Warehouse of the Future
Transcript of Warehouse of the Future
JULY 2019
Discussion Document
Warehouse of the Future
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Warehouse Automation is a critical element of Digital Supply Chain transformation
Network optimization
Digitally-enabled SC segmentation
Digitally-enabled S&OP
Demand sensing and advanced forecasting
Manufacturing and Quality optimization
Transportation optimization
Warehouse optimization / automation
E2E dynamic inventory management
Planning and scheduling optimization
Digital ambition and solutions roadmap
Collaborative CMO and distribution optimizationE2E cost modeling and portfolio optimization
Enablers:
Control Tower:
Data architecture,
contextualization and governance
Process redesign
and automation
Agile
methodology
E2E Performance
Visibility
Seamless Supply Chain
Orchestration
Predictive
Alerts
Technologies:AI and Machine
LearningBig Data Blockchain
Cloud based
systems
Augmented
realityIoT
Prescriptive
Analytics
Digital operating
model
People
capabilities
Dynamic Integrated Business Planning
Digital SC strategic decision making
E2E Operations Optimization
Digital Supply Chain Transformation
Our Focus
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Improve productivity and quality
control to reduce costs
Reduce dependence on labor
that is hard to recruit and retain
Leverage automation to
accelerate order cycle times
Increase storage density to
reduce real estate cost
Market trends increasingly favoring warehouse automation
Key Benefits from
Warehouse Automation
Pressure on costs• Increasing labor wages
• Low productivity
• Facilities moving towards cities – increasing
cost for hiring
Pressure to reduce facility footprint• Warehouse leasing costs higher
• Trend towards locating facilities closer to
cities increasing real estate costs
Push towards faster fulfillment• Customer expectations changing – same
day/next day delivery increasing
• Pressure to reduce cycle times and increase
throughput in warehouses
Pressure on labor• Labor becoming scarce
• Aging workforce
• Employee health focus
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Automation can drive significant cost reduction
0.70
0.25
0.12
0.24
0.0
1.0
0.5
0.30
Non-labor
savings
Total costs
per case (%)
Reductions
in warehouse
productive
labor
Per-case
costs with
automation
0.25
0.04
Reductions
in other
warehouse
labor costs
System
maintenance
technicians
and operators
0.02
Automation
parts and
replacement
components
0.21
1.00
-145%
Net labor cost savings (~4/5 of savings):
Non-labor savings(~1/5 of savings):
Primary drivers: shrink, damage, DC supplies
Labor
related costs
Non-Labor
related costs
Cost reduction via automation – Warehouse
Client Example
-55%
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Picking is a major cost driver in Warehouse Operations
1.11
0.15
0.70
0.15
0.10
Receiving TotalPrep for
outbound
PickingPut away Loading
0.01
Warehouse process costs per unit
(Manual Process)
63%of Operating
Cost/ unit
Client Example
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There are critical elements to drive a successful automation transformation initiative
Strategy
Design
Implementa
tion
• Evaluate automation benefits in line with core strategic vision
• Consider the full spectrum of benefits not just "four-wall" savings
• Determine investment appetite based on concrete time-bound ROI goals
• Establish a clear stage-gated, ramp-up plan
• Build a rigorous business case and secure buy-in across the organization
Description Example
• Expanded strategic options – segments, geos
• Throughput, integrated network benefits
• Full automation payback pd. can be 5+ yrs
• Start with hubs, standardized packages
• Bottom-up site and network analysis
• Conduct site-by-site greenfield vs. brownfield cost-benefit analysis
• Optimize first, then automate
• Future-proof site design with built-in flexibility
• Diversify integrators across sites to avoid predatory price-ups
• Typical per site cost is $100-200M vs. $10-40M
• Streamlining current processes allows org to
avoid costly do-overs
• Initial build should be enabled for horizon
technology, e.g. 3D picking
• Integrator agnostic, and cross-site compatible
• Start as soon as possible to mitigate lengthy implementation period
• Invest in the right software, integrated enterprise-wide across sites
• Maintain manual sortation center as failsafe during transition
• Track both automation and human efficiency with key metrics
• 12-18 mo. incl. integrator setup of 6-8 mo.
• Software must integrate across sites, into ERP
• Single-shift site for seasonal scale-up
• Cycle time as well as T/O rate, feet traveled
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Today's mature technologies are being used to enhance warehouse efficiency
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Warehouse Value Chain
Up-f
ront
invest
ment
Labor
cost Man-to-goods
Goods-to-man
Automation
Bots &
Grids
Mobile
Robots
Shuttles
A-Frame
sorter
Conveyors
& sorters
Carousels
RF
scanners
Pick to
light
Voice
directed
picking
Unit
Load
Mini
Load
Auto
label-
ling
Auto
pallet-
ization
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Today's mature technologies: main players
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Warehouse Value Chain
Up-f
ront
invest
ment
Labor
cost Man-to-goods
Goods-to-man
Automation
RF scanners Pick to light
Carousels
Conveyors
& sorters
Shuttles
Mobile
Robots
Bots &
Grids
A-Frame
sorter
Voice directed picking
Unit-Load &
Mini-LoadAuto labelling Auto-palletization
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Important to define priority areas to start automation journey
Sensor &
ID tags
Mobile
wearables
Cloud
& AI
Emerging technologies can support activities across the entire warehouse value chain
Robotics
Visibility
(Enhanced) labor
Tech enablers
Live
Monitoring
Procurement
Sync.
Carrier
Connection
Customer
Connection
Labor
Planning
Big DataCloud
collaboration
Drones Cobots
Autonomous
Robots/
AGVs
Wearable
Robotics
Aug-
mented
Reality
Smart
Machines
Warehouse Execution Systems (WES) /
Warehouse Control Systems (WCS)
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Robotics
Visibility
(Enhanced) labor
Tech enablers
Emerging technologies: Main players
Drones Cobots AGVs
Carrier Connection Live Monitoring Truck Loading
Labor Planning Augmented Reality Wearable Robotics
Mobile Wearable Sensor & ID tags Cloud Collaboration
Management Systems
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Execution plan requires rigorous program office
Change Management• Internal & external
communication plan
• Prioritize and address concerns
• Manage perceptions and drive
change
Playbook• Hands-on training of team from
development thru implementation
Eco-system of partners• Develop third party partnerships to
enable use case development and
scaling
Team structure• Develop cross-functional team for use case
development
• Planning & purchasing team:– Logistics: Select technologies, evaluate vendors– Procurement: Negotiate contracts, issue PO
• Installation team:– Warehouse manager/project owner: oversee
installation– Logistics engineer: conduct SAT1, FAT2
– IT programmer: integrate WMS and ERP– Safety supervisor: convey safety guidelines, provide
signoff• On-going team:
– Logistics engineer: provide maintenance, maintain AI/ML system
– Technician: repair breakdowns
Governance and funding model (Program Office)• Develop on-going project review cadence and metrics
• Adjust approach as required to ensure maximum benefits
• Set-up funding model for pilot development and scaling
Executive champion• Prerequisite for successful implementation
• Exec. to sit on SteerCo, set high bar/challenge
team and ensure funding
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Case Study: E2E automation of warehousing processes
• Client is a food retailer looking to improve warehouse
operations to enable their long-term strategic growth
Context
• Provided strategic review for warehouse operations
• Evaluated different distribution system structures
• Developed business case to select optimal structure
• Identified vendors and developed evaluation model to
select vendors
• Supported vendor negotiations on price, service, and
commercial terms
What BCG did
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Strategic
review
Development of
business cases
Technology solution
screening and evaluation
Vendor evaluation and
negotiation support
• Evaluated multiple
solutions that will enable
long-term strategic
growth for client
• Developed rigorous
business cases to
evaluate strategic
alternatives for client
• Supported client with
evaluating various
automated technologies
• Designed warehouse to
optimize specific
business parameters
• Identified vendors and
conducted detailed
assessment of short-
listed vendors
• Negotiated with vendors
in order to get best value
for client
Stage-gate approach leveraged to evaluate and develop solution
Go / No-go
decision
Implementation
kick-off
Case Study
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Conducted strategic review to assess options to enable long-term growth
“Baseline”
(manual-pick warehouses)
Current network is kept …
… with limited investments …
• Only investment to manage
product families currently
handled in those warehouses
… in order to manage growth
of current assortment
• only within today’s assortment
• Minor planned changes
Adjustments within
current structure
Current network is kept …
… with additional investment
in increased capacity…
• Handle new product groups and
increased SKU assortment
… in order to manage
additional SKUs and product
families
New manual-pick
warehouse
Current network is changed …
… through construction of a
new manual-pick warehouse
• Some existing warehouses
consolidated and closed
Investment in additional
capacity for some new items …
… but only moderate network
(warehouse) centralization
New centralized
automated warehouse
Current network is changed …
… through a new automated
& centralized warehouse
• Some existing warehouses
consolidated and closed
Strong centralization …
• Large volumes going through the
new warehouse
… with investment in additional
capacity for new items
Strategic Options for Evaluation
A B C D
Change to Current Network
& CapabilitiesLimited Significant
Case Study
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Created rigorous business case to assess investments and benefits
Investment and ongoing costs
• Technical solution
• Construction, including external
support costs Capex
• Changes in facility maintenance
• System maintenance and service
• Labor across DC operations
• Transportation from DC to store
• IT
Ongoing
Costs
• Current warehouse shutdown
• New warehouse ramp-up
• Project management
• Truck purchase or disposal
Transition
Costs
Potential benefits
Improved DC
labor efficiency
• Increased efficiency of manual work
• Changes in processes from automation
• Retail-level labor savings due to
reduced restocking time
• Reduced inventory
Store-friendly
pallets
• Rent savings/additional income
• Reduced energy use across system
Warehouse
operations
• All stores in network have access to
items previously put through DSD
Increased
delivery
capacity
Go / no-go decision: New centralized automated warehouse (scenario D)
Case Study
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Appendix: illustrative technical solutions
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Critical to determine potential use case to define right technology to adopt
Mobile-robotic
systems
AS/RS solutionsWhen is it most appropriate?
Very flexible & scalable solution for when space efficiency is not critical
Unit load
Mini load
Bot and grid
systems
Solution for pallet sized, heavy and large goods
Space efficient solution for high SKU flexibility
ShuttleSolution for high throughput rates when future demand is certain
CarouselSimple high density solution for low volumes of small items
High density & scalable solution when throughput is not critical
Source: Expert interviews; BCG analysis
Example – Evaluation Process for AS/RS Solution
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Warehouse Value Chain Benefit
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Several companies offer a full solution for automating warehouse processes
Company Industries served (non-exhaustive)
Unit
load
Mini
load Shuttle
Bot &
Grid
Carousel
and
vertical
drop
Mobile-
robotic
system AGV
Automated
picking
and sorting
Transport
/
Conveyor
Software
(WMS)
Schaefer Fashion, food & beverage, healthcare, cosmetics, retail
Swisslog Healthcare, logistics automation
Dematic E-commerce, grocery, apparel, food & beverage, parcel,
manufacturing, pharma/healthcare
Daifuku Manufacturing, automotive, airport
Vanderlande Fashion, food, retail, e-commerce
Bastian Aerospace, automotive, pharmaceuticals, retail, Industrial
Products
Egemin Automotive, CPG, electronics, food & beverage, pharmaceuticals
Witron Food, healthcare, automotive, e-commerce, fashion
TGW Apparel, grocery, e-commerce, spare parts
KNAPP Healthcare, fashion, retail, food retail
Honeywell CPG, E-commerce, food & beverage, pharmaceutical & medical
supply, postal & parcel, retail
Kuecker Retail, e-commerce, food and beverage, pharmaceuticals,
healthcare, apparel, automotive
Core ASRS Special ASRS Adjacent offerings
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Warehouse Value Chain Benefit
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Case Study: Drones in beta, not yet ready for prime-timethough companies are developing and testing for inventory mgmt. in warehouses and stores
https://www.hardis-group.com/https://www.pinc.com https://www.supplychain247.com
2016 –
Wal-Mart Stores Inc. is testing drones that
it says will help it manage its warehouse
inventory more efficiently, which it plans to
roll out to its distribution centers.
During the trial, sensor-equipped drones
flew in the aisles of a distribution center
and alerted management to products that
were close to being out of stock or were
not in their assigned slot, the New York
Times reports. At the time, Walmart said it
would move forward with implementing the
technology in more warehouses within the
year.
PINC is an established yard management
software company. Thier UAS (Unmanned
Aircraft System) is called PINC AIR,
Aerial Inventory Robots™.
The drone solution allows companies to
apply drone technology, coupled with
advanced optical, RFID, and barcoding
sensor capabilities, to significantly
improve the operational effectiveness
and efficiency of warehouse inventory
cycle count.
Eyesee is one of the first inventory
drone solution on the market.
It operate inventories in warehouses
with a full autonomous drone.
After three years of research and
development, with our partner and
client FM Logistic, first drones are now
commercialized.
Put away
Warehouse Value Chain Benefit
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Background Illustration Benefits
2018, DHL Supply Chain is
rolling out the next phase of
its Vision Picking Program
following a successful trial of
the AR technology in the
Netherlands.
After completing a series of
pilot programs across the U.S.
and Europe throughout
different industries, DHL has
now established Vision Picking
as the solution for the long
run, and they’re looking into
additional applications for AR
such as training,
maintenance, dimension
calculations, transportation
optimization, last-mile
delivery and more.
Over the three weeks of the test, 10 order
pickers succeeded in fulfilling 9,000 separate
orders by picking more than 20,000 items.
The resulting productivity improvements and
reduction in errors increased the overall
picking efficiency by 25% and cuts on-
boarding and training times by 50%.
https://www.dhl-in-motion.com/en/esports/article/dhl-rolls-out-global-augmented-reality-program
https://www.prnewswire.com/news-releases/vuzix-smart-glasses-used-in-dhls-successful-trials-dhl-making-smart-glasses-new-standard-in-its-supply-chain-logistics-300498459.html
Smart glasses, testing Data collecting & QR code
Picking goods with visionSuperimposed AR code
Warehouse Value Chain Benefit
Picking & sorting
Case Study: Enhanced Labor, "Vision Picking" at DHL
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Robotics can drive more agile, productive and accurate warehouse processes
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Warehouse Value Chain Benefit
Illustration Benefits
Example(s) from the field
Vendors
Cobots
• Collaborative robots are
intended to physically
interact with humans in a
shared workspace
Autonomous Robots
• Driverless forklifts
• Automated palletizers
• Mobile inventory robots
(no human intervention)
Drones
• Warehouse inventory
checks are powered by
autonomous drones
• Aerial robots are
enabling organizations to
use employees more
efficiently and improve
inventory accuracy
• Overall cost savings
• Reductions in labor
• Improved quality in operations
• Increasing throughput in the warehouse
• Deployed autonomous forklifts
and picking bots with vision
guidance system
• Recognizes environment &
gestures
• Automated picking,
commissioning transportation
and unloading of pallets / boxes
Technology components
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AI and Geo-locational capabilities can improve end-to-end visibility
Illustration Benefits
Example(s) from the field
Vendors
Live flow monitoring
• A warehouse control tower
Smart Machines
• Machines having real time
indicators of performance
Carrier & Customer
Connection
• Real-time geolocation and
accurate ETA information
communicated between
truck driver and the
customer allows to create
a more reactive planning
of warehouse resources
Procurement
Synchronization
• Rationalizing goods in QC
by tracking shipment
quality, punctuality,
delivery conditions
• Reallocate resources real time
• Monitor equipment utilization, failure
• Autonomous and preventive maintenanceUltrasound
transmitters on
workers ,robotic
transporters with
receivers in the
ceiling
The data is used to
visualize flow lines for
work patterns, layout
and worker allocation
Cost savings of $5M/mo.
by visualizing flow lines
• Work pattern
monitoring
• Redundancies ID'd
• Layout optimized
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Warehouse Value Chain Benefit
Technology components
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Wearables and Exoskeletons impact workforce efficiency and quality
Illustration Benefits
Example(s) from the field
Vendors
Optimized labor planning
• Optimizing picking routes
to minimize total distance.
Optimizing accessibility,
weight and dimension of
the object
Wearable robotics
• Tablets
• Head mounted systems
• Exoskeletons that assist
in picking and shipping
Augmented reality
• Augmented reality (AR)
picking using wearable
technology provides
faster, hands-free
solution for industrial
environments
• Improved picking, routing, inventory
management, shipping
• Improved labor productivity
• Soft robotic wear on the back
and legs, which assist with the
lift mechanism
• The suits store and release
energy as a person bends and
lifts, similar to a bow and
arrow.
(www.lowesinnovationlabs.com)
Assistive suit at Lowe's
https://www.dhl-in-motion.com/en/esports/article/dhl-rolls-out-global-augmented-reality-program
https://www.prnewswire.com/news-releases/vuzix-smart-glasses-used-in-dhls-successful-trials-dhl-making-smart-glasses-new-standard-in-its-supply-chain-logistics-300498459.html
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Warehouse Value Chain Benefit
Technology components
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Case Studies: Exoskeletons in beta, near ready for prime-timeOEMs, retailers, and logistics companies are developing and piloting warehouse applications
2016 - Activelink Co., a robot development
unit of Panasonic, is selling the unit for
testing and is planning a rental service.
This wearable robot is designed to assist
workers by providing torque at the hips and
reducing the stress on the spine.
The suit automatically detects the user's
motion in the lower back and then sends a
signal to the motors to rotate the machine's
gears.
In partnership with the Assistive Robotics
Lab at Virginia Tech, Lowe's kicked off the
exosuit pilot with stock employees at
Lowe's of Christiansburg, VA in April of
2017.
Application is a soft robotic wear, designed
with carbon fiber rods on the back and legs,
which assist with the lift mechanism. The
suits store and release energy as a person
bends and lifts, similar to a bow and arrow.
2017- 3PL, Geodis, has
begun using exoskeletons
to support and protect
employees’ backs during
their work in its
warehouse in Venlo, the
Netherlands. Staff wear
the exoskeletons—an
external type of brace—
for lower back support as
they lift and carry
objects during their pick
and pack activities.
“Staff are fitter after a
working day thanks to
these skeletons,”
explains Sjors van
Enckevort, site manager
at Geodis.
https://exoskeletonreport.com/ http://www.lowesinnovationlabs.com http://en.laevo.nl/
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IOT, AI and Systems are critical enablers for automation transformation
Illustration Benefits
Example(s) from the field
Vendors
Sensors and identification
tools
• Tracking, security, tracing,
inventory management,
etc, comprising the IoT
within the warehouse
Big data & Analytics
• Using data to optimize
processes within the
warehouse. E.g., WCS,
WMS, WES
Mobile
• Tablets, glasses, etc. assist
in picking, routing,
shipping
Cloud & AI
• Optimize particular
constraints and KPI, such
as order accuracy, safety,
productivity, fulfillment
time, facility damage, or
inventory accuracy
• Visibility and control over warehouse
processes
• Enablers of larger automation technologies
• Avoid costs from labor, errors, damages
Technology components
High-speed electronic sorting equipment with six-sided package scanners to capture barcodes, weights and dimensions as packages move along at 540 feet a minute through a network of conveyor belts and chutes
By using smart algorithms and real-
time position technology it is
possible to utilize all resources at
site with intelligent push-
technology
By leveraging simulation and
analytics it is possible to solve KPI
issues even before they exists
• Improved efficiency for
warehouse procedures, increasing
goods handled from 200 per hour
to 400 per hour
• Improved accuracy on item
distribution
• Delivered engaging in-store
customer experiences
Inventory management with RFID
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Warehouse Value Chain Benefit
Automated loading / unloading improves labor efficiency and load optimization
Solution components Illustration Benefits
Example(s) from the field
Vendors
Smart loading AGF
(custom)
• Components include:
chassis, telescopic
conveyor belt, 3D
laser scanner, and a
gripping system
made up of an
articulated robotic
arm and a grabber
• Advanced navigation
• Force sensors in
forklifts
Cobot (UR10)
• Safety without cage
• Right payload and
reach
• Pick from bin, place
in rack
+ Significant labor reduction due to fully
automatic execution of unloading process
+ Potential to extend solution to trailer loading
and increase savings
+ Outbound load optimization
For unloading, robot is
positioned in front of a
container to unload and
uses its laser to scan all of
the boxes. An integrated
computer then analyzes the
various sizes of parcel and
determines the optimal
unloading sequence
Technology not deployed
yet
• Wynright (Daifuku)
currenty offers prototypes
• DHL invests in 4 new
collaborative robots
Sawyer, the Cobot employed by DHL,
features a 7 degree of freedom
Trailer loading adds further
complexity as the system
now has to determine the
best way to stack boxes.
Potential to leverage Cobots
in truck loading
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Sensors and scanner tunnels greatly improve read rates
Solution components Illustration Benefits
Example(s) from the field
Vendors
Automatic Identification
and Data Capture (AIDC)
• AIDC technology
automatically identifies
packages, collects data
about them, and enters
that data into
computer systems
Ability to process various
data formats
• Identification through
e.g., bar codes, RFID or
Optical Character
Recognition (OCD)
Sophisticated systems
combine multiple
technologies
• Weighing stations
• Volumetric
measurements
+ Much higher read rates than conventional hand-
held laser scanning solutions
+ High-speed sorting can greatly increase
efficiency of sortation process from unload to
reload
+ Helps to avoid costs from labour, errors,
damage
FedEx uses high-speed electronic sorting equipment with six-sided package scanners to capture barcodes, weights and dimensions as packages move along at 540 feet a minute through a network of conveyor belts and chutes
Significant labor cost
savings in sortation step
• ~80% of packages
touched only twice-
during loading and
unloading
Warehouse Value Chain Benefit
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Advances in conveyor-based sorters continue with 500 cases/min. now possible However, limited flexibility in layout remains a challenge
High speed
pusher
Pivoting
wheel sorter
Narrow belt
sorter
Active roller
board (ARB)
Sliding shoe
sorter
Bombay
sorter
Tilt tray
sorter
Cross belt
sorter
Depiction
Description Pusher arms
divert products
to take-away
conveyor
Wheels "pop
up" and divert
products
Rollers raise up
between
narrow belts to
transfer items
Products rest
on free-
spinning angled
rollers rather
than belt
Tube/slat-
based belt with
sliding "shoes"
pushing off
sorter
Items are
dropped from
conveyor belt
into bins below
Conveyor
carries trays
that "tilt"
objects at
location
Conveyor
composed of
perpendicular
belts
Primary use Ship/production Ship Ship Ship/production Ship Production Ship/production Ship
Cases/min. 50 75 100 150 250 300 375 500
Sides 1 1,2 1,2 1,2 1,2 1 1,2 1
Package size Med-large > 5" X 7" > 8" X 6" All All Small only All All
Divert angle 90 30 30,90 90 22,30 N/A 90 90
Cost Low Low Low Med Med High High High
Pros/Cons • Inexpensive
• Fast setup
• Slow
• Indelicate
• Noisy
• Inexpensive
• Expandable
• Slow
• Space
inefficient
• Inexpensive
• Expandable
• Slow
• Sticky
• All purpose
• Expandable
• Multi-point
induction
• Slow
• Fast
• All purpose
• Delicate
• Downtime
• Fixed
• Fast
• Accurate
• Space-saving
• Expensive
• Indelicate
• Fast
• All purpose
• Expensive
• Pkg type
limitations
• Fast
• All purpose
• Expensive
• Fixed
Vendors
Warehouse Value Chain Benefit
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Case Study: Food manufacturer improves storage density and efficiency with innovative retrieval system
Robotic shuttle FIFO Density and Efficiency
2018-
A powder ingredients food
manufacturer, Huijbregts,
has a new block of racks
run by Mecalux' Pallet
Shuttle System with a
capacity of 2,295 pallets in
its production warehouse
in the Netherlands
managing 2,500 raw
material SKUS and 14k
FGs.
Mobile
https://interlakemecalux.com
Wi-Fi connected control tablet
directs the Pallet Shuttle and
facilitates inventory counts and
operations viewing
Incoming goods flow through one
side and outgoing through the
other
Thanks to the Pallet Shuttle
system, Huijbregts has boosted its
storage capacity, and streamlined
the handling of products at the
same time.
Between February and August 2018,
Huijbregts has seen ~8% revenue
uplift
Receiving Put away Picking & sorting Packing Loading
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Sortation singulators and conveyors enable faster, more customizable sorting
Solution components Illustration
Example(s) from the field
Singulator
• Sorts parcels into
straight, uniformly
spaced line/s for faster
sorting
• Uses video
cameras/algorithm/spec
ial motors to push
parcels into a algorithm
determined direction
• Takes up less space than
traditional sorters
Conveyor
• Conveys parcels to
appropriate destination
with diverters or rollers
• Linear shoe sorter can
sort 10,000+
parcels/hour
• Cross-belt sorter can
sort 18,000+
parcels/hour
Increased sorting capacity
at Cologne Hub
• Nearly doubled
capacity from 100K to
190K parcels/ hour by
upgrading traditional
conveyor system
+ Singulation enables faster sorting by
arranging parcels into single line
+ High level of control in speed and
orientation of each individual parcel allows
for customization (e.g., different type of
parcel or warehouse layout)
High performance
singulators can
singulate up to 9,000
items per hour in a
continuous flow without
recirculation
Once parcels are in a
single line, cross-belt
sorters with roller lines
allow for flexible
manipulation and
diversion of parcels to
desired destination
Vendors
Warehouse Value Chain Benefit
Picking & sorting
Benefits
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Sortation bots provide increased flexibility vs. fixed conveyors
Solution components Illustration Benefits
Example(s) from the field
Vendors
AGVs for sortation
• Flexible navigation (to
bin locations)
• Applicable to small
parcel sortation, with
many destinations
Control can be
optimized• Sortation bots are
flexible, scalable, and
modular solutions
• Bots equipped with
traffic management
system that interfaces
with WMS/WES, AMRs
able to surround
obstacle
• Utilizes “tilt tray” top or
cross-belt top to deposit
parcels from induction
to a destination location
SF Express gains
• 30% improvements in
efficiency
• Increased sorting capacity
to 200,000/ day
+ Sortation robots offer flexibility in range of
destinations for parcels compared to
conveyors (pre-defined destinations)
+ Flexible to demand change- e.g. able to
allocate more robots to destination with
higher demand
Sortation robots,
normally operated in
large fleets, carry
load from entry point
to destination bin.
Sortation appears
chaotic – but WMS
self-optimises to
increase density and
pick speed
Bots are equipped
with tilt trays to
deposit the load
into destination
bays
Tilting tray
Destination
bin
Warehouse Value Chain Benefit
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Bin matrix sorters improve space efficiency and increase throughput
Solution components Illustration Benefits
Example(s) from the field
Vendors
Drop conveyor
• Induction operator at
workstation places
items on short
conveyor
Multi-sided scanner
• Scan identifies parcel
and designates order
bin
Bot delivery to bin in
matrix
• Waiting iBot delivers
item to designated bin
• Bins organized by zip
code, etc.
+ Handles "eaches" with complex variables
+ Extremely compact, modular design for
space efficiency and scale
+ High throughput potential for small parcel
delivery
Drop
conveyorScanner Bin matrix
iBOT delivers item to
order bin located on either
side of a dense storage
aisle that can be expanded
by adding modules
Drop conveyor, scan
module can handle
small to medium eaches
with complex variables,
determines bin
designation
"I love this technology for small parcel and
cross-docking because it's so space efficient,
accurate and scalable. It's like an automated
wall…"
- Head of West Coast Sales, Dematic
Warehouse Value Chain Benefit
Picking & sorting
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Automated microfulfillment centers improve speed and efficiency of order picking and delivery
Solution components Illustration Benefits
Example(s) from the field
Vendors
Microfulfillment centers
• Operate in small spaces
and house 40k-50k SKUs
in a vertical racking
structure
Warehouse Mgmt System
• Operates the open
shuttle system and
conveyers to process
1200 orders per hour
Shuttle Storage System
• Collects totes from
elevator and transport
to storage
• Optimize placement of
item bins
Shuttle System Picking
• Retrieve goods from bins
and deliver to manned
workstations to be
bagged
+ Improved order picking and delivery speed
+ Assembles online orders cheaply, using
limited space to lower costs to
supermarkets and fees to shoppers
+ Provides E-Grocery automation solutions at
a hyper-local scale
Warehouse Value Chain Benefit
Picking & sorting
Customer places an order using Takeoff's app or
Ahold's eCommerce platforms
Software
coordinates a
series of crate
bots that shuttles
food around a
railed system
Items are automatically brought to a human who bags the
order
Items will be available for pickup and delivery
Ahold Delhaize formed a JV
with TakeOff to build micro-
fulfilment centers to inside
local Stop & Shop stores for
online grocery orders
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Case Studies: Sensors and Identification
Smart Shelving
Smart shelving units such as cabinets,
refrigerators, shelves, and displays are
outfitted with RFID hardware. Items are
affixed with RFID tags and kept in the unit
to be inventoried and monitored. Smart
shelving units keep real-time inventory
counts in order to solve common problems
experienced with inventory management.
https://blog.atlasrfidstore.com/what-you-
need-to-know-about-smart-shelving-units
https://www.cribmaster.com/solutions/rfi
d
https://www.keonn.com/systems/view-
all-2/smart-showcases.html
The Avery Dennison Freshmarx suite of
solutions include food labeling, food safety
and compliance and RFID inventory
management to help ensure food safety,
increase efficiencies, save money, reduce
waste and enhance the consumer
experience. With restaurants, grocery and
convenience stores at the core, Freshmarx
solutions are purpose-built to solve
challenges throughout the food supply
chain.
https://www.rfidjournal.com/articles/vie
w?18033http://printers.averydennison.co
m/en/home/industry-solutions/food.html
https://cstoredecisions.com/2018/05/30/f
ood-operations-solutions/
A fashion retailer, Patrizia Pepe, finds
Simple, Easy Warehouse Inventory
Management with RAIN RFID
RAIN RFID provided a hands-free, always-
on answer to streamlining complicated
distribution logistics. Their solution:
• Improved efficiency for warehouse
procedures increasing goods handled
from 200 per hour to 400 per hour
• Improved accuracy on item distribution
• Delivered engaging in-store customer
experiences
https://www.impinj.com
Warehouse Value Chain Benefit
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Warehouse control systems (WCS) connects to automated equipment within the four walls to manage activities in real-time
Solution components Illustration Benefits
Example(s) from the field
Vendors
• Machine control
integration
• Pack sort and
automated pick
management
• Ship sort management
• Put-to-light
management
• Automated conveyor
zone skipping
• Mobile and fixed
scanner integration
• In line scales
+ Integrates & automates across products to
standardize activities within the four walls
+ Provides (near) real-time view of
equipment and material flow across a
warehouse
+ Hardware-independent design allows for
equipment flexibility and compatibility
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Warehouse Value Chain Benefit
Warehouse Control System (WCS)
Enterprise Resource Planning (ERP)
Order
flow
Inventory
data
Planning Automation Integration
Fulfillment Visibility
Envista's WCS enabled Men's
Wearhouse to consolidate
multiple systems, dynamically
change its product flow and
achieve more effective
resource utilization
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Warehouse execution systems (WES) blend capabilities from traditional WMS & WCS, merging real-time capability with business process logic
Solution components Illustration Benefits
Example(s) from the field
Vendors
• Workload planning
• System balancing
• Dynamic order
allocation and shipping
• Replenishment
execution or
management
• Integration with WMS,
WCS and ERP
• Real-time notification
on order allocation
• Inventory and
automation equipment
+ Integrated WMS & WCS functionality
improves transaction processing efficiency
+ Assists automated facilities in optimizing
labor and equipment in response to real-
time inputs
+ Incremental, modular implementation
supports warehouses with high demand
growth
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Warehouse Value Chain Benefit
Warehouse Execution System (WES)
Enterprise Resource Planning (ERP)
Planning
Automation
Integration
Order Fulfillment
Visibility
Receiving
Returns
Waving
Picking
Pack & ship
Real-timeinputs
Labor/equipment
coordination
Order
flow
Inventory
data
Adore Me, a women's apparel
company, implemented
Bastian's WES which improved
order handling by 2-3x,
allowing for two-day shipping
WMS WCS
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Case Study: DHL is at the forefront of cutting edge technology adoption
AR Cobots Flow Monitoring
Over 3 weeks of the test,
10 order pickers
succeeded in fulfilling
9,000 separate orders by
picking more than 20,000
items. The resulting
productivity
improvements and
reduction in errors
increased the overall
picking efficiency by 25%
and cuts on-boarding and
training times by 50%.
https://www.dhl-in-motion.com https://www.roboticsbusinessreview.com
Cost savings of $5M/mo. by
visualizing flow lines:
• Work pattern monitoring
• Redundancies ID'd
• Layout optimized
DHL creaties a mixed-reality
simulation of warehouse
operation processes
Modifications are overlaid in
the real environment
to ‘field test’ and adjust
planned redesign measures
This supports and reduce the
cost of warehouse redesign
and labor planning
Planning
http://www.dhl.com/
DHL in partnership with
Effidence collaborated on an
automated order picker.
Pickers are supported with
automated carts, sending to
drop off location, and an new
cart automatically find the
picker.
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Case Studies: On-demand (Airbnb) warehousing unlocks resources for e-commerce merchants
March, 2018
Flexe has announced its integration for
Shopify, making it easier for e-commerce
merchants to find warehouse space in
real-time.
With the integration Shopify merchants
now have access to the more than 850
warehouses in the Flexe network.
Merchants can build a on-demand
fulfilment network with enhanced order
management and inventory visibility.
https://www.supplychaindigital.com
August, 2018
UPS has launched Ware2Go, a new tech
company and digital platform that
matches available warehouse space and
fulfilment services with merchants who
need to get online orders to customers.
“Ware2Go uses innovative online
technology to match excess warehouse
and fulfilment capacity with merchant
demand to provide transparent
inventory, order fulfilment and final
delivery,” said Scott Price, CTO.
https://www.supplychaindigital.com
November 2017
A paper company turned empty space into
extra revenue
A U.S. Corrugated manufacturer had extra
capacity after moving into a bigger space.
Shortly after listing their warehousing space,
they had 2 customs and their slower moving
inventory.
Flowspace manages orders and invoices,
while paper company manages necessary
labor.
https://www.flow.space/
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Warehouse Value Chain Benefit
38
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