SlideShare a Scribd company logo
1 of 14
Download to read offline
Decreasing Warehouse Costs
         ECR Baltic
        Leo Mikkonen
Optiscan Market Area



 Turnover       12 million €
                                             Norway              Finland
 Personnel      50

 1 750 000 order lines picked every day                 Sweden               Russia


                                              Denmark              Baltics




“Optiscan has improved our business” (95% of customers, Optiscan Customer Survey)
Voice-Directed Work
How does Voice work?
• “Pick list” downloaded through WLAN to Talkman
       Talkman:        (Go to) Aisle 11
       Picker:         Ready
       Talkman:        (Go to location) 101 level 1
       Picker:         2-3
       Talkman:        (Take) 5
       Picker:         5

• Very short “communications” with the Talkman
• Talkman uses built-in Speech Recognition software and Text–to–
Speech Engine
• Talkman TASK = Application that guides picker through the work
process
Voice benefits- Accuracy
Accuracy increase to 99,98+%

• Check digits

• Eyes-free on the product while speaking
  check digit and taking product

• Avoid same check digit at adjacent isles
  on the same location
Customer’s reported Picking Errors
                                 Picking Errors Development 2007
1,20
                                 1,04
                                                                            Oppstart
1,00                                                                      stemmeplukk
                          0,96

                                                      Pick-by-Voice starts

0,80
                   0,75
                                        0,75


0,60
          0,52


0,40

                                               0,30
                                                                                           0,16
0,20                                                               0,12
                                                                             0,06
                                                                                                         0,04   0,03
                                                          0,00                                    0,01                        0,02
                                                                                                                       0,00
                                                                                    0,04
0,00
       Av %      Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week
                 39   40   41   42   43   44   45   46   47   48   49   50   51   52   1
Customer’s reported Lack of Products
                                   Lack of Products 2007
1,40
              1,23

1,20                                                                Oppstart
                                                                  stemmeplukk

                     1,07
1,00
                                             Pick-by-Voice starts
                            0,92
0,80
                                    0,75

0,60                                                0,66   0,66



                                           0,48
0,40
       0,39                                                                       0,39
                                                                           0,36

                                                                    0,28
0,20                                                                                     0,23          0,24
                                                                                                0,22          0,07
                                                                                                                     0,04


0,00
       Av %   Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week
              39       40     41      42   43      44        45     46     47      48    49     50      51    52     1
Voice benefits- Efficiency
Productivity increase by 15 – 35%

   • Start and end of picking routines

   • Hands-free, Eyes-free

   • Batch picking (multiple orders)

   • Decreasing errors
      - Complaints, returns management and
        handling, re-picking/-sending, saldo
        corrections...

   • Replenishment

   • Reduced training time for new employees
Voice benefits- Health & Safety
Work safety, health and ergonomics improved

   • Pickers always on planned routes
   • Eyes-free
     - concentrate on moving, not reading lists

   • Hands-free lifting more ergonomic
     - less muscle strains etc.

   • Less broken items when lifting with both hands
Voice benefits- Process control

Easier process management

   • Real-time picking control

   • Automatic process control

   • Automatic reporting
Pick-n-Go®
Boost productivity in order-picking
    Increase picker productivity by 50-100%

    Driverless trucks escort the pickers
      Give the picker a more efficient tool
            Automated pick-up of empty roller container / pallet
            No Step On/Off vehicle
            Automated dispatch of fulfilled customer order

    Perfect combination: 1 + 1 = 3 !!
        AGV technology combined with Pick-by-Voice

    In existing environment
        Same Infrastructure
         Same Process and IT solution
Pick-n-Go® Solution
Generic ROI model – example:
    Today pickers spend 30 min on a pick run                                   7 min   0 min
        Preparation for pick run (6 min)
            Order administration                                           Dispatch
            Empty pallet pick-up                 6 min   1 min
                                                                            outbound         Stretch
            Travel to 1st pick location              Empty
        Picking first to last pick (17 min)                                 goods          wrapping
        Dispatching the goods (7 min)                 Pallet                                 and
            Travel to stretch wrapper                pick-up                               labelling
            Secure and label goods
            Travel to and Drop at correct dock
                                                                17 min   15 min
    Pickers supported by Pick-n-Go only
     spend 16 min on same pick run
        Preparation for pick run (1 min)           Dispatch
            Walk to 1st pick location
                                                    outbound
                                                                                  Man-to-Goods
        Picking first to last pick (15 min)                                        floor level
            No step on / off truck                  goods
        Dispatching the goods (0 min)                                            order-picking
    Gain:                                                                          Pick-n-Go
        30 – 16 = 14 min
        14 / 30 = 46,7% cut time
         Productivity gain: 87,5% 1/(1-0,467)                      Next pick run 14 min earlier!!
        Each picker produce 87,5% more                                    30     16 min
Advantages of Voice & Pick-n-Go

Pick accuracy significantly improved         99.98+%

Faster picking, Voice                        15-35+%
Faster picking, Pick-n-Go (Voice required)   50-100%

Work safety and ergonomics improved

Improved customer satisfaction
www.optiscangroup.com

More Related Content

More from ECR Community

Ecr award arla_foods_billa
Ecr award arla_foods_billaEcr award arla_foods_billa
Ecr award arla_foods_billaECR Community
 
Ecr award nestle 7th continent
Ecr award nestle   7th continentEcr award nestle   7th continent
Ecr award nestle 7th continentECR Community
 
Ecr award pepsico magnit
Ecr award pepsico magnitEcr award pepsico magnit
Ecr award pepsico magnitECR Community
 
Ecr award danone makarov
Ecr award danone makarovEcr award danone makarov
Ecr award danone makarovECR Community
 
Ecr award unilever magnit
Ecr award unilever   magnitEcr award unilever   magnit
Ecr award unilever magnitECR Community
 
ECR Award 2011 Danone - Victoria
ECR Award 2011 Danone - VictoriaECR Award 2011 Danone - Victoria
ECR Award 2011 Danone - VictoriaECR Community
 
ECR Award 2011 P&G - X5
ECR Award 2011 P&G - X5ECR Award 2011 P&G - X5
ECR Award 2011 P&G - X5ECR Community
 
ECR Award 2011 Bacardi-Metro
ECR Award 2011 Bacardi-MetroECR Award 2011 Bacardi-Metro
ECR Award 2011 Bacardi-MetroECR Community
 
Ecr award 2011 kimberly clark x5
Ecr award 2011 kimberly clark   x5 Ecr award 2011 kimberly clark   x5
Ecr award 2011 kimberly clark x5 ECR Community
 
ECR Award 2011 Arla-Lenta
ECR Award 2011 Arla-LentaECR Award 2011 Arla-Lenta
ECR Award 2011 Arla-LentaECR Community
 
ECR Award 2011 Valio-Lenta
ECR Award 2011 Valio-LentaECR Award 2011 Valio-Lenta
ECR Award 2011 Valio-LentaECR Community
 
ECR Award 2011 Danone - Regional Chains
ECR Award 2011 Danone - Regional ChainsECR Award 2011 Danone - Regional Chains
ECR Award 2011 Danone - Regional ChainsECR Community
 
ECR Award 2011 Bacardi-Metro
ECR Award 2011 Bacardi-MetroECR Award 2011 Bacardi-Metro
ECR Award 2011 Bacardi-MetroECR Community
 
ECR Award 2011 Pepsi-Metro case
ECR Award 2011 Pepsi-Metro caseECR Award 2011 Pepsi-Metro case
ECR Award 2011 Pepsi-Metro caseECR Community
 
ECR Demand Nielsen presentation
ECR Demand Nielsen presentationECR Demand Nielsen presentation
ECR Demand Nielsen presentationECR Community
 
ECR demand Kantar_category_segmentation
ECR demand Kantar_category_segmentationECR demand Kantar_category_segmentation
ECR demand Kantar_category_segmentationECR Community
 
ECR demand Arla_Lenta_cat_man
ECR demand Arla_Lenta_cat_manECR demand Arla_Lenta_cat_man
ECR demand Arla_Lenta_cat_manECR Community
 

More from ECR Community (20)

Ecr award arla_foods_billa
Ecr award arla_foods_billaEcr award arla_foods_billa
Ecr award arla_foods_billa
 
Ecr award diageo
Ecr award diageoEcr award diageo
Ecr award diageo
 
Ecr award x5
Ecr award x5Ecr award x5
Ecr award x5
 
Ecr award nestle 7th continent
Ecr award nestle   7th continentEcr award nestle   7th continent
Ecr award nestle 7th continent
 
Ecr award pepsico magnit
Ecr award pepsico magnitEcr award pepsico magnit
Ecr award pepsico magnit
 
Ecr award real
Ecr award realEcr award real
Ecr award real
 
Ecr award danone makarov
Ecr award danone makarovEcr award danone makarov
Ecr award danone makarov
 
Ecr award unilever magnit
Ecr award unilever   magnitEcr award unilever   magnit
Ecr award unilever magnit
 
ECR Award 2011 Danone - Victoria
ECR Award 2011 Danone - VictoriaECR Award 2011 Danone - Victoria
ECR Award 2011 Danone - Victoria
 
ECR Award 2011 P&G - X5
ECR Award 2011 P&G - X5ECR Award 2011 P&G - X5
ECR Award 2011 P&G - X5
 
ECR Award 2011 Bacardi-Metro
ECR Award 2011 Bacardi-MetroECR Award 2011 Bacardi-Metro
ECR Award 2011 Bacardi-Metro
 
Ecr award 2011 kimberly clark x5
Ecr award 2011 kimberly clark   x5 Ecr award 2011 kimberly clark   x5
Ecr award 2011 kimberly clark x5
 
ECR Award 2011 Arla-Lenta
ECR Award 2011 Arla-LentaECR Award 2011 Arla-Lenta
ECR Award 2011 Arla-Lenta
 
ECR Award 2011 Valio-Lenta
ECR Award 2011 Valio-LentaECR Award 2011 Valio-Lenta
ECR Award 2011 Valio-Lenta
 
ECR Award 2011 Danone - Regional Chains
ECR Award 2011 Danone - Regional ChainsECR Award 2011 Danone - Regional Chains
ECR Award 2011 Danone - Regional Chains
 
ECR Award 2011 Bacardi-Metro
ECR Award 2011 Bacardi-MetroECR Award 2011 Bacardi-Metro
ECR Award 2011 Bacardi-Metro
 
ECR Award 2011 Pepsi-Metro case
ECR Award 2011 Pepsi-Metro caseECR Award 2011 Pepsi-Metro case
ECR Award 2011 Pepsi-Metro case
 
ECR Demand Nielsen presentation
ECR Demand Nielsen presentationECR Demand Nielsen presentation
ECR Demand Nielsen presentation
 
ECR demand Kantar_category_segmentation
ECR demand Kantar_category_segmentationECR demand Kantar_category_segmentation
ECR demand Kantar_category_segmentation
 
ECR demand Arla_Lenta_cat_man
ECR demand Arla_Lenta_cat_manECR demand Arla_Lenta_cat_man
ECR demand Arla_Lenta_cat_man
 

Leo mikkonen optiscan

  • 1. Decreasing Warehouse Costs ECR Baltic Leo Mikkonen
  • 2. Optiscan Market Area Turnover 12 million € Norway Finland Personnel 50 1 750 000 order lines picked every day Sweden Russia Denmark Baltics “Optiscan has improved our business” (95% of customers, Optiscan Customer Survey)
  • 4. How does Voice work? • “Pick list” downloaded through WLAN to Talkman Talkman: (Go to) Aisle 11 Picker: Ready Talkman: (Go to location) 101 level 1 Picker: 2-3 Talkman: (Take) 5 Picker: 5 • Very short “communications” with the Talkman • Talkman uses built-in Speech Recognition software and Text–to– Speech Engine • Talkman TASK = Application that guides picker through the work process
  • 5. Voice benefits- Accuracy Accuracy increase to 99,98+% • Check digits • Eyes-free on the product while speaking check digit and taking product • Avoid same check digit at adjacent isles on the same location
  • 6. Customer’s reported Picking Errors Picking Errors Development 2007 1,20 1,04 Oppstart 1,00 stemmeplukk 0,96 Pick-by-Voice starts 0,80 0,75 0,75 0,60 0,52 0,40 0,30 0,16 0,20 0,12 0,06 0,04 0,03 0,00 0,01 0,02 0,00 0,04 0,00 Av % Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1
  • 7. Customer’s reported Lack of Products Lack of Products 2007 1,40 1,23 1,20 Oppstart stemmeplukk 1,07 1,00 Pick-by-Voice starts 0,92 0,80 0,75 0,60 0,66 0,66 0,48 0,40 0,39 0,39 0,36 0,28 0,20 0,23 0,24 0,22 0,07 0,04 0,00 Av % Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1
  • 8. Voice benefits- Efficiency Productivity increase by 15 – 35% • Start and end of picking routines • Hands-free, Eyes-free • Batch picking (multiple orders) • Decreasing errors - Complaints, returns management and handling, re-picking/-sending, saldo corrections... • Replenishment • Reduced training time for new employees
  • 9. Voice benefits- Health & Safety Work safety, health and ergonomics improved • Pickers always on planned routes • Eyes-free - concentrate on moving, not reading lists • Hands-free lifting more ergonomic - less muscle strains etc. • Less broken items when lifting with both hands
  • 10. Voice benefits- Process control Easier process management • Real-time picking control • Automatic process control • Automatic reporting
  • 11. Pick-n-Go® Boost productivity in order-picking  Increase picker productivity by 50-100%  Driverless trucks escort the pickers  Give the picker a more efficient tool  Automated pick-up of empty roller container / pallet  No Step On/Off vehicle  Automated dispatch of fulfilled customer order  Perfect combination: 1 + 1 = 3 !!  AGV technology combined with Pick-by-Voice  In existing environment  Same Infrastructure Same Process and IT solution
  • 12. Pick-n-Go® Solution Generic ROI model – example:  Today pickers spend 30 min on a pick run 7 min 0 min  Preparation for pick run (6 min)  Order administration Dispatch  Empty pallet pick-up 6 min 1 min outbound Stretch  Travel to 1st pick location Empty  Picking first to last pick (17 min) goods wrapping  Dispatching the goods (7 min) Pallet and  Travel to stretch wrapper pick-up labelling  Secure and label goods  Travel to and Drop at correct dock 17 min 15 min  Pickers supported by Pick-n-Go only spend 16 min on same pick run  Preparation for pick run (1 min) Dispatch  Walk to 1st pick location outbound Man-to-Goods  Picking first to last pick (15 min) floor level  No step on / off truck goods  Dispatching the goods (0 min) order-picking  Gain: Pick-n-Go  30 – 16 = 14 min  14 / 30 = 46,7% cut time Productivity gain: 87,5% 1/(1-0,467) Next pick run 14 min earlier!!  Each picker produce 87,5% more 30 16 min
  • 13. Advantages of Voice & Pick-n-Go Pick accuracy significantly improved 99.98+% Faster picking, Voice 15-35+% Faster picking, Pick-n-Go (Voice required) 50-100% Work safety and ergonomics improved Improved customer satisfaction