OPTIMIZING YOUR WAREHOUSE WITH A VOICE SYSTEM.

Optimizing Your Warehouse With a Voice System

1 Key Business Challenges in the DC2 Finding the Right Solution for Key Business

Challenges3 Tackling Challenges With Voice-Enabled Workflows4 Concluding Remarks

TABLE OF CONTENTS

Optimizing Your Warehouse With a Voice System | Brief Overview 2

BRIEF OVERVIEW

The workflow is a crucial factor when choosing a technology. Voice technology is a proven picking method in logistics.

This white paper explains how voice technology can tackle key business challenges and shows how it compares against other available technologies. The paper concludes by highlighting the advantages of a voice-enabled DC.

Companies today face many challenges. Within the supply chain this applies in particular to the distribution center (DC), where supply and demand meet. Management expects limited or reduced costs, while the boom in e-commerce demands the picking of ever greater quantities and better customer service. New technologies designed to meet these expectations and increase worker efficiency are being put to the test.

KEY BUSINESS CHALLENGES IN THE DC

Optimizing Your Warehouse With a Voice System | Key Business Challenges in the DC 3

1Business Growth In a survey commissioned by Honeywell, more than 200 logistics managers with responsibility for distribution management cited “Support for business growth” as one of the main reasons for investment in new technology. Companies today want to be able to process larger quantities or a greater range of products using the same resources. A big problem for growing companies is avoiding operational bottlenecks and depleted inventories while at the same time reducing labor costs (in particular, the amount of overtime). Technology can be deployed to synchronize product flow and maximize efficiency throughout the entire distribution center.

Better Customer Service Order accuracy is crucial and is therefore often a key performance indicator in service agreements with customers. For example, a DC that ships 10 million orders per year with an order accuracy rate of 99% will have 100,000 errors every year. If the costs per error are $10 to $20, an error rate of 1% will reduce earnings by between $1 million and $2 million. Furthermore, such high numbers of errors inevitably lead to customer complaints, refund requests and redundant shipping costs – ultimately hampering profitable growth.

Given the fact that errors can occur at multiple locations in the DC, the process for multiple workflows generally has to be changed to reduce the error rate.

Reducing Operating Costs Leading companies are finding ways to reduce their operating costs and at the same time increase sales and improve customer service by redesigning processes and deploying cost-effective technologies. In many DCs, the most labor-intensive tasks have already been made more efficient through process changes and technologies. How can managers therefore find new ways of lowering operating costs without affecting service quality?

Optimizing Your Warehouse With a Voice System | Finding the Right Solution for Key Business Challenges 4

FINDING THE RIGHT SOLUTION FOR KEY BUSINESS CHALLENGES

Among the leading technologies found in today's DCs are voice, RF barcode scanning and pick-to-light. Each of these technologies has its own benefits, which vary depending on the specific operational environment and the application. The one thing they have in common, however, is the fact that they are far superior to paper-based processes.

Figure 1. Comparison of leading warehouse technologies. Estimates based on reported savings. Source: Historical data from Honeywell Voice

As the figure above shows, voice technology stands out on account of its flexibility and high degree of accuracy. RF scanning is less expensive, but also less efficient. Pick-to-light is suitable for selected applications as long as products and locations are not changed. Because voice can be used throughout the entire distribution center, companies can reduce expenditure for training, integration and maintenance and achieve synergy effects as a result.

Other Advantages of Voice-Controlled Work in the DC:– Hands and eyes are kept free. Workers don’t have to constantly set down a scanner

or paper documents when picking and can easily pick several units simultaneously. Working with forklift trucks is much safer and more efficient, as operators no longer have to read directions on screens and therefore do not run the risk of accidents caused by distraction.

– Changing processes can produce significant savings, for example, through the simultaneous picking of several orders. Workflows such as cycle counting during picking and/or storage or reverse picking can be interlinked to reduce travel times.

– Voice significantly reduces training times. Because workers receive step-by-step instructions, they can be trained in one to two hours on average and can execute tasks to a high standard.

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PAPER VOICE RF BARCODE SCANNING PICK-TO-LIGHT

Accuracy 97–99% 99.8–99.98% 99.3–99.5% 99.5–99.7%

Pick rates (cases) Up to 220 items/day Up to 300 items/hour Up to 200 items/hour Up to 350 items/hour

Training time 2—5 days 1 —2 days 2—4 days 1—2 days

Flexibility for integration Flexible Flexible Flexible Not flexible

Applications Yes Yes Yes Yes

• Picking Yes Yes Yes Yes

• Replenishment Yes Yes Yes No

• Receiving Yes Yes Yes No

• Inventory Yes Yes Yes No

• Varied tasks Yes Yes Yes No

Maintenance requirements High Low Low Very high

Ergonomics Hands/eyes required Hands/eyes free Hands/eyes required Hands/eyes required

Optimizing Your Warehouse With a Voice System | Tackling Challenges With Voice-Enabled Workflows 5

TACKLING CHALLENGES WITH VOICE-ENABLED WORKFLOWSDefinition and Advantages The most natural workflow for most workers is one that leaves their hands and eyes free to complete the tasks assigned to them. Voice is an important driver in the restructuring of processes and systems. Voice technology is particularly suitable for DCs, where transactions are executed very quickly and with a high degree of variability. Some DCs gain considerable advantages with voice solutions where there is relatively low overlap between the workflows, that is, if receiving, storage, picking, replenishment and line-loading occur at different times of the day.

A DC gains the biggest advantages when voice is incorporated right from the outset and processes are structured accordingly. DC processes can be synchronized with one another to reduce bottlenecks. For example, two workflows that use the same type of vehicle (e.g., storage and replenishment) can be interlinked to make optimum use of the investment and increase driver productivity. Training effort is reduced and workers can be assigned different tasks more easily, as there is only one system to be learned.

In a voice-enabled DC, processes are standardized and the human-computer interface is optimized. Highly controlled workflows in particular require extensive computer input and output. In these workflows, the computer outputs a constant flow of instructions and workers confirm receipt and execution.

Brief Overview of a Voice-Enabled Workflow In a voice-enabled workflow, a DC worker receives orders from the Warehouse Management System (WMS) via WLAN on a mobile device, which converts the text commands into spoken instructions. Guided by a computer voice through a headset, the worker confirms each step of the picking process verbally using a number or a check digit at the storage location of the product to be picked. The voice system and the worker work through the order list in this way until the order is completed. Verbal confirmation of the completed actions improves accuracy.

Implementation of the Voice System A voice-enabled workflow solution consists of numerous components. The most important of these, however, is process knowledge. Process knowledge is crucial, as implementation of a voice system in a DC with poorly structured processes will not result in the desired improvements with respect to productivity and accuracy. Voice-specific process knowledge is used in combination with industry-specific expertise in order to gain maximum benefit from the provision of a voice-controlled system.

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Optimizing Your Warehouse With a Voice System | Tackling Challenges With Voice-Enabled Workflows 6

WMS Interface A voice-enabled workflow solution begins with the WMS interface. The voice system contains both the software that defines the voice-enabled workflow as well as the hardware or voice device used by workers for interaction with the WMS. This must be linked with the WMS in order to accept work instructions, confirm the execution of tasks, and update inventories. To minimize costly adaptations, the system should allow multiple interface options that support the differing approaches of WMS providers. In some WMS systems, the provider implements a direct interface, which integrates the new voice-controlled process logic directly into the WMS and supports a real-time interface between the voice system and the WMS. In other WMS systems, a middleware application may support communication between workers and the WMS without changing the WMS code.

Voice Applications Typically, a separate voice application is developed for each workflow in the DC (e.g., picking, storage, replenishment), which precisely defines the interaction between the WMS and a worker. When workflows are interlinked, a voice application is developed for the combined workflow. These applications are developed with tools supplied by the provider and loaded onto the voice device after completion. The system must support the rapid development of voice-enabled workflows so that it can be adapted accordingly in the event of changes in DC operation.

Voice Device and Headset From a worker's perspective, the key components of the voice solution are the specially developed voice device, a headset for commercial use and the corresponding voice software. This combination converts the instructions from the WMS (e.g., which products are to be picked) into speech, which the user receives via the headset. The user’s voice is also recognized and their input is recorded in the system. The voice device can be attached to the user’s belt (battery-operated) or mounted on a vehicle (vehicle-operated). The device runs firmware, which processes the voice applications, communicates with remote systems, converts text instructions into speech, and recognizes the user’s voice.

WMS/ERP/Legacy

EnterpriseConnectors

VoiceCatalyst

“Ready”

“2-8-7”

“2”

“Aisle 25”

“414”

“Pick 2”

“417”

Honeywell Voice Data Process Flow

Receiving

Put-Away

Put-to-Store

Line-Loading

Replenishment

Back-Stocking

Transfer

Packing

Shipping

Picking

Cycle Counting

Auditing

Examples of Voice-Optimized Workflows: Voice-Enabled Worker

Optimizing Your Warehouse With a Voice System | Tackling Challenges With Voice-Enabled Workflows 7

Management of the Voice System To allow better management of the voice device, a management system with a dashboard is provided in the DC. This management system supports device management, the downloading of new voice applications on the devices, the display of performance statistics, the monitoring of device locations and battery power as well as other functions.

Integrated voice-enabled systems are thus optimized to achieve key business objectives with minimal total cost of ownership. Furthermore, the ergonomics of a specially developed integrated solution improve worker satisfaction and reduce absence times, fluctuation and costly errors.

Integrated Voice Solutions: Specially Developed for Distribution Centers The DC environment is challenging and therefore requires a specially developed end-to-end solution. While various providers can supply individual components of a solution, it is the customer or value-added reseller who is responsible for creating an interoperable solution.

With an integrated end-to-end solution such as Honeywell Voice, companies can achieve higher returns, as the solution has been specially adapted and optimized for their environment. A true end-to-end solution begins with the headset, with a microphone that recognizes the user’s voice and can filter out ambient noise. The microphone must be able to withstand the stresses of the work environment, including extreme temperatures and/or the condensation that exists in many facilities. To guarantee the safety of workers, the headset cable and connector have been developed in such a way that they disconnect safely (without causing damage) from the voice device if the cable becomes caught. Alternative solutions require costly adapter cables and generally do not provide trouble-free connections. This often results in speech recognition errors and a slower work rate. For special applications, there are also wireless options, which have been optimized for correct speech recognition in the context of high-quality voice transmission.

A voice device such as the A700x, a mobile device specially developed for DC applications, can withstand extreme temperatures as well as the falls and impacts that can occur in DCs. The devices are ergonomically designed and reduce keyboard usage to a minimum. In addition, the devices do not require an integrated display, which is a frequent source of errors, inefficiencies and failures. The battery in these devices can generally deliver enough power for an entire shift, including overtime (8 to 12 hours). The devices also support multiple languages, dialects and accents (including operating system, main memory, audio circuit and speech recognition software).

Workers who operate vehicles can also benefit from voice control by using the voice device in a configuration mounted on the vehicle.

Some applications can be optimized with additional technologies that enhance the voice system. For example, an additional screen would be useful in the receiving area if a user has to search large volumes of information and a dedicated voice-enabled solution would be less efficient. Long pallet ID numbers may also need to be recorded. In such cases, the integrated A730x barcode scanner or a compatible external scanning device can be used in connection with the voice-enabled system.

Optimizing Your Warehouse With a Voice System | Concluding Remarks 8

A voice-enabled DC is a strategic platform which allows companies to grow while at the same time controlling operating costs and improving the quality of customer service. Voice-controlled workflows allow workers to keep their hands and eyes free, and are the most natural and effective way for workers to complete their tasks.

CONCLUDING REMARKS 4

For More Information, www.honeywellaidc.com

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