strategies to optimize distribution center business...
TRANSCRIPT
© 2012 Material Handling Industry®. Copyright claimed as to audiovisual works of seminar
sessions and sound recordings of seminar sessions. All rights reserved.
Welcome to Session #323
Presented by:
Robert Rienecke, TGW Group
Dan Labell, Westfalia Technologies, Inc.
Burke McCarthy, Savoye Retrotech
Strategies to Optimize Distribution
Center Business Results via Automation
Projects
Sponsored by the
Member Companies of:
DC Challenges
Rising Costs
• Energy, labor, transport, SKUs
Market demands
• On-time delivery, accuracy, more complex orders, corporate social responsibility
Regulations
• OSHA, EPA, FDA, Homeland Security
• HR 756 excessive dock detention penalty
Automation Concerns
Too complex and inflexible to respond to new / unforeseen
requirements
Lower labor cost cannot justify ROI
Company has no success with automation
Order profiles increasingly complex
Systems are expensive / hard to maintain
Automation Adoption
Thresholds
If DC handles ~ 200,000 pallets annually
If DC handles ~ 5,000 to over 10,000 cartons or totes per month
If inventory turns > once per month
Other Factors
• Multiple outside warehouses
• High cost for labor
o Refrigerated and frozen
• Competitive pressures
Automation Benefits
Increase capacity – to move higher volume of goods with >
speed, accuracy, security
Provides automated delivery for goods to person picking
systems
Reduces operating costs
Uses less energy, labor, space
Turns trucks at docks faster
Case Study I – Beverage Industry
System Challenges
Growth of company inventory will
exceed storage capacity of warehouse
Changes in packaging do not permit
greater than 2 high floor storage
Order fulfillment / throughput needs to
be faster to meet planned growth targets
Order fulfillment error rate is too high
and dissatisfies customers
Employee turnover
Solution: Automate Warehouse
AS/RS installed in existing low rise
building & a high rise addition;
tripling storage density
Automation provides faster &
consistent order processing
WCS/WMS optimizes all product
flows and order processing;
accurate inventory and orders
Reduced labor, better work
environment, less energy use
AS/RS Solution
AS/RS
Buffer
Order Ready
AS/RS Solution Results
Order selection activities moved
from satellite warehouses to
automated DC
Redundancy
Integrated reserve storage &
automated replenishment
System controlled & optimized
through WMS/WCS
Store-ready pallets – full layer
and mixed layer
Case Study II – CPG Industry
System Challenges
Rapid growth in business volume
Space constrained
Outside warehouse cost
Increasing order fulfillment complexity
Deep Lane Transfer Cross Aisle Transfer
Network Route Optimization Software
Vertical Transfer Lift
Dock
Before Automation
50-75 ft.
Virtual Dock Dock
After: Truck loading with automated system
25 ft.
System Results
Highly efficient use of available space
Higher volume, faster throughput, ability to handle & ship
complex orders
Load 100 trucks per day
• 4 dock doors / 2 daylight shifts
• 4 - 5 fork truck operators
Low energy use & maintenance
Case Study III – Industrial Parts Distribution
System Challenges
Consolidating two facilities
New DC to maximize vertical storage
Require faster goods to man picking system
Improve visibility of inventory and order picking activity
System Solution
5 aisle dual-mast single-deep
solution
22,500 tote storage locations
• 12,600 @ 230mm high
• 9,900 @ 330mm high
Design rate of 340 dual cycles
Designed for metal trays with
multiple compartments
System Solution Goods to Person Picking Conveyor
5 – Pick & drops to / from the cranes
1 – Transport loop solution for trays
Tray sizing stations / overweight check scales
5 – Replenishment / picking stations
Goods to Person
System Solution Results
Efficient use of available warehouse space
Higher volume and faster order picking
Reduction in labor requirements when compared to previous
manual system
Ability to monitor and report system activity to operations and
management staff
Low cost for energy and maintenance
Why Automated Storage
Systems?
Goods to man systems reduce time and labor for order picking
activities
Labor Savings reduces operating costs
Dense storage systems minimize floor space requirements
Visibility and management of inventory & pick locations for
request via WCS management of AS/RS
“Green” issues of energy consumption.
© 2012 Material Handling Industry®. Copyright claimed as to audiovisual works of seminar
sessions and sound recordings of seminar sessions. All rights reserved.
For More Information:
www.mhia.org/industrygroups/as-rs
AS/RS Members
Visit MODEX 2012 Booth #5406