By Ed Romaine
DETERMINING THE BEST SPLIT-CASE AUTOMATED ORDER FULFILLMENT SYSTEM
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imple, automated order fulfillment technology not only improves service levels, but also pays for itself in a short period of time, less than two years in many cases. Simple automation is the installation and integration of automated order fulfillment systems within your operations. It can improve order fulfillment operations in four important ways, and in the process, it can achieve a rapid return on investment (ROI) through cost reductions. Simple automation reduces costs through: } Reduced Labor Requirements. The single biggest cost in warehouse and distribution center operations is labor. Simple automation improves picking rates by as much as 600% per operator, reducing the need to add labor to meet increased demand. } Increased Throughput. Improved operator productivity increases system throughput, speeding order turnover and extending order cutoff time. } Improved Order Picking Accuracy. Automation with the use of supporting technology such as software and pickto-light systems improves order picking accuracy up to 99.99%+.
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} Space Savings. Automated order fulfill-
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ment systems can recover between 30% to 85% of floor space by utilizing the vertical cube of the facility. This saved space can be converted to income producing operations, reducing the need for brick-and-mortar expansion. Improved Inventory Visibility & Management. Even simple systems can significantly improve the quality of information about inventory status and stock keeping unit (SKU) location. Improved Ergonomics Reduce Lost Time Injuries. The warehouse labor force has the highest turnover rate, the highest absenteeism and the highest lost time accident rate in the order fulfillment operation. Automated systems reduce bending, stretching and reaching by presenting stored items to the operator at the correct ergonomic work height, reducing workplace injuries.
At first glance, it might seem easier and less costly to add labor to meet market demands, or to increase storage capacity through brick and mortar square footage expansion, but these options often prove to be bad business decisions. Increases in both throughput and storage density can
SEPTEMBER-OCTOBER 2015 | www.PARCELindustry.com
often be better achieved through simple automation of the order fulfillment process, and the rapid ROI can justify the implementation of this technology.
CHOOSING THE RIGHT SYSTEM There are a number of automated technologies available. Each offers specific parameters in the sizes and types of inventory they handle most efficiently, as well as storage density, and throughput rates. When considering an automated system, here are some guidelines to keep in mind. Velocity. Is the system designed to handle slow, medium or fast moving inventory items? Throughput. How many lines per hour or orders is the system capable of handling? Storage Density. How many active SKUs can be stored in the least amount of space? Space Utilization. Does the design of the system take advantage of unused space or otherwise recover space required for the existing order fulfillment operation? Acquisition Cost vs. Cost of Ownership. Does the cost of the system fit within budget guidelines, figuring in a proper ROI? More importantly, what is the true cost of the system year 2, 3 and 4 vs. other alternatives? Depending on the application,