The Rise of Brownfield Automation: Reinvesting in Existing Infrastructure for Supply Chain Success
Takeaways
- Brownfield automation upgrades existing facilities with new technologies, offering a faster and more cost-effective alternative to building new (greenfield) sites.
- Brownfield automation enables companies to maximize current assets and staff expertise, increasing capacity, throughput, and service levels without major new construction.
- Successful brownfield projects require careful planning, seamless technology integration, and effective change management to minimize disruptions and ensure ROI.
- While improvements may be incremental compared to greenfield projects, brownfield automation is a strategic investment that helps companies stay competitive and meet evolving customer demands.
Efficiency, agility, and cost-effectiveness are the cornerstones of a successful supply chain, and companies are continuously seeking ways to enhance these critical elements. While greenfield projects (building new facilities from the ground up) have traditionally been a go-to strategy, a growing trend is emerging, brownfield automation. This involves retrofitting or expanding existing facilities with new technologies and processes to enhance their performance. This article explores the reasons behind this shift, the benefits and challenges of brownfields, and why brownfield automation is becoming an increasingly attractive option for businesses striving to remain competitive.
What exactly is brownfield automation?
Before diving into the intricacies of brownfield automation, it's crucial to define what it entails. In the context of supply chain management, a brownfield project refers to modifying or expanding an existing facility with advanced technology and automated solutions. This could involve integrating new equipment, upgrading existing systems, or implementing entirely new processes within the framework of the current infrastructure.
Brownfield projects stand in contrast to greenfield projects, which involve constructing entirely new facilities on undeveloped land. While greenfield projects offer the opportunity to design a facility from scratch, tailored to specific needs and incorporating the latest technologies, they often come with significant upfront costs and longer timelines.
Why the shift to brownfield automation?
The increasing interest in brownfield automation can be attributed to several key drivers:
- Cost-Effectiveness: Capital expenditure (CapEx) is a major consideration for any supply chain investment. Brownfield projects typically require a lower initial investment compared to greenfield projects. By leveraging existing infrastructure, equipment, and systems, companies can avoid the significant costs associated with land acquisition, construction, and extensive infrastructure development.
- Faster Timelines: Time is money, and in today's fast-paced business environment, the ability to implement solutions quickly is a critical advantage. Brownfield projects generally have much shorter timelines than greenfield projects, often taking months rather than years to complete. This allows companies to realize the benefits of their investment sooner, leading to faster return on investment (ROI) and improved cash flow. Having capital tied up for over a year, or even two, before a ROI is realized can be a challenge for many companies.
- Optimizing Existing Assets: Brownfield automation allows companies to maximize the use of their existing operations and support growth within their current network and infrastructures. Instead of abandoning established facilities, companies can breathe new life into them by integrating advanced technologies and streamlining processes.
- Leveraging Existing Expertise: Brownfield projects also offer advantages from a human resources perspective. Companies can build upon their existing team of distribution center (DC) leaders and hourly staff. While new equipment and processes may require some training and adaptation, the learning curve is generally less steep compared to recruiting, hiring, and training an entirely new workforce for a greenfield facility.
- Meeting Evolving Customer Demands: Supply chain investments are typically made to enhance inventory storage capacity, improve processing throughput, reduce cost per unit, and improve service levels (speed, accuracy, quality, etc.). Brownfield automation can achieve these goals by optimizing existing processes, integrating new technologies, and streamlining operations to meet ever-evolving customer expectations.
Key benefits of brownfield automation
Brownfield automation offers a wide range of benefits, including:
- Increased Capacity: By optimizing existing layouts, integrating automated storage and retrieval systems (AS/RS), and implementing efficient picking and packing processes, companies can significantly increase the storage capacity of their facilities without expanding their physical footprint.
- Improved Throughput: Automated sortation systems, conveyors, and other material handling technologies can dramatically improve the speed and efficiency of order processing, leading to increased throughput and reduced lead times.
- Reduced Costs: By automating tasks, optimizing workflows, and reducing manual labor, companies can significantly reduce their operating costs, improve productivity, and lower the cost per unit.
- Enhanced Accuracy: Automation minimizes the risk of human error in picking, packing, and shipping processes, as well as storage and retrieval, leading to improved accuracy and reduced returns.
- Better Service Levels: Faster order processing, increased accuracy, and reduced lead times translate into improved service levels, enhanced customer satisfaction, and increased loyalty.
Strategic planning and expert execution are essential for brownfield automation
While brownfield automation offers numerous advantages, it's crucial to acknowledge the challenges involved. Careful planning, strategic decision-making, and expert execution are essential for successful brownfield projects. Some of the key challenges include:
| Challenge | Description | Mitigation Strategies |
| Technology Integration | Integrating new technologies and systems into existing operations can be complex. Ensuring seamless communication and data exchange between new and legacy systems is critical. Determining which systems are responsible for inventory and order management, task creation, and mechatronics oversight require a clear plan. | Thorough planning, a clear understanding of existing systems, and robust communication protocols between new and legacy systems. Documenting which systems are responsible for inventory, order, task, and mechatronics management is key. |
| System Compatibility | Compatibility issues between new and existing systems can lead to project delays, cost overruns, and operational disruptions. | Thorough testing and validation ensure all systems work together seamlessly. Consider using middleware or APIs for easier integration. |
| Operational Disruptions | Implementing new technologies and processes can disrupt existing operations. | Careful planning, phased implementation, and effective communication with employees. Stagger deployments and provide sufficient notice to operators and supervisors. |
| Scope Limitations | Brownfield automation may not achieve the same level of optimization as a greenfield project. | Carefully evaluate needs and expectations to determine if brownfield automation is the right solution – including assessing limitations of the facility not originally designed for automated processes. |
| Employee Training and Change Management | Implementing new technologies and processes requires retraining employees and managing change. | Effective communication, training, and employee involvement are crucial for successful adoption and implementation. Gathering feedback, allaying fears, and clearly communicating benefits are essential. |
| Incremental Improvement Limitations | Brownfield projects generally return smaller incremental improvements than a greenfield project. | Understand while offering a solid ROI, improvements may not be as great as a greenfield project. Carefully weigh the benefits against the costs. |
Dematic designs and integrates scalable solutions into live environments, including:
- Automated Storage and Retrieval Systems (AS/RS)
- Robotics and goods-to-person systems
- Conveyors, sorters, and automated packing
- Advanced software orchestration (WES/WMS/WCS)
Dematic best practices for brownfield success
As the global authority in brownfield automation, Dematic follows a proven methodology to ensure every project delivers measurable results:
- Comprehensive Facility Assessment
We start with a detailed analysis of space, flow, and performance gaps.
- Tailored Solution Engineering
Designs are purpose-built around your constraints and opportunities.
- Phased Implementation Roadmap
Strategic scheduling minimizes disruption and preserves continuity.
- Technology Compatibility Planning
Systems are architected to ensure software and hardware synergy.
- Employee Training & Enablement
Ongoing education empowers your workforce to thrive with automation.
- Performance Monitoring
Monitoring performance against KPIs post-launch to drive continuous improvement and measurable ROI.
- Lifecycle Solutions & Servicing Planning
Long-term services, software updates, and support to maximize productivity and customer demand over time.
A strategic investment for the future
The shift to brownfield automation is a clear indication that companies are recognizing the value of reinvesting in their existing infrastructure. By carefully evaluating their needs, planning strategically, and partnering with experienced technology providers, companies can leverage brownfield automation to achieve significant improvements in capacity, throughput, cost, accuracy, and service levels.