Innovation

KION: Pioneering the Future of Intralogistics – Innovation and Digital Transformation in the Supply Chain

The KION Group stands as a global leader in material flow solutions, significantly shaping the future of intralogistics.

In an era where global supply chains are becoming increasingly complex and dynamic, KION is driving the evolution of warehouse and logistics processes with an unwavering commitment to innovation and digitalization. The implementation of cutting-edge technologies and solutions is at the core of our mission.

As one of the technologically leading companies in the industry, the KION Group embodies Intralogistics 4.0. We understand that logistics demands are constantly increasing – from the need for faster delivery times to the call for more resilient and sustainable process designs. This is why our researchers and developers worldwide are dedicated to enhancing the impact and speed of developing new technologies, products, structures, and processes. With an average of more than 3 percent of our turnover invested in research and development annually, we primarily focus on New Energy, Automation, and Digitalization, especially connectivity.

KION leverages Artificial Intelligence (AI) and state-of-the-art technologies to revolutionize intralogistics, making it more efficient, adaptable, and cost-effective. A key concept is "Physical AI," which combines physical automation with virtual simulation to optimize processes in real-time.

• Digital Twins for Precise Planning: In collaboration with partners like NVIDIA and Accenture, KION is developing "digital twins" of warehouses. These highly detailed virtual replicas of real warehouse environments, supported by platforms such as NVIDIA Omniverse, enable the simulation of countless scenarios. From optimizing warehouse layouts and controlling entire robotic fleets to refining operational processes – all can be tested virtually without disrupting live operations. This allows for precise adaptation to dynamic market conditions and the rapid identification of efficiency potentials.
• Generative AI and Genetic Algorithms: KION employs generative AI to optimize Warehouse Management Systems (WMS) and accelerate software development for intralogistics processes. Furthermore, genetic algorithms are utilized to perfect task assignment for automated guided vehicles (AGVs). This leads to a significant increase in efficiency in task management and enables optimal resource utilization.

A prime example of combining new energy solutions, digitalization, and connectivity is our strategic partnership with ifesca GmbH . Together, we are working on an AI-assisted energy management platform for electric forklift truck fleets. AI ensures that energy is used more efficiently in warehouses. With the precise forecast results from the ifesca platform, our customers can:

• Optimize the planning of charging times for their industrial truck fleets.
• Avoid charging peaks, thereby significantly reducing energy costs.
• The platform can be easily and flexibly integrated into existing energy management systems via open interfaces, enabling additional savings and the achievement of sustainability goals.

High population density in cities and the growing demand for e-commerce products necessitate new logistics solutions to achieve "same-day deliveries." KION addresses this trend with the concept of micro-fulfillment : small, strategically placed warehouses in city centers, combined with networked and automated industrial trucks.

Another focus is on the "Last Mile," often the most expensive and labor-intensive segment of the supply chain. While production and warehousing processes are often highly automated, the last mile is still heavily reliant on manual labor. To support parcel delivery companies, our subsidiary Dematic is developing the innovative "PackMyRide" system. This automated system packs the delivery truck for the driver:

• A robot arm picks packages from the conveyor belt at the distribution center.
• The system analyzes the size and weight of each package.
• The truck's mobile racking units are optimally and space-efficiently loaded. This not only reduces the physical strain on drivers but also significantly decreases the time spent loading. The pilot system was successfully tested with DPD , an international courier, express, and parcel service provider.

At KION, workplace safety is paramount. We invest heavily in research and development concerning health and safety for our employees and customers. This includes:

• Driverless transport systems that automatically reduce their speed when encountering obstacles.
• Special safety vests that warn wearers of approaching traffic.
• Control systems that ensure stable positioning during work in high-rack warehouses.
• Fire protection methods for automated warehouses and solutions for fire prevention through oxygen reduction.

The digital transformation is a megatrend fundamentally changing how we live and work – especially in intralogistics. The KION Group actively drives digitalization in logistics and the automation of the material handling sector, thereby laying the groundwork for Industry 4.0. Teams of software specialists worldwide are developing innovative digital technologies. We are digitalizing not only our products but also our internal processes, employing forward-looking development methods such as "Agile Invention."

KION consistently focuses on connectivity and the real-time processing of large amounts of data (Big Data & Analytics). We understand that innovative software is crucial for future success. This is why we are increasingly evolving from a hardware to a software company. An example of this is the acquisition of the British software company "Digital Applications International Limited" (DAI), specializing in logistics applications. With DAI, KION subsidiary Dematic expands its digital offering to support transportation, storage, and goods distribution across the entire supply chain. The interplay of leading hardware and software creates enormous competitive advantages for our customers. DAI's industry-leading logistics automation software enhances Dematic's Warehouse Management System, enabling complete solution packages for fully, semi-automated, and manual warehouses, as well as across the entire supply chain.

Automated logistics vehicles are the future of efficient material flow. They relieve employees, increase handling performance, and reduce error and accident rates. Hundreds of thousands of vehicles from KION brands (Linde MH, Fenwick, STILL, Baoli, OM, Dematic) are in daily operation, continuously generating an immense amount of data about their surroundings.

• From Networked Forklift Trucks: Modern industrial trucks are equipped with sensors (laser scanners, cameras) to navigate safely. The data they collect is pooled in a cloud, analyzed, and used for process optimization – the Digital Twin. Warehouse equipment can independently report repairs, signal upcoming maintenance, or receive software updates. This leads to increased vehicle availability and reduced costs through maintenance, remote diagnosis, and predictive maintenance.
• To Networked Fleets: Data streams enable precise transparency regarding the utilization of the entire fleet. Fleet management systems like STILL neXXt fleet or Linde Connect process this data to plan more efficient routes, optimize charging processes, and manage the fleet across locations in real-time. Our collaboration with ifesca for AI-assisted energy management is also integrated here.
• To Networked Warehouses: KION thinks further: the collected data can be used to create high-resolution 3D maps of the warehouse or production facility. The ARIBIC research project, primarily driven by STILL, aims to create a Digital Twin of the environment. This live information enables the simulation of vehicle routes for process improvement and the detection of anomalies such as blocked travel paths. Ultimately, the entire warehouse structure can be optimized this way.

The more data collected and processed, the more crucial fast, mobile, and reliable internet becomes. KION relies on the further development and deployment of 5G. This mobile communications standard enables data transmission at up to 10 gigabits per second and offers a 1,000-fold greater network capacity than LTE. For Industry 4.0 and the networking of many devices in confined spaces (e.g., controlling driverless transport systems), 5G's performance and reliability aspects are critical. Another advantage is 5G's low energy consumption (sometimes only one-tenth of 4G), which is particularly important for mobile systems. Although widespread 5G network coverage is not yet established, KION is actively involved in research projects to be a leader in 5G applications in intralogistics.

The KION Group is pioneering VR solutions and AI applications in the intralogistics industry. The paradigm shift is that Artificial Intelligence is being used for traffic management for the first time. The robots communicate with each other via 5G, coordinate their routes independently, and autonomously accept and negotiate orders. Combining the capabilities of powerful sorting and conveying technology with the potential of autonomous AI-based systems opens new possibilities for efficiency and flexibility.

Virtual Reality (VR) is applied in product development, where digital 3D models accelerate the market readiness of new industrial trucks. KION also uses 3D models for customer appointments and digital events. For instance, KION subsidiary STILL offers an interactive showroom where customers can experience forklifts and their operator cabins in a freely rotatable 360° view. Dematic's TechCenter, which showcases innovative products in an automated warehouse, is also available as a virtual 3D tour. Linde Material Handling is using VR technology for driver trainings to improve safety awareness.

In addition to collaborating with technology leaders like NVIDIA and Accenture, KION maintains close relationships with research institutes, universities, and, of course, our customers. For example, we fund an endowed professorship for "Safe Autonomous Systems" at TU Dortmund University to advance research in AI and autonomous systems in logistics. This collaborative approach ensures that our innovations are always closely aligned with the market and the latest technological developments. Through this exchange, we develop the groundbreaking solutions that establish KION as a leading partner for shaping the global supply chain.