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Digital Transformation in Transport & Logistics - CASE STUDIES
Michigan based Lineage Logistics operates 120 warehouses in 26 states in the US, and in four countries globally. It handled about 25% of the third-party cold chain in the US in 2017 – or 35 billion pounds of consumer packaged goods and fresh food, in facilities measure around one million square feet. Temperatures at most sites have to be at around zero degrees, but some go as low as -20 degrees making its electricity bill one of its biggest line items, reaching tens of millions of dollars per year.
Challenge
Its goal was to increase the food storage per square foot, while lowering its electricity usage at the same time. They needed some kind of a data-driven system, such as using IoT to give them the measures with which to drive efficiency.
Inputs
The company engaged solutions provider /ndustrial.io, which installed 3-15 smart meters per facility and sensors on top and bottom racks to the tune of 1,000 across its facilities to electricity readings at one-minute intervals. At first it tried the local Wi-Fi first but due to control and reliability issues, deployed AT&T’s LTE-M network and management platform provisioning everything with AT&T’s global SIMs.
Outputs
Heat maps of the facilities were produced, enabling Lineage to see food is kept at the proper temperatures. The combinations of IoT sensors and data analytics helped to improve performance in three area:
Outcomes
Reduction in Absolute Energy: The IoT system collects temperature and humidity data from shelves across it facilities, and causes chiller systems and frequency drives to kick in when the shelf readings are out of tune. Since 2014, annual energy costs have declined by 8% at the 78 warehouses and throughput has increased over the same period reducing the cost of electricity for each item of food by 34 per cent.
Peak Energy Reduction: Utilities charge a higher rate during peak times, and offer a reduction during off-peak. The sensor-and-analytics system, enables Lineage to super-cools its warehouses at night (off- peak), to create a virtual cold ‘battery’ for use during peak hours without compromising food safety. This not only reduce consumption by 2-3 MW but also yield savings from lower effective tariffs.
Blast freezing helps to preserve the cellular integrity of certain foods during the freezing process and is critical at different times of the year. Lineage and ndustrial.io developed a customized dashboard to track the process, and reduce the freeze time from 100 hours to 40 hours, and energy consumption by half.
Source: enterprise iot insights
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