What to consider for a successful AS/RS investment

Similar documents
New Products Trends and Benefits in AS/RS

Sponsored by: Presented by:

Building a Omni- Channel Distribution Center A Case Study

Intelligrated sortation systems

Material Handling Automation and Warehouse Execution Systems

Honeywell Intelligrated Sortation Systems

P11 Handling and Storage E212 - Facilities Planning and Design

Labor Management Software

The Many Personalities of Shuttle Technology. Track 3 Session 7

Do more with less: How to thrive in a challenging labor market

Chapter 9 Storage & Warehouse Systems

Labor management software

Intelligrated robotic solutions

Proven Strategies to Increase Productivity and Deal with Slow Movers

Is Automation in Your Future?

Rtls Delivers For Material Handling & Logistics

When to make the move from paper picking to paperless

Sort it out! Making smart sortation automation decisions. Satyen Pathak, senior product manager

How to Maximize Warehouse Space When Expansion Isn t an Option

Palletizers and Depalletizers

Introduction The role of the warehouse Role of the warehouse manager 36. List of figures xi List of tables xv Acknowledgements xvii

4,200 Orders per Hour with Zero Picking Labor - Comparing Split-Case Order Fulfillment Technologies

In a league of its own

YOUR BEST WAREHOUSE MANAGEMENT SYSTEM: GETTING MAXIMUM VALUE FROM YOUR WAREHOUSE AND YOUR FUNCTIONAL AREAS

May The Force Be With You

Pre-Engineered Direct-to-Consumer Solutions CONTINUOUS INTELLIGENT OPERATIONS

Ch.4 Warehousing. Part 4 : Distribution & Customer support. Edited by Dr. Seung Hyun Lee (Ph.D., CPL)

Stock Management Methods in SAP: Some distinctive differences between IM, WM, and EWM John Gardner

Warehouse Management MANHATTAN ACTIVE DISTRIBUTION. VF Corporation

WMS Best Practices Top Ten List

Sorting out your sortation options

The Picking Playbook Batch Picking, Zone Picking or Cluster Picking Which is Right for Your Distribution Center?

CaseStudies. Westfalia Technologies, Inc.

MATERIAL HANDLING SYSTEM CHOICES: PRIORITIES AND PARTNER APPROACHES OF PURCHASE DECISION-MAKERS

Robots empowering people. Transform your productivity without transforming your warehouse.

Operational Success = Audits, Metrics And Right Technology

CASE STUDY. adidas Group. The right team with the right experience wins big. automation that delivers

Automation in the Distribution Center Technologies and Systems You Should Know About

Robotics in the Warehouse

McGRAW-HILL Distribution Center Upgrades Improve Shipping Capacity and Reduce Maintenance Requirements for Educational Publisher

DO THE MATH. Using Modeling to Optimize Distribution Center Automation DESIGN DEVELOP DELIVER

NEW: Element Vertical Lift Module

David Schneider Hänel Storage Systems Presented by: Tim Archer Kardex Remstar Joseph Elie MODULA. Sponsored by:

Strategic Implications and Business Case for Warehouse Automation

PROMAT S LATEST & GREATEST

Beverage Storage Systems

Lean Distribution. Mark Kushner, COO Lloyed Lobo, Director Business Development

Multi-Channel Distribution Align Your Fulfillment Operations With Your Changing Channel Mix

Oracle Warehouse Management (WMS) and RFID

Calculating the True Cost of Storage Space

Oracle WMS A Scary Success

New tool for aiding warehouse design process. Presented by: Claudia Chackelson, Ander Errasti y Javier Santos

Think Inside the Box

Automated Storage and Retrieval Systems

ADIDAS GROUP The Right Team With the Right Experience Wins Big

Storage Optimization in the Warehouse. Common Warehouse Activities

Process + Technology = Operational Excellence

Vocollect Voice Solutions - Voice-Enabled Workflows Brochure

MANUFACTURER OF STEEL STORAGE EQUIPMENT

Material Handling. Chapter 5

AS/RS APPLICATION, BENEFITS AND JUSTIFICATION IN COMPARISON TO OTHER STORAGE METHODS: A WHITE PAPER

WMS + WCS = Warehouse Execution System

How AGVs Improve Safety and Flexibility at Minimal Cost in Warehouses and DCs

LABOR MANAGEMENT SYSTEM IMPROVE THE WAY YOUR WORKFORCE WORKS

Breakfast Summit 2012 NAVIGATOR WMS Accuracy Productivity Tuesday 27th March 2012 Brisbane Technology Park Conference Centre

CASE STUDY. Highly eficient distribution center for Switzerland s leading pharmaceutical wholesaler, Galexis AG. ssi-schaefer.com

Bucket Brigade with Pick-to-Light & Voice Picking

Sortation Directing Product Traffic

Shuttle XP Vertical Lift Module Automated Storage & Retrieval System High Density Storage in a Compact Footprint

SK3600 Push Back System

Simulation based Performance Analysis of an End-of-Aisle Automated Storage and Retrieval System

10 STEPS COMPANIES CAN TAKE TO IMPROVE OPERATIONAL EFFICIENCY

HOW MUCH IS YOUR WMS REALLY COSTING YOUR BUSINESS? Find out how to calculate the true total cost of ownership of your WMS

The Future DC Associate

Flexible Fulfillment Playbook

HEALTHCARE SOLUTIONS AUTOMATED SOLUTIONS FOR CONSOLIDATED SERVICE CENTERS

Indoor GPS for Material Handling and Warehousing

BUSINESS CASES & OUTCOMES

Most companies sell the products they make. At Kardex, we make the products you need.

PILOT PICK TO CARTON OR TOTE TRAY SYSTEM SEMI-AUTOMATIC SYSTEM JANUARY, 2016

ESC-AD 3,000 4,000 lbs. Three Wheel Stand

Process and Facility Layout Improvements to Meet Projected Growth at M.S. Walker s Norwood, MA Distribution Center

Improving DC Metrics. Optimizing Distribution Center Operations with Right-Sized, Purpose-Built Lift Truck Fleets. Yale Materials Handling Corporation

The Adoption and Usage of Picking Solutions in Materials Handling Operations

What is Waveless Processing and How Can It Optimize My Operation?

The Connected Chemical Plant

8 Distribution Technologies to Watch. Fortna 1

Change Your. Perspective: Keys to Effectively Adapting to Rapid Change in Distribution Center Environments

Silverline P90. The strongest and most versatile system for pallet racking. Silverline RACKING

Intelligent Production Cost Allocation System

E-Commerce is entering a new dimension. Are your conveyors and sorters ready for the challenge?

Robots in the Warehouse: A Supply Chain Game-Changer. By Tompkins International Staff

Kardex Remstar Shuttle XP Vertical lift systems for highly dense storage on limited floor space

JORACK. Storage Solutions from Design to Installations.

PRODUCT REFERENCE GUIDE

Bridging the Gap Between Legacy and Best-of-Breed WMS

Automating payment processes to deliver bottom line cost savings in a weak economy.

Term used to describe concept for storing bags that are not immediately due for Aircraft Loading. Also referred to as Cold Bag Storage (CBS)

THE VALUE OF STRATEGIC SOURCING FOR PROCUREMENT PROFESSIONALS

MAKING THE BUSINESS CASE FOR VOCOLLECT VOICE

Transcription:

What to consider for a successful AS/RS investment Find the right technology and system supplier for optimized flexibility, throughput and operational efficiency automation that delivers

What to consider for a successful AS/RS investment Find the right technology and system supplier for optimized flexibility, throughput and operational efficiency By Tom Meyers, senior product manager, integrated systems, Intelligrated Demand for AS/RS and the rise of shuttle technology Automated storage and retrieval systems (AS/RS) started out storing and handling heavy pallet loads for farmers in the 1960s. Fast-forward 50 years and the popularity of AS/RS has grown considerably, as the technology has evolved from agricultural applications into a powerful tool to serve manufacturing and distribution operations. In today s distribution landscape, brick-and-mortar locations no longer keep excess inventory in back rooms and the popularity of home delivery keeps reaching new heights. Stores receive an increasing amount of split-case orders, and the e-commerce wave cements the shift from full pallets to more frequent, smallerquantity orders. Effectively serving this demand requires AS/RS technology designed to handle high volumes of smaller, lighter loads in cartons, trays, totes or bins. Shuttle systems have emerged as the next generation of AS/ RS technology due to their storage volume, speed and flexible, scalable layout configurations. Although auto store and mini-load systems are also capable of serving the order sizes and quantities of contemporary distribution demands, shuttle systems offer significant throughput advantages of 5-10 times greater than other AS/RS technology. Just as technology and business demands change, so do other market conditions. With current increases in the minimum wage and an aging, shrinking industrial workforce, automated systems offer a viable solution to handle growing order volumes. They reduce labor resources spent on dirty, dull or dangerous tasks, while increasing accuracy and throughput capacity. Additionally, operations must cope with increasing land costs, especially near expanding urban centers. These costs incentivize implementing technology to consolidate facility footprint by growing up, rather than out. This white paper, the first installment in a series of AS/RS materials from Intelligrated, outlines the important factors for companies to consider when evaluating and adopting shuttle technology in current market conditions. 2 What to consider for a successful AS/RS investment

AS/RS technology How it works Load type Throughput capability Best-suited applications Unit load Maximum one crane per aisle, serving all storage levels Pallets Wholesale distribution - pallet loads, agricultural storage Carousel Series of bins revolving on an oval track Bins E-commerce distribution - goods-to-operator order fulfillment; sequencing and buffering Mini-load Generally one crane per aisle, serving all storage levels Trays, totes or cartons E-commerce distribution - goods-to-operator order fulfillment; sequencing and buffering Shuttle Several shuttles serve a single aisle Trays, totes, cartons or bins E-commerce distribution - goods-to-operator order fulfillment; sequencing and buffering Application considerations Without automation, filling higher quantities of smaller orders means more pickers traveling through a distribution center (DC). Eventually, at about 3,000 orders per hour, operations hit a tipping point in which foot traffic clogs thoroughfares and operations hit a productivity plateau. Rather than just refining manual processes, highly automated systems and fulfillment workflow modifications work together to deliver necessary increases in speed and accuracy. AS/RS enables different, more effective methodologies to solve the challenge of high-throughput e-commerce fulfillment. Implementing AS/RS reverses the flow of picker-toproduct by bringing goods to operators. This eliminates travel time that can account for as much as half of a picker s time, and allows labor to be more productive, enabling operations to fulfill more orders per hour. Furthermore, shuttle systems are configurable to maximize efficiency based on operational needs, strategically releasing product in sequence for truck unloading, mixed-load pallet building or grouping similar orders together for faster fulfillment. Shuttles are also valuable for their flexible handling characteristics, featuring gripping mechanisms compatible with a variety of product types, sizes and weights in cartons, totes, trays or bins. This flexibility also pays off in manufacturing operations, which can use shuttles to buffer incoming raw materials for later processes, or kitting operations to release parts packages for assembly. 3 What to consider for a successful AS/RS investment

The vendor partnership Implementing an AS/RS shuttle system is a big investment, with an average two-year ROI and annual sales of $50 million typically required to justify the capital expenditure. With an investment of such magnitude, the scale of the project makes for a long-term partnership, rather than a typical vendor-customer relationship, placing a premium on integration experience and support capability. Asking the right questions during the RFP process helps companies choose the right vendor and set themselves up for a successful installation. Does the vendor have experience integrating other large, multimillion-dollar systems? Do they have a reputation for stability and seeing projects through to success? Highly automated systems often run 12-16 hour days and can keep even longer operating hours during peaks. With tight shipping deadlines and minimal margin for error, operations cannot afford unexpected down time. Managing the risk of unplanned downtime requires reliable equipment. This means a system that can be easily maintained, and 24X7 vendor support with fast repair times to minimize unplanned downtime in the event of an issue. 4 What to consider for a successful AS/RS investment

to handle different product types and storage depths to maximize density, from single- to quadruple-deep storage. The modular design of the racking and storage framework enables the addition of new levels and aisles to accommodate growth in storage demand. Operational advantages build the business case Integration and scalability Systems integration requires not only physical connections but also significant virtual links. All order data flows from a DC s WMS to the AS/RS control software that decides how to sequence and release products from storage. The control software s sequencing rules and system parameters are customized based on unique project and customer requirements, placing significant value on cooperation from client IT resources for a successful integration. The efficiency of the overall system design streamlines the initial installation and also plays an important role to enable system scalability as order volumes and storage requirements increase over time. Modular designs allow for phased implementations, enabling operations to strategically schedule installations for minimal disruption, adding capacity as business needs evolve. Shuttle systems have scalability advantages over other AS/RS technology thanks to their overall system framework and the shuttles themselves. Lifts at the end of aisles enable multiple levels to share a single shuttle, with the flexibility to add additional units as throughput demands increase. The shuttles are available with a range of different load handlers, enabling them AS/RS presents a multifaceted business case. The goodsto-operator workflow can more than double labor productivity, as it eliminates the travel that accounts for up to 60 percent of a picker s time. The increased space utilization and storage density per square foot takes advantage of unused cubic volume in a facility and can prevent operations from moving or building a new facility. Accuracy is an inherent piece of using shuttles to move inventory, and even as the system executes more complex applications like sequencing and buffering, extensive scanning and automated checks ensure virtually error-free operation. Shuttles hold key advantages in throughput capability and layout flexibility against other types of AS/RS technology. With a shuttle operating on each row, 10-15 shuttles can serve the same area as a single crane in a comparable miniload system, depending on the height of the storage aisle. This results in greater overall throughput and quicker access to individual stock locations. Finally, the modular design of the shuttle system s storage framework enables it to accommodate physical obstructions inherent to the building, such as beams or lights, far more efficiently than other set ups by simply building around them. By contrast, a miniload or auto store system requires a more rigid, cubic structure that can t adapt to building shape or other physical obstructions. 5 What to consider for a successful AS/RS investment

The right type of technology, built for the demands of today and tomorrow The impact of e-commerce and the evolving labor pool continues to grow, requiring supply chain initiatives to enhance labor productivity and push overall output to new heights. When properly implemented, AS/RS, specifically shuttle systems, offer the most flexible, efficient and productive solution for high-volume fulfillment operations. Realizing this benefit requires careful in-depth planning and a capable vendor equipped to provide system design, integration and ongoing support necessary for a successful long-term partnership. For more information, visit or email info@intelligrated.com. 6 WTCWP01 02.16 Intelligrated. All rights reserved.