individual units. The key features of the solution are operation without pallets, reduction of storage footprint with high storing density, sorting at in-feed, a combination of storage and order picking, and simple layout with a minimal amount of equipment.

“The tire industry has generally seen palletization as the only solution for its warehousing and internal logistics needs,” says Pesmel CEO Tony Leikas, “but looking closely at various plants around the world and our successful projects in other industries, makes it clear to us that this is an area of the industry that could be much more efficient and run in a much safer and cost-effective way”.

Leikas adds that millions of Euros could be saved by investing in automated distribution and eliminating palletization completely, “Pallets and palletization equipment are expensive– our research tells us that up to five million Euros can be spent on installing the machines. This can be simply avoided by using a smart warehousing system.” Using pallets is also costly when it comes to warehousing operational efficiencies, with extra loading and unloading, bringing pallets in, and sending them back again. Palletization is also labor intensive, often involving manual loading and unloading. There are also dangers presented by forklifts going backwards and forwards in a plant.

Simplicity is the key to efficiency

Pesmel has spent time perfecting smart warehousing solutions and has come up with a unique Material Flow How® concept, which uses only four components to fully automate internal logistics and storage: a conveyor system, racking, stacker crane(s), and robots. The idea behind the concept is to arrange production and material flows so that production efficiency is maximized and the need for equipment minimized.

In the unique vertical storage the tires are stored on racks in vertical position without pallets. The height of the storage can be 35 meters having over 30 levels and 9 to 20 individual tires per storing location. High-bay storage gives a footprint reduction of 45%, with the highest storing density compared to traditional solutions using pallets.

Tire manufacturers have welcomed a solution that helps them keep up with demands on storage and logistics as mills increase their production in both quantity and product ranges. With Pesmel’s solution, storing and order picking is combined and done in the storage, which greatly improves warehouse logistics and reduces the time spent on receiving and shipping tires. In an automated high-bay warehouse, collecting a complex order containing tens to over hundred different SKUs (Stock Keeping Units), picking and dispatching time is reduced to one-third compared to a traditional warehouse. High level of automation also ensures error free deliveries which greatly improve customer satisfaction.

Flexibility and availability in tire distribution

The customer experiences state that the high-bay storage has pushed their flexibility and the efficiency of logistics to a new level. As well as an increase in outbound orders, they have also increased storage, which is a major benefit when it comes to seasonal variations. The high-bay storage units really help with the peaks they experience, as every tire in the storage is accessible and ready to be shipped. Another real benefit is that the system stores individual tires and not a whole pallet load or cages, which means just one particular tire or tire set is taken from the warehouse as needed, instead of the entire load. Customer experiences when it comes to maintenance are that the equipment is reliable, robust, and easy to maintain.

Investments in logistics automation will enhance the entire supply chain

Growing customer demands mean that an efficient and smooth supply chain has become one of tire mill’s significant competitive advantages. With added intelligence in storage, sorting, and distribution functions, tire mills can create a powerful and dynamic distribution center that can open opportunities for improvement all the way up to strategy and business models. Pesmel-delivered systems are proof of successful automated logistics projects that have enhanced the efficiency of the entire supply chain, while offering great returns on investment with a lower total cost of ownership. Automation solutions are ushering in a new era in smarter logistics, tapping into great unrecognized potential for increasing efficiency across the entire supply chain.