T
Answering the following questions will help build a sanity check using basic data that should be easily available :
• How much inventory must be stored in a given design year ?
• Of how many items ( SKUs ) does the inventory comprise ?
• How many SKUs represent approximately 80 % of the annual sales volume and 80 % of the inventory ? ( Pareto analysis )
• How many unit loads per hour enter and exit the warehousing operation ? Warehouse input could be from production and / or outside suppliers . Outbound loads could be full pallet to truck or replenishments to a pick area .
• How many hours or shifts is the warehousing operation active ?
Knowing this information and ensuring its accuracy are crucial to form an initial idea of whether or not warehouse automation is a good fit . Let ’ s put this information to work . 1 . The capacity of the system will define the cube of the warehouse . Most automated systems storing finished goods tend to have over 500 pallet positions of storage . Systems smaller than that tend not to be candidates for automation .
2 . The number of SKUs will define how selective the inventory will have to be , thus enabling the potential use of multiple deep systems , which reduces the building footprint .
3 . The pareto analysis ( 80 / 20 rule ) will validate what SKUs have the volume and inventory , allowing you to allocate the right storage depth to the right type of inventory .
4 . The throughput will determine the number of Storage / Retrieval Machines ( S / RMs ) needed . Throughputs less than 20 to 30 pallets per hour total will tend to be more difficult to justify .
5 . The number of working hours will determine whether the asset will be used for more than one shift . Automated systems used in single shift operations tend not to be justifiable . Two shift operations tend to be more justifiable .
Digging Deeper into Data - Is Automation the Right Fit ?
By analyzing the inventory data in more detail , you can determine the average inventory levels per SKU and divide these into logical groups . The following breakdown groups can be used as a guideline :
• Inventory levels per SKU of less than 7 pallets – use single deep storage
• Inventory levels per SKU of 8 - 14 pallets – use double deep storage
• Inventory levels per SKU of 15 and greater – use multiple deep storage
By defining these conditions , it is possible to gauge if the operation is best suited for single-deep or multiple-deep storage . With multiple-deep storage , considerable space savings are achieved , but selectivity is reduced . Therefore , you generally want to store the same SKU in a multiple deep storage lane . Automated systems have an advantage in that they can re-warehouse pallets automatically , as long as this work is not performed during peak shipping hours .
Elements to Consider When Evaluating AS / RS
Assuming an automated freezer is deemed to be a good fit , the following elements should be evaluated : 1 . Site Conditions : When examining the cost savings of an automated warehouse , it is important to consider the site conditions of the warehouse . If the site of a new warehouse is landlocked , the automated system is advantageous because new buildings can be as high as 90 to 140 feet ( although , 40 to 80 feet is typical ). This reduces the slab size , and can often allow the storage facility to remain on an existing property . If an existing building is to be retrofitted with automation , increases in density can often achieve 30 to 50 % more storage . 2 . Labor Requirements : 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 automation 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 .
3 . Order Fulfillment Accuracy and Response Time : Flexibility , accuracy , and response time have never been as important as they are today . As the customer service bar continues to rise , customers are demanding service level near 100 %. Not only do automated systems require speed and efficiency , they also have to adapt to changing conditions ( ex . packaging , order mix , mixed pallet and mixed layer picking requirements , etc .) A well planned , thoughtful approach is needed using proven technology and processes .
Today ’ s supply chain is moving faster than ever before . As the cold supply chain continues to grow and become more complex , automation can relieve some of the growing pains by attracting a work-force more interested in working with automation and reducing the labor intensive jobs inside the freezer environment .
www . WestfaliaUSA . com The Satellite Review 29