Appropriate Warehouse Automation - CILT
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Appropriate Warehouse Automation - CILT

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This presentation was initially given at a Chartered Institute of Logistics and Transport (CILT) Seminar and discusses when and how it\'s correct to introduce automation to a warehouse or distribution ...

This presentation was initially given at a Chartered Institute of Logistics and Transport (CILT) Seminar and discusses when and how it\'s correct to introduce automation to a warehouse or distribution centre.

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Appropriate Warehouse Automation - CILT Appropriate Warehouse Automation - CILT Presentation Transcript

  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Noel Blake Business Development Manager Vanderlande Industries WELCOME
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY 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
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY ADVERTISING FEATURE… J
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY OUR CORE BUSINESS Automated Material Handling Systems • From Concept to Life Cycle Support • From Small to Large
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY REFERENCES
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Veghel, The Netherlands
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD A Warehouse ?CARE/PHARMANON FOODMEDIA/GAMESB2CPARTS &COMPONENTS3PLAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGEORDER PICKINGSORTATIONCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORTWAREHOUSEMANAGEMENT
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY 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
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Why Automate? Drivers for warehouse automationCARE/PHARMA • Increasingly high customer service levelsNON FOOD • Difficulty to attract and retain qualified staff • Scarcity of affordable warehouse spaceMEDIA/GAMES • Pressure to reduce operational costsB2C • Increasing health, safety and ergonomics regulationsPARTS &COMPONENTS3PLAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODS Why Automate?RECEIVINGSTORAGE “Whilst both improved service and lower costs are significant reasons forORDER PICKING companies to implement warehouse automation, it is the imperative of the need to accommodate growth that is found to be the main reason.”SORTATION “In summary, it appears from industry figures that the adoption of warehouse automation is continuing to grow and, from this research, the main reasons areCROSSDOCKING associated with growth, cost and service.”CONSOLIDATION& SHIPPINGINTERNALTRANSPORT Supply Chain Management: An International Journal, 2007, Vol 12(2) pp129-138 Authors: Baker, P. & Halim, Z.WAREHOUSE An exploration of warehouse automation implementations: cost, service and flexibility issuesMANAGEMENT
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Benefits of AutomationCARE/PHARMA An automated warehouse / distribution centre enables: • Item picking productivity up to 1.000 lines / man hourNON FOOD • 40% reduction of order picking cost per caseMEDIA/GAMES Growth • Order picking accuracy up to 99,99% CostB2C • Triple throughput per m2 in your warehouse ServicePARTS &COMPONENTS • 5-10 minutes learning curve of new operators3PL • Order lead time < 1 hourAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Focus on the entire goods flow (from goods receiving, storage, orderCARE/PHARMA picking up to shipping) and the related information flowNON FOODMEDIA/GAMESB2CPARTS &COMPONENTS3PLAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Distribution Centre Processes receiving storage picking packing shipping consolidation Material flow Design Process
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGEORDER PICKING “There is nothing so useless as doingSORTATION efficiently that which should not be doneCROSSDOCKING at all.”CONSOLIDATION& SHIPPING (Peter Drucker, 1909-2005, Austrian born US management guru, writer and seminal businessINTERNAL thinker.)TRANSPORTWAREHOUSEMANAGEMENT
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Appropriate mechanisation / automation….
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD OPERATING COSTS IN THE WAREHOUSECARE/PHARMA ReceivingNON FOOD PutawayMEDIA/GAMES Order PickingB2C ShippingPARTS &COMPONENTS3PLAUTOMOTIVE World-Class Warehouse and Material Handling,FOOTWEAR Edward H Frazelle Ph.DAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODS The Process of PickingRECEIVINGSTORAGEORDER PICKINGSORTATIONCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORTWAREHOUSEMANAGEMENT USP Benchmark Database
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Order Picking Warehousing cost (manual warehouse)CARE/PHARMA • 50% of traditional warehousing cost 18% 18% ReceivingNON FOOD 14% OrderpickingMEDIA/GAMES Storage ShippingB2C 50%PARTS &COMPONENTS 20%3PL • 55% of order picking is travelling 10% Travelling SearchingAUTOMOTIVE Extracting PaperworkFOOTWEAR 15% 55%APPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY Picking Concept SelectionFOODCARE/PHARMA 100000NON FOODMEDIA/GAMES 10000 # SKU compact pick zone pick batch pickB2CPARTS &COMPONENTS 10003PL order pick order distributionAUTOMOTIVE 100 100 1000 10000 100000FOOTWEAR picks/hourAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD BPS Batch Picking System (BPS)CARE/PHARMA • Combining product demand for multiple orders into one pick instructionNON FOOD • Picked products are sorted in second stepMEDIA/GAMES – Manually by operators – Automatically by mechanised sortationB2C • Suitable for very large range ofPARTS & SKUs and throughput volumeCOMPONENTS3PL Benefits • Reduction of walking distance up to 90%AUTOMOTIVE • Minimise # pick walks • Avoid congestionFOOTWEAR • 99,99% delivery accuracy • TraceabilityAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD ZPS Zone Picking System (ZPS)CARE/PHARMA • Wide range of applicationsNON FOOD • Operators responsible for a zone • Order totes / cartons travel from zone to zoneMEDIA/GAMES • Supported by RF, pick-to-light and pick-by-voiceB2CPARTS &COMPONENTS Benefits • Reduction of walking distance3PL • No operator congestion in aisles • Short processing timesAUTOMOTIVE • Structured process, reduction of errors • Allows for pick/pack with single handlingFOOTWEAR • Easy applicableAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD ODS Order Distribution System (ODS)CARE/PHARMA • Suitable for:NON FOOD Low range of products but high picks per hour High level of synergy between ordersMEDIA/GAMES • Pros:B2C High operator efficiency Pick directly into shipping unitPARTS &COMPONENTS Very efficient for fast moving items3PL • Cons: High level of automationAUTOMOTIVE Controls complexity Capital intensiveFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD CPS Compact Picking System (CPS)CARE/PHARMA • Goods to man systemNON FOOD • Suitable for retail, wholesale and B2C • PICK@EASE ergonomic workstationMEDIA/GAMES BenefitsB2C • Sustainable performance 900PARTS & lines / hourCOMPONENTS • Improve storage density by 60%3PL • High customer service levels – Accuracy 99,99% – Order leadtime < 1 hourAUTOMOTIVE – Rush order < 10 minutes • 5 – 10 minutes learning curveFOOTWEAR • Certified and tested ergonomics (TNO / TÜV)APPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Item Picking SystemsCARE/PHARMANON FOODMEDIA/GAMESB2CPARTS &COMPONENTS3PLAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Item Picking Systems…the future!CARE/PHARMANON FOODMEDIA/GAMESB2CPARTS &COMPONENTS3PLAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Case Picking Systems Order PickingCARE/PHARMA BenefitsNON FOOD • Very simple • High flexibilityMEDIA/GAMES • Relatively low costB2CPARTS &COMPONENTS3PLAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Case Picking Systems Order PickingCARE/PHARMA ConsNON FOOD • Labour intensive • Ergonomically not optimalMEDIA/GAMES • Sensitive to picking errors • Pick sequence not flexibleB2C • Damaged products to store • Mixing MHE with peoplePARTS &COMPONENTS • Workload balancing and aisle congestion3PLAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGEORDER PICKINGSORTATIONCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORT Standard routing, up and downWAREHOUSEMANAGEMENT
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGEORDER PICKINGSORTATIONCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORT Standard routing, with cross over tunnelsWAREHOUSEMANAGEMENT
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGEORDER PICKINGSORTATIONCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORTWAREHOUSEMANAGEMENT Optimised Slotting
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGE 3% larger facilityORDER PICKING 11.2% reduction in picking costsSORTATIONCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORT Russell Meller, professor of industrial engineering and director of the CenterWAREHOUSE for Engineering Logistics and Distribution at the University of ArkansasMANAGEMENT
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGE 20.4% reduction inORDER PICKINGSORTATION picking costsCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORT Russell Meller, professor of industrial engineering and director of the CenterWAREHOUSE for Engineering Logistics and Distribution at the University of ArkansasMANAGEMENT
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGEORDER PICKINGSORTATIONCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORTWAREHOUSEMANAGEMENT Appropriate Automation…..
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Case Picking Systems Batch Picking System (BPS) / Pick-to-beltCARE/PHARMA • Orders are grouped in batchesNON FOOD • Operators places products on a conveyor belt • Products are sorted to consolidate the ordersMEDIA/GAMES • Especially used in food, non-food and fashionB2C BenefitsPARTS &COMPONENTS • Reduction of walking distance up to 90%3PL • Minimise # pick walks • Avoid congestionAUTOMOTIVE • 99,99% delivery accuracy • TraceabilityFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Case Picking Systems Automated tote picking (ATP)CARE/PHARMA • Totes are stored in automated storage & retrieval systemNON FOOD • Transport to palletisingMEDIA/GAMES • Automatic palletising • Particularly suitable for fresh foodsB2C (dairy, bread, meat, fruits & vegetables)PARTS &COMPONENTS Benefits3PL • Hardly any manual labour necessary • No people in cold storeAUTOMOTIVE • Increase storage density up to 60% • Energy efficiencyFOOTWEAR (compact storage in cold store) • Store friendly deliveryAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Cross Docking • Cross Docking is a supply chain concept whereCARE/PHARMA the DC does not keep stock. • All cases are distributed to the shops the sameNON FOOD day • Most applied in food, fashion & high techMEDIA/GAMES • Automated cross docking based on sortation gives many benefitsB2C – 50% reduction of manual labour – Triple throughput per m2 in the DCPARTS & – Store-friendly deliveryCOMPONENTS – 100% correct deliveries are ensured3PL – Supply chain visibility (tracking and tracing)AUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Case Picking Systems Automated case picking (ACP)CARE/PHARMA • Fully automated picking of cartons and totes with different dimensions and shapesNON FOOD • Suitable for (food) retailMEDIA/GAMES • Justifiable from 20.000 cases/day • Pay back time less than 4 yearsB2C BenefitsPARTS &COMPONENTS • 40% reduction of order picking cost per case • No dependency on labour resources3PL • Avoidance of the ergonomic and safety risks of traditional warehousesAUTOMOTIVE • Store friendly delivery multiple store formats • 100% accuracy (fully automated picking)FOOTWEAR • Short lead time (1st pallet ready in 15 min.) • Less floorspace required.APPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Integrated Picking Systems • Integrated picking systems can containCARE/PHARMA items, cases, totes as well as palletsNON FOOD • Each product is picked via the most suitable order picking methodMEDIA/GAMES • Consolidation of the different flows is requiredB2CPARTS &COMPONENTS3PLAUTOMOTIVEFOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Summary of Trends in Concepts General focus on:CARE/PHARMA Integrated Warehouse approachNON FOOD Increased mechanisation - FTE reduction Automated consolidation modulesMEDIA/GAMES Ergonomics Space saving solutionsB2C Proven technologyPARTS &COMPONENTS Goods to Man Solutions: Reductions in FTE, footprint and errors3PL Bulk storage: pallet highbays or miniload storesAUTOMOTIVE Equipment is becoming faster & cheaper ErgonomicsFOOTWEAR High capacity workstations Short learning periods for new personnelAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYFOOD Summary of Approach to Automation • Data, data and more data.CARE/PHARMA • Understand the processes fullyNON FOOD • Consider the business drivers – SpaceMEDIA/GAMES – Service levels – ErgonomicsB2C – FTE levels – Return On Investment (ROI)PARTS &COMPONENTS – Return On Capital Employed (ROCE) • Did I mention data….3PLAUTOMOTIVE Accept it’s complicated and get advice…!FOOTWEARAPPAREL
  • PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANYGOODSRECEIVINGSTORAGEORDER PICKINGSORTATION Thank you for your attentionCROSSDOCKINGCONSOLIDATION& SHIPPINGINTERNALTRANSPORTWAREHOUSE Noel BlakeMANAGEMENT noel.blake@vanderlande.com +44 7739 892531