The document discusses various warehouse design and automation solutions. It covers topics like order picking methods, benefits of automation like increased productivity and accuracy, and appropriate automation approaches for different warehouse needs and throughput volumes. Specific solutions discussed include batch picking systems, zone picking, compact picking, automated case picking, automated tote picking, and cross docking. The document emphasizes the importance of considering the entire warehouse process and focusing automation on areas that provide the greatest benefits and cost savings.

1. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Noel Blake Business Development Manager
Vanderlande Industries
WELCOME

2. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Warehouse Design and Appropriate Automation
The thought processes when considering warehouse design and
appropriate automation:
•Knowing when to move on from a manual process
•Where are the savings?
•Picking methods and the art of the possible
AGENDA

3. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
ADVERTISING FEATURE… J

4. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
OUR CORE BUSINESS
Automated Material Handling Systems
• From Concept to Life Cycle Support
• From Small to Large

5. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
REFERENCES

6. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Veghel, The Netherlands

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FOOD
A Warehouse ?
CARE/PHARMA
NON FOOD
MEDIA/GAMES
B2C
PARTS &
COMPONENTS
3PL
AUTOMOTIVE
FOOTWEAR
APPAREL

8. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
ORDER PICKING
SORTATION
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
WAREHOUSE
MANAGEMENT

9. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Why is warehouse design so important?
80% of warehouse Building costs are in the floor slab and roof
In traditional rack storage systems 60% of the space is aisles
>60% of warehouse running costs are related to order picking
TLI/WERC Warehouse Benchmarking Survey (‘03) © Edward H Frazelle PhD

10. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Why Automate?
Drivers for warehouse automation
CARE/PHARMA
• Increasingly high customer service levels
NON FOOD • Difficulty to attract and retain qualified staff
• Scarcity of affordable warehouse space
MEDIA/GAMES
• Pressure to reduce operational costs
B2C • Increasing health, safety and ergonomics
regulations
PARTS &
COMPONENTS
3PL
AUTOMOTIVE
FOOTWEAR
APPAREL

11. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
Why Automate?
RECEIVING
STORAGE
“Whilst both improved service and lower costs are significant reasons for
ORDER PICKING companies to implement warehouse automation, it is the imperative of the need
to accommodate growth that is found to be the main reason.”
SORTATION “In summary, it appears from industry figures that the adoption of warehouse
automation is continuing to grow and, from this research, the main reasons are
CROSS
DOCKING associated with growth, cost and service.”
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
Supply Chain Management: An International Journal, 2007, Vol 12(2) pp129-138
Authors: Baker, P. & Halim, Z.
WAREHOUSE An exploration of warehouse automation implementations: cost, service and flexibility issues
MANAGEMENT

12. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Benefits of Automation
CARE/PHARMA
An automated warehouse / distribution centre enables:
• Item picking productivity up to 1.000 lines / man hour
NON FOOD
• 40% reduction of order picking cost per case
MEDIA/GAMES Growth
• Order picking accuracy up to 99,99%
Cost
B2C
• Triple throughput per m2 in your warehouse
Service
PARTS &
COMPONENTS • 5-10 minutes learning curve of new operators
3PL • Order lead time < 1 hour
AUTOMOTIVE
FOOTWEAR
APPAREL

13. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Focus on the entire goods flow (from goods receiving, storage, order
CARE/PHARMA
picking up to shipping) and the related information flow
NON FOOD
MEDIA/GAMES
B2C
PARTS &
COMPONENTS
3PL
AUTOMOTIVE
FOOTWEAR
APPAREL

14. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Distribution Centre Processes
receiving storage picking packing shipping
consolidation
Material flow
Design Process

15. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
ORDER PICKING
“There is nothing so useless as doing
SORTATION
efficiently that which should not be done
CROSS
DOCKING at all.”
CONSOLIDATION
& SHIPPING
(Peter Drucker, 1909-2005, Austrian born US management guru, writer and seminal business
INTERNAL thinker.)
TRANSPORT
WAREHOUSE
MANAGEMENT

16. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

17. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

18. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

19. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

20. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

21. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

22. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

23. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

24. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

25. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Appropriate mechanisation / automation….

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FOOD
OPERATING COSTS IN THE WAREHOUSE
CARE/PHARMA
Receiving
NON FOOD
Putaway
MEDIA/GAMES
Order Picking
B2C
Shipping
PARTS &
COMPONENTS
3PL
AUTOMOTIVE
World-Class Warehouse and Material Handling,
FOOTWEAR Edward H Frazelle Ph.D
APPAREL

27. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
The Process of Picking
RECEIVING
STORAGE
ORDER PICKING
SORTATION
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
WAREHOUSE
MANAGEMENT USP Benchmark Database

28. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Order Picking
Warehousing cost (manual warehouse)
CARE/PHARMA
• 50% of traditional warehousing cost
18% 18%
Receiving
NON FOOD 14%
Orderpicking
MEDIA/GAMES Storage
Shipping
B2C 50%
PARTS &
COMPONENTS
20%
3PL • 55% of order picking is travelling 10%
Travelling
Searching
AUTOMOTIVE Extracting
Paperwork
FOOTWEAR 15% 55%
APPAREL

29. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
Picking Concept Selection
FOOD
CARE/PHARMA 100000
NON FOOD
MEDIA/GAMES 10000
# SKU
compact pick zone pick batch pick
B2C
PARTS &
COMPONENTS
1000
3PL
order pick order distribution
AUTOMOTIVE 100
100 1000 10000 100000
FOOTWEAR
picks/hour
APPAREL

30. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
BPS
Batch Picking System (BPS)
CARE/PHARMA
• Combining product demand for multiple
orders into one pick instruction
NON FOOD
• Picked products are sorted in second step
MEDIA/GAMES – Manually by operators
– Automatically by mechanised sortation
B2C
• Suitable for very large range of
PARTS & SKUs and throughput volume
COMPONENTS
3PL
Benefits
• Reduction of walking distance up to 90%
AUTOMOTIVE • Minimise # pick walks
• Avoid congestion
FOOTWEAR • 99,99% delivery accuracy
• Traceability
APPAREL

31. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
ZPS
Zone Picking System (ZPS)
CARE/PHARMA
• Wide range of applications
NON FOOD • Operators responsible for a zone
• Order totes / cartons travel from zone to zone
MEDIA/GAMES
• Supported by RF, pick-to-light and
pick-by-voice
B2C
PARTS &
COMPONENTS Benefits
• Reduction of walking distance
3PL
• No operator congestion in aisles
• Short processing times
AUTOMOTIVE
• Structured process, reduction of errors
• Allows for pick/pack with single handling
FOOTWEAR
• Easy applicable
APPAREL

32. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
ODS
Order Distribution System (ODS)
CARE/PHARMA
• Suitable for:
NON FOOD Low range of products but high picks per hour
High level of synergy between orders
MEDIA/GAMES
• Pros:
B2C High operator efficiency
Pick directly into shipping unit
PARTS &
COMPONENTS Very efficient for fast moving items
3PL
• Cons:
High level of automation
AUTOMOTIVE
Controls complexity
Capital intensive
FOOTWEAR
APPAREL

33. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
CPS
Compact Picking System (CPS)
CARE/PHARMA
• Goods to man system
NON FOOD • Suitable for retail, wholesale and B2C
• PICK@EASE ergonomic workstation
MEDIA/GAMES
Benefits
B2C
• Sustainable performance 900
PARTS & lines / hour
COMPONENTS
• Improve storage density by 60%
3PL
• High customer service levels
– Accuracy 99,99%
– Order leadtime < 1 hour
AUTOMOTIVE
– Rush order < 10 minutes
• 5 – 10 minutes learning curve
FOOTWEAR
• Certified and tested ergonomics (TNO / TÜV)
APPAREL

34. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Item Picking Systems
CARE/PHARMA
NON FOOD
MEDIA/GAMES
B2C
PARTS &
COMPONENTS
3PL
AUTOMOTIVE
FOOTWEAR
APPAREL

35. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Item Picking Systems…the future!
CARE/PHARMA
NON FOOD
MEDIA/GAMES
B2C
PARTS &
COMPONENTS
3PL
AUTOMOTIVE
FOOTWEAR
APPAREL

36. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Case Picking Systems
Order Picking
CARE/PHARMA
Benefits
NON FOOD • Very simple
• High flexibility
MEDIA/GAMES • Relatively low cost
B2C
PARTS &
COMPONENTS
3PL
AUTOMOTIVE
FOOTWEAR
APPAREL

37. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Case Picking Systems
Order Picking
CARE/PHARMA
Cons
NON FOOD • Labour intensive
• Ergonomically not optimal
MEDIA/GAMES • Sensitive to picking errors
• Pick sequence not flexible
B2C • Damaged products to store
• Mixing MHE with people
PARTS &
COMPONENTS • Workload balancing and aisle
congestion
3PL
AUTOMOTIVE
FOOTWEAR
APPAREL

38. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
ORDER PICKING
SORTATION
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT Standard routing, up and down
WAREHOUSE
MANAGEMENT

39. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
ORDER PICKING
SORTATION
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
Standard routing, with cross over tunnels
WAREHOUSE
MANAGEMENT

40. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
ORDER PICKING
SORTATION
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
WAREHOUSE
MANAGEMENT Optimised Slotting

41. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
3% larger facility
ORDER PICKING
11.2% reduction in
picking costs
SORTATION
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
Russell Meller, professor of industrial engineering and director of the Center
WAREHOUSE for Engineering Logistics and Distribution at the University of Arkansas
MANAGEMENT

42. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
20.4% reduction in
ORDER PICKING
SORTATION picking costs
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
Russell Meller, professor of industrial engineering and director of the Center
WAREHOUSE for Engineering Logistics and Distribution at the University of Arkansas
MANAGEMENT

43. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
ORDER PICKING
SORTATION
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
WAREHOUSE
MANAGEMENT
Appropriate Automation…..

44. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Case Picking Systems
Batch Picking System (BPS) / Pick-to-belt
CARE/PHARMA
• Orders are grouped in batches
NON FOOD • Operators places products on a conveyor belt
• Products are sorted to consolidate the orders
MEDIA/GAMES
• Especially used in food, non-food and fashion
B2C
Benefits
PARTS &
COMPONENTS
• Reduction of walking distance up to 90%
3PL • Minimise # pick walks
• Avoid congestion
AUTOMOTIVE • 99,99% delivery accuracy
• Traceability
FOOTWEAR
APPAREL

45. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Case Picking Systems
Automated tote picking (ATP)
CARE/PHARMA
• Totes are stored in automated storage &
retrieval system
NON FOOD
• Transport to palletising
MEDIA/GAMES • Automatic palletising
• Particularly suitable for fresh foods
B2C
(dairy, bread, meat, fruits & vegetables)
PARTS &
COMPONENTS Benefits
3PL • Hardly any manual labour necessary
• No people in cold store
AUTOMOTIVE • Increase storage density up to 60%
• Energy efficiency
FOOTWEAR (compact storage in cold store)
• Store friendly delivery
APPAREL

46. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Cross Docking
• Cross Docking is a supply chain concept where
CARE/PHARMA the DC does not keep stock.
• All cases are distributed to the shops the same
NON FOOD day
• Most applied in food, fashion & high tech
MEDIA/GAMES • Automated cross docking based on sortation
gives many benefits
B2C – 50% reduction of manual labour
– Triple throughput per m2 in the DC
PARTS & – Store-friendly delivery
COMPONENTS
– 100% correct deliveries are ensured
3PL – Supply chain visibility (tracking and
tracing)
AUTOMOTIVE
FOOTWEAR
APPAREL

47. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Case Picking Systems
Automated case picking (ACP)
CARE/PHARMA
• Fully automated picking of cartons and totes
with different dimensions and shapes
NON FOOD
• Suitable for (food) retail
MEDIA/GAMES • Justifiable from 20.000 cases/day
• Pay back time less than 4 years
B2C
Benefits
PARTS &
COMPONENTS • 40% reduction of order picking cost per case
• No dependency on labour resources
3PL • Avoidance of the ergonomic and safety risks of
traditional warehouses
AUTOMOTIVE • Store friendly delivery multiple store formats
• 100% accuracy (fully automated picking)
FOOTWEAR • Short lead time (1st pallet ready in 15 min.)
• Less floorspace required.
APPAREL

48. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Integrated Picking Systems
• Integrated picking systems can contain
CARE/PHARMA items, cases, totes as well as pallets
NON FOOD • Each product is picked via the most
suitable order picking method
MEDIA/GAMES
• Consolidation of the different flows is
required
B2C
PARTS &
COMPONENTS
3PL
AUTOMOTIVE
FOOTWEAR
APPAREL

49. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Summary of Trends in Concepts
General focus on:
CARE/PHARMA
Integrated Warehouse approach
NON FOOD
Increased mechanisation - FTE reduction
Automated consolidation modules
MEDIA/GAMES Ergonomics
Space saving solutions
B2C
Proven technology
PARTS &
COMPONENTS
Goods to Man Solutions:
Reductions in FTE, footprint and errors
3PL
Bulk storage:
pallet highbays or miniload stores
AUTOMOTIVE
Equipment is becoming faster & cheaper
Ergonomics
FOOTWEAR
High capacity workstations
Short learning periods for new personnel
APPAREL

50. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
FOOD
Summary of Approach to Automation
• Data, data and more data.
CARE/PHARMA
• Understand the processes fully
NON FOOD
• Consider the business drivers
– Space
MEDIA/GAMES – Service levels
– Ergonomics
B2C – FTE levels
– Return On Investment (ROI)
PARTS &
COMPONENTS – Return On Capital Employed (ROCE)
• Did I mention data….
3PL
AUTOMOTIVE
Accept it’s complicated and get advice…!
FOOTWEAR
APPAREL

51. PRODUCTS SOLUTIONS SEGMENTS REFERENCES COMPANY
GOODS
RECEIVING
STORAGE
ORDER PICKING
SORTATION Thank you for your attention
CROSS
DOCKING
CONSOLIDATION
& SHIPPING
INTERNAL
TRANSPORT
WAREHOUSE Noel Blake
MANAGEMENT noel.blake@vanderlande.com
+44 7739 892531