Picking Solutions that Work by Andrey Kras November 1, 2017 - PowerPoint PPT Presentation

Picking Solutions that Work by Andrey Kras November 1, 2017 www.daifuku.com

What was the life like for a person in old times? Not very diverse… After lunch… not much

As mankind was growing… Diversity did get better… but only a little

But no time of the past compares to our time in terms of Things we consume Things we own

Today, people ARE what they CONSUME And they consume more For that, they shop more Hence, they buy more

The more they do so, the more elaborate their shopping habits become Colors, styles multiply

Ownership of things defines people, therefore they will increasingly continue to buy more and more Nothing would stop them

To add to this, people are increasingly becoming compulsive and hence immoderate buyers

Going to a real shop is still an option

But many prefer shopping online

Waiting for deliveries for weeks is no longer tolerated. Delivery times are getting shorter

Next day delivery is no longer an option. Same day delivery is a demand of the day. And companies strive to meet the demand…

What do these trends mean to logistics industry?  A skyrocketing increase of number of orders  Fewer lines on orders Order 890782373 Order 890782373 Order 890782373 Item Qty Order 890782373 Item Qty Order 890782373 iPhone 7 1 Item Qty Order 890782373 iPhone 7 1 iPhone 7 case 1 Item Qty Order 890782373 iPhone 7 1 iPhone 7 case 1 Item Qty Order 890782373 iPhone 7 1 iPhone 7 case 1 Item Qty Order 890782373  Fewer quantity per order iPhone 7 1 iPhone 7 case 1 Item Qty iPhone 7 1 iPhone 7 case 1 Item Qty iPhone 7 1 iPhone 7 case 1 Item Qty iPhone 7 1 iPhone 7 case 1 iPhone 7 1 iPhone 7 case 1 iPhone 7 case 1

 Burden of stock keeping gets pushed up the supply chain  Nearly daily stock replenishment in small quantities  Why? Because no one wants to store at stores any more

What does this mean to a manufacturer?  A finished goods warehouse is no longer for storage only  A FG warehouse acts as a DC and, in addition to unit loads, ships often piece-picked items in small quantities.

What does this mean to an importer?  An increased demand for storage, since inbounds are even less balanced with outbounds  Again, increasingly less outgoing unit loads, more loose cases, or even pieces

What does this mean to a traditional layout of warehouse ?  Pallet remains the major unit of storage  Increasingly more space is given to picking operations: pre-picking, batch picking, order consolidation

Picking in a traditional warehouse looks something similar to this Storage Picking

1 2 3 4 5 6 7 8 9 A E And a picking map similar to B F this D C

How much of the “picking” work time is actually spent on picking?

Order 324273892 1 2 3 4 5 6 7 8 9 Item Location Qty A 1-29-C 2 A E B 3-21-A 2 C 5-08-C 1 D 6-12-A 3 E 7-43-B 2 F 9-15-B 1 B F D C

1 2 3 4

1 2 3 4 5 6 7 8 9 A Walking E B F 1 1 Searching D C 2 1 1.5 0.5 2 1+1.5+1+0.5 +1+2+2=9

Order 324223563 Order 54238947 Order 454534578 1 2 3 4 5 6 7 8 9 Item Location Qty Order 890782373 HA HA Item Location Qty HA AA AA AA AA AA 1-29-C 2 GD GD KB KB GD GE GE Item Location Qty GE AA 1-29-C 2 KB BB 3-21-A 2 DC DC DC DC Item Location Qty FB FB AA 1-29-C 2 FB BB 3-21-A 2 CC 5-08-C 1 AA 1-29-C 2 BB 3-21-A 2 CC 5-08-C 1 CC CC CC CC DD 6-12-A 3 DE DE DE DE EE EE GC GC EE GC JB JB GB 6-21-A 2 FC FC JB CC 5-08-C 1 FC DD 6-12-A 3 EE 7-43-B 2 KC 7-38-C 1 DD 6-12-A 3 EE 7-43-B 2 KA KA FF 9-15-B 1 GF GF KA GF JC JC CD CD CD CD … .. .. JC EE 7-43-B 2 FF 9-15-B 1 EC EC A A A A EC KC KC EE 4-43-B 2 FF 9-15-B 1 KC D D D D DE 2-15-B 1 FA FA FA HH HH HH KD KD KD GB GB GB JA JA E E E Order 324223564 JA Order 86535574 KK KK Order 454534578 CB CB CB CB KK Item Location Qty Order 890782373 ED ED ED Item Location Qty AA 1-29-C 2 Item Location Qty AA 1-29-C 2 DA DA DA DA BB 3-21-A 2 KE KE Item Location Qty FD FD KE FD AA 1-29-C 2 BB 3-21-A 2 CC 5-08-C 1 H H E 4-29-C 2 BB 3-21-A 2 CC 5-08-C 1 H C C C C DD 6-12-A 3 GJ GJ GJ JD JD HA 9-21-A 2 EA EA EA CC 5-08-C 1 JD DD 6-12-A 3 EE 7-43-B 2 GA GA … … … GA DD 6-12-A 3 EE 7-43-B 2 JJ JJ FF 9-15-B 1 DD DD DD DD K K JJ FA 5-12-A 3 F F B B B B EE 7-43-B 2 F K FF 9-15-B 1 G 6-43-B 2 FF 9-15-B 1 GG GG GG J J GA 6-15-B 1 DB DB DB DB FF FF J FF FE FE FE BB BB BB BB KF KF Order 324226545 KF Order 234654635 B B B B GK GK GK JE JE JE EB EB EB Order 423690345 G G G Item Location Qty Order 89239702 Item Location Qty AA 1-29-C 2 Item Location Qty AA 1-29-C 2 BB 3-21-A 2 Item Location Qty AA 1-29-C 2 BB 3-21-A 2 CC 5-08-C 1 DC 3-29-C 2 BB 3-21-A 2 CC 5-08-C 1 DD 6-12-A 3 KF 7-21-A 2 CC 5-08-C 1 DD 6-12-A 3 EE 7-43-B 2 … … … DD 6-12-A 3 EE 7-43-B 2 FF 9-15-B 1 FD 5-12-A 3 EE 7-43-B 2 FF 9-15-B 1 JD 8-43-B 2 FF 9-15-B 1 CC 2-15-B 1

C B A Zoning & in-aisle storage optimization

C B A

Creating picking zones and optimizing pick faces (A to B to C) do reduce walking of each worker but adds a whole another new operation. Order Consolidation

1 2 3 4 5 9 6 7 8 Batch picked Order picked

With multiple few-line orders, the time required for order consolidation may outstrip by far the time required for batch picking.

Time for “traditional picking” Activity Time Required in Min Walk 9 Search Scan (Rack, box, piece) 1 Pick 1 Put Complete 1 Walk to Batch Picked Totes 4 Bring them to Order Consolidation Area 4 Consolidate Orders 15 Total Time Req. for Picking 35

Pic icking Tim ime Breakdown Walk & Search 26% 43% 3% 3% 3% Consolidate Orders 11% 11% Scan Walk to Batches Pick & Put Bring batch to Consolidation Complete

Automation of picking operations eliminates all these inefficiencies

Why? No more walking, nor searching The correct load by itself comes under the picker’s hands

No more scanning of rack, nor of box* Verification is performed automatically *Scanning of pieces may be mandated in some cases

No more batch picking Pick stations allow multiple- order picking at the same time

No more need in order consolidation Pick stations allow dedicated order picking* *Some large-scale solutions may require pre-picking and hence consolidation

Therefore , Picker does nothing else but picking

Con onventional Pic icking Tim ime Breakdown 26% 43% 3% 3% 3% 11% 11%

Automated Pick icking Tim ime Br Breakdown Complete Put Pick

Now, how this works

Buffer Storage Palletizing Picking

Stock Supply Return

14-hour shift Goods Out 9,000 lines/D 2,500 cs /D 170,000 pieces/D 300 PL /D Sorter: 30 chutes; 390 PL Goods Out 130 PL /D ASRS: approx. DPS: approx. 7,000 PL Goods In 2,000 SKUs Goods In

Case Picking

Digital Pick System

DPS Replenishment Input of Shipping Containers

Multiple Order Pick Stations 4 8 3 7 2 6 1 5

Pre-Shipping Container Source Container

Thank you! www.daifuku.com for enquiries contact: Andrey Kras andrey_kras@ha.daifuku.co.jp