Storage goes live
October 1st 2005

If you want to achieve greater storage density, increase order picking efficiency and improve staff safety, you should consider dynamic storage. BITO’s Edward Hutchinson writes

The traditional view of storage is as a static medium, with stock sat in one place. However, pressure to reduce inventory and make the supply chain ever leaner, means that thinking of storage as static does not always sit comfortably with today’s logistics operations.

In recent years we have seen a rise in the use of live storage, otherwise known as dynamic storage. This is not an oxymoron like military intelligence, but a recognition that inventory should be treated as stock on the move. In live storage, whether pallet or carton based, products are usually loaded from one side, move forward whenever there is a space and are picked from and/or removed from the other side.

Storage density

As well as keeping the products in motion, this results in greater storage density than basic shelving or racking systems as the lanes are several pallets or cartons deep.

Space saving will typically be 20-50%, delivering considerable savings compared to the cost of expanding warehouse facilities. Dynamic storage is also ideal for delivering First in First Out (FIFO) inventory control.

One of the main reasons dynamic storage is the chosen in an increasing number of installations is order picking efficiency. Using carton live storage, products can be presented in a far denser pick face than conventional shelving or pallet racking. This leads to considerable reductions in travel times for picking staff.

This can represent a major overall improvement in picking efficiency; analysis of picking operations reveals that travel time can account for 60% of the overall time spent order picking from cartons on conventional shelving. Implementing a dynamic pick face can deliver a 40% reduction in picking time.

Carton live storage also organises the picking operation in a way that lends to easier automation; it becomes cost effective to add more efficiency boosting equipment such as conveyors or sortation, paperless picking and pick by light. Also, replenishment is automatic at the pick face.

As soon as a carton or pallet is picked to empty, it can be removed and another takes its place, rolling forward under the power of gravity. The immediate benefit is greater staff productivity and better first time order fulfilment rates.

As live storage is ‘fed’ from the rear there is no need for replenishment to get in the way of picking activities, or be delayed until picking is complete. As well as improving productivity and removing bottlenecks, this improves staff safety as picking operatives do not have to mix with forklifts delivering pallets.

Even when used for whole pallets, live storage can be a cost effective solution, depending on the number of stock turns – cost per pallet position dips under that of simple pallet racking when live storage is used for more than around 20 stock turns per pallet position per year. Even greater payback can come from using live storage for both main storage and pick face.

Effectively, the pick face is replenished as goods arrive without any other intervention.

A good example of this is the AAH Pharmaceuticals distribution centre in Northamptonshire where major improvements have been made in efficiency and customer service capability by implementing dynamic live storage.

Stock used to go into pallet racking and order picking faces were replenished several times per day. At peak times, there could be too many people down the aisles.

Now five-deep Bito Carton Live Storage is used for the majority of lines. Stock arriving at the warehouse is now placed directly into the live storage lanes and is immediately available to replenish a new automated A Frame picking system.

The result is better stock availability and vastly increased efficiency. Warehouse staff need to make half the use of forklifts and AAH now has the same stock, better placed, with less labour and less handling.

The amount of times products are handled has been reduced by over two thirds.

Mixture of techniques

Having read this article you may now be thinking that live storage is the answer to everything. This is not the case; at AAH Pharmaceuticals, for example, pallet racking and shelving are still used. However, these are now used for the most appropriate products, slower movers for example, rather than for everything as before. The correct approach is often a mixture of techniques, using each for the most appropriate requirement.

The secret is to look for a supplier who understands live storage. A partner who can offer highly reliable solutions. And knows when live storage is the best answer, as well as when it is not.

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