From machine builder to software-driven system integrator

“Intralogistics, at its core, is never a standard story,” says Ralph Wijnands, CEO of ARCO. “Every customer wants more capacity, fewer errors and systems that can grow with their business. The question is: how do you set it up so that it performs optimally today and still will in five years?” 

ARCO, now a leading European player in intralogistics systems integration, has a remarkable history. It grew from transportation systems to high-end mechanical engineering and in 2016 shifted its course to software and systems integration. For years now, it has employed more software engineers than hardware engineers. That mix of mechanical roots and software-driven innovation drives the company's rapid rise. With more than eighty employees, ARCO is growing rapidly - and this is just the beginning.

What a modern system must meet

The complexity in intralogistics has increased dramatically in recent years. “Everything is interlocking more and more,” says Wijnands. “The interplay of hardware, software and data is becoming more complicated, available space is more limited, personnel scarcer, while the pressure on output is only increasing. Therefore, the solution that works today will look very different than it did five years ago - and again five years from now. That means always thinking ahead. A system must deliver results today, but also be scalable and move with tomorrow's volumes and requirements.

He outlines what he believes the ideal intralogistics solution looks like: “All components must function as one system. Hardware, software and data must work together seamlessly. You have to be able to see live where things go wrong or where capacity is lost, so you can improve immediately. In addition, the system must provide the space and flexibility to grow further, without expensive rebuilding or long downtime. That's why we work with an open setup, so customers can always add the modules that fit best - now and later.”

Synthesize & KANSI: proprietary WCS and data platform

This future thinking is reflected not only in the way ARCO designs projects, but also in its own innovations. For example, the company developed its own WCS: Synthesize. “That forms the brain of our solutions. Synthesize translates processes into logic and ensures that hardware and software work together optimally. And because we have that in-house, we can tailor it exactly to a customer's specific situation.”

In addition, ARCO launched KANSI, a platform that provides real-time insight into system performance. “With KANSI, customers can immediately see where capacity is being lost or where a line is underperforming. You don't have to be a data analyst to understand that; the dashboards are set up in such a way that team leaders and operators can use them immediately. The result is fewer errors, less downtime and more output with the same people.”

According to Wijnands, that is exactly what the market is asking for now. “Everyone is looking for ways to do more with fewer hands. Order volumes continue to grow, but personnel are scarce. With solutions like Synthesize and KANSI, you can increase capacity without increasing your reliance on additional employees. That makes a huge difference, especially for fast-growing e-commerce companies and retailers.”

Investing in innovation and R&D

To continuously deliver better solutions, ARCO invests in its own innovation center and R&D department. The center is focused on knowledge building, standardization and in-house testing - including of software modules in conjunction with hardware. “Precisely by developing a lot in-house, we keep a grip on performance and flexibility. This allows us to innovate in specific partial solutions. That brings challenges, but it also lets us take that extra step when a project demands it.”

According to Wijnands, that approach ensures speed and certainty in projects. “Our customers know that we don't just integrate components, but that we control the entire chain: from mechanics and controls to software and data analysis. That makes us independent and flexible. We can always choose the best combination, whether it is our own modules or those of a partner. Because in the end it's all about one thing: the highest possible performance for the customer.”

According to Wijnands, the results speak for themselves. “We see that customers are running more output with the same people. That they get a grip on their processes and can scale up faster. To me, that confirms that we are doing the right things. Intralogistics is never finished; it is a continuous process of improvement and we do that together with our customers: making progress together.”