swanson health case study

SwanSon HealtH ProductSOptimization of the order picking process through gradual automation

Case StudySwanson Health ProductsFargo, ND, USA

CASe STUDy - SWANSON HeAlTH PrODUCTS

Health consciousness advocate

Swanson Health Products, a leading direct - to - consumer marketer of dietary supple-

ments was founded in 1969 by leland Swanson, Sr. Swanson Health Products is the

realization of one man’s dream of bringing wellness to the world.

Today, the company, run by leland’s son, lee, carries

on that dream, reaching millions of health conscious

people in the United States and around the world

via mail order catalogs and an expansive website.

The products range from vitamins to dietary supple-

ments, natural products for hair, skin and nail health

as well as healthy foods.

The 140,000 ft2 (13.200 m²) warehouse, located in

Fargo, North Dakota, is in the same building as the

core activities of the company such as professional

positions, call center and customer care center, as

well as manufacturing and distributing. The company

offers around 15,000 products, which are shipped

globally, and is committed to the highest level of ser-

vice possible, offering a 100% satisfaction guaran-

tee policy. In addition to the Fargo facility, Swanson

Health Products operates distribution facilities in

the reno Nevada area and Harrisburg Pennsylvania.

Conveying system Filling point Schaefer Carousel System and workstation uS-Pemat - Collecting Belt

The collaboration with SSI Schaefer first started in

2006 when Swanson Health Products (SHP) turned

to SSI Schaefer’s expertise in leading distribution

technologies in order to undergo a remodeling of its

order picking processes at the Fargo facility. The de-

cision came in the wake of a significant growth in

market demand which resulted in a rapid expansion

of the product range.

In this competitive market, SHP was compelled to

reorganize its warehouse to offer optimal quantities

with a high service level and short delivery times,

and to optimize the distribution service process.

The success of the first project that resulted in the

flawless installation of an SSI Schaefer Carousel Sys-

tem convinced SHP to choose SSI Schaefer as a long

term partner to help the company increase the effici-

ency and the capacity of its warehouse step by step.

Base of partnership with SSI Schaefer: Project objectives / requirements:

the main challenges were:

` Short installation time during ongoing operations

` Adaptation of several new interfaces within the

existing systems

` respond to the changing needs of the customer

with flexibility

the principle objectives were to:

` improve the order picking accuracy and throughput

` increase the quality of service

` grow the available product range

` improve the worker interface with

the automated systems

` improve the information flow

` increase the number of orders per day

` increase the warehouse capacity and the

inventory management visibility


Solution by SSI Schaefer

SSI Schaefer designed the automated warehouse in Fargo in several phases hand

in hand with SHP, in order to reveal the company’s potential, one change at a time.

Phase 3: extension of the Schaefer carousel System - 2011

In 2011, a cluster of four additional SCS modules and a 2nd pick-to-tote workstation were installed in order to maximize productivity and throughput. The second system allowed SHP to reduce operational cost and increase fulfillment volume. During Phase 3 the SMC was integrated into the SCS sytem in order to provide inventory replenishment on demand to all 8 SCS modules.

Phase 1: Sufficient storage capacity with the implementation of a Schaefer carousel System - 2008

In 2008, SHP decided to equip the warehouse with a Schaefer Carousel System (SCS) to provide sufficient storage for the increasing number of SKUs and for future growth of the product range. The system, which included three high-density storage modules, became fully operational in September of 2008. In June of 2009, an additional high-density module was installed to help with the addition of new SKUs.

Phase 4: automation of the fast mo-vers with the implementati-on of the a-Frame - 2011

After the automation of slow movers, the increase in storage capacity, and with the optimization of productivity, SHP took a big step towards efficiency and decided to au-tomate the fast moving area.SSI Schaefer therefore implemented an A-Frame for the picking of the approxima-tely 400 fastest SKUs.

Phase 2: dynamic storage & retrieval of the slow movers with the installation of the Schaefer Miniload crane - 2010

In 2010, Schaefer imple-mented a one aisled SMC combined with a “Goods to Person” workstation and thereby automated the company’s slow moving area. The system was integrated to optimize performance and space, and allowed SHP to extend their SKUs range by an additional 5,000 to 7,000 – SKUs.

Phase 5: Future implementation of an additional Miniload crane due to the further increase of SKus.

according to the SSI

Schaefer director of

automated systems,

ross Halket, “the key

factor to the success of

this project relies in the

great communication

and the deep respect

that the companies have

for each other. SHP

trusted SSI Schaefer

with this solution and

SSI Schaefer took it

upon itself, as a reliable

partner, to empower SHP

and help the company

successfully take its first

steps into the world of

automation.”


SHP has installed one SCS - eight carousels; two

pods of four. The installation happened in three sta-

ges over four years. There was one Miniload instal-

led in 2010 and one A- Frame in 2011.

The Schaefer systems all interfaces with SHP’s

AS400. The SHP management information system

team worked with the Schaefer team to integrate

the two systems and continues to work together

to troubleshoot issues. The SSI Schaefer systems

have had a positive impact on the SHP facility. They

have helped to increase productivity, reduce labor

costs and lower cost per order.

Schaefer carousel System - High dynamics in the

most confined space:

` The Schaefer Carousel System is a storage

and retrieval system that follows the “Goods to

Person” principle.

` The system installed in Fargo is composed of

two clusters of four modules connected to two

Pick to Tote workstations.

` The SCS helps increase the picking and storage

capacity with a performance of up to 250 double

cycles / carousel per hour.

` It also allows for a 50% gain in storage density

(11,264 storage places) and offers the possibility

of an unlimited product range as well as the pre-

cise administration and checking of inventories.

Schaefer Miniload crane - the storage and retrieval

unit for maximum storage capacity:

` The Schaefer Miniload Crane is the perfect solu-

tion for maximum usage of vertical storage and

minimum use of floor space at the same time.

` The one-aisle Schaefer Miniload Crane (SMC)

implemented in Fargo was installed for the

storage and retrieving of the slow movers in the

warehouse.

` With a load capacity range from 110 lbs to 660

lbs, (50 kg to 300 kg), a length of 150 ft, (46

m) and double-deep storage with one tower, the

SMC installed in Fargo can achieve a perfor-

mance of up to 180 double cycles per hour.

` The SMC offers storage capacity of 9,024

storage locations and therefore perfectly meets

SHP’s requirements in terms of maximum use of

space as well as short order lead times.

a-Frame - automatic picking system for fast

moving products:

` SSI Schaefer equipped the warehouse with

an A-Frame to hold some of the high volume

products. The particularity of the system instal-

led is that it is used for the picking of round

products only.

` The system implemented in Fargo consists of

10 modules each with 72 channels where the

products are stacked vertically and the orders

are handled at a rate of 4 items per second.

` The vertical stacking system design allows for

short distances for replenishment while the

machine is operating to fill orders. This helps

increase the productivity and contributes consi-

derably to the excellent cost/performance ratio

of the system.

Customer Statement

“ SSI Schafer provided a

systems approach which

included all aspects of

material handling, goods

to man and fully automa-

ted picking methods. this

integrated design allowed

Swanson Health Products

to develop a relationship

with one supplier in order

to maximize productivity,

increase throughput and

most importantly improve

customer service levels.”

(Statement from terry Kraft,

director of operations,

Swanson Health Products)

Implemented SSI Schaefer Systems and their impact on the Client’s Facility

Facts and Figures

System Key Figures

Our Scope of Supply and Services

conveying System

Carton conveyors for different carton sizes

Picking Systems

automatic Picking

S-Pemat 10 modules

Channels/module 72

Semi - automatic Picking

Pick to Tote Workstations 3

Storage & retrieval Systems

Schaefer carousel System 8 modules

64 carriers

22 levels

11,264 Storage places

Schaefer Miniload crane 1 Aisle

9,024 Storage places

totes

Totes with dividers – seamless integration of load units with equipment; more SKUs per cube

Software Solution

WAMAS C

Warehouse Size 140,000 ft2 (Building is 220,000 ft2)

System Size 108,000 ft2 (10,000 m²)

SKUs 15,000

Units/Day 55,000 – 70,000 (Fargo Facility)

Degree of Automation 85%

Number of Shifts/Day 2 Shifts of 8 hours

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SSI Schäfer Peem GmbHFischeraustraße 27 A-8051 GrazTel. +43/316/60 96-0 Fax +43/316/60 [email protected]

SSI Schaefer Systems International Inc.10021 Westlake DriveCharlotte, NC 28273Tel. (704) 944 - 4500 Fax (704) 588 - 1862www. [email protected]

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