of a WES is imperative to seamlessly adapt to omni-channel
fulfillment and increasing consumer demand.
Due to the complexity of today’s evolving technology, there is
now a need for a higher skilled workforce to manage automation.
The industry is turning to millennial workers who were raised in
the digital world to fill more positions within the warehouse. To
attract these young workers, companies need to turn to automa-
tion that closely embodies the experiences these young workers
can find on their smartphones, tablets or computers. These
intelligent systems simplify routines by allowing workers to find
information they need, when they need it, in a visually appealing
way.
Inventory Accuracy & Control
It’s no secret that not having a handle on where your products
are stored can have detrimental effects on your bottom line. Also,
a lack of inventory knowledge can lead to customer dissatisfac-
tion due to delayed shipments and/or partially filled orders due
to lost inventory.
and storage of inventory within a warehouse to minimize hidden
costs and can affect business success and revenue. Next to labor
costs, travel time is the most expensive cost in any warehouse
operation. It is important to make sure that employees are con-
stantly active on the floor, the equipment is always full and travel
time across the warehouse is minimized.
To maximize the use of a warehouse’s available square footage
and cube space, it is import to slot the placement of products
to optimize storage and picking efficiency and reduce handling
costs. This practice results in reduced travel across the ware-
house, stabilized loads, fewer accidents and less product damage.
Additionally, inventory management can help companies in-
crease profitability by 20 to 50 percent. Whether it is through bar
codes or radio frequency identification (RFID), it is important
to track and record products as soon as they are received in the
warehouse. An advanced level of transaction history can help
warehouses significantly improve visibility and reduce fulfillment
errors. This data can be directly integrated with a WES in real
time to ensure better inventory counts and audits.
Transaction history is extremely important in warehouses with
Typically, inventory accuracy levels that are 99 percent or higher
are required to achieve world-class service levels and remain
competitive. In order to do this, it is essential to invest in auto-
mated technology like a WES. If inventory accuracy falls below
these levels it is near impossible to accurately predict or reduce
stock levels, which often leads to out of stocks. Therefore, the
inventory needed to maintain acceptable fill rates increases.
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Companies have reported that the addition of a WES, has helped
to reduce inventory levels by 10 percent, significantly reducing
carrying costs, which can be nearly 18 percent the cost of the
inventory.
Throughput and Equipment Shifts
C
Depending on a warehouse’s SKU velocities and the pace of
current operations, a high-density automated warehouse system
can optimize even standard-height warehouses. In convention-
al systems, throughput determines the staffing levels and the
number of fork trucks required. However, automated systems
can significantly increase throughput without increasing staffing
levels as a single storage/ retrieval machine (S/RM) is usually
capable of handling between 60 to 70 unit loads per hour. It is
also important to determine the number of shifts per day that
your equipment is running. Automated systems typically require
a two-shift operating period, so justifying automated systems for
single-shift operations is often a challenge.
M
Y
CM
Successful
projects need
STRONG PARTNERS.
MY
CY
CMY
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The Known vs. Unknown Costs
Practicing effective picking strategies is one of the most cost
effective ways to maximize productivity and improve order accu-
racy. When used correctly, a WES helps manage the movement
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The Satellite Review
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