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Smarter-Faster-Safer

…Determine and Identify your Intra-Logistics Needs

Presented by:

David Fredde

Think and Plan

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�When you are lucky enough to have time to

play a game of pool!

�You want to aim straight!

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Presentation Outline

1. Understanding your Intra-Logistics Challenges� 6 Pack of Challenges

� Cost of an Error

2. Systematic Analysis� The Big 12

� Business Drivers

3. System OverviewsPerson to goods

� paper, � Voice

Smart Conveyor Networks� Zone Route� Induct

Goods to person� Automated Pick Station � Put Wall

Batch pick & sort� Single SKU Batch Pick� Sort to Order

Software

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Understanding your Intra-Logistics Challenges

�6 Pack of Challenges

�Cost of an Error

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Understanding Your Intra-Logistics Issues6-Pack of challenges

Inventory, SKU Growth

Accuracy

Energy, Green,Transportation Costs

Labor, ErgonomicsSpace Utilization

Throughput & Processing time

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Cost of an Error

Actual Costs:

� Administration hours (phone calls, data entry, re-order, etc.)

� Contact & apologize

� Shipping cost to return & re-ship

� Special delivery cost

� Returns handling, processing, restocking

� Labor hours in inventory control

The BIG Cost

�Customer goodwill

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Systematic Analysis

�The Big 12

�Business Drivers

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Activity Profiling “The Big 12”

1. Orders per day

2. Daily unit volume

3. Units per order

4. Lines per order

5. Packing sequence

6. Unit cube & cube movement

7. Unit structure

8. Cartons per order

9. Total SKU’s

10. % daily SKU’s active

11. Order download

12. % volume cross-docked

• Review historical data

• Forecast future activity

The systematic analysis of the items & orders handled in the DC

determines the optimum design & operation

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Business DriversThat affect order fulfillment system design

� Accommodate spikes in throughput (special promotions, seasonal, etc.)

� Accommodate more SKUs than competitors

� Perform order fulfillment on 1 shift of operation

� Expandability for future growth

� Maximize ergonomic design

� Extend order cut off time

� Initial investment cost

� Manageability

� Total labor

� Accuracy

� Security

� Space

� Speed

� Other

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Types of Solutions

�Solution Sets

�What to expect

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The Solution Sets

Person to Goods

Goods to PersonSmart Conveyor Networks

Batch Pick & Sort

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Productivity – What to Expect?uplh: units per labor hour

Person to goods

Smart Conveyor

Batch Pick

& Sort

Goods to Person

500 400-500 uplh

150 100-150 uplh

60-80 uplh

300 100-300 uplh

total units picked

total labor hours(replenishment & pick/pack)=uplh

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System Overview-Person to Goods

�Paper �Voice to Cart

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Example - Discrete Pick to Cart Using Shelving

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Application Profile & Market SectorsBatch Pick Voice Carts

Application Profile:

� Split case, piece pick operations

� Low - mid rate: 500 – 10,000 orders/day

� 1-20 items per order

Market Sectors

� Wholesale & customer Direct

� Motorized vehicle parts

� Commercial eq. supplies

� Computer eq. & software

� Medical supplies

� Electrical eq. supplies

� Electronic parts

� Hardware supplies

� Construction eq. supplies

� Industrial machinery supplies

� Jewelry, watches

� Office & paper supplies

� Drugs

� Retail & whls. apparel

� Publishing

� Sporting goods

� Medical devices

� Personal care

� 3PL

� Customer Direct

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Batch Pick CartsVoice Directed

� Multiple orders per cart

� Optimize picking productivity

� Scan location

� Voice instructions

� Optimized pick paths

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Pick Path

� Wide aisles

� Multiple carts

� Pick path: Z pattern

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Put to PalletVoice Directed

Inbound Product

Voice Directed

Put to Pallet

Receiving

Shipping

� Full pallet in

� Build mixed case pallet

Voice Directed

case put to pallet

� Quick turn inventory/cross dock

� Increase productivity

� Reduce touches

� Reduce order processing time

� Rule enforcement

� Product tracking

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System Overview- Smart Conveyor Networks

�Induct�Zone Route

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Inducting an order

� Multiple induct points

� Scan license plate on tote

� Scan invoice (printed by host)

� Print shipping label

� Place invoice, shipping label in postal bag

� Place bag in tote & then conveyor

Zone route conveyor network

Order induction, print shipping label

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System Overview- Goods to Person

�Automated Pick Station �Put Wall

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Goods to PersonRequires Less Space

storage shuttle buffer conveyor

maintenance mezzanine

elevator

elevator buffer conveyor

product cross conveyor pick station

order routing conveyor

order buffer conveyor

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The Picking Process

Pick from

� Optical Identification

� Complete tote or compartment highlighted with light beam

� Light curtain checks pick from position

Pick to

� Put to light display

� Indicates carton & qty

Weigh scale

� Checks quantity picked

� 5 scales per station

1 2 34

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Goods to PersonPut Wall

The Concept:

�Sort to Put Walls (light directed)

� Pack Wall on back side (light directed)

� 1 or 2 persons per station (flex up/down)

The Obtainable Results:

� “Put Wall” stations flex up to peak demand

� Improved order fulfillment accuracy

� Reduced order processing time

� Increased labor productivity

Put Wall

Pack Wall

Put StationAccommodate Precise Sequencing of Orders Example: 18 put locations, light directed

� Scan SKU tote

� Activates lights

� Put to order carton

� Carton flow rack

� Build pallets at back end

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System Overview- Batch Pick and Sort

�Single SKU Batch Pick�Sort to Order

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Batch Pick & Sort

Parallel batch pick

Item induction

Order Assembly & Pack

Packingchutes

Shipping

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Packing Chute Design

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Batch pick & sort

Potential Issues:

� Out of capacity, inefficient processing

� Need to reduce order processing time

Potential Solution:

� Re-engineer material flow

� Order consolidation sorter, & chutes

� Shipping sorter, software, & controls

Realistic Results:

� From 70,000 to 180,000 items, multi-piece order system capacity

� From 3 shifts/day, to two shifts/day (reduce labor & order processing time)

� From 22 items shipped per labor hr. to 26

� Same day shipments from 25% to 50% (or more)

� Improved Ergonomics

� Accommodate future growth

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Software

�Control and Monitoring�Performance Reports

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ADDITIONAL ADVANTAGESSoftware Dashboard - GUI Real Time Control & Monitoring

� One screen view

� At-a-glance metrics

� Lines complete

This information can

assist with picker

allocation and work

flow

Think and Plan

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�When you are lucky enough to have time to

play a game of pool, you want to aim straight!

�Yet you should also think about where you

want the white ball to end up after your shot!

�With the correct plan you can achieve more

than one shot if you THINK AND PLAN!

Dematic and WHY!

Intra-logistics Solutions for Production & Distribution

Operations approach:

Non biased

Data driven

Process improvements

Business case ROI

Method:

Current state analysis

Operations planning

Process flow engineering

System design & layout

System design evaluation

Strategic/tactical planning

Solution Development EngineeringPractical design & methodology

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�Simulation Modeling

Return on Investment

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OptimizeOptimize IncreaseIncrease

� Throughput, accuracy

� Efficiencies, performance

� Ergonomics, safety

� Capacity, profits

� Space requirements

� Fulfillment time

� Labor, costs, injuries

� Errors, transactions

� Material & information flow

� Processes

� Activities

� Inventory

ReduceReduce

Type: non-mechanized, automated, integrated

Capacity: low, mid, high

Size: small, medium, large

System Configurations

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Modular & StandardizedScalable & flexible

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�1. Products – conveyor, shuttle,

sensor, drive�2. Modules – collection of products

assembled to perform a specific function

Defined functionality

Pre-engineered, pre-tested

Consistent performance

Easier to support �System Solution built

on subsystems

�3. Subsystems –

collection of modules &

products to perform a

warehouse function

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For Additional Information:

CONTACT:

David Fredde

william.fredde@dematic.com

Home Page: www.dematic.com/es-mx/