Track: 606 Automation in the Distribution Center ...€¦ · May 23, 2007 DC Expo Session 606 Page 1 Automation in the Distribution Center – Technologies and Systems You Should

May 23, 2007 DC Expo Session 606 Page 1

Automation in the Distribution Center –

Technologies and Systems

You Should Know About

Marc Wulfraat, MWPVL International Inc.(514) 482-3572 x 100

[email protected]

Track: 606

May 23, 2007 Session 606 Page 2

Session Focus

This session will help companies to understand new automation technologies within the distribution center, the leading edge solutions that are available, their application, cost and where they make the most economical sense.

This Presentation is Geared Towards:Goal: Cut Costs

Goal: Handle Growth

Goal: Increase Productivity

Your Role: Industry Consultant

Your Role: Executive

Your Role: Strategic Facility Design

Covered Topics in End-to-End Supply Chain Model:

Executive Decision-Making

Sourcing

Making/Manufacturing

Logistics/Fulfillment

Connecting Tech/Resources

All


Abstract

Material handling equipment automation solutions for:– Each Picking

– Carousel Replenishment

– Sortation

– De-palletization

– Case picking

– Storage

– Palletization

– Labor Incentives

Movies and images of automated and semi-automated solutions in NA and Europe.

Where each solution fits

How much they cost


What is your attitude towards

automation in distribution?

It would never apply to my company.

It’s overpriced, inflexible, constant maintenance headache, it’s bound to fail, etc.

It’s interesting stuff – but not on my clock

We will use automation but only if it has ROI based on real labor reduction

We will use automation to gain a competitive advantage for the long term

We will use automation as a labor strategy to combat the unions


The application for distribution

automation really depends on a

company’s size, culture, financial

governance, labor strategy and risk

tolerance.

When the planets are aligned, then

automation may become reality.

All of These Opinions Are Valid!


Automation is Making a Comeback

In North America

– Automation was popular in the 70s

– In the 80s and 90s automation declined as people

realized that labor inflation was not infinite

– In the past decade the pace has picked up

significantly

In Western Europe

– Automation has been more widely used due to

shortage of land and labor and higher labor rates


Sometimes Automation Makes

Sense For Other Reasons…


Flex Picker

Automated Each Picking

(Courtesy Bastian Material Handling)


A-Frame Order PickingUp to 50,000 units/hr automated pick output

Manual replenishment of eaches is required

Ideal for small items with hyper-fast velocity and high value

Ideal for tight order turnaround time (e.g. 4 hours or less)

3000 SKU system costs ~$2.5M + interface to WMS

Justification is typically on the basis of accuracy rather than productivity


A-Frame Order Picking

(Courtesy SSI Schafer)


Goods to Operator Picking



Automated Replenishment

Carousels

All received products destined to be stored in the carousel must be placed into standard Containers

Never need to be shut down the carousel for replenishment

Mini-load machines dynamically replenish the carousels during active picking operations

Systems start at $1.5 M and up for 3-Pod station


Automated Carousel

Replenishment



Automated Carousel

Replenishment



E-Commerce Order Sortation

(Courtesy BMH & ASAP)

Batch Pick Many Small Orders

and Automated Sort


E-Commerce Order Sortation

(Courtesy ASAP)


Bomb Bay Sortation

Tilt tray sorters cost in the range of $750K+

Budget turnkey price for a 400 drop bomb bay

sorter can run from $1.0 – 1.5 Million +

Warehouse control system (WCS)

Sorters will allow processing of up to 40,000

pieces per hour with up to 12 people inducting

product

New quad tray technology from Eurosort has

doubled the output capacity of these machines


Bomb Bay Sortation


Bomb Bay Sortation

Books & CDs

(Courtesy EuroSort)


Automated De-Palletization

Semi-Automated

Automated


Semi-Automated Case De-Palletization

/ Case Picking

(Courtesy Siemens)


Automated Depalletization

/Case Picking

(Courtesy Siemens)


Automated De-Palletization

Key considerations

– Pallets need to be in full layer quantities (i.e.

residual cases can’t be automatically handled)

– If pallets are being de-layered to automate

case picking, what happens when you don’t

need all of the cases in the layer? Where do

the residual cases go?

– High cost – fully automated machines are

expensive i.e. $2.0M+


Automated Full Case Selection

Several innovative solutions have emerged to automate and semi-automate case picking

Key vendors in this space include:

– Witron

– Nedcon

– Siemens

– Swisslog

– HK Systems

– Daifuku



(Courtesy Nedcon - Dynamic Logistics Systems)





Automated Case Selection



One of the Most Automated Distribution

Centers in North America(Courtesy HK Systems)


Building Attributes

Perishable Goods Warehouse

– 500,000 Square Feet

– 35 AS/RS aisles with dedicated HK Cranes

– 25,625 Single Deep AS/RS Storage Locations

Dry Goods Warehouse

– 620,000 Square Feet

– 42 AS/RS aisles with dedicated HK Cranes

– 38,500 Single Deep AS/RS Storage Locations 56

Receiving dock doors

Clear Height 31’9’ - 34’0”


Single Deep ASRS

Conventional Double Pallet Jack

Pick With Voice


System Safety Features

Motion Detectors from SICK

for safety requirement(Courtesy HK Systems)


Turret Fork ASRS

Automated Putaway & Replenishment both

sides of the aisle by ASRS with rotating forks(Courtesy HK Systems)


ROI/Benefits/Project Drivers

Safer Environment

– Less Lift Truck Traffic in operating aisles

Reduced Labor Force – Fork Drivers

Reduce Training Time

Reduced Product & Rack Damage

Increased Inventory Accuracy


A Few Investment Considerations

ASRS Crane ranges in price from $300K - $700K each

Project Engineering & Services can be $500K - $1M+

Typically installed in higher buildings up to 60’ - 110’ but also can be installed in existing buildings with lower height

In-rack sprinklers required > 40’ Height

Thicker/Superflat floors required – more expensive due to low tolerance of ASRS

Racking systems are usually much costlier e.g. $175 per pallet versus $60 per pallet for conventional rack

Also need high quality pallets throughout the storage system


ASRS



Pallet Runner Storage System

(Courtesy Siemens)

European concept arrived in North America – still relatively new here

Alternative to pallet flow through racking

Ideal for full pallet environments where few SKUs generate high volume of pallet movement and require dense storage to cut down on space requirements

– E.g. ideal for manufacturers of frozen food or chilled products (Bread, French Fries)

– Also can be applicable to some 3PL environments


Pallet Runner

Pallet Runner is similar to pallet flow rack but without the gravity angle

Pallets move through the storage lanes by sitting on an automated pallet robot that moves all pallets in FIFO sequence from front to back

Storage can be upwards of 30 pallets deep and all aisles are eliminated

Budget $175 per pallet for racks & 60K per pallet runner robot

Load pallet in FrontPull pallet from end


Pallet Runner

(Courtesy Pacific Westeel)


Pallet Runner

Considerations

– Extra move because the operator needs to insert and withdraw the robot before putting away or picking

– Battery life

– Cube loss within the racks

– Cases falling off of pallets in a 3-deep lane

– Robot wheel slippage in a moist environment

– Potential extra end of day labor to “shuffle” pallets to the nose of the rack


Palletizer Robots

Gantry Arms most common

– Cost $300K and up depending on the customization of the machine

– Application is common in environments where many cases of the same SKU need to be palletized

• Used most commonly to automate heavy case lifting at manufacturing facilities such as in Fresh Meat plants

• Also used for handling of hazardous goods

• Also being used for bagged goods


Palletization



Last But Not Least…

DC automation to incent your work force!


May 23, 2007 DC Expo Session 606 Page 43

Questions & Discussion

Marc Wulfraat, MWPVL International Inc.(514) 482-3572 x 100

[email protected]

Track: 606

Track: 606 Automation in the Distribution Center ...€¦ · May 23, 2007 DC Expo Session 606 Page 1 Automation in the Distribution Center – Technologies and Systems You Should

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