Presentation for Auto Care Alliance shareholders meeting, June 5, 2019 covering:
-Warehouse Layout for Optimal Efficiency
-Current Warehouse Equipment Technology to Drive Efficiency
-Warehouse Equipment Technology on the Horizon to Drive Efficiency
2. www.TriFactor.com
o Introduction
o Discussion Topic – Warehouse Layout for Optimal Efficiency
o Discussion Topic – Current Warehouse Equipment Technology
to Drive Efficiency
o Discussion Topic – Warehouse Equipment Technology on the
Horizon to Drive Efficiency
o Discussion Topic – Best Options for Scanners
o Q&A
o Conclusion
Today’s Agenda
3. www.TriFactor.com
About JJ Phelan
• Experience
• 15 Years at TriFactor
• 9 Years with US Navy
• Education
• BS Systems Engineering from USNA
• MS Electrical Engineering from Naval Postgraduate School
• MBA from University of South Florida
• Qualifications
• Licensed Professional Engineer (Florida)
• Certified General Contractor (Florida & Georgia)
Introduction
4. www.TriFactor.com
About TriFactor
• Wholly-Owned Subsidiary of ATSG
• Material Handling Systems Integrator
• Nationwide Project Portfolio
Introduction
Our Mission:
To design and implement engineered material handling systems in
partnership with industry-leading companies who distribute finished goods.
We benefit our customers by providing solutions that:
Reduce their distribution costs
Expand their distribution capacity
Improve their distribution quality
6. www.TriFactor.com
What Does it Mean to be Efficient?
Efficiency is the ability to avoid wasting materials, energy, efforts,
money, and time in doing something or in producing a desired result. In
a more general sense, it is the ability to do things well, successfully,
and without waste. Wikipedia
Warehouse Layout for Optimal Efficiency
7. www.TriFactor.com
Waste in a Warehouse
Activities that Add Waste
o Out of stock inventory & split shipments
o Travel time for associates to pick product
o Mishandled and damaged product
o Slow receiving and put-away processes
o Cumbersome replenishment process for forward pick area
o Slow pack-out processes
o Undefined or restricted personnel traffic aisles
o Undefined or restricted powered industrial truck traffic aisles
Warehouse Layout for Optimal Efficiency
Any Others?
8. www.TriFactor.com
First Things First – Understand Your Business
o SKU Velocity Data Analysis
o SKU Cube Data Analysis
o Building and Other Physical Constraints
o Customer Service Requirements
“It’s a capital mistake to theorize before one has data”
- Sherlock Holmes
Warehouse Layout for Optimal Efficiency
9. www.TriFactor.com
o Data and Velocity Analysis is a function of
• SKU Dimensions
• SKU Demand
o Use of Data and Velocity Analysis will determine
• Quantity and Type of Required Pick Faces
• Quantity and Type of Required Storage Medium
• Necessary Throughput for All Automated & Manual
Processes in the Fulfillment Operations
• Identify A, B & C Movers
• Provides Basis for Picking Method
Warehouse Layout for Optimal Efficiency
10. www.TriFactor.com
Warehouse Layout for Optimal Efficiency
Bulk Storage
Pallet Rack
Drive-In/Drive-Thru
Selective – Single or
Double Deep
Pallet Flow
Pushback
Cantilever Rack
Shelving
Wide-Span Shelving
Industrial Shelving
Carton Flow
Wheel Track
Full Width Roller
Skatewheel
12. www.TriFactor.com
Order Picking – Full Case
oStatic Pallet Rack
oPallet Flow
• Cluster
• Dedicated
oCarton Flow
Warehouse Layout for Optimal Efficiency
13. www.TriFactor.com
Order Picking – Split Case
oStatic Pallet Rack
oPallet Flow
• Cluster
• Dedicated
oCarton Flow
oShelving
Warehouse Layout for Optimal Efficiency
14. www.TriFactor.com
After the data and velocity analysis, the number of pick
faces required per storage medium can be determined.
Warehouse Layout for Optimal Efficiency
o This sets boundaries on the various storage media sizes
(bulk storage racking, pick modules, shelving, etc…)
o In most cases the ultimate results will require using a
combination of storing and picking mediums
15. www.TriFactor.com
Process Flow
Warehouse Layout for Optimal Efficiency
• Determine Natural Flow of the Building
– Straight Through
– U-Shaped
– Circular
• Identify Area Needed for Major Tasks
– Bulk Storage
– Forward Pick Area (Case Pick)
– Forward Pick Area (Broken Case Pick)
– Packing Area
– Sorting to Shipping Area
18. www.TriFactor.com
Process Flow
Warehouse Layout for Optimal Efficiency
• Use Automation to Minimize Associate Travel Times
– Route Totes/Shippers to Appropriate Pick Zones with Conveyor
– Use Goods to Person Technology (AS/RS, VLM, Carousels, etc…)
• Use Picking Technology to Aid Associates (Speed & Accuracy)
– Pick to Light
– Pick to Voice
– RF Plus PTV/PTL
• Use Technology to Maximize Packing Operations
– Rate Shopping Using Inline Scale & Scanner Prior to Pack Stations
– Case Erectors for Shippers
– Auto Dunnage & Sealing
– Auto Labeling with Ship Label and Packing Slip
19. www.TriFactor.com
o Building Characteristics
• Clear Height
• Column Spacing
• Structural “Hurricane” Bracing
• Floor Loading
• Location of Dock Doors
• Personnel Exit Doors
• Building Classification
– Fire Protection System
– Use & Occupancy Classification
– Means of Egress
Warehouse Layout for Optimal Efficiency
20. www.TriFactor.com
Other Design Considerations
o Trash Handling
o Recycling
o Empty Pallet Returns
o Personnel & Powered
Industrial Truck Aisles
o Traffic Aisle & Module
Lighting
Warehouse Layout for Optimal Efficiency
23. www.TriFactor.com
Warehouse Activities to Focus Technology
• Receiving
• Put-Away
• Replenishment
• Order Picking
• Packing
• Shipping
Current Warehouse Equipment Technology to Drive Efficiency
24. www.TriFactor.com
Order Picking Systems & Equipment
• Picker-to-Part vs Part-to-Picker
• Picking Aids and Technologies
• Guidelines for Equipment Selection
• Productivity Estimates
Current Warehouse Equipment Technology to Drive Efficiency
26. www.TriFactor.com
Pick to Conveyor Location
o Gravity in front of pick faceso Gravity straddling take away
Current Warehouse Equipment Technology to Drive Efficiency
27. www.TriFactor.com
Part-to-Picker
• Automated Storage & Retrieval System (AS/RS)
• Vertical or Horizontal Carousels
• Vertical Lift Module
• A-Frame Dispensing
Current Warehouse Equipment Technology to Drive Efficiency
28. www.TriFactor.com
Automated Storage and Retrieval Systems
o Benefits
Accommodates high number of SKUs
Travel time is minimized
Dense storage
Medium throughput
o Shortcomings
High capital investment
Replenishment may slow down
throughput
May have to move product from cases to
totes
Current Warehouse Equipment Technology to Drive Efficiency
29. www.TriFactor.com
Vertical or Horizontal Carousels
o Benefits
Accommodates high number of SKUs
Travel time is minimized
Dense storage
Real time operator productivity
tracking
o Shortcomings
Slow throughput
Replenishing during picking decreases
throughput
Relatively expensive
Current Warehouse Equipment Technology to Drive Efficiency
30. www.TriFactor.com
Current Warehouse Equipment Technology to Drive Efficiency
Vertical Lift Modules
o Benefits
Accommodates high number of SKUs
Travel time is minimized
Dense storage
Real time productivity tracking
o Shortcomings
Slow throughput
Size and weight limitations
31. www.TriFactor.com
A-Frame Dispensers
o Benefits
Fully automated – no labor to operate
High speed tracking
o Shortcomings
Requires manual feeding
Replenishment inaccuracies cause
shipping errors across many orders
Limited number of SKUs
High capital investment
Current Warehouse Equipment Technology to Drive Efficiency
33. www.TriFactor.com
Pick to Light
Pick to Voice
RFDirected Pick
Pick to Paper
0 50 100 150 200 250 300 350 400
Throughput (picks per hour)
PICKING TECHNOLOGY PRODUCTIVITY ESTIMATES
Current Warehouse Equipment Technology to Drive Efficiency
34. www.TriFactor.com
Pick Method Operational
Factors
Benefits Drawbacks
Paper Picking Small operations Low cost
Low risk
Low pick rate
Low pick accuracy
Long order cycle time
No pick verification
RF Picking All types of
operations
High accuracy
Paperless
Serial or lot # capture
Low pick rate
Pick-to-Light Low pick quantities
with high volumes
Medium to high
accuracy
High rate
“Hands Free”
High hardware cost
Costly reconfiguration
of pick area
Voice Picking Large number of
items spread across
a large area
Medium pick rate
Medium to high
accuracy
“Hands Free”
Medium to high cost
for system and
headsets
Current Warehouse Equipment Technology to Drive Efficiency
41. www.TriFactor.com
Warehouse Technology on the Horizon to Drive Efficiency
Automated Mobile Robots
• Benefits
– Reduce Wasted Travel Time
– Reduce Wasted Wait Time
– Scalability in Capacity as Demand Changes
• Drawbacks
– Limitations on Floors (Difficulty in Cubic Space Utilization)
– High Initial Capital Costs and Infrastructure Requirements
– SKU Size & Weight Limitations
44. www.TriFactor.com
Best Options for Scanners
Handheld Scanners
Corded/Cordless
Laser Scanners
Corded/Cordless
Linear Image Scanners
Corded/Cordless
2D Area Image
Scanners
45. www.TriFactor.com
Best Options for Scanners
Handheld Scanner
Feature/Requirement Laser Scanners
Linear Image
Scanners
2D Area Image
Scanners
Barcode Type 1D 1D 1D or 2D
Barcode Readability No Damage Damaged Damaged
Distance 1” to 40’+ 1” to 30” 1” to 30”
Environment Good Lighting Reads Under Low
Lighting
Reads at Any Angle
Price $ $$$ $$$$$
46. www.TriFactor.com
Best Options for Scanners
Mobile Handheld “Brick”
Scanner/Computer
Ring Scanner
Attachment
Gun Grip
“Brick on a Stick”
Handheld Scanner/Computers
47. www.TriFactor.com
Best Options for Scanners
Handheld Scanner/Computers
• No Need to Connect Scanner to Separate Computer
• Supports Picking Aid Technologies (Voice, Lights, Ring)
• Data Transfer Thru Multiple Wireless Technologies
• Android or iOS Operating System With Software Apps
• Keypads and Touchscreens for Interface
• Hard Drive for Data Storage
• Mountable or Wearable
• Reads All Barcode Types
48. www.TriFactor.com
Best Options for Scanners
• Benefits
– Lightweight
– User Interface
– Operating System for App
Development
– Bluetooth, WiFi, RF, GPS
– 1D, 2D & Image Scan
– Multiple Environments
• Drawbacks
– Expensive
– Touch Screen Protection
Smartphone
Sled
Tablet
Scanner
Touch
Computer
49. www.TriFactor.com
Best Options for Scanners
Informal Survey
Manufacturer
Laser
Scanners
Linear Image
Scanners
2D Area
Image
Scanners
Computer/
Scanners
Tablet/
Smartphone
/Touchscreen
Motorola/
Symbol
Honeywell
Datalogic
Intermec
Zebra
