SupplyChainNetwork.com » Materials Handling & Distribution

The Advantages of Dynamic Storage in Distribution

scn — Wed, 14 Sep 2011 18:57:01 +0000

Ever walk through a distribution center and look down a line of rack? What do you see? Lots of steel, lots of product on trays or pallets, and lots of…air. We spoke about the disadvantages of shipping air in cube utilization for pallets, so you probably know that storing air isn’t such a great plan either.

But so what? It’s just a little empty space, right?

Then you come across a pallet with two cases on it. One where there should be 30. Then it matters a little more. But what other options are there? You have to build your rack for the highest possible product height? Otherwise you have products you can’t accommodate.

Well, what if the height of the products on the pallet (or tray or whatever your load unit) is what determines where the bottom of the next level begins? We call this Dynamic Storage.

In Dynamic Storage your load unit is supported by load arms that are not constrained by the height of product that can be stored in an opening. These load arms extend a short way from the rack upright. Because there is not horizontal fixed beam across the face of the rack, you can use the load arms you need to place your products, providing the densest storage possible.

There are a variety of advantages for your distribution center with Dynamic Storage. The first and most obvious is that you save money by reducing your foot print. Without all the wasted space and standard dedicated pick faces for every load unit you optimize your storage. Dynamic storage helps you gain a 20% improvement in storage utilization.

In addition, to the space savings from having flexible storage areas there is also the advantage of no lost cube from fixed beam heights found in standard pallet rack.

You also have added flexibility. If packaging should change for an existing product in your distribution center, you can accommodate it. Even if your business changes, with Dynamic Storage your system can accommodate your new products. Your rack height change is as easy as taking one group of products out and putting them somewhere they fit better.

Interested in learning more about how Dynamic storage can help your company save money and improve storage?

Travis Baker

Contact me to learn more and discuss.

The Tipping Point to Automated Distribution?

scn — Thu, 18 Nov 2010 14:16:05 +0000

In automated distribution there is always a new product that will revolutionize the industry. But most companies are still using fairly standard and traditional distribution tactics. So what will be the tipping point for whole scale automation and product-to-person distribution?

Space? As land becomes more expensive and environmental concerns over development increase, will lack of space be the tipping point to automation?

There is less and less land accessible to the transportation trunks on which distribution relies. As fuel becomes more expensive the value of having a distribution center close to these trunks increases as well.
As high-bay warehouses which go up instead of out, become more attractive, that could be the tipping point of using space saving automation technologies.

Accuracy? With transportation cost increasing, returns become more expensive. Customer satisfaction is growing as a major component of business and accurate orders are critical.
The accuracy of 99.9% that product-to-person automation offers will be very tempting when building a new distribution center.

Labor? There will always be people that are willing to work in distribution, but are they qualified? And can you trust them in your distribution center?

As the economy strengthens and the underemployed move on, where does that leave distribution? Companies will have to spend more to retain talent. With automated order fulfillment, your workforce shifts become smaller and more skilled so keeping only the best is feasible.
Perhaps that will be the tipping point.

Throughput? All of the above lead to this hurdle. Companies want to do more with less; less time, less labor, less space. However, the level of throughput must be maintained or even increase.

Automated storage and retrieval systems and automated picking can increase throughput exponentially over manual solutions. So is throughput the tipping point?

I don’t know what the tipping point will be. It may be one of these, a combination of the above or even something entirely different. How are you preparing for the transition?

Let me know what you think the tipping point to automation will be by commenting below.

Travis Baker

Gain 20% More Storage Capacity with a 10 month ROI

scn — Thu, 07 Oct 2010 16:02:30 +0000

Space is a major focus in the supply chain, whether in the distribution center, in transportation, or in the store. But when you consider what takes up space, usually you only think of product.

You rarely think of what totes add to shipping and storage demands. So let’s look at the different totes available and their pros and cons.

Nesting

Description: Most totes on the market, when they are empty they can “nest” inside one another.

Pro: Results is in lower shipping and storage cost when empty

Con: You lose storage space; because this totes design has sloping walls to fit inside one another.

Stackable

Description: Another common option, have a greater storage capacity than nesting (roughly 20%) because of the straight walled sides.
Con: Require the same amount of space whether they contain product or not.

Collapsible

Description: Innovative option that avoids both of these limitations; a straight-walled collapsible tote.

Pro: It has the storage capacity of a stackable and when collapsed they have a smaller space requirement than nestable totes.

Con: Collapsible totes are roughly 4 times the cost of nestable.
So why would you but the collapsible? The answer is that their ROI is impressive.

Here a quick cost comparison to illustrate possible returns. I have made some assumptions to establish the parameters.

A. No storage in totes – they are purely for distribution
B. Daily volume distributed: 14.125 cu. ft (estimated 40 truckloads a day with no cube loss) small distribution center
C. 5 day pipeline (A complete set of boxes empty, being loaded, in transit, being emptied, being returned)
D. Assume price of $ 12.00 for Collapsible, $ 3.00 for nesting
E. Bulk loading and round up to the highest cubic volume number for the nesting (1.5)
F. Standard footprint and height of the boxes

Capital Expenditures

As you can see the expenditure is dramatically different. You can get 30,000 more nesting totes for $500,000 less. Now let us examine the return in savings.

ROI Comparison

So the result is that in 9.4 months, the higher tote expense disappears. You can operate in the black for almost all of a normal capital depreciation schedule of 7-10 years.

Are you interested in learning more about new ideas in distribution?

Please comment with your thoughts on these methods and ideas!

Travis Baker

7 reasons You Should Use System Pallets in AS/RS (and 1 Reason You Aren’t)

scn — Sun, 19 Sep 2010 01:42:33 +0000

The first question is what is a System Pallet? A system pallet is a cut-to-size pallet that is specifically designed for use in an Automated System. It is better made than a vendor pallet and more durable.

Oddly, broken pieces of pallets do not increase the efficiency of an automated material handling system, so here is why you should use system pallets in your AS/RS.

1. As mentioned above System Pallets are specifically engineered for use in an AS/RS. The manufacturer designs them with the stress of the automated system in mind. Vendor pallets often fail in this environment and can damage equipment.
2. Another factor that prevents failure is that System Pallets are made with quality wood instead of scrap wood. This ensures longer life and less damage to product from the pallet (nail pops, splinters, etc)
3. Without frequent failure from vendor pallets in your AS/RS you pay less in maintenance cost.
4. In addition to less maintenance costs, a significant amount of downtime is eliminated when you use System Pallets. Less downtime, less headaches.
5. When you use System Pallets you can achieve an extra level of storage in the same rack height compared to vendor pallets. This is a result of the narrow “lifting window” afforded by System Pallets, which means greater density in your rack.
6. You can also store multiple pallets per bays because System Pallets are friendlier to a post and beam rack configuration and vendor pallets require drive in rack or intermediate supports in a post and beam setting. Post and beam rack utilizes fewer uprights and has the shortest installation time, which gives the highest density for the lowest initial investment. This reasoncombined with number 5, positively impacts the footprint of your distribution center.
7. Your conveyor costs decrease as well, since System Pallets are uniform, rollers on the conveyor can be spaced further. Chain conveyor only requires the use of 2 chains eliminating the center chain required to convey vendor pallets due to unpredictable bottom board spacing, quality, quantity, etc.

So with all those reasons why you should use System Pallets, why is there resistance. You probably already guessed it.

1. It is more expensive. System pallets cost on average 2 to 3 times as much as standard pallets.

So as always you have to weigh the risks and benefits. Which has a higher true cost? The predictable and systematically recovered initial investment in better pallets or having an idle system at the worst imaginable time because maintenance is clearing jams in the conveyor system or repairing system components damaged by vendor pallets?

Travis Baker

Key Data to Investigate Automated Material Handling

scn — Fri, 03 Sep 2010 15:09:22 +0000

So, you have decided to pursue automating your distribution center. Whether you work with with a system integrator or a consultant you will need to provide them information so they can design the best automated warehouse for your company. However if you currently have a manual system you may not have an easy way to generate this information, so an early start is helpful.

Your supply chain partner uses this data to design the best system for your specific needs. This is the foundation upon which the system is built. You should be cautious about anyone who says they don’t need the data at the beginning. Often in this case the provider has a solution in mind to sell you and will try to make your needs fit the system instead of designing the system around your needs.

The information required can vary from company to company. However, here is some general information that may be needed in a typical scenario.

Data

The first requirement is an item master including inventory information. The data set should contain the item number, a description, dimensions, the unit picked and stock numbers. There may be other pieces of optional data.
In this scenario that would be Pallet Ti and Hi, temperature zone etc. The chart below goes into more detail about the needed and optional data.

Click here to view full size image

Below is an example of how the is an example of how the data would look.

Click here to view full size image

The company you work with will also need the order data for the outbound order lines. It is helpful to provide the goods in data, as well.

You can give the company the data in a number of ways. Some of the more popular are in Access (.mdb or .accdb),) , Excel (.xls or .xlsx), or text (.txt or .rtf or .csv). In Access or Excel you will need to have a header row on each column.

Timeframe

The outbound and inbound data that you provide to the company you choose to work with should cover at least one week. However, more is better (to a certain point). A year worth of data is probably the most you will need to provide. A year data is most helpful if you have large fluctuations certain times of the year. As an additional note for stock dates, you should choose one effective date with an average or maximal inventory level.

Preparing the data and knowing what is expected helps expedite the process and makes for a smoother transition to automation.

If you have any comments please let us know. Also be sure to subscribe to the RSS feed and check out what shows we will be going to here.

Travis A. Baker

The Zen Art of Logistics and Party Planning

scn — Wed, 21 Jul 2010 00:31:10 +0000

So you want or need to learn about Logistics and Supply Chain Management? Take it from me, there are worse fates in life as at least these skills can be applied in the real world in support of business activity execution, expense reductions and to improve customer service. And even those who are perhaps here due to a one time passing interest or operational issue will be happy to know that these skills can be equally applied to planning and executing excellent parties!

Actually, let’s use the party as an analogy for the logistics process as it is something many can relate to, and believe it or not shares a number of common methods and challenges. Logistics is as much an art as it is a science and there is a certain wholistic completeness or Zen art to the efficient and well executed supply chain, and of course also to throwing the ultimate party! Anyone can buy and set up for a party and even with all the correct ingredients, some parties still unfortunately stink. The same goes for warehousing and transportation operations, anyone can buy trucks, rent a warehouse, fill it with racking, forklifts and even the latest logistics systems, but still end up with a dysfunctional and failed operation. There is a certain Zen art to taking all of these ingredients and participants and combining them to become more than the sum of the parts and achieve stellar supply chain results, not to mention have a great time as well.

In much the same way as there are ho-hum or downright poor parties, many logistics and supply chain operations suffer from the same fate. So what are the common aspects and “chemistry” which once combined result in great supply chains and excellent parties? The first shared attribute is visualization which must take place taking into account all available knowledge, data and a developed understanding of the task or operation to be planned. This acts as a basis for the second attribute which is quantification which simply means gathering all available numerical data to define the logistics requirement, including volumes, dimensions, weight, item counts and a number of other related details. The two columns below list some of these factors which will then form the basis for specific logistics planning in both cases. In fact as you will see any of you who have planned a successful party have already developed some of the basic logistics skills.

_______ Party _____________________ Supply Chain__________

Number of Attendees____________ Volume/Type of Product
Type of Party__________________ Storage and Handling
Size of Venue__________________ Size of Warehouse/Fleet
Support Staff/Work_____________ Whse Workers/Drivers
Sound System/Music____________ Operating Systems
Food/Drink/Supplies____________ Required Racking/MHE
Timing/Duration of Event _________ Service Level Required

In both cases the numerical calculation of all of these factors leads to a Cost/Result both Quantitative and Qualitative

This type of data is the starting point for the next attribute.Planning which is based on accurate and validated quantification, the keystone for the successful logistics and supply chain operation and no truly excellent party or supply chain operation will come to pass without this. Advanced planning in both cases based on as close an approximation of the end requirement as possible will lead to an optimal Cost/Result. For example the space or venue size required for a party is directly proportional to the number of attendees and type of party to be held ie; sit down, buffet etc. In the same way, the warehouse space and trucking requirements of a supply chain are directly proportional to the Types/Volumes of product and the required storage/handling and processing ie; crossdock, storage/picking etc.

Based on the timing set out, decisions must be made to acquire/book required space/resources and supplies, with any change in the base metrics and requirements again directly effecting the Cost/Result. For example, if a party is booked at a hall standing room only for a finger food buffet and a later decision is made to switch to a sit down dinner, the space required would probably at least double, not to mention increased supplies/staffing and preparation/serving costs. Similarly if a warehouse is leased to support a flowthrough/crossdock operation, and a determination is made that all product now requires storage, perhaps a warehouse twice as large or more might be required, again significantly impacting human resource requirements, materials handling equipment (MHE) fixturing, systems and supplies.

Now is it necessary for someone throwing a party to understand the cost and interrelationship of all of the above aspects to have a successful event. The answer is clearly no, if they can clearly define their needs to an expert party planner/caterer and stick with the plan/metrics, the outcome can be very positive. However in this case much depends on the quality of planner and this requires careful selection by the party host based on previous personal experience with the planner or positive recommendations and references from other trusted sources.

In much the same way, the Logistics Professional need not necessarily understand the details involved in executing supply chain operations to be successful. The use of solid and experienced third party firms to execute a logistics operation based on a well defined and accurate requirement is however again crucial. However, unlike parties of which aspects are easily grasped by the lay person we would suggest those responsible for organizing and outsourcing logistics develop at least a partial understanding and grounding in each of the aspects of logistics and supply chain operations. This will allow one to communicate intelligently with providers and understand the basic aspects and levers relevant to their operations.

The ten topic areas to review are:

Logistics & Supply Chain Introduction
Distribution & Warehousing
Freight & Transportation
Global Logistics
The Internet & Supply Chain
Logistics Strategy
Logistics Support Services
Logistics Systems
Standards in Logistics and SCM
Supply Chain Management

Following through and reviewing each of the above areas is not designed to replace a PHD or Masters in Logistics. It will however definitely provide one with a more complete grounding and understanding of the entire scope of Logistics and Supply Chain Management.

Jeff Ashcroft

Four Soft wins contract from Mondial Logistics

scn — Thu, 07 Jan 2010 01:30:41 +0000

Four Soft (4S), a global leader offering software solutions for transportation and logistics, announced today that Mondial Logistics has selected 4S eLogÂ® to automate the management of its warehouses throughout its locations in the Netherlands. The contract was executed through Four Soft Netherlands BV, a subsidiary of Four Soft Limited, India.

Mondial Logistics is one of the leading Logistics and Transportation players based out of the Netherlands. Mondial logistics strengths are found in the combination of ample knowledge of logistics and the collaboration with highly professional partners with a worldwide network at their disposal. It is one of the leading players in providing various kinds of services such as warehouse management, Freight management, logistic consultancy and Customs clearance facilities to its customers.

Joost Vollrath, Managing Director, Mondial Logistics, said â€œWe have been impressed with the comprehensive capabilities offered by Four Softâ€™s warehouse management solution 4S eLogÂ®. We are confident that this implementation of Four Soft’s 4S eLogÂ® will support us in realizing our ambitions. They understand our objectives and requirements completely to architect a solution that would help Mondial achieve its goals. The ability to take this solution live in a short time span also contributed to the decision. Four Soft brings the right depth and mix of experience across logistics and IT necessary for us to improve business controls and deliver added value to our customers.â€

Richard Gralike, Managing Director, Four soft Netherlands B.V., said â€œWe are delighted to welcome Mondial Logistics as Four Soft’s latest WMS customer. We believe our domain knowledge and experience in implementing warehouse management systems with leading 3PLs and our strong WMS solution will provide superior results for Mondial and its customers. With this implementation, Mondial Logistics will have a powerful tool to support the rapid expansion of their warehousing operations.”

4S eLogÂ® built on the modern technology platform – J2EE, covers all aspects of warehouse management including multiple sites and multiple clients being managed from within a single environment. 4S eLogÂ® has full RF capabilities and offers web visibility to clients, their customers and their suppliers. With optional automated inbound and outbound processing and workflow management, 4S eLogÂ® will help manufacturing, distribution and 3PL companies move their products with greater efficiency through their warehouse facilities to their customersâ€™ locations.

About Four Soft Limited

Four Soft is a public listed and CMMI level 3 certified company which provides innovative software solutions and IT consultancy services exclusively for the logistics and supply-chain management market place. It is the market leader in the transportation and logistics segment with a large international client base including the majority of the top transportation & logistics companies in the world. With regional offices strategically located worldwide, it supports customers including DHL, Schenker, Agility, UTI and Geodis-Wilson. Additional information about Four Soft is available at www.four-soft.com .

Four Soft offers a full suite of web-native products across the logistics supply chain. This includes 4S eTransÂ® for freight forwarding and logistics, 4S eLogÂ® for extended warehouse management, 4S VisilogÂ® & 4S VisiLog plusÂ® for track & trace, visibility and supply-chain management, 4S eCustomsÂ® for customs brokerage, 4S iShippingÂ® for shipping line execution and 4S eConnectÂ® for business-to-business connectivity.

For more information please contact:

Praveen Gavuji
Four Soft Limited
Mobile: +91 99480 99688
Tel: +91 40 66873034
Email: praveen.g@four-soft.com

Sonal Chawla
Adfactors PR Pvt Ltd
Mobile: +91 9711306364
Tel: +91 11 40565100
Email: sonal.chawla@adfactorspr.com

Supply Chain Industry Veteran Greg Cronin Joins Quiet Logistics

scn — Thu, 17 Dec 2009 20:23:34 +0000

Quiet Logistics today announced that Greg Cronin, a veteran supply chain industry entrepreneur and executive, has joined the company as vice chairman and executive vice president. In this role, Cronin will be responsible for sales, marketing, business development and customer care. In addition, Cronin will oversee Quiet Logisticsâ€™ Advisory Board focused on creating new innovative technology solutions for the fast growing Fulfillment to Consumer (F2C) services company.

Previously, as executive vice president at Seegrid Corporation, Cronin helped introduce Seegridâ€™s disruptive Industrial Mobile Robotics (IMR) technology into manufacturing and distribution center operations. Also, Cronin was executive vice president at Descartes Systems Group (NASDAQ: DSGX), founder and CEO of TrenStar, founder, chairman and CEO of Viewlocity, EVP and board member at Manhattan Associates (NASDAQ: MANH) and president and COO of RedPrairie Corporation.

â€œGreg is a valuable addition to our leadership team. His outstanding track record, expertise and guidance will help Quiet Logistics as we manage our significant growth,â€ said Bruce Welty, CEO of Quiet Logistics. â€œWe look forward to having Greg on board to help continue and expand our market momentum.â€

â€œI joined Quiet Logistics because I am enthusiastic about its Consumer Driven Fulfillment (CDF) solution which is the new era of order execution and product care services now demanded by online customers,â€ said Cronin. â€œIt is a game-changer in the outsourced physical fulfillment world. Quiet Logistics has achieved remarkable results in such a short time and I look forward to contributing to these efforts as part of the team.â€

About Quiet Logistics

Quiet Logistics is the first Fulfillment to Consumer (F2C) services provider that delivers a complete outsourced solution that leverages ground-breaking material handling robotics with a fully integrated warehouse management system, other appropriate automation technologies and parcel shipping systems. Quiet Logistics â€œConsumer Driven Fulfillment (CDF)â€ services is an alignment of best-in-class operations experience and a fully integrated technology platform with a simplified business model which considerably improves distribution throughput, accuracy, scalability and flexibility at a lower cost.

Seegrid Corp. Among Technology Standouts Highlighted During G-20 Summit in Pittsburgh

scn — Thu, 24 Sep 2009 17:53:53 +0000

Seegrid Corporation (www.seegrid.com), a robotics company that provides distribution centers and manufacturing facilities with a better way to run their operations, today announced that the company is showcasing its industrial mobile robotics technology to members of the global media during the Group of Twenty Finance Ministers and Central Bank Governors (G-20) Summit held September 24-25, 2009 in Pittsburgh.

Seegrid, in cooperation with the Allegheny Conference on Community Development and the Pittsburgh G-20 Partnership, will host visits from the media and dignitaries to demonstrate Seegridâ€™s robotics capabilities for real-world business applications.

â€œSeegrid represents the rebirth of Pittsburgh as a global robotics and technology hub,â€ said Brad Wyland, Director of Product Strategy, Seegrid Corp. â€œWe are not only showcasing how we drastically reduce operating costs for warehouse managers, but Seegrid also represents the opportunity that many high-tech companies have found in Pittsburghâ€”the opportunity to draw from the world-renowned academic communities as well as the talent-rich labor force in order to build out the new face of business for this rapidly growing city.â€

Seegrid was founded in Pittsburgh in February 2003 as a spinout of Carnegie Mellon University’s Robotics Institute, one of the leading robotics education and research organizations in the world. Seegrid’s core Industrial Mobile Robotics technology has more than 30 years of innovation and research behind it.

The company’s vision-guided robots automate the movement of product, resulting in improved flexibility, reduced operating costs and increased scalability to keep up with the ebb and flow of business variability â€“ key themes during economic slowdowns.

The G-20 Summit is expected to bring approximately 2,000 G-20 delegates, dignitaries and ministers and another 3,000 members of the international media to Pittsburgh this week.

About Seegrid Corporation

Seegrid (www.seegrid.com) brings a new class of affordable industrial mobile robots to the material handling industry that operate reliably and safely in dynamic warehouse, distribution and manufacturing environments. The companyâ€™s robots provide AGV-like competence but with greater flexibility at a considerably lower cost. Seegrid’s WalkThroughThenWorkTM technology implements quickly, easily and affordably into existing systems and processes. Integrating with WMS process workflow, complying with safety and maintenance procedures, and understanding the investments made in existing businesses, Seegrid is committed to providing the tools needed to make operations better today.

Zappos.com Goes Space Age

scn — Fri, 10 Apr 2009 03:18:43 +0000

From Logistics Management: “The online retailer recognizes order fulfillment as the key component of its mission and views the distribution function as its major competitive advantage. Hereâ€™s how it adopted Space Age automation to realize skyrocketing productivity and meteoric sales growth.

“If youâ€™re like most online consumers, youâ€™re not ordering in case or pallet quantities. Youâ€™re buying only one or two pieces of one or two different items, and you almost certainly want your order the very next dayâ€”for free, of course. This growing consumer demand is exactly whatâ€™s putting the pressure on online retailers to find automated order fulfi llment solutions that can improve the productivity and accuracy of the piece-pick order while reducing the fundamental reliance on costly, manual labor.” Zappos.com Goes Space Age