The manual for automatic
October 1st 2008

The move to automating warehouse picking operations could be the one of the best – or worst – business decisions you ever make, says Savoye Logistics MD, Russell Davies

Automation is a tool to assist the operation and not a panacea and as such you need to understand its' limitations and appreciate the work necessary to determine the system requirements.

The main aims in looking at schemes to automate picking operations are: Reduction in operating costs; improvement in productivity; improving accuracy & traceability; supporting business growth.

The biggest driver of automation projects is the reduction of operating costs – mainly the reduction of operational labour clearly demonstrating a return on investment.

When to automate? Crucial considerations include: ROI; potential to improve/enhance operational performance; risk of obsolescence: property commitments; length of contract; competitive landscape; identifiable future trends; labour market costs.

All of the above play an important part in the decision to automate. For many firms, a manual process will often be preferable due to a number of different factors.

At an operational level, some of the key considerations will be: Number of picking staff; the prospect to reduce the number of picking staff presents the greatest opportunity to prove the viability of the automation project.

Volume considerations The volume itself is not a driver – what is more important are the number of orders and the number of order lines per order.

Picking methods Essentially there are three key methods of order picking – Batch, Wave and Order.

Batch Picking: is very efficient where a large volume of a single SKU is picked in a batch and the resultant pick is then broken down into individual order requirements.

This has the result of limiting the number of accessions to the pick face thereby improving productivity of the individual picker.

Wave picking: is similar to batch picking but where orders, rather than products are batched together and picked in waves.

A good example of this is in the e-business environment where orders are typically small but where complementary products are often sold together.

Individual order picking: This offers good scope for the use of a zone picking automated system. Typically orders which are picked individually, especially across split case operations comprise from a large range of SKU's, are small order volumes and are subject to short cycle times – B2B operations such as corporate stationers are a good example of this type of order picking.

The ability to pick directly into the dispatch case yields significant benefits in eliminating any re-packing at the end of line operations – a cost which can prove to be key in ROI calculations. The Savoye PAC600 system is designed with this kind of operation in mind and can be easily integrated into a conveyor system with all elements – erection, securing and sealing being fully automated.

For complex picking operations a WMS such as Savoye's LM7 with specific functionality for small order split case picking and robust pre-cubing functionalities can offer significant benefits.

Additional Tools The efficiency, effectiveness and accuracy of an automated system can be enhanced through the use of specific tools such as Savoye's newly launched PTS System, a modular small parts storage and retrieval system using RFID guided trays served by autonomous shuttles and capable of delivering up to 800 lines per hour to each operative.

Other tools would include: Pick to light; pick by voice; dynamic weigh scales; goods to man systems; vertical carousels; miniload systems

Return on investment Reduction of operational labour will be the key driver in the majority of automation projects, as such the calculation of this figure is of critical importance to the project.

Picking & packing staff This is the most obvious area of benefit in an automated scheme. The calculation of the labour required, and thereby the saving against the status quo, is of critical importance.

The verification of picking rates through benchmarking similar operations will be highly valuable at this stage.

If the operation is able to move to one where picking is undertaken directly to dispatch case, this will remove the requirement for unnecessary handling of the products.

Accuracy One of the benefits of automation is the improvement of picking accuracy. Any labour costs that can be associated to checking, and rectifying mistakes made at the slotting, picking & inventory stage.

Cost to employ When considering the factors above it is important to incorporate the total cost to employ rather than simply a wage rate including Staff Wage Costs,Sickness Pay, Holiday Pay etc

Other operational costs MHE – Does the solution reduce the level of MHE required and by how much? Be sure to incorporate all relevant elements – purchase price, lease costs, maintenance costs, wear parts, replacement costs etc Build Costs – Are you looking to incorporate ASRS elements into your new build? Be sure to understand the implications this has in limiting the build costs through reduction of required footprint.

For example, the movement to an automated pallet store can halve the required footprint against a traditional VNA store and the solution becomes cost neutral on build cost alone.

A tool, not a solution Any move to automation should be a carefully considered move where all operational aspects and cost considerations are carefully analysed.

Successful automation is not about the equipment or the technology – it is about understanding each element of the warehouse process in detail and seeking the most appropriate resolution for that process.

Automation is a tool to better manage process – not a solution to a problem.

A full version of this article can be found at: www.hsssearch.com/savoye

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