Storage and Warehousing Techniques Warehouse Management, 3rd edition by Gwynne Richards Published November 2017 (Kogan Page) Copyright D.G. Richards 2015

Warehouse Automation and Equipment Section 6

Warehouse automation and technology Support systems Semi-automation Automated systems Warehouse Management systems Carousels/Vertical lift modules AS/RS (Automated storage and retrieval systems) Warehouse Control Systems A frames Cranes Shuttle systems Bar codes and scanners Pick and put to light Conveyors Radio frequency ID Shuttle carts Automated guided vehicles Scanners and voice terminals Robotics Copyright D.G. Richards 2015

Warehouse automation Case study – Tele Danmark site Introduction of very narrow aisle mini-load crane system. Consolidated stock from 3 distribution centres and 60 small local sites into a Single warehouse of 7,200 square metres. This handling system supported 13,500 lines and an annual throughput of 7,000,000 items. Other benefits included:- Handling costs reduced by 75% Order accuracy improved from 62% to 96% Duplicate stock was almost eliminated Flexibility improved – same day order despatches Reduced labour costs Warehouse of the month – Modern Materials Handling Online Copyright D.G. Richards 2015

Advantages of Automated systems Increased Space Utilisation High bay narrow aisle systems (up to 30 metres high) Random storage Improved Control Pallet tracking through enhanced warehouse management system Labour and Energy Savings No heat and light requirement apart from maintenance Minimum supervision required Continuity 24 hour, 7 days per week operation Product Security High bay areas, Use of First in First out principles, less human intervention Safety Elimination of majority of manual handling Reduction in accidents Can cope with hazardous/harsh environments Integration Coordination of product flows, avoiding bottle necks Constant performance levels Continuous review Copyright D.G. Richards 2015

Disadvantages of Automated systems High investment costs Building, equipment, Information technology System failure, operations are entirely reliant on technology High opportunity cost Require standardised unit loads Anomalies not accepted and need to be handled separately More quality control required at inbound High cost of disposal of equipment Lack of flexibility Opportunity cost – what you give up by spending more in this area Copyright D.G. Richards 2015

Reasons for choosing Automation Copyright D.G. Richards 2015 Aberdeen Group

Reasons against automating a warehouse Copyright D.G. Richards 2015 Aberdeen Group

Automated guided vehicle Copyright D.G. Richards 2015

A Frame – automatic pick Courtesy of Knapp and SSI Schaeffer Copyright D.G. Richards 2015

Other automation systems Cimcorp 3D shuttle No racks Copyright D.G. Richards 2015

More automation Swisslog Autostore Copyright D.G. Richards 2015

Robo pick by Kiva 10,000 sq. metres - $4 - $6 million Copyright D.G. Richards 2015

Automation in pallet storage Proctor and Gamble – Activ pallet sequencer by Retrotech Copyright D.G. Richards 2015