-
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Presented by:
Art Eldred, Client Executive,
Systems Engineering
Jeff Lammert, Client Executive
Systems Engineering
Dan Perry, Senior Engineer
The OmniChannel Fulfillment Center:
It’s All About the Warehouse Execution System
© 2016 MHI® Copyright claimed for audiovisual works and sound
recordings of seminar sessions. All rights reserved.
-
What does Omni-Channel
mean to the fulfillment center?
Definitions vary, but for purposes of this seminar, we'll use
the term to refer to a retailers' efforts to integrate their store
and e-commerce selling channels to work seamlessly together inside
the fours walls of a single distribution center.
One Inventory
One Fulfillment Engine
One Workforce
Multiple Order & Product Flows
-
New Challenges for the
Fulfilment Center
Source: RSR Research, October 2015
-
Fulfillment: Retail ≠ eCommerce
Retail eCommerce Desired Order Cycle Time Daily Hourly Order
Planning Window Daily Minutes
Errors Correctable Costly SKUs/Order 1000's 1-10's Items/Order
10,000's 1's Cases/Order 1000's 0's
Daily Destinations 1-100's 10,000's+ Peak "Peak" Period 3-5
Weeks 3-5 Days
Daily Orders 100's 10,000's
Value Added Services Ticketing?
Security Tagging?
Gift Wrap Gift w/purchase
Packing Marketing Collateral
Pack Slips
-
Evolution of the
Fulfillment Center
Supplier
Supplier Distribution Center DC
Supplier E-Fulfillment Center FC
Distribution Center DC
Supplier Omnichannel FC
Retail Store
Home
Home
Retail Store
Retail Store
-
Distribution Growth & Fulfillment
Service Needs
3
2
4 5
1 6
Distribution Center Growth Population Centers
E-Fulfillment Center Service Needs Parcel Ramps
Source: U.S. Census Bureau Source: FedEx
-
What are the benefits of one
Omnichannel FC?
• Speed to Market
• Shared Labor
• Co-Positioned Inventory
• Infrastructure – Workforce
– Systems
– Facilities
– Administration
SPEED LIMIT
AS FAST AS YOU
CAN!
-
Retail & DTC PEAKS
Huge Labor Share Opportunity
June-
wk1
June-
wk2
June-
wk3
June-
wk4
July-
wk1
July-
wk2
July-
wk3
July-
wk4
Aug-
wk1
Aug-
wk2
Aug-
wk3
Aug-
wk4
Aug-
wk5
Sept-
wk1
Sept-
wk2
Sept-
wk3
Sept-
wk4
Oct -wk1
Oct -wk2
Oct -wk3
Oct -wk4
Nov-
wk1
Nov-
wk2
Nov-
wk3
Nov-
wk4
Nov-
wk5
Dec-
wk1
Dec-
wk2
Dec-
wk3
Dec-
wk4
Jan -wk1
Jan -wk2
Jan -wk3
Jan -wk4
DTC Retail
4 Months PEAK Labor
2-4 Weeks PEAK Labor
-
Challenges
• One Inventory
• Information
Systems
• Product
Configurations
• Current
Infrastructure
-
Inventory Challenges
Receive Store Fulfillment
Ship
VAS Processing
-
Storage Challenges
Reserve Velocity Based Slotting
All Active
VS
-
Omnichannel: Ready-Active
Storage
-
Pre-Omni Order Processing
Ord
er C
ut-
Off
Stores 15-24 Ecom Order Store 7-14 Stores 1-6
Ecom Order
Retail ORDER POOL
eCommerce ORDER POOL
8AM – 10PM 24 Hrs- After 6PM Heaviest
Shipping Cut-Off
Retail Wave #4
Retail Wave #3
eCom Expedited Wave #2
Retail Wave #1
Retail Wave #5
-
The Pitfall of Waving
-
Omnichannel Fulfillment Engine
“Wave-less” Continuous Processing
Ord
er C
ut-
Off
B2C Orders Retail Orders
Store 1 Pieces 1-50
Ecom Order
Store 2 Pieces 50-76
Ecom Expedited Order
Ecom Order
COMMON ORDER POOL
Shipping Cut-Off
-
The Benefit of Waveless
-
Traditional Siloed Systems
Order Management
ERP
Warehouse
Management System
Warehouse Execution
System
Warehouse Control System
-
Order Management
ERP
Warehouse
Management System
Warehouse Execution
System
Warehouse Control System
Using the WES to Balance
Machines and Workers
Warehouse Execution System
-
Sort #1 to Put-Walls - Ecom Sorter #1 to Put-Walls Expedite
Sorter #2 to Retail Put to Store
Singles – Case Pick
Ecom Rush Wave #14
Wave #13
Wave #12
Wave #11
Waveless Processing
Via the WES
Sort #1 to Put-Walls - Ecom Sorter #1 to Put-Walls Expedite
Sorter #2 to Retail Put-To-Store
Singles – Case Pick
Fulfillment Center Workflows
30m 2hrs 1.5hrs 2hrs
10
m
10
m
10
m
10
m
10
m
10
m
10
m
10
m
10
m
10
m
10
m
10
m
10
m
10
m
10
m
WES
WES
-
45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 29.9 29 28 27 26 25
24 23 22 21 20 19 18 16.9 16 15 14 13 12 11 1
A
B
C
D
E
F
G
H
J
K
L
M
1'-4"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
1'-4"
1'-4"40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 38'-7 1/2"
2'-4"
39'-0 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 39'-0 1/2"
2'-4"
38'-7 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"1'-4"
562
'-8"
N
P
R
10 9 8 7 6 5 4 3 2
1762'-8"
30.1 17.1
3 HR. FIRE WALL
FU
TU
RE
EX
PA
NS
ION
MAINTENANCESUPERVISOR
QA OFFICE
GL CUBERECEIVINGSUPERVISOR
GL CUBEINVENTORYINTEGRITY
PICKINGSUPERVISOR
AEROSOLROOM
American Eagle Outfitters
Omnichannel Fulfillment Center
RECEIVING (6) Six receiving doors Peaks at 16 trailers per
day Footprint 11,500 Sq FT
1
1
3
2 7
INBOUND Extends over 850 feet Can reach speeds
greater than 600 FPM Footprint 37,500 Sq FT
2 STORAGE Supports over 8.5M units
of inventory 7.5M lbs of steel Shared inventory model Footprint
201,500 Sq FT
3 PACKING SORTER 40 Speed-pack
processing stations Peaks at 320K units Footprint 55,500 Sq
FT
4 DTC SHIPPING Fluid and Gaylord Diverts Bags & Cartons
Peaks at 120K packages Footprint 11,660 Sq FT
5
A B 6
A Future STORAGE Launch TBD
4
5
B Future PACKING SORTER Launch TBD
6 RETAIL PACKING Put-To-Store Wave-less Packing
7 RETAIL SHIPPING High Speed Sliding Show Sorter 18 Down
lines
-
Inbound
45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 29.9 29 28 27 26 25
24 23 22 21 20 19 18 16.9 16 15 14 13 12 11 1
A
B
C
D
E
F
G
H
J
K
L
M
1'-4
"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
1'-4
"
1'-4"40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 38'-7 1/2"
2'-4"
39'-0 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 39'-0 1/2"
2'-4"
38'-7 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"1'-4"
562
'-8"
N
P
R
10 9 8 7 6 5 4 3 2
1762'-8"
30.1 17.1
3 HR. FIRE WALL
FU
TU
RE
EX
PA
NS
ION
MAINTENANCESUPERVISOR
QA OFFICE
GL CUBERECEIVINGSUPERVISOR
GL CUBEINVENTORYINTEGRITY
PICKINGSUPERVISOR
AEROSOLROOM
PA
CK
GIN
GS
UP
ER
VIS
OR
GL C
UB
E
RE
CE
IVIN
GS
UP
ER
VIS
OR
Inbound Facts Quantity
Receiving Doors 6
-
Put-Away / Picking
45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 29.9 29 28 27 26 25
24 23 22 21 20 19 18 16.9 16 15 14 13 12 11 1
A
B
C
D
E
F
G
H
J
K
L
M
1'-4
"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
1'-4
"
1'-4"40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 38'-7 1/2"
2'-4"
39'-0 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 39'-0 1/2"
2'-4"
38'-7 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"1'-4"
562
'-8"
N
P
R
10 9 8 7 6 5 4 3 2
1762'-8"
30.1 17.1
3 HR. FIRE WALL
FU
TU
RE
EX
PA
NS
ION
MAINTENANCESUPERVISOR
QA OFFICE
GL CUBERECEIVINGSUPERVISOR
GL CUBEINVENTORYINTEGRITY
PICKINGSUPERVISOR
AEROSOLROOM
PA
CK
GIN
GS
UP
ER
VIS
OR
GL C
UB
E
RE
CE
IVIN
GS
UP
ER
VIS
OR
Pick Module Facts Quantity
4 Level Pick Modules 6 + 4 future
Carton Storage Capacity 260,000 cs + 175,000 future
Cubic Storage Capacity 600,000 ft3 + 400,000 future
Pick Process Quantity
Peak Putaway/shift 63
Peak Replenishment/shift 0
Peak Pickers/shift 21
-
DTC Packing
45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 29.9 29 28 27 26 25
24 23 22 21 20 19 18 16.9 16 15 14 13 12 11 1
A
B
C
D
E
F
G
H
J
K
L
M
1'-4
"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
1'-4
"
1'-4"40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 38'-7 1/2"
2'-4"
39'-0 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 39'-0 1/2"
2'-4"
38'-7 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"1'-4"
562
'-8"
N
P
R
10 9 8 7 6 5 4 3 2
1762'-8"
30.1 17.1
3 HR. FIRE WALL
FU
TU
RE
EX
PA
NS
ION
MAINTENANCESUPERVISOR
QA OFFICE
GL CUBERECEIVINGSUPERVISOR
GL CUBEINVENTORYINTEGRITY
PICKINGSUPERVISOR
AEROSOLROOM
PA
CK
GIN
GS
UP
ER
VIS
OR
GL C
UB
E
RE
CE
IVIN
GS
UP
ER
VIS
OR
Put/Pack Area Facts Quantity
Tote Dumpers 5 + 5 future
Induction Stations 5 + 5 future
Speedpack Stations 40 + 40 future
Autobagger 1
Full installation includes a 2nd mirrored DTC pack sorter
-
DTC Shipping
45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 29.9 29 28 27 26 25
24 23 22 21 20 19 18 16.9 16 15 14 13 12 11 1
A
B
C
D
E
F
G
H
J
K
L
M
1'-4
"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
1'-4
"
1'-4"40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 38'-7 1/2"
2'-4"
39'-0 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 39'-0 1/2"
2'-4"
38'-7 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"1'-4"
562
'-8"
N
P
R
10 9 8 7 6 5 4 3 2
1762'-8"
30.1 17.1
3 HR. FIRE WALL
FU
TU
RE
EX
PA
NS
ION
MAINTENANCESUPERVISOR
QA OFFICE
GL CUBERECEIVINGSUPERVISOR
GL CUBEINVENTORYINTEGRITY
PICKINGSUPERVISOR
AEROSOLROOM
PA
CK
GIN
GS
UP
ER
VIS
OR
GL C
UB
E
RE
CE
IVIN
GS
UP
ER
VIS
OR
DTC Shipping Facts Quantity
Induction Lines 5
Sort Destinations 14
-
Retail Packing
45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 29.9 29 28 27 26 25
24 23 22 21 20 19 18 16.9 16 15 14 13 12 11 1
A
B
C
D
E
F
G
H
J
K
L
M
1'-4
"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
1'-4
"
1'-4"40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 38'-7 1/2"
2'-4"
39'-0 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 39'-0 1/2"
2'-4"
38'-7 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"1'-4"
562
'-8"
N
P
R
10 9 8 7 6 5 4 3 2
1762'-8"
30.1 17.1
3 HR. FIRE WALL
FU
TU
RE
EX
PA
NS
ION
MAINTENANCESUPERVISOR
QA OFFICE
GL CUBERECEIVINGSUPERVISOR
GL CUBEINVENTORYINTEGRITY
PICKINGSUPERVISOR
AEROSOLROOM
PA
CK
GIN
GS
UP
ER
VIS
OR
GL C
UB
E
RE
CE
IVIN
GS
UP
ER
VIS
OR
Retail Pack Facts Quantity
Put-To-Store Lanes 30
Sort Slots 3,000
PANDA Machines 3
-
Retail Shipping
26
45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 29.9 29 28 27 26 25
24 23 22 21 20 19 18 16.9 16 15 14 13 12 11 1
A
B
C
D
E
F
G
H
J
K
L
M
1'-4
"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
40'-0"
1'-4
"
1'-4"40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 38'-7 1/2"
2'-4"
39'-0 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 39'-0 1/2"
2'-4"
38'-7 1/2" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"
40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0" 40'-0"1'-4"
562
'-8"
N
P
R
10 9 8 7 6 5 4 3 2
1762'-8"
30.1 17.1
3 HR. FIRE WALL
FU
TU
RE
EX
PA
NS
ION
MAINTENANCESUPERVISOR
QA OFFICE
GL CUBERECEIVINGSUPERVISOR
GL CUBEINVENTORYINTEGRITY
PICKINGSUPERVISOR
AEROSOLROOM
PA
CK
GIN
GS
UP
ER
VIS
OR
GL C
UB
E
RE
CE
IVIN
GS
UP
ER
VIS
OR
Retail Shipping Facts Quantity
Fluid Load Lines 18
-
Information Systems Hierarchy
WMS
WES
-
Real Benefits
• Reduce Capital
– Buildings
– Automation
– Infrastructures
• Reduce OPEX
– Inventory
– Labor
– Facilities
• Flexibility
– Dynamically react to product flow in the shortest period of
time
• Higher Margins
– Inventory can Match the Demand
-
Speaker: Art Eldred, [email protected]
Speaker: Jeff Lammert, [email protected]
website: www.vargosolutions.com
Or visit MODEX 2016 Booth #4978