Track: 606

Automation in the Distribution Center Technologies and Systems You Should Know About
Marc Wulfraat, MWPVL International Inc.
(514) 482-3572 x 100 Marc.wulfraat@mwpvl.com

May 23, 2007 DC Expo

Session 606

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Session Focus
This session will help companies to understand new automation technologies within the distribution center, the leading edge solutions that are available, their application, cost and where they make the most economical sense.

This Presentation is Geared Towards:

Goal: Cut Costs Goal: Handle Growth Goal: Increase Productivity Your Role: Industry Consultant Your Role: Executive Your Role: Strategic Facility Design

Covered Topics in End-to-End Supply Chain Model:

Executive Decision-Making Sourcing Making/Manufacturing
May 23, 2007

Logistics/Fulfillment Connecting Tech/Resources All

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Abstract
Material handling equipment automation solutions for:
Each Picking Carousel Replenishment Sortation De-palletization Case picking Storage Palletization Labor Incentives

Movies and images of automated and semi-automated solutions in NA and Europe. Where each solution fits How much they cost
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What is your attitude towards automation in distribution?

It would never apply to my company. Its overpriced, inflexible, constant maintenance headache, its bound to fail, etc. Its interesting stuff but not on my clock We will use automation but only if it has ROI based on real labor reduction We will use automation to gain a competitive advantage for the long term We will use automation as a labor strategy to combat the unions
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All of These Opinions Are Valid!

The application for distribution automation really depends on a companys size, culture, financial governance, labor strategy and risk tolerance.
When the planets are aligned, then automation may become reality.
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Automation is Making a Comeback

In North America
Automation was popular in the 70s In the 80s and 90s automation declined as people realized that labor inflation was not infinite In the past decade the pace has picked up significantly

In Western Europe
Automation has been more widely used due to shortage of land and labor and higher labor rates

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Sometimes Automation Makes Sense For Other Reasons

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Flex Picker Automated Each Picking

(Courtesy Bastian Material Handling)

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A-Frame Order Picking

Up to 50,000 units/hr automated pick output Manual replenishment of eaches is required Ideal for small items with hyper-fast velocity and high value Ideal for tight order turnaround time (e.g. 4 hours or less) 3000 SKU system costs ~$2.5M + interface to WMS Justification is typically on the basis of accuracy rather than productivity

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A-Frame Order Picking

(Courtesy SSI Schafer)

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Goods to Operator Picking

(Courtesy SSI Schafer)

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Automated Replenishment Carousels

All received products destined to be stored in the carousel must be placed into standard Containers Never need to be shut down the carousel for replenishment Mini-load machines dynamically replenish the carousels during active picking operations Systems start at $1.5 M and up for 3-Pod station
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Automated Carousel Replenishment

May 23, 2007

(Courtesy SSI Schafer)

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Automated Carousel Replenishment

May 23, 2007

(Courtesy SSI Schafer)

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E-Commerce Order Sortation

Batch Pick Many Small Orders and Automated Sort

(Courtesy BMH & ASAP)
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E-Commerce Order Sortation

(Courtesy ASAP)
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Bomb Bay Sortation

Tilt tray sorters cost in the range of $750K+ Budget turnkey price for a 400 drop bomb bay sorter can run from $1.0 1.5 Million + Warehouse control system (WCS) Sorters will allow processing of up to 40,000 pieces per hour with up to 12 people inducting product New quad tray technology from Eurosort has doubled the output capacity of these machines

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Bomb Bay Sortation

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Bomb Bay Sortation Books & CDs

(Courtesy EuroSort)
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Automated De-Palletization
Semi-Automated Automated

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Semi-Automated Case De-Palletization / Case Picking

(Courtesy Siemens)
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Automated Depalletization /Case Picking

(Courtesy Siemens)
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Automated De-Palletization
Key considerations
Pallets need to be in full layer quantities (i.e. residual cases cant be automatically handled) If pallets are being de-layered to automate case picking, what happens when you dont need all of the cases in the layer? Where do the residual cases go? High cost fully automated machines are expensive i.e. $2.0M+
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Automated Full Case Selection

Several innovative solutions have emerged to automate and semi-automate case picking Key vendors in this space include:
Witron Nedcon Siemens Swisslog HK Systems Daifuku
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Automated Full Case Selection

(Courtesy Nedcon - Dynamic Logistics Systems)

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Automated Full Case Selection

(Courtesy Nedcon - Dynamic Logistics Systems)

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Automated Case Selection

(Courtesy Nedcon - Dynamic Logistics Systems)

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One of the Most Automated Distribution Centers in North America

(Courtesy HK Systems)
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Building Attributes
Perishable Goods Warehouse
500,000 Square Feet 35 AS/RS aisles with dedicated HK Cranes 25,625 Single Deep AS/RS Storage Locations

Dry Goods Warehouse

620,000 Square Feet 42 AS/RS aisles with dedicated HK Cranes 38,500 Single Deep AS/RS Storage Locations 56 Receiving dock doors

Clear Height 319 - 340

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Single Deep ASRS

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Conventional Double Pallet Jack Pick With Voice 606 Session

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System Safety Features

Motion Detectors from SICK for safety requirement

(Courtesy HK Systems)
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Turret Fork ASRS

Automated Putaway & Replenishment both sides of the aisle by ASRS with rotating forks
(Courtesy HK Systems)
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ROI/Benefits/Project Drivers
Safer Environment
Less Lift Truck Traffic in operating aisles

Reduced Labor Force Fork Drivers Reduce Training Time Reduced Product & Rack Damage Increased Inventory Accuracy

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A Few Investment Considerations

ASRS Crane ranges in price from $300K - $700K each Project Engineering & Services can be $500K - $1M+ Typically installed in higher buildings up to 60 - 110 but also can be installed in existing buildings with lower height In-rack sprinklers required > 40 Height Thicker/Superflat floors required more expensive due to low tolerance of ASRS Racking systems are usually much costlier e.g. $175 per pallet versus $60 per pallet for conventional rack Also need high quality pallets throughout the storage system
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ASRS

(Courtesy SSI Schafer)

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Pallet Runner Storage System

European concept arrived in North America still relatively new here Alternative to pallet flow through racking Ideal for full pallet environments where few SKUs generate high volume of pallet movement and require dense storage to cut down on space requirements
E.g. ideal for manufacturers of frozen food or chilled products (Bread, French Fries) Also can be applicable to some 3PL environments (Courtesy Siemens)
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Pallet Runner
Pull pallet from end Load pallet in Front

Pallet Runner is similar to pallet flow rack but without the gravity angle Pallets move through the storage lanes by sitting on an automated pallet robot that moves all pallets in FIFO sequence from front to back Storage can be upwards of 30 pallets deep and all aisles are eliminated Budget $175 per pallet for racks & 60K per pallet runner robot

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Pallet Runner

(Courtesy Pacific Westeel)

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Pallet Runner
Considerations
Extra move because the operator needs to insert and withdraw the robot before putting away or picking Battery life Cube loss within the racks Cases falling off of pallets in a 3-deep lane Robot wheel slippage in a moist environment Potential extra end of day labor to shuffle pallets to the nose of the rack
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Palletizer Robots
Gantry Arms most common
Cost $300K and up depending on the customization of the machine Application is common in environments where many cases of the same SKU need to be palletized
Used most commonly to automate heavy case lifting at manufacturing facilities such as in Fresh Meat plants Also used for handling of hazardous goods Also being used for bagged goods

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Palletization

(Courtesy Bastian Material Handling)

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Last But Not Least

DC automation to incent your work force!

(Courtesy Bastian Material Handling)

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Track: 606

Questions & Discussion

Marc Wulfraat, MWPVL International Inc.

(514) 482-3572 x 100 Marc.wulfraat@mwpvl.com

May 23, 2007 DC Expo

Session 606

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