MAIL ORDERS GOODS 䊳 DRY GROCERY GOODS 䊳 AUTO PARTS 䊳 CONSUMER ELECTRONICS 䊳 COMMERCIAL ELECTRONICS

Transcription

1 A S P EC I A L M O D E R N M AT E R I A LS H A N D L I N G S U P P L E M E N T J U LY Planning Guidelines for Manufacturing, Warehousing and Distribution 䊳 MAIL ORDERS GOODS 䊳 DRY GROCERY GOODS 䊳 AUTO PARTS 䊳 CONSUMER ELECTRONICS 䊳 COMMERCIAL ELECTRONICS

2 A SPECIAL SUPPLEMENT BY MODERN MATERIALS HANDLING design plans &ideas Planning Guidelines for Manufacturing, Warehousing and Distribution Photo curtesy of Interlake J U L Y 2002 What s inside HOW MANY DIFFERENT WAYS can products be picked in a distribution facility? Find out, in this special edition of Design Plans and Ideas that focuses on order picking strategies. Inside, we'll examine myriad ways to pick product-from a facility that handles only full pallets in and full pallets out, to a facility that handles broken case, full case, and full pallet quantities all under one roof. And we ll take a look at how storage equipment, industrial trucks, dock equipment, conveyors, and returnable containers help these world-class facilities ship orders out the door quickly and efficiently. Photo curtesy of Nissan Photo curtesy of Linpac Mail order goods DC d8 Multiple storage/picking schemes promote efficient, economic handling of orders at this busy mail order distribution center Dry grocery goods DC d10 A variety of trucks and efficient full-case pick operation help this hectic DC manage high throughput Automotive parts DC d12 Managing both rush and regular orders, as well as a wide variety of SKUs under one roof is a challenge for this busy auto parts DC. Returnable containers help streamline operations Consumer electronics DC d14 Segregating SKUs that move in full pallet quantities by depth of inventory streamlines flow while dock equipment provides security at this fast-paced DC Commercial electronics DC d16 A multi-zone picking strategy and efficient conveyor transport/sortation system keep operations at this high-activity facility humming JULY 2002 Design Plans & Ideas d3

3 design plans&ideas Picking strategies that spell success Having the right picking system for your operation will reduce cost and get orders to customers quickly Studies show that orderpicking is one of the most costly activities in today s busy distribution centers. And no wonder: It s labor intensive and challenging to automate, involves many exceptions that can drive up cost and efficiency, and can be difficult to plan for. Many successful distribution centers begin by examining their inventory and order profiles. Some of the important questions they ask before selecting picking strategy include: How many stock keeping units (SKUs) do I have, and how does this mix change over time? What is the physical size of the various SKUs? How much inventory of each SKU do I need to maintain in stock? What are the activity levels of the various SKUs, and do the statistics follow the typical 80% rule (20% of the SKUs make up 80% of the volume)? Can SKUs be organized by a scheme other than by activity level (i.e., pens and paper may be ordered together) Is my inventory time sensitive? Does my business have seasonality, and do I need to build in extra capacity for peak periods? Photo Curtesy of Interlake What is the typical order size (items, lines, volume)? What time commitment have I made to process an order, and will this vary by order type (rush versus standard)? The answers to these questions and others are enormously useful in helping the management of a distribution center select a picking strategy. The MARCH 2002 Design Plans & Ideas d5

4 design plans&ideas The best picking operations I ve seen are tightly integrated with both upstream and downstream operations. Systems Designer John Yacka In this special edition of Design Plans & Ideas, we examine how five distribution centers with different missions employ a variety of materials handling equipment and technologies to achieve costefficient picking. The facilities featured in this issue are: Photo Curtesy of Linpac number, size, and amount of inventory for each SKU will provide insight into how much storage capacity to plan for. Information on inventory turnover will help management decide whether separate picking areas are needed for SKUs with different activity levels. Inventory turnover will also provide information on the appropriate physical size of both the reserve storage and forward picking areas. Of course, successful distribution centers don t just focus on the orderpicking operation itself. A world class picking strategy depends on streamlined delivery of products to and from the orderpicking area, a good tracking mechanism for orders moving through the facility, and effective inventory management. Industrial trucks, returnable containers, conveyors, a warehouse management system, even dock equipment, play critical roles in moving goods in one door of the DC and out the other. The best picking operations I ve seen are tightly integrated into both upstream and downstream operations, says John Yacka, a systems designer with Gross & Associates. In fact, one could argue that to obtain the most effective orderpicking operation, a facility has to do everything well, because you do not want to have bottlenecks anywhere in the process. In his consulting role, which involves designing DCs of all types, Yacka has had an opportunity to study some of the world's best picking operations. The goal of the very best DCs out there is to continuously improve, and that s key because the distribution environment is extremely dynamic. What you did well yesterday may not even be relevant today should your SKU mix change, the size or number of your orders change, and so on. A DC for mail order goods that efficiently converts pallets into individual pieces ( singles ) through multiple pick zones and several types of storage media A DC for dry grocery goods that relies on segregation of product by activity level to achieve efficient picking operations A DC for auto parts efficiently handles both standard and rush orders in a single orderpicking system A DC for consumer electronics segregates SKUs by depth of inventory required, creating a space-efficient staging/picking area A DC for commercial electronics relies on a multi-zone picking strategy to manage orders consisting of broken case, full case, and full pallet quantities On the following pages, Design Plans & Ideas will present a physical layout of each of these facilities, describing the key features and strategies that contribute to effective orderpicking operations. These tried-and-true ideas provide valuable insight into ways that you can improve your own DC s bottom line. d6 Design Plans & Ideas JULY

5 LEADER OF THE PICK Interlake has the largest installed customer base of integrated pick modules and has designed an impressive number of high-speed order fulfillment control systems, but our expertise and capabilities extend well beyond that reach. As the leading supplier of storage products and services for distribution, retail and manufacturing companies in the Americas, we provide unique solutions for those companies seeking a discernable difference in operations and logistics for a competitive advantage. Demanding companies choose Interlake because we fulfill their needs to: Decrease Costs: Improve safety Reduce picking errors Minimize product damage Reduce on-hand inventory Maximize space utilization Increase Sales: Improve delivery accuracy Consolidate orders Improve on-time shipment Increase throughput Improve customer satisfaction Improve Productivity: Improve SKU organization Increase inventory turns Increase picking efficiency Optimize facility flow Increase asset utilization As part of Brambles, the world's largest provider of industrial services, our mission is stated quite simply: To be the world's best company providing innovative storage and integrated solutions To delight our customers by exceeding their expectations and providing exceptional value To create superior shareholder value through our people and their enterprising spirit Are you a demanding customer? For a customized needs analysis contact us at: INTERLAKE ( ) or visit us at Mail order goods DC Multiple storage/picking schemes promote efficient, economic handling of orders at this busy mail order distribution center Multiple rows of 6-pallet-high, single-deep pallet rack provide a large number of pick faces for 35,000 SKUs Sawtooth configuration at the ends of aisles within the rack storage area provide convenient pallet drop-off and pickup locations To optimize picking throughput and minimize cost, multi-level pick zone features several types of storage media including bin shelving for slow to medium movers, flow rack for fast movers, pallets for extremely fast movers The fastest moving SKUs within each type of pick zone are located in the most accessible areas to boost picking throughput Multiple pick zones are provided for the fastest moving SKUs to minimize replenishment activity and cost Powered takeaway conveyor in the multi-level pick area is located on the rear side of the pick face so that completed orders can be routed directly to the packaging area, leapfrogging downstream pick zones Locating transport conveyor on the rear side of the pick module reduces congestion in the busy picking area Rack faces in the multi-tiered pick zone are equipped with light displays, boosting operator productivity and efficiency Circle number 164 d8 Design Plans & Ideas JULY

6 design plans&ideas Keeping cost in check is a priority at this busy facility, which ships a wide variety of small-to-medium size consumer items to mail order customers. Incoming goods arrive in pallet and case quantities and are transported to random slot locations within a very narrow aisle (VNA) pallet storage area. Pallet rack is configured six slots high with single-deep locations. Product is put away and picked using wire-guided turret trucks. Items are batch picked from a multi-level pick zone that incorporates a variety of storage media, from bin shelving and flow rack to pallet locations on the floor. Pick-to-light technology guides the picker to the proper location and indicates the correct pick quantity. Turret trucks are used to replenish elevated pick zones. Product is picked to totes, which are transported by a powered takeaway conveyor from the picking module to packing stations. Orders are checked for accuracy before being placed into small cases or padded envelopes for shipping. FACILITY OVERVIEW Product type: Consumer goods, such as stationary and pens Customer type: Mail order customers Facility size: 175,000 sq. ft. Equipment budget: $5,600,000 Number of employees: 125 Number of shifts: 1 SKUs: 35,000 Number of orders processed daily: 5,000 Normal aisle size: 6 feet Activity level: High Medium to fast movers (bin shelving and flow rack) Slow Movers (bin shelving) Takeaway conveyor Shipping Dock Very Narrow Aisle Storage (Single deep pallet rack) Multi-level pick zone Extremely Fast Movers (pallets) Conveyor sortation storage Very Narrow Aisle Storage (Single deep pallet rack) Receiving Dock Quality Assurance JULY 2002 Design Plans & Ideas d9

7 NISSAN FORKLIFT CORPORATION, NORTH AMERICA THE NISSAN INDUSTRIAL EQUIPMENT DIVI- SION of Nissan Motor Company Limited began manufacturing forklifts in Japan in 1957, and has been selling forklifts in the United States since In 1988, Nissan Industrial Equipment purchased Barrett Industrial Trucks, a manufacturer of industrial equipment in the Chicago, Illinois area since This purchase made Nissan the first Japanese company in North America to manufacture and distribute all five classes of industrial trucks. The first Nissan forklifts were assembled in Marengo, Illinois in May of From that small beginning thirteen years ago, Nissan has seen sales and production grow to over 15 times that first year s production number. In 1993, the consolidation of operations was completed in Marengo and a new corporation was formed, Nissan Forklift Corporation, North America, manufacturing the Nissan Forklift and Barrett Industrial Truck brands for distribution to the North American market, and export to other global markets. Nissan Forklift Corporation employs 530 full time employees in their 400,000 sq. ft. facility. The Nissan facility in Marengo is the largest of three Nissan forklift production facilities in the world. Nissan s forklift operations have consistently posted operating profit for the company. Its Industrial Machinery Division employs 1,730 people in Japan, Europe, and the United States, and approximately 30,000 units were sold last year in more than 60 countries worldwide. Nissan Forklift Corporation, North America is a full line supplier of engine powered forklifts, electric sit-down and stand-up riders, narrow aisle reach trucks, electric pallet trucks, electric tow tractors, electric walkie stackers, and manual pallet trucks in the Nissan and Barrett Industrial Truck brands. Both products are sold and serviced through a North American dealer network with more than 140 locations. Dry grocery goods DC A variety of trucks and efficient full-case pick operation help this hectic DC manage high throughput Use of double-length pallet jacks for trailer unloading and pallet transport streamlines handling and maximizes productivity Industrial trucks play a key role in the efficient cross-docking of 20% of the incoming inventory, which moves directly from receiving to shipping Staging of incoming goods at the dock minimizes trailer unloading cycle times at the busy dock area Orienting transport lanes perpendicular to both receiving and shipping docks provides unobstructed travel lanes for industrial trucks and efficient, flow-through handling of orders Reach trucks equipped with RF terminals support error-free putaway and picking operations in the narrow aisle storage area Locating the picking operating between storage areas minimizes travel distance for replenishment activities Locating the takeaway conveyor in the aisles of pick zones minimizes bending and reaching motions Contact us at (815) or visit us on the Web at Circle number 169 d10 Design Plans & Ideas JULY

8 design plans&ideas As is the case with most grocery distribution DCs, speed is of the essence at this extremely highthroughput facility that receives inventory in pallet quantities and ships orders in both full and mixed pallet quantities. Incoming goods arrive on pallets and are staged on the receiving dock prior to put away in the narrow aisle storage area, consisting of five-level high, single-deep narrow aisle (9 ft) pallet racks. Full pallets are picked directly from pallet locations and staged at the dock for loading. In the pick-tobelt module, fast moving goods are picked from flow racks to an in-aisle takeaway conveyor. Extremely fastmoving goods are picked directly from pallet positions on the floor (the fastest movers will have multiple picking locations). Cartons travel by conveyor to staging lanes, where they will be assembled into mixed pallet loads. Powered turntables at the palletizing stations help to improve ergonomics. FACILITY OVERVIEW Product type: Dry grocery goods Customer type: Grocery retailers Facility size: 120,000 sq. ft. Equipment budget: $3,000,000 Number of employees: 90 Number of shifts: 2 SKUs: 6,000 Number of orders processed daily: 1,500 Normal aisle size: 9 feet Activity level: Extremely high Receiving Narrow aisle pallet storage/picking (single deep pallet rack) Staging of outgoing orders Staging of incoming goods Pick-to-Belt module (case flow rack, pallet positions) Staging lanes Palletizing stations Narrow aisle pallet storage/picking (single deep pallet rack) industrial trucks Shipping JULY 2002 Design Plans & Ideas d11

9 ROPAK EXTENDED LENGTH CONTAINER WITH FOUR DROP DOORS HAS BEEN TESTED AND MEETS AIAG RC-9 PERFORMANCE STANDARDS LINPAC Materials Handling's strong, durable ROPAK 64.5" Extended Length four drop door model has joined other ROPAK containers by being tested and meeting the Automotive Industry Action Group's (AIAG) RC-9 Returnable Container Performance Test Guidelines for bulk containers. The testing, carried out by a certified thirdparty testing agency, validated the 64.5" x 48" container's ability to withstand the rigors of transportation and handling and meet AIAG's demanding qualifications. The battery of tests, conducted over four days, included testing the container's strength against side impact, drop impact, vibration, compression and deflection of components when filled to capacity. The AIAG, a globally recognized organization formed in 1982, continuously improves business processes and practices involving trading partners throughout the supply chain. Its container and packaging systems committee works to achieve consensus on common automotive industry rules for containers, including sizes, quality and testing procedures. Designed with added strength and rigidity to accommodate long and hard-to-fit parts, such as automotive bumper reinforcements, plastic trim and air ducts, the long-lasting, durable ROPAK Extended Length containers protect and transport parts and products safely. The four drop door model has a latchless design and when opened, the lightweight doors lie flat against the outside of the container. ROPAK Extended Length containers stack high, either upright or collapsed, to conserve floor space; withstand years of repeated wear and handling, and are easily recyclable at the end of their useful lives. Contact us at (800) or visit our Web site at Automotive parts DC Managing both rush and regular orders, as well as a wide variety of SKUs under one roof is a challenge for this busy auto parts DC. Returnable containers help streamline operations. Use of returnable containers for picking and shipping streamlines handling of orders and eliminates packaging waste in this pick-to-order operation The pallet size (40 by 48 inch footprint) containers come in a variety of heights and collapse when empty for efficient storage/transport Use of containers with standard pallet footprint allow handling via pallet jack and counterbalance lift truck Items for rush orders can be taken directly from picking areas to shipping so that they can be expedited Picking full cases from both bulk storage and floor-level pallet rack locations allows the facility to accommodate SKUs with varying depth of inventory and to maximize the use of space Broken case pick module can be expanded on a mezzanine level should volumes increase in the future Use of carton flow rack at the dock for staging provides efficient use of space and streamlined handling Circle number 168 d12 Design Plans & Ideas JULY

10 design plans&ideas Auto repair shops are a bit schizophrenic: They either want their orders to come in on a regular, cost-effective basis, or they want them now. This behavior can sometimes cause the DCs that supply the parts to run two parallel operations. This DC, however, has streamlined its overall operation to the point that all orders travel through a single system. Incoming goods arrive on pallets and are taken to either a single deep pallet rack or bulk storage/picking area, depending on depth of the inventory. The racks are used to replenish a broken case picking area. This dual-sided pick-to-belt operation features flow rack on one side and bin shelving on the other with an inaisle, powered takeaway conveyor. Product is picked to pallet-size returnable containers, which travel via pallet jack from the broken case picking area to the full case picking and pallet picking area. Completed orders are staged in flow lanes at the dock awaiting trailer loading. Oversized items storage Very Narrow Aisle Storage (single deep pallet rack) Staging Shipping/Receiving FACILITY OVERVIEW Product type: Auto parts, ranging from hardware to tires Customer type: Automotive dealers Facility size: 135,000 sq. ft. Equipment budget: $2,300,000 Number of employees: 45 Number of shifts: 1 SKUs: 10,000 Number of orders processed daily: 700 normal; 300 rush Normal aisle size: 12 feet Activity level: High Deep bulk storage (pallets on floor) returnable containers JULY 2002 Design Plans & Ideas d13

11 Consumer electronics DC Segregating SKUs that move in full pallet quantities by depth of inventory streamlines flow while dock equipment provides security at this fast-paced DC Advanced notice of incoming deliveries allows scheduling to appropriate dock door, streamlining flow and minimizing travel distances Buffer staging of incoming goods at the dock improves trailer unloading efficiency Locating receiving and shipping on the same side of the building promotes efficient, U-shaped flow and minimizes travel distances Approximately 30% of the inventory is cross-docked, improving the overall efficiency in order handling Bulk floor storage provides extremely high storage density for SKUs with deep inventory Use of trailer locking devices at the dock eliminate risk of theft of high-value electronics inventory Hydraulic dock levelers increase dock flexibility due to their ability to accommodate a wide variety of truck sizes Multi-level full-case pick module (pallet locations) d14 Design Plans & Ideas JULY

12 design plans&ideas Incoming products arrive in full pallet quantities and are shipped in full pallet quantities. Based on information obtained from the Advanced Shipping Notice, Receiving automatically assigns a dock door closest to the assigned random storage location. A large percentage (30%) of the inventory is cross-docked, thereby bypassing storage completely. SKUs that are in quantities of more than six pallets deep are assigned to a space-efficient, deep bulk storage area, all other SKUs are located in 5- pallet-high, very narrow aisle (VNA), single-deep pallet racks. A combination of counterbalanced trucks and pallet jacks are used for pallet picking in the bulk storage area; turret trucks are used for picking pallets and cartons from the VNA storage area. Completed orders are staged at the dock for trailer loading and transport to retail stores. FACILITY OVERVIEW Product type: Consumer electronics Customer type: Retail electronics stores Facility size: 95,000 sq. ft. Equipment budget: $800,000 Number of employees: 55 Number of shifts: 1 SKUs: 7,000 Number of orders processed daily: 800 Normal aisle size: 6 or 12 feet Activity level: High-volume Receiving Staging Pallet storage (single and double deep pallet rack) Conveyor sortation Transport conveyor Multi-level broken case pick module (flow rack and bin shelves) Mezannine level pick module dock equipment Packing stations Palletizing stations Shipping JULY 2002 Design Plans & Ideas d15

13 Commercial electronics DC A multi-zone picking strategy and efficient conveyor transport/sortation system keep operations at this high-activity facility humming Locating receiving and shipping on opposite sides of the building streamlines flow of goods and minimizes travel distances Multi-level pick modules on mezzanines provide for efficient use of space and maximize picking capacity Aerosol room Mixed use of flow rack and bin shelving in picking modules allows for increased depth of inventory and fewer replenishments of the fastest moving items The combination of double and single deep rack allows the facility to efficiently accommodate SKUs with greater depth of inventory, while maintaining an equal number of available pick faces Unique conveyor design marries broken case and full case orders that are fulfilled on opposite sides of the facility Locating the conveyor transport and sortation system overhead minimizes congestion on the ground at this busy facility Should business increase, both conveyor sortation and shipping/staging lanes can be expanded d16 Design Plans & Ideas JULY

14 design plans&ideas The challenge this DC faces is to efficiently manage orders that consist of a combination of broken case, full case, and full pallet quantities. Incoming orders arrive at receiving and are taken to a pallet storage area, consisting of fivelevel-high single and double deep pallet rack. The facility maintains separate areas for full and broken case picking operations Both are multi-level modules with upper levels located on mezzanines. Broken case items travel to packing stations, where they are placed into shipping cartons. Full cartons from both the broken case and full case picking areas then travel by overhead conveyor transport system to a common sortation system, where they are sorted to staging lanes by retail store location. Full pallet loads are staged on the floor adjacent to the appropriate shipping lane. FACILITY OVERVIEW Product type: Commercial electronics, storage displays, gift packs Customer type: Retail electronics stores Facility size: 210,000 sq. ft. Equipment budget: $4,500,000 Number of employees: 200 Number of shifts: 1 SKUs: 15,000 Number of orders processed daily: 500 Normal aisle size: 10 feet Activity level: High Broken case picking (flow rack & shelving) Conveyor sortation Empty container storage Receiving Packing stations Pallet flow lanes Full case picking (pallet locations on floor) Shipping Reserve storage/ active picking (single deep pallet rack) conveyor equipment JULY 2002 Design Plans & Ideas d17

15 w w w. m m h. c o m WEB GUIDE Nissan Forklift Corp. LINPAC Materials Handling design plans &ideas Nissan Forklift Corp. Phone: (815) Fax: (815) LINPAC Materials Handling Phone: (800) Fax: (502) Interlake Material Handling Phone: (630) Fax: (630) Interlake Material Handling