Answering the Multi- Channel Shipping Paradox: How to Handle Cartons and Bags

Transcription

1 Answering the Multi- Channel Shipping Paradox: How to Handle Cartons and Bags Presented by: Sponsored by: John Sarinick BEUMER Corporation Ray Niemeyer Pflow Industries, Inc 2014 MHI Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.

2 Agenda About CSS Multi & Omni Channel Order Fulfillment Effects on Shipping Process MHE Solution Case Study - ROI Guidelines Q&A

3 About CSS Conveyor & Sortation Systems is one of MHI s 18 product specific industry groups. CSS members represent the industry s leading providers of conveyor and sortation systems. Our goals: Work closely with end users to communicate needs, benefits and applications of conveyor and sortation systems. Act as a catalyst and liaison between related MHI product groups and associations. Maintain a membership representative of the industry. Promote the general welfare of the industry. Provide a market driven forum for material flow solutions. Collect, compile, disseminate and exchange information and statistics which may be helpful to the membership. Prepare and distribute educational materials for the academic community.

4 Multi & Omni Channel Order Fulfilment Effects on Shipping Process Continual, growing trend to merge DC inventory across all channels providing agnostic order fulfillment. Double digit e-commerce growth explodes DC shipping volumes and required sort destinations Retail shipments generally use corrugate cartons (standard sizes) E-commerce shipments use cartons and bags Generally wide variety of carton sizes and weights Various shapes and weights of bagged shipments

5 Multi & Omni Channel Order Fulfilment Effects on Shipping Process How to handle 6 x4 x¼ polybag/carton shipments to 48 x 27 x 24 cartons efficiently with a common MH system capable of 3,000-20,000 parcels/hr?

6 MHE Solution Part A: Use one or a combination of MHE technology options to transport shipments from the order fulfilment pack out area(s) to the shipping area. Part B: Use a flexible, high throughput sorting system capable of handling both cartons and bags.

7 MHE Solution - Transportation From Retail Pack Out Typically conveyor based, providing singulated flow Depending upon distance from pack-out to shipping area, combination of transport and accumulation conveyor From E-commerce Pack Out Several Options Conveyor, providing singulated flow (Note: pay attention to min height items for the conveyor design!) Conveyor, bulk flow to the shipping area (Note: will require additional labor at the shipping sorter induction) Gaylord transportation via fork lift or pallet conveyor

8 MHE Solution Sorting System Requirements Must be capable of handling the wide variety of cartons and bags Flexible layout design, allowing multiple induction points from multiple pack-out areas High throughput capacity and reliability, with low maintenance Strong ROI Solution Mechanical tilt tray loop sorter utilizing various induction methods

9 MHE Solution (typ)

10 MHE Solution Sorting System (Induction) Automatic Induction: Conveyor system from: retail pack-out to induction lines E-commerce pack-out to induction lines, via singulated flow 2-4 induction lines (typ) No induction operator labor Easy to integrate in-line scale High accuracy Barcode scanner array Located after induction bank (typ)

11 MHE Solution Sorting System (Induction) Manual Induction (from E-commerce pack-out): Bulk feed conveyor to manual induction station Gaylord 4-8 manual induction stations (typ) Low cost, allows flexibility for peak Barcode scanner array Located after induction bank (typ)

12 MHE Solution - VRC VRC Mezzanine Gaylord System Flexible container movement to meet production demands Easy to operate Automated or manual options Minimal footprint requirement Flexible location placement Frees up forklift for other duties

13 MHE Solution - VRC VRC Mezzanine Gaylord System Capabilities Manual or automated operated options Throughput Range: 10 to 30 cycles/hr Capacities: 500 to 6000 lbs Carriage Sizes: 3 x3 to 8 x10 Travel: 0 to 50 plus

14 MHE Solution Sorting System (Sorter) Mechanical Tilt Tray Sorter Ideal for handling cartons and bags 3000 pph to 20,000 pph Allows easy manual induction Superior sorting accuracy Layout flexibility Induction location flexibility Fully controlled tilting process Low maintenance, high reliability Bi-lateral discharge (minimizes sorter length) Optimized design available for faster delivery and lower costs

15 MHE Solution Sorting System (Destinations) Various Types Simple Accumulation Gaylord Load Door Palletizing

16 Case Study ebay Enterprise, one of the three main business units of ebay Inc., along with PayPal and Marketplaces, helps companies of all sizes drive commerce growth-delivering exceptional, engaging shopping experiences online and offline. One of their campuses is located in Martinsville, VA. Customers include:

17 Case Study Growth = Challenges and Opportunities Martinsville 1 Bldg: Nearly 80% bag packaging (apparel, accessories) Old shipping sorter: poorly suited to handling bags, poor accuracy, low throughput (1500 pph) Significant growth projections Martinsville 3 Bldg: Approx 30% bag packaging (apparel, accessories) Manual sorting (200 pph) Significant growth projections

18 Case Study Shipping Area Solution For 2013 Peak Season Martinsville 1 Bldg: Two singulated accumulation lines from pack-out area Two automatic induction lines w/ high speed scales Top reading scanner array 9 destinations (chute to Gaylord, spiral chute to extendable loader) ** installed on a mezzanine above existing shipping operation** Martinsville 3 Bldg: Similar to Bldg 1 1 singulated line feeding 1 induction line 7 destinations (chute to Gaylord, chute to extendable loader) Installed on floor level Capability to expand system as volume grows

19 Case Study Results! Martinsville 1 Bldg: Throughput capacity increased from 1500 pph to 6000 pph 50% reduction in shipping area labor Change over from old shipping system to new shipping system took 90 min. Martinsville 3 Bldg: Throughput capacity increased from 200 pph to 3000 pph General: Significant increase in accuracy The conveyor and sorter design has allowed ebay to extend their pack-out cut-off time from approx 2:00 pm to 5:00 pm and still hit the 5:30-6:00 transportation cut-off time frame.

20 ROI Guidelines Analyze your current shipping operation: Are/will you need to handle boxes and bags? Do you currently have two separate shipping systems? Are you sorting parcels manually? Is throughput a bottleneck to service levels? What is the advantage of automated weight capture? Is accuracy an issue? What is the advantage of additional sort destinations? What is the advantage of flexible induction points? How much labor is utilized in the shipping operation? Are maintenance and downtime concerns?

21 ROI Guidelines System Costs: parcels/hr Conveyor System: $500k+ Tilt Tray Sorter (Complete): $1.3M+

22 Questions?

23 AGiLE Business Media, LLC Autoquip Corporation BEUMER Corporation Carter Control Systems, Inc. Cinetic Sorting Corp. Dematic Corp. Flexible Material Handling Hytrol Conveyor Company, In Intelligrated, Inc. Interroll Corporation Intralox, L.L.C.. Lenze Americas Pflow Industries Ralphs-Pugh Co., Inc. Rockwell Automation Control Systems Schneider Electric SICK, Inc.. Southworth International Group, Inc. SpanTech, LLC TGW Systems Wildeck, Inc..

24 For More Information: Carmen Murphy, CSS Managing Executive