The Satellite Review Magazine The Satellite Review Magazine Vol 1 | Page 29

AUTOMATED WAREHOUSING
SYSTEMS

AUTOMATED WAREHOUSING SYSTEMSare they for you?

By Dan Labell,

Wirtz Beverage Illinois Distribution
Center powered by Westfalia AS/RS
and Warehouse Execution System.

President, Westfalia Technologies, Inc.

I

n order to remain competitive now and in the future,
warehouse operators are honed in on maximizing
efficiencies and minimizing costs by better utilizing
space, reducing labor, and increasing inventory accuracy.
The key to unveiling these benefits, and more, lies in
automation technology – Automated Storage and Retrieval
Systems (AS/RS).
While many operations are turning to AS/RS, others are
hesitant to make the investment. Why? Oftentimes,
companies deem automation too expensive or too large of
an undertaking. Or, companies are putting off the inevitable
investments due to the need to achieve short-term goals.
Simply put, they are intent on the quick fix, rather than on
the long-term solution that will allow for a clear competitive
advantage.
Despite the preconceptions about automation technology,
it is simple to decide whether an AS/RS system is the right
investment by taking the following three-fold approach.
First, perform an analysis of the warehousing system’s
existing design and framework. Then, examine some basic,
yet key, criteria to determine if the operation is suited for

automation technology. Finally, justify the basic cost
for such a system by demonstrating its overall benefits.

DATA ANALYSIS & METRICS
Data analysis is the first step in determining the
requirements of any warehousing and distribution
operation. Answering the following five questions will help
build a sanity check using basic data that should be easily
available:
1. How much inventory (in pallet positions, if appropriate)
must be stored in a given design year (ex: 5 years out)?
2. How many items/ SKUs (Stock Keeping Units) does the
inventory comprise? This should include all variations of
product size, container type, etc.
3. How many SKUs represent approximately 80 percent of
the annual sales volume and 80 percent of the inventory?
(Pareto analysis)
4. How many unit loads per hour enter and exit the
warehousing operation? Warehouse input could be
from production and/or outside suppliers.

www. WestfaliaUSA.com

The Satellite Review

29