The one thing we know for sure is that the current down business cycle will end, as they always do. However, market stability may be a casualty well into the future.  For DCs there are several concerns. Key among them are - what will the order fulfillment landscape look like on the recovery side, and what affect will caution and uncertainty have on buying patterns? While no one knows what all of the issues will be for sure, we can begin to speculate and get ready.

Going forward it is highly likely that most DCs will face a wider range of capacity requirements such as, stronger seasonal fluctuations, more promotional activity, and sudden unpredicted changes in demand. All of which will have a direct impact on order fulfillment efficiency and productivity. This greater demand volatility, which may even happen within a shift of operation, will require a strong quick response capability along with greater flexibility in staffing and process operations.

It seems to me that when demand for order processing is reduced, operations like picking and shipping should be able to be throttled back a little, but then be ready to quickly ramp-up again as needed. For example, to accommodate fluctuations in staffing, order fulfillment systems can be designed such that pick modules and picking zones can be staffed with one or multiple operators and pick zone boundaries expanded or contracted to optimize picking efficiency. In addition, picking systems that utilize RF devices, or light and voice directed technology can be designed to accommodate flexible zone boundaries and have the ability to quickly increase or decrease the number of operators in a zone.

Another important reason for adopting flexible system operational practices includes the ability to slow down and speed up conveyors and sorters.  Through the integration of a Warehouse Control System (WCS), during hours of slow to moderate order processing requirements, MH equipment speeds can be slowed down, thus reducing equipment wear, noise and energy consumption. If processing is interrupted for a pre-determined period of time, equipment can automatically shut-off or idle, then reactivate when product flow starts again. During peak periods, MH equipment can run at its maximum capacity thereby supporting the higher throughput requirements.

Think about going Multi-Modal

We know that long before the current business downturn began customer orders were getting smaller, while order frequency was increasing. There is no reason to expect that this dynamic will change. It has been and will remain a driver for batch-order picking and sorting solutions.

To expand on this and further enhance picker performance, new multiple data collection technologies are emerging that enable pickers to pick orders and collect data while using a single PDA (Personal Digital Assistant) device. It’s called “multi-modal”. As an example, let’s say that you are using voice directed picking and you have to record a lot number for tracking purposes. Voice will direct the pickers to the location and tell them what to pick. Then they will scan the lot number because that’s more accurate and faster than speaking a lengthy number. In the future, these technologies, along with RFID, will be on one device and system thereby eliminating the need to manually switch from the voice application to the scanning application.

All of the above system dynamics can be managed effectively and efficiently with a Warehouse Control System (WCS). For more specific information see Distribution Digest article: Can a New Warehouse Control System Breathe Life into a Tired DC?

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