-Automation Improves inventory accessibility, floor space, time, ergonomics improvements and greater accuracy-

Many warehouses across the UK are losing out on the logistical and financial benefits that implementing automation could provide. Organisations that have implemented automation recognise the benefits to multiple areas of their distribution facility, from the practical benefits of inventory accessibility, availability of floor space, and time to the desirable improvements to ergonomics, fast access to stock and greater accuracy.

Many UK warehouses and distribution centres are packed with pallets, cases and pieces, with order fulfilment frequently acknowledged as, “the most labour-intensive and costly activity where the cost of order picking is estimated to be as much as 55% of the total warehouse operating expense.” – Order Picking in the Warehouse, Jan 2014, Martin Murray. The key reason is that travel in traditional, manual fulfilment operations can account for as much as 60-65% of a picker’s time.

In the end it’s about how your bottom line will be impacted, so let’s consider five key areas of potential profit in warehousing and order fulfilment:

• How much labour does a picking operation require?
• What is the value of additional floor space?
• Are picking operations fast enough to meet customer demand?
• What is the cost of an absent worker?
• How much does a picking mistake cost?

If you already have a good automation solution you probably not only smiled as you read the questions, but may have felt a bit smug! For those who noticed a potential impact in one or more areas then automation really does offer benefits.

Let’s take picking as an example: Operators picking manually are often restricted to filling one order at a time. Limited by paper pick lists, and a lack of picking optimisation software, they may visit the same popular SKU (stock keeping unit) pick faces multiple times a day. For a facility with static shelving or pallet racks this translates into pick rate of approximately 50 lines per hour.

Alternatively, an automated storage and picking solution facilitates batch picking and the process groups orders with a common item or items together. Multiples of the same item are picked, then sorted to their appropriate orders for shipping at a nearby workstation. This means multiple orders can be filled at one time and with solutions such as pick-to-light that will even eliminate costly mis-picks by pointing out the exact product to be picked.

For many organisations the combining of low risk/high performance systems design with integrated software has delivered on improving key areas of a warehouse and distribution system. By streamlining processes, a warehouse can increase productivity and minimise labour costs. Automated systems respond quickly to daily peak and valley order demands, by being able to dynamically adjust labour levels fast and effectively.

When looking at automation the objective has to be to optimise space, stock and material flow with shorter setup and downtimes, which moreover permits continuous traceability by the in-house data processing systems. The software is an essential element of any automated solution, as it records all movement of stocked items and recognises the availability of the stock within the storage unit. With the growing trend in the industry to have greater transparency for analysis around stock levels, and distribution of said stock, software offers the key to extrapolating this data from the systems.

Automation software streamlines the internal production processes and achieves time savings, a major principle in remaining efficient. By automating the transport of components and upstream products the automation software not only keeps up with the competition, but is a key requirement for current orders, reserves and stock shortages. This information is required for good customer service and greater transparency. Automation results in the following benefits:

• Optimisation of floor space for storage and production, reduction of order picking routes
• Faster access to stocked items
• Determination of real-time inventory, warehouse management, restocking
• Faster picking and Increased accuracy
• Greater safety and better ergonomics for warehouse staff.

Since the 1950’s Kardex Remstar have specialised in developing best practices for material handing processes and are today recognised as a leader in automated solutions.

By Tom Findlay, Kardex Remstar, Sales Director for UK & Ireland

www.kardex-remstar.co.uk

email:info.remstar.uk@kardex.com
Tel: + 44 (0)199 2557 237