DCs are under constant pressure to re-evaluate and update their logistics operations. As order fulfillment operations grow, eventually order processing requirements will exceed the capabilities of current methods. Upon reaching that point many logistics executives find themselves being pulled into the material handling automation (MHA) alternatives evaluation process.

As they go down that path they will be confronted with a variety of MHA vendors offering a range of services including a relatively new development among several major material handling equipment manufacturers.

As recently reported in Distribution Digest, in addition to the broad range of MHA equipment and system choices, there is a new trend going on where OEMs, specifically in the conveyor industry, are increasing taking on “system integration” roles for major MHA projects. To gain more perspective on this interesting development; see Material Handling Tech Note: (The Materials Handling OEM as System Integrator: What you Need to Consider).
 

While this OEM as SI development provides more purchasing alternatives, companies still need to decide how best to approach their MHA project. 

Equipment Verses System - It’s Not So Easy to Differentiate

While buying material handling equipment out of a catalog is relativity easy, it's not unusual for a company to be thrown off track by what appears to be a straight forward equipment purchase but is actually a more complex system purchase.

Take Picking Modules for example – exclusive of any powered equipment, they may appear to be a commodity item similar to static storage rack. They don't require software interfaces or I/O checkout. Most companies choose their picking modules based on the type of product to be stored or operational requirements, e.g., pallet flow, carton flow, or piece picking.

Given their large number of pieces and components, picking modules are engineering intensive. And, while stand-alone static structures, they interface with system operations and the people using them. Upon closer examination, you discover that there are many issues/questions that need to be considered, such as:

• What type of decking will be needed? Decking requirements vary, based on the sprinkler requirements and the type of picking. Or, if operators will be picking to carts, what type of wheels do the carts have to move smoothly on the decking?
• Have the operations and engineering staff considered conveyor integration issues related to replenishment, takeaway and trash removal?
• Where will pallet returns be installed? How many are needed?
• Are pallet slide rails required?
• Should pallet flow positions have safety bar grating under each pallet position?
• Should safety netting be used around stairs and outer walkways?
• Does the setup conform to local building codes and site requirements?
• Is the floor slab sufficient for the imposed loads?
• Do you need a building permit?
• What are the credentials of the field supervisor? Will the installation crew be factory trained or hire from the local labor pool.

If you are considering purchasing MH equipment and install it on your own, make sure you understand the key tasks and the sequence in which they must be completed. Next, verify that these "critical path" elements, and their completion deadlines, are reflected accurately in your implementation schedule. Don’t hesitate to ask the manufacturer or distributor for technical advice whenever there is uncertainty.

The Systems Approach

When making a MHA systems purchase, which typically require specialized engineering, controls, software, and/or integration with other equipment and software - there are few measurable standards and features to fall back on, and that is not all. With a systems purchase, companies are almost certainly entering a relationship of some considerable duration with the vendor, which makes the choice of vendors all the more critical.

No doubt the trickiest parts of the MHA system purchase to get your arms around are the controls and software specifications. And, making it even trickier, some MHA vendors (depending on their pre-committed project load) subcontract the controls and software development to a third-party provider. This raises the risk of miscommunication, errors, and may lead to limited site support.

This can happen because usually a third-party providers’ bid on a project includes a defined number of hours for on-site training and post startup support. And, all too often the third-party's lack of involvement at the front end of the project (i.e., developing the proposal and detailed description of the operations), can cause confusion during delivery and commissioning related to committed time on site, availability of remote support, and missed functionality.

Controls and software are definitely not commodities. Companies should make sure they understand how and by whom this critical portion of the project will be developed, tested, and installed prior to signing the sales agreement. And don’t just ask whether the software can meet the requirements; ask how the requirements will be met, and who will maintain and provide emergency backup service.

When faced with a major MHA purchase, especially for the first time, companies interested in a do-it-yourself approach are well advised to bring onboard an industry expert, or hire an independent consultant, or choose a systems integrator - someone who has been down this path many times before and can ask the appropriate questions and provide trusted advice. Ideally, whoever you choose to work with, they will offer an objective, analytical analysis with a broad spectrum of solutions.

Final Thoughts

We agree with Dollar General’s VP of Distribution, Anthony Roden, who has no sympathy for companies who don’t have an adequate game plan, and who was once quoted as saying, “Even very poor plans executed well can turn out great, however, outstanding plans executed poorly are poor”.

When systems with a high degree of complexity fail, it's rarely related to any particular piece of equipment provided with that system. Problems with equipment are readily solved by replacing, repairing or adjusting components already on hand. Problems with poor system design and engineering, project management, software and controls, however, are not so easily addressed. And, there is a major risk that while you're trying to make it work, customers unhappy over your execution may seek greener pastures.

Agree or disagree with Holste's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the website. Upon request, comments will be posted with the respondent's name or company withheld.

You can also contact Holste directly to discuss your material handling or distribution challenges at the Feedback button below.