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Machine
Planning Makes Inventory Replenishment Fast and Easy
Tthroughput, accurate picking, less operator strain and fatigue.
The result is a measurable and significant improvement in
order picking and fulfillment efficiency.
One aspect of automated storage and retrieval system
operation that organizations often misunderstand, however, is
the replenishment side of the picking and fulfillment
operation. The misunderstanding is that automated storage
and retrieval systems, such as Horizontal and Vertical
Carousels and VLMs, cannot be restocked as easily and
efficiently as traditional rack and shelving systems.
Replenishment plays a critical role in fulfillment
operations. When implemented correctly, the system can
increase system accuracy, throughput and overall picking
efficiency. Regardless of the material handling system,
shelving, flow rack, carousels, mini-loads or VLMs, the impact
of inefficient replenishment procedures impacts performance.
To optimize, a simple task of information collection and
analysis is required.
Good Management Practices Generally, replenishment becomes an issue when an
organization fails to understand the dynamics of the complete
order fulfillment process. It's vital to the success of an
automated storage and retrieval system that management
build a stock keeping unit (SKU) profile that describes
inventory, how and to whom it's distributed, and in what
quantity and time frame specific products in the inventory are
distributed. This data collection process should include a listing
of part numbers and descriptions, part sizes and weights, stock
quantity, reorder point and reorder quantity, the quantity of
the individual product picked, a list of products that are used
or picked together, which products move faster because of
seasonal and other factors, and product/process throughput
and flow.
Use this information to categorize the inventory. Assign
products into categories of velocity, for example, fast, medium
and slow movement. Categorize them by their physical
characteristics such as small, medium and large sizes, light or
heavy, conveyable or not conveyable, and by the manner in
which they are packaged.
By taking the time to categorize parts and group them by
families or common usage, the time saved in retrieval, and,
consequently, replenishment will be significant and
productivity will improve.
Matching Storage Cube and Velocity With this information in hand, it's relatively easy to match
each SKU's velocity (speed of demand) plus the physical size of
the SKU for order picking efficiency by selecting the right
equipment for the items to be stocked and for the type of
picking operation required. Once the proper system is
selected, it's a matter of initially stocking the system for the
most efficient operation by the assignment of items to a
particular location in a storage and retrieval system to
maximize system
he benefits of automated storage and retrieval systems (AS/RS), Horizontal and Vertical Carousels and Vertical Lift Modules (VLMs) are improved
capacity and improve the efficiency of the operation. Storing
parts in their appropriate distribution quantities significantly
reduces part handling time and, consequently, the costs
associated with unnecessary handling, whether that be in
picking or restocking.
By incorporating bar code scanning, pick-to-light
technology, voice picking, and RFID with automated storage
and retrieval systems, the picking and restocking operations
become even more efficient. These technologies not only
improve picking and restocking throughput, they also improve
accuracy to 99.99%.
The 5% to 10% Solution When should replenishment occur? The flexibility of
Horizontal and Vertical Carousels and VLMS makes it easy to
replenish on the fly---restocking as picks are made-or between
waves, during off peak times or slower shifts.
What is more important is how much to restock. To take
optimum advantage of the efficiencies of Horizontal and
Vertical Carousels and VLMs, is to restock no more 5% to 10%
of SKUs each day, regardless of what typical supply is. For
example, some operations might keep a month's supply of
specific SKUs on hand, whereas another operation might keep
a week's supply on hand.
If items move so fast that the replenishment requirement
is more than 10% per day, then a static or "non-goods to man"
storage system should be considered such as shelving, rack,
drawers, etc. should be considered.
Equipment & Systems Configuration One static solution is flow rack pick modules. These rack
systems can be replenished from the rear of the rack while
picking is done at the front. The disadvantage is that pickers
have to walk and search for items. It is not uncommon for
pickers to have to walk miles per day and use up to 75% of
their time traveling rather than picking. While pick modules
often appear to be a good solution to efficient
Universal Work Station
picking/replenishment needs, they are often improperly
utilized because they are stocked with slow moving or too
much inventory which simply doesn't require daily
replenishment.
A better solution is the universal work station which blends
material handling technologies for the best combination of
demand utilization. The universal work station often integrates
Horizontal or Vertical Carousels or VLMs and a manual pick-to-
light flow rack into one work station. This is where
understanding the SKU profile is extremely important. Faster
moving SKUs are stored in the flow rack for more efficient
picking. Slow and medium movers are stored in carousels or
VLMs where they can be efficiently retrieved and replenished.
The true benefits of a universal work station are
minimizing: the number of required work stations in a facility,
the time orders spend travelling between these work stations
and the number of work stations an order visits in its cycle
while maximizing the amount of SKUs available in each work
station (regardless of SKU volume profiles).
Batch picking and replenishment also improves overall
automated storage and retrieval system efficiency. Batch
picking is the technique of picking multiple orders
simultaneously. Batch picking and replenishment is most
frequently used in conjunction with Horizontal Carousels and
universal work stations integrated with inventory
management software. Batch replenishment is the process in
reverse. Software directs operators to the correct restock
location, just as it directs them to the correct pick location, in
the system. Using this technique, an operator can replenish
an automated system with the same speed and accuracy as
items are picked.
Horizontal and Vertical Carousels and VLMs offer
significant advantages in space utilization, picking accuracy,
employee productivity, system throughput, and improved
ergonomics. Improved productivity resulting from the
installation of automated storage and retrieval systems can
reduce labor costs, make more efficient use of floor space
and reduce maintenance and energy costs. These savings
often result in a return on investment (ROI) in nine to 18
months. Likewise, these systems often help organizations
realize sustainable design, Lean, JIT (Just In nme), Six Sigma,
and Good Manufacturing Practices. Through up front
planning, replenishment efficiency, as well as picking
efficiency, can be optimized.
About Systore Automation Systore Automation is a leading provider of automated
storage and retrieval systems that reduce leading
organizations requirements for labor, floor space and
inventory while dramatically increasing productivity and
operational efficiencies with often a nine to 18 month Return
on Investments (ROI). Industries served include:
manufacturing, distribution, warehouses, healthcare,
institutions, retail and wholesale organizations. The Sapient
Automation technologies include the Vertical Lift Module
(VLM), Vertical Carousel, Horizontal Carousel, Inventory
Management Software, Roll Vertical Carousel pick to light
systems.
For information about Replenishing and Picking from
Carousels and VLMs call 1300 793 634 or visit the Systore
Automation web site at www.Systore.com.au