Aisle-free Storage and Retrieval: The Future for Optimally Handling Multiple of the Same SKU Presented by: Dale Dunn Mikael Pernefors 2016 MHI Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.
Presented by: Dale Dunn Director, National Accounts Raymond Corporation Mikael Pernefors Sales Director Radioshuttle Each with more than 25 years of experience in high-density warehouse solutions
The challenge: to increase warehouse density without sacrificing selectivity and throughput
Typical Warehouse Layout
Typical Warehouse Layout
Total capacity: 27,744 pallets Utilization: 1 pallet/5 square feet 16 pallets/hour with reach truck Stock rotation: 6 to 8 times/year Key Figures
Inventory Analysis Range # of SKUs % Avg. Inventory % Rack Required Avg. /SKU 0 to 3 pallets 1,622 49% 2,232 7% 2,626 1 5 to 10 pallets 1,044 32% 5,659 17% 6,658 5 10 to 50 pallets 513 16% 10,252 30% 12,061 20 50 to 100 pallets 72 2% 5,127 15% 6,032 71 100+ pallets 54 2% 10,489 31% 12,340 194 Totals 3,305 33,759 39,716
Inventory Analysis 1,800 1,600 # of SKUs and # of By Range 1,622 12,061 12,340 14,000 12,000 200 180 Avg. # of on Hand/SKU By Range 194 1,400 1,200 10,000 160 140 1,000 800 600 400 200-2,626 0 to 3 6,658 5 to 10 1,044 10 to 50 513 6,032 50 to 100 72 54 Over 100 8,000 6,000 4,000 2,000-120 100 80 60 40 20-1 5 20 0 to 3 5 to 10 10 to 50 71 50 to 100 Over 100
Velocity Analysis Range # of SKUs % Weekly % Avg. /SKU 0 to 3 pallets 2,392 89% 1,322 12% 1 5 to 10 pallets 101 4% 707 7% 7 10 to 50 pallets 142 5% 3,118 29% 22 50 to 100 pallets 38 1% 2,782 26% 73 100+ pallets 17 1% 2,922 27% 172 2,690 10,851
Velocity Analysis 3,500 3,000 # of SKUs and Shipped/Week By Range 3,118 2,782 2,922 200 180 Avg. # of /SKU Shipped Each Week By Range 172 2,500 2,392 160 140 2,000 120 1,500 1,322 100 80 73 1,000 500-707 101 142 0 to 3 5 to 10 10 to 50 50 to 100 38 17 Over 100 60 40 20-1 7 22 0 to 3 5 to 10 10 to 50 50 to 100 Over 100
Existing Solution: Outside Storage CHALLENGE Solution of the Future: Increase Capacity in Existing Warehouse
Selective Nonselective Wide aisle Narrow aisle Very narrow aisle Block-stack Drive-in Double-deep Mobile Pallet-flow Push-back What are the options?
Utilization vs. flexibility? THE CHALLENGE TO INCREASE WAREHOUSE DENSITY WITH MAINTAINED SELECTIVITY AND THROUGHPUT Flexibility Accessibility Speed $ Cost per pallet position Density
Chosen Solution Aisle-free Storage System
Cost per pallet stored Mobile racking Gravity-fed racking VNA Double-depth storage Drive-in racking Aisle-free storage Most flexible Cost and Flexibility Block stacking Least flexible
The Top Six List of Advantages PRODUCTIVITY While shuttle moves the pallet through the racking, the truck driver is free to do other work. MAXIMIZED STORAGE UTILIZATION of available warehouse space, usage of the volume of your warehouse building. OPTIMUM SELECTIVITY to loads, as each level and section is managed independently of other levels and sections. COST-EFFECTIVE More pallet locations in existing warehouse minimize use of external storage of pallets. MINIMIZED DAMAGES to loads, less goods damaged as movements of pallets are done by shuttle. REDUCED NEED FOR LABOR It takes fewer truck drivers due to the fact that shuttle will do the movements of pallets.
Step by Step
Before
During
After
Animation and Time Lapse
Standard Shuttle System Building size 150,000 sq. ft. 150,000 sq. ft. Selective 27,744 18,312 Shuttle 19,680 Total pallet storage 27,744 37,992 + 37% Each week saving on outside storage is $3/pallet X 10,248 pallets X 52 weeks = $1,598,688/year Layout Option Comparison Inventory
Standard Shuttle moved each week 10,851 10,851 From standard rack 10,851 5,426 Moves/hour 16 16 Total hours (x2 in and out) 1,356 678 From Radioshuttle 5,425 Moves/hour 40 Total hours (x2 in and out) 271 Total hours 1,356 949 Each week labor savings is 407 hours @ $50 (operator + vehicle) = $20,350 Annual efficiency savings of $1,058,200 through mechanization Layout Option Comparison Velocity
$ Itemized Tasks for Project Completion Removal of 9,432 selective pallets Labor to empty and reload storage system Temporary pallet storage during installation Shuttle system Total Investment $3,983,160 Annualized Savings Operational savings $1,058,200 Outside storage cost $1,598,688 Total annual savings $2,656,888 Years to Pay Back Investment 1.5 years Return on Investment Calculation
1. There is a solution to increasing warehouse storage density while maintaining reasonable selectivity. 2. Typically, warehouses employ selective rack to store all products. 3. An analysis of inventory and product velocity shows 20% of SKUs should be stored in a high-density solution. 4. Converting some of your selective to no-aisle shuttle systems will increase your pallet capacity dramatically from 1ppl/5 sq. ft. to 1 ppl/3 sq. ft. 5. The payback on this investment is typically fewer than two years. 6. Existing systems such as WMS and other management processes can remain in place. Conclusions
For More Information: dale.dunn@raymondcorp.com www.raymondcorp.com mikael.pernefors@radioshuttle.co www.radioshuttle.co Or visit MODEX 2016 Booth 3647