The Material Handling Blog

“Garbage in, garbage out”; that’s the typical mantra for simulation and consulting studies as it relates to the quality of the inputs and the resultant quality of the outputs. Having worked with companies small and large, across a variety of industries, we know one thing is true – every bit of detail counts to ensure we can help our customers maximize their operations.

There are a few major concerns in distribution system design that need to be consistently addressed. One of the most critical cost concerns is financial waste through damaged product. In a post-recession era when companies are working to “stay lean”, managing product waste is a tangible area where capital investment can lead to great returns.

Developing a Lean culture in your organization is a multi-step process and, in this article, we will discuss one step in particular: establishing a 5S program.

Using lean manufacturing principles to increase efficiency and productivity in warehouse operations by eliminating wasteful, non-value-added components. Read: The 8 Wastes of Lean Manufacturing Applied to Warehouse Operations

From a mechanical standpoint, a goods-to-person system certainly can attain the tote delivery rate advertised on a vendor’s website.  However, these advertised rates do not consider the primary determinant for the throughput rate that is actually realized at a goods-to-person work station – the pick cycle time. 

As industrial robotic technology has improved over the years, so has related simulation software. So much so, that a majority of the upfront programming for a robotic system is typically now completed in simulation software first before being implemented in a physical robot. The sophisticated software programs used for robotic simulations replicate real world robotic conditions within a 3D virtual environment. These tools allow for detailed customization providing a reliably clear view of how a robot will operate before its built and integrated. This gives customers peace of mind of how their investment will support their operations.

If your distribution center has grown in both SKUs and order volume or your typical order has shifted from retail to more ecommerce sales resulting in larger requests for smaller orders; it’s possible your picking productivity isn’t where it should be.

The internet, since its adoption in the 1990s, is an amazing place that consistently opens new doors and creates new opportunities. Business models continue to adapt to our new connected reality. Increasingly, consumers are working their way up the supply chain. Retailers first felt this push as customers are happy to cut brick and mortar stores out of their daily routine and make purchases directly from the warehouse through digital storefronts. This has led to the development and dominance of omnichannel distribution models, delivering a variety of goods and brands under one company. They are required to compete with online-only retailers like Amazon. This was a dramatic shift for the distribution center.

More companies are starting to prioritize automation while those that had already put a lot of focus on automation are not looking to slow down. In fact, there is greater emphasis on it. Companies are realizing the competitive advantages that automation provides and are starting to challenge why adding a goods to person or ASRS system may or may not work in their business.

For years, logistics consultants, material handling engineers , and supply chain execution providers have been slicing-and-dicing warehouse statistics in a quest to enhance employee performance for the ultimate purpose of bringing profitable dollars to the bottom line. While having tangible statistics and historical records of warehouse operation is important, I suggest that these benchmarks alone will not drive peak employee or warehouse performance.

Various goods-to-person technologies have risen to the challenge of social distancing by creating naturally spaced workstations for employees and allowing companies to continue their business momentum. In some cases, ramping up to match shifts like we’ve seen in ecommerce. In Q3 2020, about $1 in every $5 was spent on online sales, according to U.S. Commerce Department retail data.

Although 2020 has been an unpredictable year with unprecedented commerce demands, this year worldwide ecommerce sales have already increased by 18% more than last year. That’s $3.5 trillion USD, according to Shopify. And, it’s expected to nearly double by 2023 to more than $6.5 trillion. Chances are that planning was already underway to shift processes to accommodate for the expected growth in ecommerce before the COVID-19 pandemic hit. However, the state of the world during the pandemic greatly shortened the time frame in which updates and changes needed to be made. Companies everywhere scrambled to quickly pivot based on their unique situations.