Is It Time to Automate Your Order Fulfillment Operation?

Is your operation having trouble finding and keeping qualified workers? 
Are your order volumes increasing faster than you can keep up with?
Is the Customer Service department getting call after call about mis-shipments, wrong orders or general dissatisfaction?

If these are things you are experiencing, it may be time to consider Automation for your Distribution and Order Fulfillment operation.

The good news is that the economy is doing well, unemployment continues to be low and the U.S. business climate is humming along.  The bad news:  with increasing business volume and low unemployment, it is difficult to find and keep qualified, quality associates.  Thus the question - Is It Time to Automate Your Order Fulfillment Operation?

Automation in a Distribution and Order Fulfillment operation is becoming main-stream and companies - and individuals - are reaping the benefits financially an operationally.  Technologies such as Goods-To-Person, Voice and Light Directed Picking, Put Walls, Automated Guided Carts and Vehicles, Warehouse Execution Software, Robotic Order Picking, Robotic Packaging and Palletizing Cells have become common assets in a Distribution and Order Fulfillment operations.  The cost and capability to enter the Automation Arena continues to become more justifiable and the options in scale and flexibility can benefit most every size operation.

Voice and Light Directed Picking may be the easiest technology to implement and provide a quick Return On Investment.  Voice and Light can be put into an existing operation with little or no change to infrastructure to your existing operation.  The benefits are gained from Increased Picking Efficiency, Reduced Picking Errors and the ability to Interleave Tasks - making associated cross-functional.


Goods-To-Person technologies capitalize on the concept
that 80-90% of an order picker's time is spent traveling from task to task and from point to point in the operation. By bringing the tasks to the person, picking times can increase 30 - 50%, significantly improving operating efficiency.  Some of the GTP technologies include Horizontal and Vertical Carousels, Automated Storage and Retrieval Systems, Pallet Runners and Put Walls.

AGC's and AGV's Automated Guided Carts and Automated Guided Vehicles move parts, orders and work through an operation.  Like CONVEYOR, AGC's and AGV's allow workers to focus on the next task or operation rather than moving parts from point to point.  These technologies take the operator out of simple tasks and allow them to focus on more skilled operations.


Warehouse Execution Software Similar to Voice and Light Directed Picking, Warehouse Execution Software (WES) may be implemented with little or no change to an operation's existing infrastructure.  A WES will direct the flow of Work, Product and People from Receiving through Order Picking, Packing and Shipping.  A WES will direct all of the work process, inventory and location details and order processes within the four walls of a Distribution and Order Fulfillment operation.  The WES will communicate with the Host Business System to reconcile inventory and Orders.  A WES will automate the decisions of work flow and ensure that associates are working as efficiently as possible while maintaining accurate and real-time information and data.


Robotics Robotics are making their way
from the manufacturing environment to the Distribution and Order Fulfillment world.  Robotic Palletizers have been used in facilities for many years, but their presence in the Distribution and Order Fulfillment arena has been scarce at best.  Technology has now grown to the point that Robots can pick small parts, large cases, load and unload trailers - pretty much any function that can be performed by a person.   As technologies advance, flexibility and adaptation of robots in the Distribution and Order Fulfillment operation is a realistic option to consider.

As with any tool, technology or device, selecting the right solution(s) for the operation is paramount to success.  Identifying and defining your business process and rules is a requirement before tackling implementation of equipment and software.  Working with a trusted Material Handling Systems Integrator will help ensure a successful endeavor into the world of Automation!

No Pain - No Sale!

While on a Sales Call this week, I was reminded of THE Rule of Sales:  NO PAIN - NO SALE!

This particular prospect had plenty of "Pain Indicators" - signs and signals that there are things happening in the prospects' business that could be done better.  BUT, the prospect was not able to correlate those Pain Indicators to some significant impact on the business.  Said a different way, there was no compelling reason for the prospect to invest capital to address something that's not broken.

"Pain" has a negative connotation, but "Pain" can be:

• An Opportunity to increase business volume
• A Customer Service Committment
• A Positive or Negative Financial impact on the business
• A Law, Regulation or an Outside Influence
• Increased Operating Cost
• Quality Issue

People or Companies buy for 3 reasons:

1. Eliminate or Avoid Pain
2. Capture a Business Opportunity
3. Meet and Emotional Need

Rarely does #3 translate to an actual sale!

So, back to this particular sales call, there were many opportunities to do things better than they were currently being done, but nothing was so bad that it was having a significant impact on the business.

• Production Lines were not being shut down
• There were no safety events or issues
• Labor costs were not out of control
• The current conditions were not preventing the business from growing or doing more

When pressing the prospect for a compelling reason to invest significant capital to do the things he "would like to do", he could not give one.  "If you were to do this, how would it improve your business?",  "Impact Your customers?", "Help the business meet its Stragegic Goals?".  We were certainly capable of doing the things he was asking for. The prospect could not share a compelling reason why the business would invest six-figures to implement a solution that would be difficult, if at all possible, to justify.

An amature sales person would have walked away from that meeting quoting 2 - 3 projects that have little, if any, chance of moving forward.  As a Sales Professional, our Sales Engineer agreed with the prospect that further investigation needed to be done with other members of the prospect's team.  Members who might know more about the impact, if any, the "Pain Indicators" are having on the business.

Until then:  NO PAIN - NO SALE!

Embrace Millennials

At some point in the past 5 years or so, it became vogue to target a labeled generation - the Millennials.  Most of what I've read, heard, been told, about Millennials is not flattering.  Last spring, while attending the MHEDA (Material Handling Equipment Distributor's Association) Convention, one of the speakers - Scott Stratten - said something that has stuck with me.  I paraphrase, "We don't like Millennials because they're younger than us".  I don't know why, but that really stuck with me.  

My thoughts expanded to the multiple articles I've read and speakers I've heard talk about the "Multi Generational Workplace".  When wasn't it?  When was it that we only allowed one generation in the workplace?  Which generation was it?  NEVER!  When did a 25 year old act, talk, think, and dress like a 50 year old?  (There are plenty of 50 year olds who try to dress, act and live like a 25 year old!)  We've always had workers in the workplace ranging from 16 - 70+ years old.  You could argue that in early American History we had an even younger workforce!  But I digress.

Back to Millennials - I embrace them.  I must admit, I got onboard slowly, but I have come to discover that we need this generation and they are good.  They know things that we don't know or we are afraid to learn.  They know how to use technology - hell, they're inventing and developing it!  They can multi-task, which I wish I could!  Work Ethic - we complain about them wanting to work their own hours, so what!  They work.  They don't punch out at 5 or disappear on Saturday or Sunday.  Try getting in touch with a Boomer after 5 or on the weekend.  I would put my children's and their friend's work ethic up against anyone's.  They're just doing what 20 and 30 year old's have always done.  Enjoy Life!

Yes, they may have different interests, dress different, listen to different music, do things differently than we do, have fun, care-free . . . sounds a lot like my friends and me when we were younger.  Remember the first time you showed your Dad the brand new "bag phone" you bought and what he said?  Mine was something like "What the hell do you need that for".  Now, there's a good chance that you're reading this on your smartphone that is permanently stuck to your palm!  

We've had "Greaser's", "Hippies", "Metal Heads", "Punkers", "Yuppies", "DINK's" . . . so easy!  The generation born from 1980 - 2000 is growing, developing, nurturing and becoming successful in the environment that was given to them, using the technology, culture and social acceptance available to them.  The generation born in the 80's and 90's is not going to ruin the world. They are making it better, faster, smaller and more accessible.  Ask them, they may even show you how.

And by the way, they did not ask for participation trophies - we handed them out!

Trust

One of the most valuable books I have read is "The Speed of Trust" by Stephen M.R. Covey.  The premise of the book is that when two parties have a high level of Trust, things happen much more quickly and efficiently than they would if that Trust didn't exist.  But how do you develop Trust?


Trust is earned based on two things:  Character and Competence.  Thank you Steve Strifler!




Character is how you conduct yourself - around others and when you are not "in the spotlight".  Character is built by keeping the commitments you make.  By doing the things you say you are going to do.  By telling the truth.  By being transparent.  By showing up - on time!   Character is essentially the image you create of yourself by your actions and the things that you do.

Competence is your ability to do the things you do.  It is the quality of which you perform your responsibilities.   It is the value you bring to the table.  It is your knowledge of your craft and the skill level that you perform your work.  Competence is how good  you are at doing what you do.

If you have one or the other, but not both, you can't establish true Trust.  You can have the utmost integrity and character, but not be very good at what you do.  This will always leave doubt in your ability and capability.  You can be the best at what you do, but if your character is lacking, there will always be question about your motive and integrity.

So how do you build true Trust?

• Be Great at what you do.  
• Continually Sharpen the Saw
• Adapt, Transform and Re-invent
• Be Honest
• Be Transparent
• Do the Right Thing

It seems simple, but it is easy to drift off-course.  Stay True, Stay Focused, and Be Trustworthy!

I am Thankful For . . .

As we approach the Thanksgiving and Christmas seasons, I think it is appropriate to take a few moments to reflect on the things we are thankful for.  I feel like I have many things to be Thankful for, despite some hurdles and adversities that have been thrown my way this past year.

My Father

Although my father passed away on October 4th this year, I have come to realize how fortunate I am to have had him as my father.  The initial loss was sorrowful and empty, but as I have had time to look back on the 49 years we were together I have been able to laugh, cry, reflect and be thankful.
My father gave me, my sister and brother, a great life with great opportunities.  My father was always a presence in our lives.  Coaching, cheering, supporting and giving - he taught me how to put others before self.  He never preached this or lectured about it, he simply lived it everyday of his life.  He also taught us the importance of commitment in his marriage with our Mother.  I'm sure my Mom and Dad had hard times and challenges, but they worked through any of those difficult times together and showed us the strength of a marriage over 57 years.  Thank you Dad, I will love you forever.

My Family

I am thankful for the loving family that I have, both immediate and extended.  Eileen, my wife, and my children are blessings to me.  

Eileen and I are best friends.  We support each other, listen to each other, and balance each other.  I thank God that we met 28 some years ago and have been inseperable since.

Our kids are a source of pride, joy, happiness, frustration, worry and Love.  They are our number one responsibility and it is phenomenal to watch them grow, mature and become young adults.

Our extended family - mine and Eileen's, are a major part of our lives.  We enjoy each other, socialize with each other and support each other.  With both our families, we have more than a family tie, we have true friends.

My Friends

God has blessed me with friends who are geniune and true.  I have many friends who I can, and have, turned to for support, advice and good times.  I appreciate them and hope that I provide the same level of commitment to them as they show to me.

My Customers

Starting a new business provided a full spectrum of emotions.  I am thankful for the customers that have put their trust in me to provide the products and services that they sought.  I trust I have conducted my business in a professional, caring, sincere manner and hope to have the opportunity to continue to work with my customers in the years to come.

Stores that Don't Open On Thanksgiving Day

And to close with a bit of brevity, I am Thankful for Stores that do not do business on Thanksgiving Day.  Congratulations to them for letting their employess spend time with their families and friends and to reflect on their blessings for the day.  Perhaps the person(s) who made the decision to open their doors on a day meant to celebrate Family, Friends and God will re-access their priorities in the future and put balance back into the lives of the families that work for them.  The shoppers will still be there on Friday morning!

Happy Thanksgiving to All and God Bless You!

The Expense of Not Hiring a Professional

WHEN DO YOU CALL IN A PROFESSIONAL?

I read a Twitter post the other day that stated, "If you think a Professional is expensive, try hiring an Amateur".   I had to ponder for a moment, then it hit me.  Companies and people provide services because their customers need them.  Then I began to reminisce the situations and clients I've worked with in the past that started down a path, discovered that they were sinking quickly, then asked for the Life Preserver!  Unfortunately, there are way too many stories like that to recall.

Many clients that I've worked with don't know what they don't know.  They begin to tackle a project or situation with good intentions, but soon discover that they don't have the Time, Resources, or Specialized Knowledge to efficiently come to a resolution.  Sometimes they have traveled far down a path, others they have just begun their journey and realize they don't like the road they are on.  In either case, they come to a decision point about either how to proceed or if it makes sense to end the journey at that point.

TIME

Time can be the biggest constraint on a companies pursuit of a project or solution to a problem.  Most of our clients are focused on the Selling, Manufacturing and Distribution of their products, they don't have the time available to address their "Special Projects".  If they do decide to tackle the project internally, they often find that their "normal responsibilities" start to suffer.  I have seen this situation escalate quickly to the point that trying to solve the problem or execute a project exaggerates the problem and creates a vortex of exploding issues.  It is not uncommon for a project, when being handled internally, to take 3 - 5 times or more the expected investment in time.

RESOURCES

Just like time, many companies don't have the internal resources to efficiently take on a project that is outside of their normal scope of business.  These reources can be in the form of people, hardware, software or tools and equipment.  Many internal engineering staffs have been cut or reduced over the years.  With the people went the tools to do the jobs.  In addition, the resouce of people are often asked to take on a project or try to solve a problem that they aren't necessarily versed in the potential solutions.  Again, they are focused on their day-to-day business.  It takes time for a person to educate himself to the point that they can be resouceful in project execution or problem resolution.  The issue of hardware, software and tools becomes a resource that may require additional investment - just to develop a solution!  These resouces should be evaluated througholy before jumping into a project feet-first.

SPECIALIZED KNOWLEDGE

This is a tough one.  When faced with a problem or 

a project, most people will accept and take on the challenge rather than taking a long, hard look at what options are available to develop a solution.  It is an often used quote, but " The definition of Insanity - doing the same thing over and over again and expecting different results".  When a situation gets to the point of attention, it usually isn't the first pass at recognizing there is an issue.  The level of thinking that brought us to the this point cannot be used to take us in a different direction.  This often comes in being too close to the situation that you can't necessarily see the solutions that may be right before you.  Bringing in an outside resource provides a pair of fresh, unbiased eyes to a situaiton.  Couple that with the outside resource having specialized knowledge, often brings a project or situaiton to a quick, sound resolution.  

When faced with a project, problem or challenge, think through the options available to resolve that situation.  If it appears that it is too big, outside the "expertise" of the organization, or simply too time consuming to address, consider hiring outside resources.  These resources can provide Expertise, be an Advisor, be a Resource to the organization and a Single Point of Contact in the resolution of the challenge or execution of the project!

IS A GOODS-TO-PERSON STRATEGY RIGHT FOR YOUR OPERATION?

Order Picker Travel Time

Did you know that in a non-mechanized, non-automated operation, an Order Picker spends up to 90% of his time traveling from location to location and task to task?  Do you realize that if you reduce that travel time by 10%, you double his picking time from 10% to 20% of his time?
This travel time could be walking from pick location to pick location or from a storage zone to a shipping area.  It could also be time spent traveling vertically on an Order Selector truck, going from the floor to upper pick levels.
In the worst cases, it is traveling to find a ladder, traveling back to a pick location with the ladder and traveling vertically up and down the ladder to retrieve the part!  Have you ever seen this scene played out?!  If you could bring the goods to the order picker, how much productivity would that generate in your distribution center?  This is the concept of Goods-To-Person technologies.

Carousels:     

One of the oldest technologies of Goods-To-
Person are carousels, both Horizontal and Vertical.  Carousels can be very effective in increasing both Order Picker Productivity and Cube Use in a facility.  The major factor here is that you need to be sure there is enough activity or volume to continuously bring product to the person without the person having to wait for the machine.  Horizontal Carousels will generate higher picker productivity while Vertical Carousels or Vertical Lift Modules will better utilize building cube or ceiling height.  In either case, it is important to make sure that re-stocking of the machines does not come at the expense of the picking productivity you can gain from the machine!

Put Systems:

Put Systems, or Put Walls are a way to get product efficiently consolidated for an order.  You may see a Put System or Put Walls in a facility that is processing many orders with very few line items on the order.  This is common in e-commerce fulfillment.  The premise of the Put System is that you will have a relatively small area where you can stage out-bound order containers (boxes) and have the items for that order brought to
you.  A batch of orders is picked in the pick zones and brought to the Put Area on conveyor or some other means of transport.  The Order Consolidator then sorts the items into the appropriate shipping contain for the order.  The consolidation is often directed by a Put-To-Light or Put-By-Voice system.   Once the order is complete, the container is sealed for shipment and taken to the shipping area by some means of transportation.
Put Systems can also be very effective when filling stock orders for many locations, all receiving the same items.  The outbound orders or containers are staged and the items are brought to the Put area in bulk to be sorted into the shipping containers.  Much like a mini cross-dock operation.

Robots:

Robots, such as OTTO Robotics or the Swisslog AutoStore, provide highly automated Goods-To-Person systems and optimize the storage cube of a facility.  In these systems, the robot mechanism brings the storage medium directly to the order packer.  Items are retrieved from the robot and packed for shipment.   All of the travel is done by the machines and the storage locations are dynamic to make the most efficient use of space and time.  These systems require more capital investment than the others, but the high-volume, high-velocity capability make the systems very efficient. 

Determine your Objectives - Select Your Solution:

If your operation is looking to reduce labor, increase throughput and increase Operating Net Profit, a Goods-To-Person strategy may be the right solution.  Determine your goals and objectives, your business strategy and your budget threshold.  Then, contact ELITE Supply Chain Solutions to help you determine the right solution for your business.