Reduce, Reuse, Recycle, Building a Green DC Saves more than Green Dollars!!!

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1 Reduce, Reuse, Recycle, Building a Green DC Saves more than Green Dollars!!! Presented by: Chris Castaldi Manager of Business Development 2016 MHI Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

2 About Established in 1964 America s most experienced MHS Integrator Complete In-House capabilities Consulting System Design Installation Software & Controls Service & Support

3 Buildings in the United States account for: 72% of electricity consumption 39% of energy use 38% of carbon dioxide emissions 40% of raw materials use 30% of waste output 14% of potable water consumption

4 Why you should care 55% OF GLOBAL CONSUMERS ARE WILLING TO PUT THEIR MONEY WHERE THEIR HEART IS WHEN IT COMES TO GOODS AND SERVICES FROM COMPANIES COMMITTED TO SOCIAL RESPONSIBILITY NIELSEN

5 Green Buildings: 26% less energy 13% lower maintenance costs 27% higher occupant satisfaction 33% lower greenhouse gas emissions

6 What is LEED Certification The LEED rating system offers four certification levels for new construction: Certified, Silver, Gold and Platinum

7 Green Design Categories sustainable sites water efficiency energy and atmosphere materials and resources indoor environmental quality

8 Case Study Greenfield Distribution Center Alternative order fulfillment processes for this new DC in comparison to their current Split-to-Retail Store and DTC processes. Power Efficient Material Handling Equipment Enviromentally Friendly

9 Design Tenants Picking units to be shipped for both Retail Store and DTC orders. Packing each carton or package for Retail Stores and DTC customers. New order fulfillment technologies were measured using the following Labor parameters: Stock reserve storage and forward pick slots. Pick units for all orders Pack each outbound Retail Store carton or DTC package. The cost of capital to install each different conceptual Space requirement for each technological concept.

10 Overview of Alternatives A Pick & Pass Pack to Light Retail Alternative 2016 Estimated Labor FTEs 2016 Estimated Labor Cost Total Estimated Square Feet Multi Level Sqft Footprint Estimated Capital 114 $5,033, ,000 87,500 $17,500,000 B Wave Pick Module Unit Sortation 93 $4,113, ,000 97,500 $20,200,000 C ASRS Unit Sortation 73 $3,226,000 88,000 88,000 $21,900,000 D ASRS and Pocket Sortation 64 $2,838,000 69,000 89,000 $25,700,000

11 Description of Alternatives Alternative A - Pick, Pass, Sort and Pack-to-Light This is the present process used in both Sumner and Bedford: Units are replenished to forward pick slots on a multi-level mezzanine. Retail units are batch picked for distribution to stores from multiple zones. DTC units are batched picked four orders to a tote from multiple zones. Retail units are distributed to store cartons in each module using Pack-to-Light. The four DTC orders per tote are sorted by order at the pack station then packaged. This process is the same as presently used.

12 Description of Alternatives Alternative A - Present Pick, Pass and Sort Shelving Multi Level Forward Pick Module SpeedC ell High Density Shelving

13 Description of Alternatives Alternative B - Wave Pick Module and Unit Sortation This Alternative process is as follows: Units are replenished to forward pick slots on a multi-level mezzanine. Units are batch picked in waves for distribution to stores and DTC orders from multiple zones. Waves are composed of 100% Retail store cartons, 100% DTC orders (4 orders per sorter divert) or a mix of both. The number of Retail cartons or DTC orders batch picked depend upon the number of sorter diverts (200, 250, etc.) Wave quantities on a 200 divert sorter range from 3,200 to 5,000 units per wave. Units are inducted onto a unit sorter and sorted by Retail store carton and DTC orders. Completed Retail cartons are conveyed to shipping for closing, application of shipping labels and outbound shipping. DTC units in totes are sorted to DTC sort and pack stations for packing, as is the current process.

14 Description of Alternatives Alternative B - Wave Pick Module and Unit Sortation Unit Sortation Plan View Induct Elevation View Packing Elevation View

15 Description of Alternatives Alternative C - ASRS and Unit Sortation This Alternative process is as follows: Units are replenished to storage totes in an ASRS. Units are batch picked from the ASRS in waves for distribution to stores and DTC orders. Waves are composed of 100% Retail store cartons, 100% DTC orders (4 orders per sorter divert) or a mix of both. The number of Retail cartons or DTC orders batch picked depend upon the number of sorter diverts (200, 250, etc.) Waves on a 200 divert sorter range from 3,200 to 5,000 units. Units are conveyed to and inducted onto a unit sorter and sorted by Retail store carton and DTC orders. Retail cartons are conveyed to shipping for closing, application of shipping labels and outbound shipping. DTC units in totes are sorted to DTC sort and pack stations for packing, as is the current process.

16 Description of Alternatives Alternative D - ASRS and Unit Sortation ASRS

17 Description of Alternatives Alternative D ASRS, Unit Sortation and Pocket Sorter This Alternative process is as follows: Units are replenished to storage totes in an ASRS. Units are batch picked from the ASRS in waves for distribution to stores and DTC orders. Waves are composed of 100% Retail store cartons, 100% DTC orders (4 orders per sorter divert) or a mix of both. The number of Retail cartons or DTC orders batch picked depends upon the combined number of unit sorter diverts and the buffer capacity of the pocket sorter. Units are conveyed to induction stations where they are removed from cartons or totes, the item barcode is scanned and the unit inducted onto either a: Unit sorter or Into a pocket on the pocket sorter. Units are sorted by Retail carton contents or DTC order contents. Packers pack out Retail units into shipping cartons. Cartons are conveyed to shipping for closing, application of shipping labels and outbound shipping. DTC packers package units, packages are closed, shipping labels applied and packages conveyed to shipping.

18 Description of Alternatives Alternative C - Wave Pick Module and Pocket Sorter The Pocket Sorter matrix can be designed on multi levels to save space. Induction Packing

19 What was the choice Alternative D Most Expensive Greatest Saving One third of the labor of a minimal automated DC. Lowest power usage Reduced lighting Lower heating/cooling

20 For More Information: Speaker Website: Or visit MODEX 2016 Booth 4315