Conveyor Sales are on the rise compared to last year

Here's some positive news: The Conveyor Equipment Manufacturers Association (CEMA) reported that although July 2011 booked orders were lower than June 2011, there was an overall 7% increase compared to same period in July 2010.

Automated Picking with A-frame

Interpharm, a pharmaceutical wholesale company in the Netherlands, developed a smart concept for two of their warehouses. They are able to reach a exceptionally high level of warehouse productivity.

The company has done well in the past years and the operation has outgrown itself. This triggered a full analysis of the logistics. After comparing the options of having one central distribution center versus several DC's, it was decided to maintain the current (decentralized) operation.


As for most companies, flexibility and speed are crucial components in Interpharm's logistics. They supply their clients (pharmacies) two times each day, usually 2-4 hours after the order has been placed. The logistical challenge is great!

KNAPP supplied the automated picking systems, which enable the warehouses to pick about 15,000 lines per day with a failure rate lower than 0.2%. Each warehouse has a so called A-frame (see picture) and fully automated and integrated conveyor systems.

The A-frame is designed for the automatic picking of items with a high or very high turnover rate. It automatically picks fast moving products onto a central belt, which transports the products to a container on a different conveyor belt. Other products are picked in the same container, which is then delivered to the customer. The timing of the picking by the machine and the moment the container is filled with the picked products is coordinated to increase picking productivity.

The main advantages of the A-frame: manpower can be reduced significantly, extremely high productivity, high reliability and accuracy and gentle handling of products.

To learn more about the different A-frame systems, visit the KNAPP website.

Successful WMS Implementation

Logistics Advice recently completed a successful Warehouse Management System (WMS) implementation for a medical supplies wholesale company in South Florida. The customized WMS was developed with Wireless Data Systems out of Boca Raton, FL and integrated with a SAP ERP system.

The Existing Operation

Our client's operation can be best described as a cross-dock operation. The incoming orders already have a destination (assigned customer). Goods are received, after which the receiving is manually processed in the ERP system. Then "pick tickets" are prepared in the office to break down the bulk receiving into orders for specific customers. A highly manual and time consuming operation. The process of preparing the pick tickets could take hours while the goods are sitting in the receiving area. Often the receiving department runs out of space, as goods are piling up because of the long processing time. After the goods are picked by customer, the pallets are transported to a staging area, awaiting pickup. Due to the manual nature of processing data and matching paperwork and the fact that goods are not tracked throughout the process, mistakes are common. When goods are missing, it is difficult to find out what happened.

The Preparation

The implementation and integration of the new system took approximately 2 months. During this time Logistics Advice worked together with the WMS developer, the ERP software provider and in house IT staff to ensure all systems would be developed to create a highly efficient business process, including a streamlined warehouse operation. All parties worked extremely well together, which made it possible to tackle the issues quickly and built a solid system. Part of the preparation was to run the new system parallel to the existing system prior to go-live, something we highly recommend for any automation project. This enabled us to compare the outcome of both systems and analyze discrepancies. Testing with real data is very important and anyone installing new automation should take sufficient time for this activity. In addition, all users should be involved in the entire process, as early as possible. Adequate training is essential for a successful implemention.

Go-live

The go-live date is the moment it becomes clear if all preparation was done correctly. Going live with new automation is always the most challenging part of the project. Clitches in the system will present themself right after the switch is turned. Besides the need for the system to work properly, it is equally important for the users to work properly with the new system. That is why testing and training (and more testing and training) are so important.

We had done it right. There are always challenges, but when they are manageable, the implementation can be considered successful. We faced some hick-ups in handheld connectivity and manual errors, which the system should have prevented from happening (these were easy fixes). Besides that, our client had additional requirements for reports or minor adjustments after going live.

A New Operation With Automation

Wireless handheld terminals are now directing the activities in the warehouse. While receiving a shipment, the receiving person enters the purchase order number in the terminal and is automatically guided on how to distribute the goods to the different customers. This eliminates the office work where pick tickets used to be generated. At the same time data is recorded for all warehouse activities in real time, which enables users to have instant access to up-to-date information at all times. All goods are now accompanied by a barcode label identifying them. Accurate pallet manifests and truck manifests are created. Wireless Data Systems, Inc. has done an outstanding job in accomodating my client's needs and wishes. Their support and cooperation has contributed to the success of this project. It has been a pleasure working with WDS and we can definitely recommend them as a partner in any WMS project.

Results

All changes to the system were done within only a few weeks from the go-live date and the system has been operating successfully since. The results are significant:

- Estimated increase in warehouse productivity at least 10%.

- Number of errors significantly lower, resulting in fewer customer complaints

- Standardized process simplifies work, less dependence on people's knowledge

- Faster processing of goods through warehouse

- No more lack of warehouse space, discussion about moving to bigger building off the table

- Real time data gives valuable information/reports and makes process easy to manage

- Data can now be used to identify bottlenecks and make future improvements

- Estimated ROI: less than 1 year

Logistics Advice is proud of their contribution to this successful project. Our ultimate goal is to complete each project knowing our client is fully satisfied with the results.

State of the Art Refrigerated Warehouse

In the world of freezer warehouses, high rise warehouses are very common in Europe. This made H.M. de Jong Koel- en Vrieshuis, a cold storage company in The Netherlands think that a fully automated refrigerated high rise warehouse would be a good option for their business activities.

In a conventional refrigerated warehouse it is possible to store three pallets high, but a high rise warehouse would allow for at least six high. The energy needed to cool a high rise warehouse is also lower than for the conventional warehouse and the fully automated warehouse would only need 5 warehouse employees, much less than in the conventional warehouse. Calculations showed that the high rise option was more interesting than the conventional one.

The new building is 60 feet tall at its highest point and can hold up to 12,500 pallets. The company only uses one third of the surface of a conventional warehouse and is using 40% less energy to refrigerate their products because the warehouse is fully automated and doors remain closed. The warehouse consists of seven refrigerated units, each unit is divided into two compartments to enable products to be stored in fourteen different conditions if needed.

Pallets are put on carriers to transport them between the different areas in the building. The advantage of carriers over a conveyor system is that when a carrier breaks down, it can be pushed aside and the process can continue. When a conveyor system breaks down, everything stops.

Since pallets often have different dimensions, the company developed special standard units to transport pallets through the building: so called “slave boards”. These slave boards are equipped with RFID tags and each pallet is scanned to this tag with a unique barcode. That way the company can locate and follow its products throughout the warehouse. A spokesperson for the company says that they initially chose to work with conventional labels, but calculated that this would be very expensive in the long run. That’s why they decided to go with RFID.

The warehouse has now a capacity of 200 pallet handlings per hours (in or out) or combined 85 pallets in and 145 pallets out. Although the company says that it took a great effort to accomplish this state of the art warehouse, it is satisfied with the results. They expect that fine tuning of the system will continue for at least another year, but the company’s owner says he feels lucky his company is still small, so they can be flexible and make quick decisions: "That’s what’s needed in this process!"

Get expert business advice without paying high consulting fees!

Every business owner, CEO or manager needs a sounding board to reflect on the direction of their business or operation, to discuss new developments, to explore technological innovations, to help making difficult decisions or resolve issues with staff.

This sounding board is ideally an expert who listens, asks the right questions, analyses and gives constructive feedback and advice. This person is sometimes called a “sparring partner”: someone who you can discuss confidential issues with, who helps you to deal with day-to-day challenges and makes recommendations on potential improvements. He can make recommendations on how to motivate employees or give advice on new developments.

The expert can work with you on a one-on-one basis or be asked to participate in a group brainstorm session to share ideas and help to bring solutions to the table.

This fresh perspective from an outsider is extremely valuable and helps to improve your knowledge, skills and ability, making you a stronger leader. Equally important, while you and your sparring partner discuss a project or issue, new challenges and solutions, that would otherwise have been overlooked, can surface.

Logistics Advice offers the following services to business owners, CEO’s and managers in the fields of Logistics, Warehousing, Warehouse Staffing, Transportation, Supply Chain and Production:

Sparring Partner
Personal Coaching
Business Coaching
Training
Brainstorm Sessions

We offer these services mainly by telephone conversation, email messaging or (Skype) video conferencing but will be on-site in some cases, depending on the nature of the assignment.

Many of these assignments do not require a consultant to be on site, which (in combination with hourly billing) results in substantial savings. Not to mention the thousands of dollars that can be saved each time you speak with our consultants.

Contact us today to learn more about our first time customer introductory offer: a free 30-minute phone consultation – no strings attached!

Did you know that the UPC bars turned 35 this year?

The U.P.C (Universal Product Code) was originally designed in 1974 to speed up grocery checkouts. The first live scan actually took place at a Marsh Supermarket in Troy, Ohio, when a cashier scanned a 10-pack of Wrigley's chewing gum at checkout.

The now ubiquitous black and white bars celebrated their 35 anniversary this past June. GS1 US, developer and administrator of the U.P.C. in the USA, celebrated this milestone with a huge UPC bar code decorated cake.

Since that first scan in June of 1974, the UPC changed the world of commerce forever. Nowadays the code consists of 59 machine readable bars and 12 digits that identify the item and it's manufacturer. Over 25 industries have adopted the code as a standard and According to GS1 US there are about 5 billion scans a day.

How to improve warehouse productivity?

Do you measure your warehouse productivity? We find that companies often don't know how good or bad the performance of their operations really is and don't measure individual employee productivity or warehouse productivity in general. Before we explain how to measure your productivity, first we would like to stress why every company should do it.

The advantages of measuring warehouse productivity are huge. We have implemented the mesuring of warehouse productivity with almost all of our clients (it can be done within days!) and the changes were dramatic. Not only is the warehouse manager able to use the information to identify bottlenecks, it changes the mindset of the warehouse workers immediately.

People are much more aware of their actions and how they can improve their own performance. It works on both the good workers, who can finally show what they're worth and the bad ones, who are now forced to either comply with new targets or face the consequences. It also creates a healthy competition which adds to the increase in productivity. The implementation of a system that measures warehouse productivity can lead to savings of 25% or even higher on personnel costs.

Productivity can be measured for any process or person. So how is warehouse productivity measured?

First of all one should look at the characteristics of their "warehouse production". The production can be measured in pallets, boxes or pick lines but also in individual items (e.g. books, sandwiches, lamps, etc.). Then it needs to be determined at what level you want to measure productivity: top level, process level or individual level. The productivity is measured as Production divided by Hours, and expressed in a production per person per hour. For example: A person receives 100 pallets in an 8-hour day. His/her individual productivity is 12.5 pallets per hour.

Once data is being collected it is easy to identify bottle necks, eliminate those and measure the effects in your warehouse performance (productivity). This is an ongoing effort leading to a more efficient and cost effective operation.

Every company requires a different way of measuring productivity depending on process, goods, level of automation, etc. In our opinion it is one of the most important tools a company should implement because it can truly cut costs significantly and make the operation perform better. In addition, it does not have to cost anything to start measuring your warehouse productivity.

If you need assistance setting up a system to measure your warehouse productivity, feel free to contact us.