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TRANSCRIPT
Towards a Fully Automated Distribution Center –A Customer’s Perspective
Agenda
• Why an Automated Warehouse/DC
• Define the Scope
• Describe the Scope
• Design and Technology Selection
• Vendor Selection
• Project and Integration Management
• Conclusions
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Why an Automated Warehouse/DC
Is an automated warehouse a pay-back investment? Does such an investment make sense for markets like Greece?
And the answer is…YES!
Cost per pallet is high: from 500 € in existing building to 1000 € in a greenfield scenario, so it looks expensive comparing with conventional systems.
BUT we should consider…
• Space constraints and utilization – cost of land/volume, cost reduction due to stock centralization
• Labor cost and skillful labor scarcity
• Speed of activities execution
• Customer needs and requirements
• Productivity
• …and last but not least FUTURE trends: AI, IIoT, Machine Learning
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Considering these a warehouse
automation project can deliver more
than 25% ROI
Define the Scope
• Greenfield or Building-Filled?
– Greenfield: the building will adapt to automation
– Building-filled: the automation has to adapt to building restrictions
• What part/activities of operations to automate?
– E2E including RMs? from production infeed to loading?
– Only FGs or RMs as well?
– Receiving & Put away?
– Picking & Loading?
• Granularity
– Full pallet?
– LTFP/Delayering?
– Case?
– Unit?
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Describe the Scope
In order to properly describe and deploy the scope there are two basic tools:
• The User Requirements Specifications– Logistics data of all SKUs
– Granularity – Outbound Volume as Full Pallet/LTFP/Case/Unit
– Days of inventory per SKU and Storage needs
– Growth rates for the next 5-10 years
• The Blueprint– Receiving from production
– Production split
– Outbound to customer
– Receiving from vendor
– Customer Return
– Reservations
– Stock status changes
– Replenishment – External WHs / Copacking
– Recalls
– Scrapping
– Physical Inventory
– Warehouse storage efficiency
– Internal repacking for customer orders
– Contingency activities5
Design and Technology Selection
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➢ From ASRS stacker cranes single mast, dual load, single or double deep for high velocity environments and significant SKUs variety…
➢ and ASRS stacker cranes multiple (up to 6)-deep storage suitable for low variety, high inventory, high throughput environments…
➢ to mover-satellite for the automation of multiple depth storage of pallets of high volume SKUs
Design and Technology Selection
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➢ to AGVs – LGVs with multiple functionalities
➢ to Cube Storage Automation for very high storage density ratio and very high rate of throughputs
Design and Technology Selection
• It took one year to complete the final design
• A hybrid system of Mover-Satellite and AGVs was the most efficient solution
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Vendor Selection
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Down select
Screen 1
◆ Vendor profiles
◆ Phone screens
◆ Vendor documentation
Screen 2
◆ RFI responses
◆ Automation experience
◆ Capabilities
◆ Resources capacity and availability
◆ Financial stability
Screen 4
◆ Conformance to the requirements
◆ RFP reviews
◆ Site visits
◆ Cost analysis
◆ Partnership approach
Objectives,
Preliminary
Scope, URS,
Blueprint
>10
Vendors2-5<10
Vendors
1 or 2
Solution (RFP)
Screen 3
◆ Proposed solution attributes
◆ Ability to meet the requirements
◆ Preliminary cost and operating details evaluation
1-2 Months
InvestigateMobilize
2-3 Months 2-3 Months1-2 Months
Solution (Negotiation &
Finalize) / Contract (LOI)
Award
Conceptualize
Contract can take an
additional 3-4 months, but: ➢ a good contract will account
for at least 50% of project success
➢ a bad contract will lead to disputes, delays and extra costs
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Vendor Selection
VendorStacker Cranes Mover-Satellite AGVs-LGVs Cube Storage
Automha x
Autostore x
Consoveyo x x
Daifuku x x
Dematic x x x x
Elettric 80 x x
Ocme x
Swisslog x x x
System Logistics x x x
Project and Integration Management
Project Manager accountabilities:
➢ Is the primary point of contact for Customer and Vendor, throughout the design, installation, and system acceptance phases of the project
➢ Has primary responsibility for executing all activities required to provide an accepted solution
➢ Provides project updates throughout all phases of the project on a weekly or bi-weekly basis:
▪ a review of the current project schedule with estimated completion dates of all significant milestones
▪ a detailed review of all activities scheduled to occur prior to the next scheduled update
➢ Communicates with Vendor’s, Customer’s and other contractors’ project management, building on all issues related to interfaces between the building, the infrastructure and the automation system
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Project and Integration Management
Project Management has to be combined with Integration Management:
❑ Mechanics: the dynamics and the statics of the automation equipment and
machines
❑ Electronics: information is translated into electrical signals
❑ IT: the technique for automatic processing of information via electronic
processes
❑ Mechatronics: the engineering of the interaction between mechanics,
electronics and IT
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WMS
Videos
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Conclusions
• Warehouse automation despite the high investment can pay back
• Properly defining and describing the scope with the URS and the Blueprint
will lead us to the right selection of design and technology
• Proper vendor selection and careful contract compilation will save time and
money
• Project Management has to be combined with Integration Management to
ensure the success of a warehouse automation project
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THANK YOU
MICHALIS RANTIK
TEL. 6937239278
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