Is Automation in Your Future?

Is Automation in Your Future? Presented by: Douglas Roth Solutions Engineer 2016 MHI Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

Agenda Background Why Automate Benefits of Automation Hurdles to Clear Types of Automation Integrated System Key Points Questions 2

Presenter/ Sponsor Background Douglas Roth Solutions Engineer 15+ years in Supply Chain related positions, including conception and implementation of countless material handling systems Expertise in conveyor, goods to person and automated storage and retrieval solutions Associated Founded 1960 Seven locations covering six states in upper Midwest Raymond Lift Truck Distributor featuring leading edge fleet management services MHE Systems Engineering & Integration Solutions Provider featuring specialized MHE aftermarket system services Peach State is a Subsidiary of Associated 3

Trends Driving Automation Shrinking labor pool Labor costs Offsite storage costs Healthcare costs Customer demands Safety / Ergonomics Going green New dim weigh rules SKU proliferation Running out of space Low picking accuracy Operating costs 4

Benefits of Automation Process Improvement Automation facilitates processes that otherwise would not be practical Directed Order Fulfillment Dynamic Slotting Pick & Pass Goods To Person Picking 5

Benefits of Automation Safety and Ergonomics Automation facilitates methods to improve safety & ergonomics Presenting work at ergonomic positions Reducing labor in harsh environments Eliminating repetitive tasks 6

Benefits of Automation Labor Savings Automation facilitates the ability to reduce labor in operations Travel to/from storage locations Pick face replenishment Facilitates goods-to-person stations 7

Benefits of Automation Improve Storage Density Automation facilitates the ability to increase storage density within A facility Reduce space required for fork truck aisles Increase the density of product storage Store product in deep lanes Utilize vertical space 8

Benefits of Automation Construction Cost Savings Automation facilitates the ability to reduce construction costs Smaller square footage Smaller cubic space for HVAC costs Rack supported structures 9

Benefits of Automation Security Applications Automation facilitates the ability to improve security of products Products are not accessible without creating a record of the interactions Improvements in inventory controls 10

Hurdles to Pursuing Automation Company / management culture Lack of expertise Business uncertainty Capital requirement COST ROI 11

Types of Automation Pick/Put to Light Prompts transactions via light Allows for hands-free operation Infrastructure based on SKU count Smaller infrastructure, but requires equipment at each SKU location MEDIUM Initial Cost LOW Effort to Implement MEDIUM Expandability 12

Types of Automation Voice Enabled Work Prompts/confirms transactions verbally Allows for hands-free operation Infrastructure based on operators Requires larger infrastructure but easily expandable MEDIUM Initial Cost LOW Effort to Implement HIGH Expandability 13

Types of Automation Pallet Mover: Mobile Rack / Shuttle / AS/RS Lights out movement and storage of palletized goods Minimal ongoing operating costs Very high up-front cost and effort HIGH Initial Cost HIGH Effort to Implement LOW Expandability 14

Types of Automation Goods to Person: VLM / Mini-load / Bots Can include carousels, high-density storage or bots Large infrastructure without much flexibility Many different solutions available based upon product size and throughput needs HIGH HIGH MEDIUM Initial Cost Effort to Implement Expandability 15

Types of Automation AGV or SGV Unmanned lift equipment for moving product around a facility AGV requires a significant infrastructure Good for repetitive hotizontal moves MEDIUM HIGH HIGH Initial Cost Effort to Implement Expandability 16

Types of Automation Conveyor Systems Highly efficient way to move pallets, products or orders through a facility Multiple options from very basic to extremely complex Flexibility must be built into infrastructure VARIES Initial Cost MEDIUM Effort to Implement MEDIUM Expandability 17

Types of Automation Sortation Allows more effective bulk picking of items that are separated downstream Typically built into a conveyor system VARIES Initial Cost HIGH Effort to Implement MEDIUM Expandability 18

Types of Automation Fit to Size Packing Automation Builds a parcel that is customized to a specific order Reduces/Eliminates packaging labor, corrugated materials, void fill and shipping costs HIGH Initial Cost MEDIUM Effort to Implement MEDIUM Expandability 19

Integrated System STORAGE SOLUTION TRANSPORTATION ORDER FULFILLMENT 20

Integrated System 21

Key Takeaways Management and staff buy-in are essential Automation is part of the process improvement, not an alternative to the process improvement Partner with a company that you can trust Management and staff buy-in is essential Recognize the lead times and set realistic expectations for the project schedule Evaluation of automation is best done as part of a strategic direction Recognize that not making a decision is a decision 22

Questions? Thank You! 23

For More Information: Speaker email: droth@associated-solutions.com Website: www.associated-solutions.com Website: www.peachstate.com Or visit MODEX 2016 Booth 5055 24