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© 2012 Material Handling Industry®. Copyright claimed as to audiovisual works of seminar
sessions and sound recordings of seminar sessions. All rights reserved.
.
Welcome to Session 216
Sponsored by: Presented by:
Bill Leber
Director, Business
Development
Solving the Piece Picking Challenge
with Award-Winning New Technology
CONTENT
• Retail Trends
• Order Fulfillment Improvements
• Application Profile
• Case Study of Actual Application - Komplett
RETAIL TRENDS
RETAIL MARKET TRENDS
RILA 2010 Annual Meeting
– RILA represents the leading retail corporations in the US
Key conference presentations
2010 State of the Retail Supply Chain Study
Retailing 2015 - New Frontiers
RETAIL MARKET TRENDS
• Increasing Complexity & Speed of Change
– Shifting demographics
– Better educated consumers
– New channel formats
– Customized „standard‟ product offerings
– Faster Product introductions
– Shorter life-cycles
• Breaking the 80/20 Rule
– No longer will 20% of SKU‟s be 80% of sales
– „Longer tale‟ demand items
increasing share of sales & profits
RETAIL MARKET TRENDS
• Retail Runway „Runs Out‟ – Major retailers running out of room
in core concepts by 2015
Growth rates slowing
– New growth from:
New Concepts/Categories
New Customer Segments
Multi-Channel Experience
• Sustainability Drives Downsizing – Increased demands for localization,
segmentation and customization
• Supply Chain Evolution – Past driven by mass merchandising
– Future more niche Oriented
– Focus on „fast movers only‟
will result in Lost Sales
“Same Store Sales” – The Key Metric
NEW YORK (CNNMoney) –
Wal-Mart, stung by an
embarrassingly long sales
slump, is finally ready to do
something about it.
On Monday, Wal-Mart
announced it is bringing back
thousands of products that
were unceremoniously
dumped from stores, saying it
is ready to roll up its sleeves
to win the lowest-price battle
with its rivals.
8500 SKUs added
April 11, 2011 Headline
RETAIL MARKET TRENDS &
ORDER FULFILLMENT IMPLICATIONS
Order Fulfillment Implications
Less single SKU pallets, more case
storage & handling
Less Case storage at point of sale, move
to more piece handling
.Com (Internet ordering process) takes
volume away from traditional store units Small order quantity handling; <2 lines per order on
average
Source of „Multi-channel‟ growth strategies
“Superior distribution will help define
retail success in an era of global
reach, niche retailing and accelerated
lifestyles”
ORDER FULFILLMENT IMPROVEMENTS
• Solution Description
• Benefits
• Case Study
• Summary
Robotic 3D Bin Storage and Retrieval System
Video
THE SOLUTION The Grid
Is used to align the
bins into correct
position and to
support the track
for the robots.
Is easy to install.
Is easy to expand
and relocate.
Is flexible and easy
to integrate into
existing
warehouses.
The Bin
Is used to store
the goods.
Consists of 2 sizes
with max load of
65 lbs:
– ~24”x~16”x8” H
(inside)
~24”x~16”x12.2” H
(inside)
Is made of Plastic.
The Robot
Can reach any
location.
Is equipped with a
lift.
Runs on the top of
the grid and brings
a bin with the
goods to a port.
Is wireless
controlled.
Is Battery operated.
AutoStore Overview
The Port
Transports bins to
and from
operators.
Many varieties of
picking process
design depending
on application
Can be combined
with other
technologies, ie.
voice, pick-to-
light…
The Software
Is responsible for
controlling the
robots, ports, and
scheduling tasks.
Provides service
and support
functionality.
Has flexible and
configurable alert
system.
BENEFITS
Density: Increases storage density as much as
300% in conventional buildings
AutoStore Overview
BENEFITS
Density: Increases storage density as much as
300% in conventional buildings
Redundancy: Highest redundancy compared to
other technologies, providing near 100% system
availability
AutoStore Overview
BENEFITS
Density: Increases storage density as much as
300% in conventional buildings
Redundancy: Highest redundancy compared to
other technologies, providing near 100% system
availability
Productivity: Goods-to-person and ergonomic
workstations increase picking rate as much as
200%
AutoStore Overview
WORKSTATION
OVER / UNDER
Product
Bins
Order Tote
PTL
Lights
denoting
picking
location
WORKSTATION
U SHAPE
Order
Totes
Order Tote
Conveyor
Product Bins to
Pick Station
Product Bins Return
to AutoStore
Operator
Access
WORKSTATION
IN-LINE
Product
Bins
Order Tote
Conveyor
Order
Totes
WORKSTATION
CAROUSEL PORT WITH ORDER MATRIX
Product Bin
Order Totes
BENEFITS
Density: Increases storage density as much as 300% in conventional
buildings
Redundancy: Highest redundancy compared to other technologies, providing
near 100% system availability
Productivity: Goods-to-person and ergonomic workstations increase picking
rate as much as 200%
Simplicity: Transports, stores, sequences, and reslotting with one technology
AutoStore Overview
Storage Lift Conveyor Simplicity
BENEFITS
Density: Increases storage density as much as
300% in conventional buildings
Redundancy: Highest redundancy compared to
other technologies, providing near 100% system
availability
Productivity: Goods-to-person and ergonomic
workstations increase picking rate as much as
200%
Simplicity: Transports, stores, sequences, and
reslotting with one technology
Flexibility: Configurations are limitless and fits
around building obstacles
AutoStore Overview
BENEFITS
Density: Increases storage density as much as
300% in conventional buildings
Redundancy: Highest redundancy compared to
other technologies, providing near 100% system
availability
Productivity: Goods-to-person and ergonomic
workstations increase picking rate as much as
200%
Simplicity: Stores, sequences, transports, and
self balances inventory with one technology
Flexibility: Configurations are limitless and fits
around building obstacles
Adaptability: Easy to modify and mobile asset
AutoStore Overview
Y
X
BENEFITS
Density: Increases storage density as much as
300% in conventional buildings
Redundancy: Highest redundancy compared to
other technologies, providing near 100% system
availability
Productivity: Goods-to-person and ergonomic
workstations increase picking rate as much as
200%
Simplicity: Stores, sequences, transports, and
self balances inventory with one technology
Flexibility: Configurations are limitless and fits
around building obstacles
Adaptability: Easy to modify and moveable
asset
Sustainability: Low energy consumption
AutoStore Overview
BENEFITS
Density: Increases storage density as much as 300% in
conventional buildings
Redundancy: Highest redundancy compared to other
technologies, providing near 100% system availability
Productivity: Goods-to-person and ergonomic
workstations increase picking rate as much as 200%
Simplicity: Stores, sequences, transports, and self
balances inventory with one technology
Flexibility: Configurations are limitless and fits around
building obstacles
Adaptability: Easy to modify and move asset
Sustainability: Low energy consumption
Economic: Minimizes capital investment, and reduces
building and operational costs
AutoStore Overview
Piece picking
– Small parts (apparel, automotive parts, catalogue/internet, computer, electronics,
HBC, hardware, jewelry, office suppliers, pharmaceutical, software/music, etc.)
– Low to high quantity of units per orderline
– Slow to medium-fast moving SKUs
– Any bin to any workstation
IDEAL APPLICATION – FEATURES
Piece picking
− Small parts (apparel, automotive parts, catalogue/internet,
computer, electronics, HBC, hardware, jewelry, office suppliers,
pharmaceutical, software/music, etc.)
− Low to high quantity of units per order line
− Slow to medium-fast moving SKUs
− Any bin to any workstation
Space limitations
− Existing building in particular – stay where you are!!
− Any space configuration is applicable
− Square, rectangle, “L” shape, different floor elevations, multiple
floors, etc.
High inventory or SKUs
− Pareto curve = 80/20 or better
System redundancy important
Future requirements potentially changing or unknown
IDEAL APPLICATION – FEATURES
Mini-Shuttles, vs. Mini-Loads vs.
3D Robotic Bin Systems
Thro
ugh
-pu
t
Inventory
Shuttle
Systems
Mini-load AS/RS
3D Robotic Bin Systems
AutoStore Overview
Case Study – Komplett
Piece Picking via Automated Technology
Komplett - $600mio Internet Retailer
PCs, Components & Electronics
for all Scandinavia, via 1 DC
Increased SKU‟s + volume growth, filled DC
Required building expansion
Investigated alternative material handling solutions
Case Study – Komplett
Piece Picking via Automated Technology
Komplett - $600mio Internet Retailer
PCs, Components & Electronics
for all Scandinavia, via 1 DC
Increased SKU‟s + volume growth, filled DC
Required building expansion
New Solution selected for ~80% SKU‟s
Densified Storage within existing DC
Case Study – Komplett
Piece Picking via Robotic 3D Bin AS/RS
Komplett - $600mio Internet Retailer
PCs, Components & Electronics
for all Scandinavia, via 1 DC
Increased SKU‟s + volume growth, filled DC
Required building expansion
Instead New Solution selected for ~80% SKU‟s
Densified Storage within existing DC
Results – following 2007 Implementation
+10,000 SKU‟s and space for expansion
Case Study – Komplett
Piece Picking via Robotic 3D Bin AS/RS
Komplett - $600mio Internet Retailer
PCs, Components & Electronics
for all Scandinavia, via 1 DC
Increased SKU‟s + volume growth, filled DC
Required building expansion
Instead New Solution selected for ~80% SKU‟s
Densified Storage within existing DC
Results – following 2007 Implementation
+10,000 SKU‟s and space for expansion
2X Increased Throughput – w/existing labor force
Case Study – Komplett
Piece Picking via Robotic 3D Bin AS/RS
Komplett - $600mio Internet Retailer
PCs, Components & Electronics
for all Scandinavia, via 1 DC
Increased SKU‟s + volume growth, filled DC
Required building expansion
Instead New Solution selected for ~80% SKU‟s
Densified Storage within existing DC
Results – following 2007 Implementation
+10,000 SKU‟s and space for expansion
2X Increased Throughput – w/existing labor force
Annual volume now 1.4 mio orders processed
10 Employees x 2-shifts (8hr) per day
Case Study – Komplett
Piece Picking via Robotic 3D Bin AS/RS
Komplett - $600mio Internet Retailer
PCs, Components & Electronics
for all Scandinavia, via 1 DC
Increased SKU‟s + volume growth, filled DC
Required building expansion
Instead Automated Solution selected for ~80% SKU‟s
Densified Storage within existing DC
Results – following 2007 Implementation
+10,000 SKU‟s and space for expansion
2X Increased Throughput – w/existing labor force
Annual volume now 1.4 mio orders processed
10 Employees x 2-shifts (8hr) per day
2 Expansions (10,000 + 14,000 bins)
References (1/2) End user Year Application Bins Robot
s Orderlines/Hour Port
s
AVNET 2011 Distribution of electrical
components
45 000 37 1,000 16
XXL 2010 Distribution of sports items 21 000 10 280 4
Onninen 2009 Distribution of electrical
components
27 500 24 660 10
Vestas Wind
Systems
2009 Production of wind turbines 5 200 10 265 6
Hattelco 2009 Distribution of computer
components
9 700 15 410 6
Komplett 2008 Distribution of consumer products -
- electronics, computers, etc.
33 700 55 1 500 14
Otra 2008 Distribution of electrical
components
10 400 10 250 5
Pro-Design 2008 Production of projectors 8 400 5 140 4
Tingstad 2007 Distribution of fasteners and tools 12 900
+ 6 200
15 400 8
GNT 2005 Distribution of computer
components
11 800 14 390 7
Elotec 2004 Production of alarm systems 6 000 5 125 3
Sub-Total 197 800 200 96
References (2/2)
End user Year Application Bins Robots
Orderlines/Hour Ports
Confidential 2011 In-
progress
Electronic consumer products 76 000 114 3 100 10
Antalis 2011 Printed media and gift and
distribution
18 000 10 245 4
Confidential 2011 In
progress
Distribution of fasteners and tools 22 000 56 1400 12
Confidential 2011 In
progress
Auto parts 22 000 27 750 10
Stormberg 2011 In
progress
Distribution of sporting goods 16 000 8 200 4
Confidential 2012
Expansion
Distribution of components 27000 14 400
Summary – Dense Storage
Do I utilize my building space ??
AMAZING
This looks better …
I can really use this
free space !!
Space 15%
efficient
Space 35%
efficient
Space 90%
efficient
Summary – G-t-P Efficiency
Finally, have all 9 pickers walking the floor
…
REALLY,
JUST
TJ &
TOM
Not bad, reduced
walking and only need
6 pickers now
90 order-lines
/h / picker
150 order-lines
/h / picker
400 order-lines
/h / picker
© 2012 Material Handling Industry®. Copyright claimed as to audiovisual works of seminar
sessions and sound recordings of seminar sessions. All rights reserved.
For More Information:
Speaker: [email protected]
Home Page: www.Swisslog.com/AutoStore
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