Vanderlande Industries WELCOME

Transcription

1 Noel Blake Business Development Manager Vanderlande Industries WELCOME

2 Warehouse Design and Appropriate Automation The thought processes when considering warehouse design and appropriate automation: Knowing when to move on from a manual process Where are the savings? Picking methods and the art of the possible AGENDA

3 ADVERTISING FEATURE

4 OUR CORE BUSINESS Automated Material Handling Systems From Concept to Life Cycle Support From Small to Large

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6 Veghel, TheNetherlands

7 FOOD A Warehouse? CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL

8 GOODS RECEIVING STORAGE ORDER PICKING SORTATION CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT

9 Why is warehouse design so important? 80% of warehouse Building costs are in the floor slab and roof In traditional rack storage systems 60% of the space is aisles >60% of warehouse running costs are related to order picking TLI/WERC Warehouse Benchmarking Survey ( 03) Edward H FrazellePhD

10 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS Why Automate? Drivers for warehouse automation Increasingly high customer service levels Difficulty to attract and retain qualified staff Scarcity of affordable warehouse space Pressure to reduce operational costs Increasing health, safety and ergonomics regulations 3PL AUTOMOTIVE FOOTWEAR APPAREL

11 GOODS RECEIVING Why Automate? STORAGE ORDER PICKING SORTATION CROSS DOCKING Whilst both improved service and lower costs are significant reasons for companies to implement warehouse automation, it is the imperative of the need to accommodate growth that is found to be the main reason. In summary, it appears from industry figures that the adoption of warehouse automation is continuing to grow and, from this research, the main reasons are associated with growth, cost and service. CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT Supply Chain Management: An International Journal, 2007, Vol12(2) pp Authors: Baker, P. & Halim, Z. An exploration of warehouse automation implementations: cost, service and flexibility issues

12 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL Benefits of Automation An automated warehouse / distribution centre enables: Item picking productivity up to lines / man hour 40% reduction of order picking cost per case Order picking accuracy up to 99,99% Triple throughput per m 2 in your warehouse 5-10 minutes learning curve of new operators Order lead time < 1 hour Growth Cost Service AUTOMOTIVE FOOTWEAR APPAREL

13 FOOD CARE/PHARMA Focus on the entire goods flow (from goods receiving, storage, order picking up to shipping) and the related information flow NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL

14 Distribution Centre Processes receiving storage picking packing consolidation shipping Material flow Design Process

15 GOODS RECEIVING STORAGE ORDER PICKING SORTATION CROSS DOCKING There is nothing so useless as doing efficiently that which should not be done at all. CONSOLIDATION & SHIPPING INTERNAL TRANSPORT (Peter Drucker, , Austrian born US management guru, writer and seminal business thinker.) WAREHOUSE MANAGEMENT

16 Appropriate mechanisation / automation.

17 Appropriate mechanisation / automation.

18 Appropriate mechanisation / automation.

19 Appropriate mechanisation / automation.

20 Appropriate mechanisation / automation.

21 Appropriate mechanisation / automation.

22 Appropriate mechanisation / automation.

23 Appropriate mechanisation / automation.

24 Appropriate mechanisation / automation.

25 Appropriate mechanisation / automation.

26 FOOD OPERATING COSTS IN THE WAREHOUSE CARE/PHARMA NON FOOD MEDIA/GAMES B2C Receiving Putaway Order Picking Shipping PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR World-Class Warehouse and Material Handling, Edward H FrazellePh.D APPAREL

27 GOODS RECEIVING The Process of Picking STORAGE ORDER PICKING SORTATION CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT USP Benchmark Database

28 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C Order Picking 50% of traditional warehousing cost Warehousingcost (manual warehouse) 18% 18% Receiving 14% Orderpicking Storage Shipping 50% PARTS & COMPONENTS 3PL AUTOMOTIVE 55% of order picking is travelling 10% 20% Travelling Searching Extracting Paperwork FOOTWEAR 15% 55% APPAREL

29 Picking Concept Selection FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C # SKU compact pick zone pick batch pick PARTS & COMPONENTS PL AUTOMOTIVE FOOTWEAR order pick order distribution picks/hour APPAREL

30 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL BPS Batch PickingSystem (BPS) Combining product demand for multiple orders into one pick instruction Picked products are sorted in second step Manually by operators Automatically by mechanised sortation Suitable for very large range of SKUs and throughput volume Benefits Reduction of walking distance up to 90% Minimise # pick walks Avoid congestion 99,99% delivery accuracy Traceability

31 FOOD ZPS Zone PickingSystem (ZPS) CARE/PHARMA Wide range of applications NON FOOD MEDIA/GAMES B2C Operators responsiblefor a zone Order totes / cartons travel from zone to zone Supported by RF, pick-to-light and pick-by-voice PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR Benefits Reduction of walking distance No operator congestion in aisles Short processing times Structured process, reduction of errors Allows for pick/pack with single handling Easy applicable APPAREL

32 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR ODS Order Distribution System (ODS) Suitable for: Low range of products but high picks per hour High level of synergy between orders Pros: High operator efficiency Pick directly into shipping unit Very efficient for fast moving items Cons: High level of automation Controls complexity Capital intensive APPAREL

33 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR CPS Compact PickingSystem (CPS) Goodsto man system Suitablefor retail, wholesaleand B2C ergonomic workstation Benefits Sustainable performance 900 lines / hour Improve storage density by 60% High customer service levels Accuracy 99,99% Order leadtime< 1 hour Rush order < 10 minutes 5 10 minutes learning curve Certified and tested ergonomics (TNO / TÜV) APPAREL

34 FOOD Item Picking Systems CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL

35 FOOD Item Picking Systems the future! CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL

36 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES Case Picking Systems Order Picking Benefits Very simple High flexibility Relatively low cost B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL

37 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL Case Picking Systems Order Picking Cons Labour intensive Ergonomically not optimal Sensitive to picking errors Pick sequence not flexible Damaged products to store Mixing MHE with people Workload balancing and aisle congestion AUTOMOTIVE FOOTWEAR APPAREL

38 GOODS RECEIVING STORAGE ORDER PICKING SORTATION CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT Standard routing, up and down WAREHOUSE MANAGEMENT

39 GOODS RECEIVING STORAGE ORDER PICKING SORTATION CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT Standard routing, with cross over tunnels

40 GOODS RECEIVING STORAGE ORDER PICKING SORTATION CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT Optimised Slotting

41 GOODS RECEIVING STORAGE 3% larger facility ORDER PICKING SORTATION 11.2% reduction in picking costs CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT Russell Meller, professor of industrial engineering and director of the Center for Engineering Logistics and Distribution at the University of Arkansas

42 GOODS RECEIVING STORAGE ORDER PICKING SORTATION 20.4% reduction in picking costs CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT Russell Meller, professor of industrial engineering and director of the Center for Engineering Logistics and Distribution at the University of Arkansas

43 GOODS RECEIVING STORAGE ORDER PICKING SORTATION CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT Appropriate Automation..

44 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES Case Picking Systems Batch Picking System (BPS) / Pick-to-belt Orders are grouped in batches Operators places products on a conveyor belt Products are sorted to consolidate the orders Especially used in food, non-food and fashion B2C PARTS & COMPONENTS 3PL AUTOMOTIVE Benefits Reduction of walking distance up to 90% Minimise # pick walks Avoid congestion 99,99% delivery accuracy Traceability FOOTWEAR APPAREL

45 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR Case Picking Systems Automated tote picking(atp) Totesare stored in automated storage& retrievalsystem Transport to palletising Automatic palletising Particularly suitable for fresh foods (dairy, bread, meat, fruits & vegetables) Benefits Hardly any manual labour necessary No people in cold store Increase storage density up to 60% Energy efficiency (compact storage in cold store) Store friendly delivery APPAREL

46 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL Cross Docking Cross Docking is a supply chain concept where the DC does not keep stock. All cases are distributed to the shops the same day Most applied in food, fashion & high tech Automated cross docking based on sortation gives many benefits 50% reduction of manual labour Triple throughputper m 2 in the DC Store-friendly delivery 100% correct deliveries are ensured Supply chain visibility (tracking and tracing) AUTOMOTIVE FOOTWEAR APPAREL

47 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL Case Picking Systems Automated case picking(acp) Fullyautomated pickingof cartons and totes with different dimensions and shapes Suitablefor (food) retail Justifiable from cases/day Pay back time less than 4 years Benefits 40% reduction of order picking cost per case No dependency on labourresources Avoidance of the ergonomic and safety risks of traditional warehouses Store friendly delivery multiple store formats 100% accuracy (fully automated picking) Short lead time (1st pallet ready in 15 min.) Less floorspacerequired.

48 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C Integrated Picking Systems Integrated picking systems can contain items, cases, totes as well as pallets Each product is picked via the most suitable order picking method Consolidation of the different flows is required PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL

49 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE FOOTWEAR APPAREL Summary of Trends in Concepts General focus on: Integrated Warehouse approach Increased mechanisation - FTE reduction Automated consolidation modules Ergonomics Space saving solutions Proven technology Goods to Man Solutions: Reductions in FTE, footprint and errors Bulk storage: pallet highbays or miniload stores Equipment is becoming faster & cheaper Ergonomics High capacity workstations Short learning periods for new personnel

50 FOOD CARE/PHARMA NON FOOD MEDIA/GAMES B2C PARTS & COMPONENTS 3PL AUTOMOTIVE Summary of Approach to Automation Data, data and more data. Understand the processes fully Consider the business drivers Space Service levels Ergonomics FTE levels Return On Investment (ROI) Return On Capital Employed (ROCE) Did I mention data. Accept it s complicated and get advice! FOOTWEAR APPAREL

51 GOODS RECEIVING STORAGE ORDER PICKING SORTATION Thank you for your attention CROSS DOCKING CONSOLIDATION & SHIPPING INTERNAL TRANSPORT WAREHOUSE MANAGEMENT Noel Blake