UNLOCK YOUR DC’S HIDDEN POTENTIAL WITH WESJune 2018
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
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Presenters
Doug MeffordProduct Manager — Honeywell Intelligrated
Doug is a product manager at Honeywell Intelligrated, and has been in the distribution and fulfillment industry for more than 20 years. He has hands-on supply chain management experience across multiple verticals, including 3PL, foodservice, logistics, retail, direct-to-consumer, wholesale distribution and omnichannel fulfillment. He has performed diverse roles, from purchasing and inventory control to general management of day-to-day operations, with a focus on continuous improvement and overall company profitability via reduced costs and increased efficiencies.
Doug enjoys spending time outside of work with his family and friends engaging in various activities, including golf, camping, sporting events, theatre and travel.
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
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Presenters
Suzanne McGoughProduct Manager — Honeywell Intelligrated
Suzanne is a product manager at Honeywell Intelligrated, and has been in the distribution and fulfillment industry for seven years. She has hands-on experience in labor, retail, e-commerce and omnichannel fulfillment, and previously worked for a major apparel retailer. She has performed various roles focusing on industrial engineering, continuous improvement, and leading complex system integrations in order to deliver value to customers.
Suzanne enjoys spending time outside of work in the outdoors, cooking, traveling and playing with her dog.
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
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Unlock Your DC’s Hidden Potential With WES Software
AbstractThe unrelenting challenges of e-commerce fulfillment are pushing many distribution centers to the limits of their storage density and throughput capacities. As SKU proliferation and order volumes continue to rise, many retailers are facing the prospect of facility expansion or new construction to keep pace with demand and meet service level agreements (SLAs). Too often, companies move forward with these major capital investments before fully maximizing the potential of their existing facilities.
Key topics• Addressing SKU proliferation• Space utilization for AS/RS and pick locations• Streamlining order consolidation• Increasing throughput while reducing labor
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Order Management, Fulfillment and Distribution Challenges4
171 U.S.-based material handling executives were surveyed.
Source: Research Brief: The Impacts of e-Commerce: Fulfillment Challenges & Improvement Priorities, Peerless Research Group on behalf of Logistics Management for Honeywell Intelligrated, 2018
What are the top challenges?
18%
18%
20%
22%
24%
25%
28%
35%
Optimizing technology related to distribution & orderfulfillment
Visibility into the status of work & progress on execution
Reducing cost on a per-order basis
Improving cycle times / throughput
Managing increased customer expectations for sameday / next day / free delivery
Obtaining enough labor to support operations
Improving order accuracy
Fulfilling more orders, faster and at lower costs
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Rapid Growth of e-Commerce Is Creating Challenges and Driving Change
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Source: Research Brief: The Impacts of e-Commerce: Fulfillment Challenges & Improvement Priorities, Peerless Research Group on behalf of Logistics Management for Honeywell Intelligrated, 2018
16%
17%
33%
33%
37%
44%
Add new distribution centers
Consolidate distribution network
Add new processes
Expand existing facilities
Add labor
Add automation
How Do Respondents Plan to Handle Growth?
21%
38%40%
46%
Operating DiscreteWarehouses and DCs
Adapting InventoryWorkflow onWarehouse Floor
Not Having EnoughFloor Space
Not Having SufficientWorkforce to HandleVolume of Work
Physical Constraints on Operational Efficiencies
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Polling Question:6
Are you experiencing space constraints within the facilities in your distribution network?
Yes – due to SKU proliferation
Yes – due to more open-case picking
Yes – due to business diversification
No – not experiencing space limitation
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Static Space Allocation
• Space Utilization- Fixed-width locations risk large volume
of usable space not being occupied
• SKU Proliferation- As SKU counts grow with fixed locations,
the amount of unused space grows
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Dynamic Space Allocation — Shuttle AS/RS
• Space Utilization- Variable-width dynamic storage locations
maximize overall storage capacity- No need to increase square footage by
gaining capacity in vertical storage- Increase storage density through precise
space allocation based on product sizes
• SKU Proliferation- Store varying product dimensions across
multiple product profiles
• Labor Reduction- No manual re-slotting work for seasonality
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Static Space Allocation — Pick-to-Light
• Space Utilization- Fixed-width locations risk large volume of
usable space not being occupied
• SKU Proliferation- As SKU counts grow with fixed locations, the
amount of unused space grows- Need for increased square footage to
accommodate more SKUs in forward picking areas
• Labor Reduction- With fixed-width location, the spread of
physical inventory is greater, increasing unproductive walk times for operators
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Dynamic Space Allocation — Pick-to-Light
• Space Utilization- Match location size to product profile- No need to increase square footage by
reducing space, increasing the number of pick locations
• SKU Proliferation- Store varying product dimensions across
multiple product profiles
• Labor Reduction- Minimize unproductive walk times with
increased pick density
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Polling Question:11
Are you currently employing sortation and order consolidation processes within your distribution network?
Yes – using automated sorter equipment
Yes – using put walls
Yes – manually sorting orders/inventory
No – but considering in the future
No – not in consideration at this time
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Order Consolidation Sortation — Manual Chute Closing
• Throughput - Order “dwell” time is increased, awaiting
operators to close chutes, slowing overall stock-to-dock timelines
- Chute utilization is decreased, awaiting manually closing, potentially causing upstream congestion issues
• Labor- Monitoring chutes and manually closing them
are labor-intensive; operators are often underutilized resources
- Resources are often underutilized and unproductive Waiting for chute completion Unproductive walk times between chutes to
be closed
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Order Consolidation Sortation — Automated Chute Closing
• Increase Throughput - Automated chute closing post-sortation
enables virtually continuous utilization- Decreases “dwell” time waiting on operator
to move and confirm chute clearance• Decrease Labor
- Automated chute closing eliminates operator dependency
- Resources used for manual chute closing can be reassigned to other work or eliminated completely
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Order Consolidation Put Wall — Pack Wave Assignment
• Throughput- Turnover of walls depends on completion of
pack wave
• Congestion- Overflow for a single pack wave recirculates
or processes to a jackpot for manual handling
• Meet SLAs- Increased dwell time decreases on-time
delivery
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Order Consolidation Put Wall — Dynamic Cubby Assignment
• Increase Throughput- Increased utilization with order-to-cubby
assignment vs. wave-to-wall assignment
• Reduce Congestion- Closeout cubby per order allows continuous
reassignment
• Meet SLAs- Assigning orders by priority vs. waves per
sequence
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Order Consolidation — Put Wall
• Space Utilization- Fixed cubby locations require increased
number of put walls to accommodate changing order profiles
• Labor Impacts- Additional hardware requires additional
personnel to perform put wall consolidation work
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Order Consolidation Put Wall — Configurable Put Wall
• Space Utilization- Configurable put wall cubby locations allow
for greater order density- Adjust to changing order profiles- Decrease overall hardware investment, as
walls can be adjusted to accommodate changing business needs
• Labor Impacts- Increasing density and space utilization
requires fewer resources to perform the put wall consolidation work
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Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Polling Question:18
Which software systems do you currently employ in your DCs? (Select all that apply.)
Warehouse Execution Systems (WES)Warehouse Management Systems (WMS)Warehouse Control Systems (WCS) Labor Management Systems (LMS) Order Management System (OMS) Transportation Management System (TMS) Other (specify) Not sure
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
The Modern Distribution Facility 19
AS/RS
Conveyor Systems
Order Consolidation
Sortation
Print & Apply
Pick-to-LightOrder Fulfillment
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
The Modern Distribution Facility 20
Order Fulfillment Technologies• Goods-to-Operator• Automated Sortation• Print and Apply
• Pick-to-Light• Put-to-Light• Voice Picking
Integrate With Machine Automation• Automated Storage and Retrieval Systems• Robotics and AGVs• Conveyors
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Optimized Order Execution
Automation Control
Real-Time Decision Making
Labor Balancing
Congestion Management
Optimized Workflows
Intelligent Routing
Automated Sortation
Real-Time Visibility
Business Intelligence
Warehouse Execution Systems 21
WMS
ERP Integration
Receiving, Packing, Shipping
Transportation Management
Distributed Order Management
Replenishment
Customer Information
Quality Assurance
Traceability
MachineControl
LMS
WES AS/RS RoboticsAGVs/AMRsConveyorSorters
Labor Management
OFOrder
Fulfillment Technologies
Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.
Conveyor & Sortation Systems
FulfillmentTechnologies
Lifecycle SupportServices
Operations &Solutions
Development
Palletizing &Depalletizing
Robotic Solutions
SoftwareSolutions
Connected DC
Questions?
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