june 2018 unlock your dc’s hidden potential with wes webi… · hands-on experience in labor,...

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.


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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.


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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


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


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


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


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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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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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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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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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


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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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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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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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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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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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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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


The Modern Distribution Facility 19

AS/RS

Conveyor Systems

Order Consolidation

Sortation

Print & Apply

Pick-to-LightOrder Fulfillment


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


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


Conveyor & Sortation Systems

FulfillmentTechnologies

Lifecycle SupportServices

Operations &Solutions

Development

Palletizing &Depalletizing

Robotic Solutions

SoftwareSolutions

Connected DC

Questions?

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june 2018 unlock your dc’s hidden potential with wes webi… · hands-on experience in labor,...

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