Presented by:

Speaker Jan Van der Velden

Market Director

Parts & Components

How 3D Multi-Roaming Shuttles

Will Change the Industry

© 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

Agenda

– Summary

– Introduction

– Role of Distribution Center

– Shuttle Solutions

– Advantages of a 3D shuttle

– Conclusion

6/4/2016

Summary

6/4/2016

E-commerce requires:

Massive amount of small orders to be handled

Significant order lead time reduction

Enormous increase in amount of SKU’s

Order fulfillment ‘machine’ needs:

process each order as efficiently and effectively as possible

Be scalable and flexible towards ever changing needs

Intelligence to translate customer specific request into standard

processes

A full roaming shuttle system fulfills these needs. The 3-

dimensions: • enable the independent scaling of storage and processing capacity

• makes it less complex and easier to adapt to changing needs

Agenda

– Summary

– Introduction

– Role of Distribution Center

– Shuttle Solutions

– Advantages of a 3D shuttle

– Conclusion

6/4/2016

E-commerce

• Consumer experience

• Everything is available

• Delivery when I want

• At the best price

6/4/2016

BtoB

I want the parts related to a job:

• Correct parts and quantities

• Well labeled

• Etc.

But the unexpected happens:

• Another part is defective

• Etc.

I expect the service level as I’m used to in

my personal life

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Product Range

• # of parts triples in 10 years for MRO

• Personalization of products

• One stop shopping

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The Warehouse needs to accommodate all those parts

Challenges

6/4/2016

Challenges

# SKU’s ↑↑

Inventory size ↑

Order size ↓↓

Order lead time ↓↓

Service Level ↑

ABC classification _____

Cost ↓

Challenges Costs

# SKU’s ↑↑ ↑

Inventory size ↑ ↑ ↑

Order size ↓↓ ↑ ↑

Order lead time ↓↓ ↑

Service Level ↑ ↑

ABC classification _____ ↑

Cost ↓

Challenges Cost Lead time

# SKU’s ↑↑ ↑ ↑

Inventory size ↑ ↑ ↑ ↑

Order size ↓↓ ↑ ↑

Order lead time ↓↓ ↑ ↑ ↑

Service Level ↑ ↑

ABC classification _____ ↑

Cost ↓

What companies need is a standard order fulfilment

”machine”, that processes each and every order as

efficiently as possible. Regardless of size, delivery time

and quality

6/4/2016

Agenda

– Summary

– Introduction

– Role of Distribution Center

– Shuttle Solutions

– Advantages of a 3D shuttle

– Conclusion

6/4/2016

The Supply Chain Network

6/4/2016

Manual Order Picking

6/4/2016

Large Small

Result: cost and lead time both increase

Ever faster changing Business

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Business rules

and algorithms

Order fulfillment

‘machine’

Goods to Person

Requirements:

• Scalable

• Flexible

• Responsive

• Future proof

• Business “independent”

6/4/2016

Agenda

– Summary

– Introduction

– Role of Distribution Center

– Shuttle Solutions

– Advantages of a 3D shuttle

– Conclusion

6/4/2016

Goods to Person - what is available?

6/4/2016

MiniLoad:

Does not fulfill the flow requirements!

Shuttles 1 and 2D

– Since 2005 available

– Better price performance ratio

6/4/2016

Goods to person - what is available?

Mini-load replacement only

3-D Shuttle

What is the secret?

6/4/2016

1-D

• Shuttle serves one storage level

• Lift serves all levels in one aisle

• Lift conveys totes/cartons/trays

• # lifts = # aisles

• # shuttles = # aisles * # levels

6/4/2016

2-D

• Shuttle serves multiple storage levels

• Lift serves all levels in one aisle

• Lift conveys only shuttle, or

• 2 lifts: one for shuttle, one for totes

• # lifts = # aisles

• # shuttles << # aisles * # levels

6/4/2016

3-D

• Shuttle serves multiple aisles

• Shuttle serves multiple storage levels

• Lift connects all levels with a specific

pick station and transports the shuttles

• # lifts ≠ # aisles

• # shuttle = system output/shuttle

capacity

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3-D Shuttle Animation

• We will submit an animation

• URL will follow

6/4/2016

A 3-dimensional storage and order-picking system with

full-roaming shuttles offers scalability and responsiveness

that cannot be matched by any other system.

6/4/2016

Agenda

– Summary

– Introduction

– Role of Distribution Center

– Shuttle Solutions

– Advantages of a 3D shuttle

– Conclusion

6/4/2016

No Conveyors

• A 1 and 2-D solution needs to route product totes between storage and pick station.

• Conveyors consume 5 times more energy than shuttles moving a tote over the same distance

• A 3-D solution has the integrated cross-aisles taking care of this function.

• Every level is a conveying level. This means multiple routes possible

6/4/2016

No Buffering

In goods to person systems, conveyors are not good at

maintaining sequence.

Solution:

• Pick stations with a large amount of open orders

• Sequencing buffers before pickstations

6/4/2016

3-D Shuttles don’t have this problem. With proper

algorithms the sequencing can be done at almost no

loss of efficiency

Fewer Shuttles

In aisle bound systems (1 and 2-D shuttles) the amount of

shuttles depends on the peak capacity required for an

aisle.

6/4/2016

With 3-D shuttles there is only the total system peak

capacity that matters.

Shuttles will go to the area where they are required.

Straightforward Control

The control of a conveyor system depends on:

• The number of available routes

• The buffers available

• The capacities available

Controlling this and maintaining the right balance is

sometimes very complicated in high capacity systems

6/4/2016

A 3-D shuttle system has shuttles that need to be

controlled. Standard routing software is available.

Continous Improvement

Your business is permanently changing. This requires a

different behavior of the goods to person system.

A system with conveyors has a limited amount of available

paths.

6/4/2016

A 3 –D shuttle system has a multitude of paths. Adding a

new process only requires a re-definition of the tasks to

workstation(s). The routing software will adapt automatically

Phased Investment 1-D vs.3-D

Case

• 1,800 order-lines/hour

• 71,500 storage location

• Period: 2016 – 2024

Phasing

1-D 3-D

1) 2016 X X

2) 2020 X X

3) 2024 X

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1-D shuttle

3-D shuttle

Phased Investment 1-D vs. 3-D

6/4/2016

45000

50000

55000

60000

65000

70000

75000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2024 2024 2024

Storage Locations

500

700

900

1100

1300

1500

1700

1900

2100

2016 2017 2018 2019 2020 2021 2022 2023 2024 2024 2024 2024

Capacity Requirement

requirement

1-d shuttle

3-d shuttle

1-D: adding 1 aisle in 2nd phase due to storage location is required

3-D: can be extended with much smaller modules

following closer the requirements

Phased Investment 1-D versus 3-D

• Investment difference is the smallest in 2024 ∆ USD 720k

• Interest at 6% increases the difference by a factor 2

6/4/2016

USD 400USD 600USD 800

USD 1,000USD 1,200USD 1,400USD 1,600USD 1,800USD 2,000USD 2,200

Tho

usa

nd

s

Savings by 3-d shuttle

∆-investment ∆-investment + interest

USD 4,000

USD 6,000

USD 8,000

USD 10,000

USD 12,000

Tho

usa

nd

s

Investment

1-d shuttle 3-d shuttle

The great advantage of a 3-dimensional system is that

storage capacity and order processing capacity can be

scaled up and down independently of one another

6/4/2016

Agenda

– Summary

– Introduction

– Role of Distribution Center

– Shuttle Solutions

– Advantages of a 3D shuttle

– Conclusion

6/4/2016

Conclusion

Challenges

6/4/2016

Challenges

# SKU’s ↑↑

Stock size ↑

Order size ↓↓

Order lead time ↓↓

Service Level ↑ ABC classification very flat

Cost ↓

Challenges Costs

# SKU’s ↑↑ -

Inventory size ↑ ↑

Order size ↓↓ -

Order lead time ↓↓ -

Service Level ↑ -

ABC classification very flat -

Cost ↓ ↓

Challenges Costs Lead time

# SKU’s ↑↑ - -

Inventory size ↑ ↑ -

Order size ↓↓ - -

Order lead time ↓↓ - -

Service Level ↑ - -

ABC classification very flat - -

Cost ↓ ↓

Conclusion

A 3-dimensional system with full roaming shuttle provides:

• Standard storage and order picking system

• Efficient and effective processing of each and every order

• Easy adaptation of changing order patterns and delivery

times

6/4/2016

3-D shuttle systems are a formidable protection

against any uncertainty in the business.

For More Information:

Speaker email: jan.van.der.velden@vanderlande.com

Website: www.vanderlande.com

Or visit MODEX 2016 Booth # 2763