appropriate warehouse automation - cilt

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WELCOME

Noel Blake Business Development Manager

Vanderlande Industries

Warehouse Design and Appropriate Automation

The thought processes when considering warehouse design and appropriate automation:

•Knowing when to move on from a manual process •Where are the savings? •Picking methods and the art of the possible

AGENDA

ADVERTISING FEATURE… ☺

Automated Material Handling Systems• From Concept to Life Cycle Support

• From Small to Large

OUR CORE BUSINESS

REFERENCES

Veghel, The Netherlands

A Warehouse ?FOOD

CARE/PHARMA

NON FOOD

MEDIA/GAMES

PARTS & COMPONENTS

AUTOMOTIVE

FOOTWEAR

APPAREL

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

CONSOLIDATION & SHIPPING

INTERNAL TRANSPORT

WAREHOUSE MANAGEMENT

Why is warehouse design so important?

80% of warehouse Building costs are in the floor slab and roof

In traditional rack storage systems 60% of the space is aisles

>60% of warehouse running costs are related to order picking

TLI/WERC Warehouse Benchmarking Survey (‘03) © Edward H Frazelle PhD

Why Automate?Drivers for warehouse automation

• Increasingly high customer service levels

• Difficulty to attract and retain qualified staff

• Scarcity of affordable warehouse space

• Pressure to reduce operational costs

• Increasing health, safety and ergonomics regulations

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GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

“Whilst both improved service and lower costs are significant reasons for companies to implement warehouse automation, it is the imperative of the need to accommodate growth that is found to be the main reason.”

Supply Chain Management: An International Journal, 2007, Vol 12(2) pp129-138Authors: Baker, P. & Halim, Z.An exploration of warehouse automation implementations: cost, service and flexibility issues

“In summary, it appears from industry figures that the adoption of warehouse automation is continuing to grow and, from this research, the main reasons are

associated with growth, cost and service.”

Why Automate?

Benefits of AutomationAn automated warehouse / distribution centre enables:• Item picking productivity up to 1.000 lines / man hour

• 40% reduction of order picking cost per case

• Order picking accuracy up to 99,99%

• Triple throughput per m2 in your warehouse

• 5-10 minutes learning curve of new operators

• Order lead time < 1 hour

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GrowthGrowthCostCost

ServiceService

Focus on the entire goods flow (from goods receiving, storage, orderpicking up to shipping) and the related information flow

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receiving storage picking packingconsolidation

shipping

Material flow

Design Process

Distribution Centre Processes

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

“There is nothing so useless as doing efficiently that which should not be done at all.”

(Peter Drucker, 1909-2005, Austrian born US management guru, writer and seminal business thinker.)

Appropriate mechanisation / automation….

OPERATING COSTS IN THE WAREHOUSEFOOD

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Receiving

Putaway

Order Picking

Shipping

World-Class Warehouse and Material Handling, Edward H Frazelle Ph.D

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

WAREHOUSE MANAGEMENT USP Benchmark Database

The Process of Picking

Order Picking

• 50% of traditional warehousing cost

• 55% of order picking is travelling

Warehousing cost (manual warehouse)

18%ReceivingOrderpicking StorageShipping

55%15%

10%20%

TravellingSearchingExtractingPaperwork

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Picking Concept Selection

100000

100 1000 10000 100000picks/hour

KU compact pick zone pick

order distribution

batch pick

order pick

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BPSBatch Picking System (BPS)

• Combining product demand for multiple orders into one pick instruction

• Picked products are sorted in second step

– Manually by operators

– Automatically by mechanised sortation

• Suitable for very large range of SKUs and throughput volume

Benefits

• Reduction of walking distance up to 90%• Minimise # pick walks• Avoid congestion• 99,99% delivery accuracy• Traceability

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ZPSZone Picking System (ZPS)

• Wide range of applications

• Operators responsible for a zone

• Order totes / cartons travel from zone to zone

• Supported by RF, pick-to-light andpick-by-voice

Benefits

• Reduction of walking distance• No operator congestion in aisles• Short processing times• Structured process, reduction of errors• Allows for pick/pack with single handling• Easy applicable

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ODSOrder Distribution System (ODS)

• Suitable for:Low range of products but high picks per hourHigh level of synergy between orders

• Pros:High operator efficiencyPick directly into shipping unitVery efficient for fast moving items

• Cons:High level of automationControls complexityCapital intensive

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CPSCompact Picking System (CPS)

• Goods to man system

• Suitable for retail, wholesale and B2C

• PICK@EASE ergonomic workstation

Benefits

• Sustainable performance 900 lines / hour

• Improve storage density by 60%• High customer service levels

– Accuracy 99,99%– Order leadtime < 1 hour– Rush order < 10 minutes

• 5 – 10 minutes learning curve• Certified and tested ergonomics (TNO / TÜV)

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Item Picking SystemsFOOD

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PARTS & COMPONENTS

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Item Picking Systems…the future!FOOD

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Case Picking SystemsFOOD

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PARTS & COMPONENTS

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Order Picking

Benefits

• Very simple• High flexibility• Relatively low cost

Case Picking SystemsFOOD

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Order Picking

Cons• Labour intensive• Ergonomically not optimal• Sensitive to picking errors• Pick sequence not flexible• Damaged products to store• Mixing MHE with people• Workload balancing and aisle

congestion

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

Standard routing, up and down

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

Standard routing, with cross over tunnels

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

WAREHOUSE MANAGEMENT Optimised Slotting

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

11.2% reduction in picking costs

3% larger facility

Russell Meller, professor of industrial engineering and director of the Centerfor Engineering Logistics and Distribution at the University of Arkansas

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

20.4% reduction in picking costs

Russell Meller, professor of industrial engineering and director of the Centerfor Engineering Logistics and Distribution at the University of Arkansas

GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

Appropriate Automation…..

Case Picking SystemsBatch Picking System (BPS) / Pick-to-belt

• Orders are grouped in batches

• Operators places products on a conveyor belt

• Products are sorted to consolidate the orders

• Especially used in food, non-food and fashion

Benefits

• Reduction of walking distance up to 90%• Minimise # pick walks• Avoid congestion• 99,99% delivery accuracy• Traceability

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Case Picking SystemsAutomated tote picking (ATP)

• Totes are stored in automated storage & retrieval system

• Transport to palletising

• Automatic palletising

• Particularly suitable for fresh foods(dairy, bread, meat, fruits & vegetables)

Benefits

• Hardly any manual labour necessary• No people in cold store• Increase storage density up to 60%• Energy efficiency

(compact storage in cold store)• Store friendly delivery

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Cross Docking• Cross Docking is a supply chain concept where

the DC does not keep stock.• All cases are distributed to the shops the same

day• Most applied in food, fashion & high tech• Automated cross docking based on sortation

gives many benefits– 50% reduction of manual labour– Triple throughput per m2 in the DC– Store-friendly delivery– 100% correct deliveries are ensured – Supply chain visibility (tracking and

tracing)

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Case Picking SystemsAutomated case picking (ACP)

• Fully automated picking of cartons and totes with different dimensions and shapes

• Suitable for (food) retail

• Justifiable from 20.000 cases/day

• Pay back time less than 4 years

Benefits

• 40% reduction of order picking cost per case • No dependency on labour resources • Avoidance of the ergonomic and safety risks of

traditional warehouses• Store friendly delivery multiple store formats • 100% accuracy (fully automated picking)• Short lead time (1st pallet ready in 15 min.)• Less floorspace required.

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Integrated Picking Systems• Integrated picking systems can contain

items, cases, totes as well as pallets

• Each product is picked via the most suitable order picking method

• Consolidation of the different flows is required

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Summary of Trends in ConceptsGeneral focus on:Integrated Warehouse approachIncreased mechanisation - FTE reductionAutomated consolidation modulesErgonomicsSpace saving solutionsProven technology

Goods to Man Solutions:Reductions in FTE, footprint and errorsBulk storage:

pallet highbays or miniload storesEquipment is becoming faster & cheaperErgonomicsHigh capacity workstationsShort learning periods for new personnel

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Summary of Approach to Automation• Data, data and more data.• Understand the processes fully• Consider the business drivers

– Space– Service levels– Ergonomics– FTE levels– Return On Investment (ROI)– Return On Capital Employed (ROCE)

• Did I mention data….

Accept it’s complicated and get advice…!

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GOODS RECEIVING

STORAGE

ORDER PICKING

SORTATION

CROSS DOCKING

INTERNAL TRANSPORT

Thank you for your attention

Noel Blakenoel.blake@vanderlande.com+44 7739 892531

appropriate warehouse automation - cilt

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