Machine

Planning Makes Inventory Replenishment Fast and Easy

Tthroughput, accurate picking, less operator strain and fatigue.

The result is a measurable and significant improvement in

order picking and fulfillment efficiency.

One aspect of automated storage and retrieval system

operation that organizations often misunderstand, however, is

the replenishment side of the picking and fulfillment

operation. The misunderstanding is that automated storage

and retrieval systems, such as Horizontal and Vertical

Carousels and VLMs, cannot be restocked as easily and

efficiently as traditional rack and shelving systems.

Replenishment plays a critical role in fulfillment

operations. When implemented correctly, the system can

increase system accuracy, throughput and overall picking

efficiency. Regardless of the material handling system,

shelving, flow rack, carousels, mini-loads or VLMs, the impact

of inefficient replenishment procedures impacts performance.

To optimize, a simple task of information collection and

analysis is required.

Good Management Practices Generally, replenishment becomes an issue when an

organization fails to understand the dynamics of the complete

order fulfillment process. It's vital to the success of an

automated storage and retrieval system that management

build a stock keeping unit (SKU) profile that describes

inventory, how and to whom it's distributed, and in what

quantity and time frame specific products in the inventory are

distributed. This data collection process should include a listing

of part numbers and descriptions, part sizes and weights, stock

quantity, reorder point and reorder quantity, the quantity of

the individual product picked, a list of products that are used

or picked together, which products move faster because of

seasonal and other factors, and product/process throughput

and flow.

Use this information to categorize the inventory. Assign

products into categories of velocity, for example, fast, medium

and slow movement. Categorize them by their physical

characteristics such as small, medium and large sizes, light or

heavy, conveyable or not conveyable, and by the manner in

which they are packaged.

By taking the time to categorize parts and group them by

families or common usage, the time saved in retrieval, and,

consequently, replenishment will be significant and

productivity will improve.

Matching Storage Cube and Velocity With this information in hand, it's relatively easy to match

each SKU's velocity (speed of demand) plus the physical size of

the SKU for order picking efficiency by selecting the right

equipment for the items to be stocked and for the type of

picking operation required. Once the proper system is

selected, it's a matter of initially stocking the system for the

most efficient operation by the assignment of items to a

particular location in a storage and retrieval system to

maximize system

he benefits of automated storage and retrieval systems (AS/RS), Horizontal and Vertical Carousels and Vertical Lift Modules (VLMs) are improved

capacity and improve the efficiency of the operation. Storing

parts in their appropriate distribution quantities significantly

reduces part handling time and, consequently, the costs

associated with unnecessary handling, whether that be in

picking or restocking.

By incorporating bar code scanning, pick-to-light

technology, voice picking, and RFID with automated storage

and retrieval systems, the picking and restocking operations

become even more efficient. These technologies not only

improve picking and restocking throughput, they also improve

accuracy to 99.99%.

The 5% to 10% Solution When should replenishment occur? The flexibility of

Horizontal and Vertical Carousels and VLMS makes it easy to

replenish on the fly---restocking as picks are made-or between

waves, during off peak times or slower shifts.

What is more important is how much to restock. To take

optimum advantage of the efficiencies of Horizontal and

Vertical Carousels and VLMs, is to restock no more 5% to 10%

of SKUs each day, regardless of what typical supply is. For

example, some operations might keep a month's supply of

specific SKUs on hand, whereas another operation might keep

a week's supply on hand.

If items move so fast that the replenishment requirement

is more than 10% per day, then a static or "non-goods to man"

storage system should be considered such as shelving, rack,

drawers, etc. should be considered.

Equipment & Systems Configuration One static solution is flow rack pick modules. These rack

systems can be replenished from the rear of the rack while

picking is done at the front. The disadvantage is that pickers

have to walk and search for items. It is not uncommon for

pickers to have to walk miles per day and use up to 75% of

their time traveling rather than picking. While pick modules

often appear to be a good solution to efficient

Universal Work Station

picking/replenishment needs, they are often improperly

utilized because they are stocked with slow moving or too

much inventory which simply doesn't require daily

replenishment.

A better solution is the universal work station which blends

material handling technologies for the best combination of

demand utilization. The universal work station often integrates

Horizontal or Vertical Carousels or VLMs and a manual pick-to-

light flow rack into one work station. This is where

understanding the SKU profile is extremely important. Faster

moving SKUs are stored in the flow rack for more efficient

picking. Slow and medium movers are stored in carousels or

VLMs where they can be efficiently retrieved and replenished.

The true benefits of a universal work station are

minimizing: the number of required work stations in a facility,

the time orders spend travelling between these work stations

and the number of work stations an order visits in its cycle

while maximizing the amount of SKUs available in each work

station (regardless of SKU volume profiles).

Batch picking and replenishment also improves overall

automated storage and retrieval system efficiency. Batch

picking is the technique of picking multiple orders

simultaneously. Batch picking and replenishment is most

frequently used in conjunction with Horizontal Carousels and

universal work stations integrated with inventory

management software. Batch replenishment is the process in

reverse. Software directs operators to the correct restock

location, just as it directs them to the correct pick location, in

the system. Using this technique, an operator can replenish

an automated system with the same speed and accuracy as

items are picked.

Horizontal and Vertical Carousels and VLMs offer

significant advantages in space utilization, picking accuracy,

employee productivity, system throughput, and improved

ergonomics. Improved productivity resulting from the

installation of automated storage and retrieval systems can

reduce labor costs, make more efficient use of floor space

and reduce maintenance and energy costs. These savings

often result in a return on investment (ROI) in nine to 18

months. Likewise, these systems often help organizations

realize sustainable design, Lean, JIT (Just In nme), Six Sigma,

and Good Manufacturing Practices. Through up front

planning, replenishment efficiency, as well as picking

efficiency, can be optimized.

About Systore Automation Systore Automation is a leading provider of automated

storage and retrieval systems that reduce leading

organizations requirements for labor, floor space and

inventory while dramatically increasing productivity and

operational efficiencies with often a nine to 18 month Return

on Investments (ROI). Industries served include:

manufacturing, distribution, warehouses, healthcare,

institutions, retail and wholesale organizations. The Sapient

Automation technologies include the Vertical Lift Module

(VLM), Vertical Carousel, Horizontal Carousel, Inventory

Management Software, Roll Vertical Carousel pick to light

systems.

For information about Replenishing and Picking from

Carousels and VLMs call 1300 793 634 or visit the Systore

Automation web site at www.Systore.com.au