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AMRs Revolutionize Logistics for Tier Suppliers

Explore how Autonomous Mobile Robots (AMRs) are transforming logistics for tier suppliers in the automotive industry, improving safety, efficiency, and productivity.

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AMR in factory transporting materials

The competitive edge for tier suppliers in the automotive industry is razor-thin and shrinking fast. While the workforce shortage remains top-of-mind as an ongoing, expensive constraint on growth, increasing global competition is also raising cost pressures. And while EV sales appear to be slowing

, tier suppliers are still scrambling to meet demand as the powertrain evolution continues.

To manage these challenges, tier suppliers are deploying AMRs – autonomous mobile robots, for material movement on the plant floor and between production, warehouse, and shipping operations. AMRs enable tier suppliers to make exponential leaps forward in reducing costs, amplify their workforce, optimizing production, and improve safety with indoor logistics.

Shift from Automated to Autonomous Production Logistics

An AMR can look like an Automated Guided Vehicle (AGV), but that’s where the resemblance ends. An AGV works like a conveyor, moving material from point A to point B.  In contrast, an AMR functions more like a material handler, with the flexibility to move wherever the fleet manager sends it.

Some key advantages of AMRs allow tier suppliers to effectively reduce costs and maximize productivity without compromising on safety: 

  • AGVs are pre-programmed; while AMRs have onboard intelligence to quickly choose faster, repeatable paths within the factory floor traffic rules. Onboard intelligence also enables AMRs to navigate safely alongside people on foot or operating tuggers or other material handling equipment.
  • AGVs require physical infrastructure such as magnetic tape, wires, and beacons to stay on track. AMRs don’t need this infrastructure to navigate the facility.
  • AGVs travel-fixed paths in a controlled space; AMRs leverage machine learning to become more efficient and accurate as they encounter new situations throughout the plant floor.

Bottom line, the shift from automated to autonomous means AMRs can more fully meet the demands of material handler roles while driving down costs.

Material Handling Use Cases for AMRs

AMRs are transforming workflows as they move materials to and from people, floors, racks, stands, and between islands of automation. Some of the most effective use cases

include moving materials along the production line (work in progress), automating lineside delivery, and automating the movement of non-conveyable materials. With AMRs, facilities are replacing manual or unsafe material handling processes with a high-value alternative. 

OTTO: Proven AMR Solution for Tier Suppliers

OTTO by Rockwell Automation

is quickly becoming one of the largest indoor logistics operators in the world. OTTO enables tier suppliers to build their autonomous workforce with AMRs that are well-suited to their jobs in terms of payload capacity, travel speed, and footprint. OTTO AMRs complete more than 400,000 monthly deliveries in production facilities ranging from automotive to aerospace to consumer goods.

70% of OTTOs are deployed in Fortune 500 companies

As more AMRs enter the market, it becomes clear that not all AMRs play on the same field. Key differentiators include a design that maximizes uptime and options in payload capacity that enable manufacturers to closely align their AMR investment and capabilities with their production needs.

Fleet management software is another distinctive advantage. Ideally, the software enables a single fleet manager to keep the facility’s AMRs moving safely and efficiently for increased throughput and uninterrupted operation. OTTO enables fleet managers to use 20% fewer AMRs to accomplish the same or more than other AMR fleets. In addition, OTTO Fleet Manager integrates with a facility’s existing systems, streamlining handoffs in complex workflows with flexible APIs.

Tier Suppliers Choose OTTO

Automotive parts production is a prime application for AMRs for tier suppliers of all sizes. FORVIA, the ninth-largest automotive tier supplier, deployed eight OTTO AMRs in its interior systems division for material movement between the work cell and the warehouse. FORVIA saw an 11-month return on investment

with OTTO and achieved a 15% reduction in work cell size. The tier supplier is expanding its OTTO fleet by 50% after just 1.5 years of top results.

HIROTEC America, another global tier supplier, relies on OTTO AMRs to complete production processes more reliably and consistently. OTTO’s ability to be up and running very quickly – even in a single day – without the need for infrastructure is helping HIROTEC

move towards its goal of zero operators for spare parts production.

With global production growth projected to ramp up by 15%

in the next four years, tier suppliers are deploying autonomous material handling solutions now to build capacity and operate at lower costs. Reach out to a Rockwell Automation consultant if you’d like to have a productive conversation about AMR strategy and your business goals.

Published August 5, 2024

Topics: Automotive & Tire Empower People Optimize Production Drive Sustainability Advanced Motion & Robotics

Renee Pieti
Renee Pieti
Auto Tier 1 Global Leader, Rockwell Automation
Renee Pieti has over 25 years of experience in Global Automotive Industry Development with expertise in Plant Automation.
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