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Cliff Holste is Supply Chain Digest's Material Handling Editor. With more than 30 years experience in designing and implementing material handling and order picking systems in distribution, Holste has worked with dozens of large and smaller companies to improve distribution performance

Logistics News

By Cliff Holste

September 21, 2011

Logistics News: DCs Equipped With Fixed Rate Systems & Processes Are Almost Always Out-of-Step with Throughput Requirements

Intelligent Systems Have the Inherent Ability to Adjust to Changing Customer Dynamics


Changing customer dynamics creates stress that DCs are facing on a daily basis. Caution and uncertainty on the part of consumer’s, leads to sudden and unpredictable changes in demand. It results in big swings in customer buying patterns in reaction to changing market conditions. All of which can have a negative impact on DC order fulfillment efficiency and productivity.

 

According to discussions with DC executives who are experiencing greater demand volatility within their operations (sometimes within a single shift), a quick response capability along with greater system, processing, and staffing flexibility are critical capabilities of a fluid operation.

 

In an article published earlier this year entitled (In a Slowly Recovering Economy Managing the Daily Ebb and Flow of Orders is Key) we addressed the need for flexible process planning models. From comments we received we can now offer some additional prospective on this important consideration



Holste Says:

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It is with material handling systems and processes; intelligent systems that ramp up and down with demand are currently available, and can be retrofitted into most recently deployed systems.
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How Does Customer Order Volatility Impact on DC Operations?

 

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 to handle a surge. 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, order fulfillment operations that utilize RF devices, pick-to-light systems, and/or voice directed technology must be designed to accommodate flexible picking zone boundaries, while having the ability to quickly increase or decrease the number of operators in each zone.

 

Another important aspect of flexible system design and processing includes the ability to slowdown and speed up conveyors and sorters automatically through the use of sensing and scanning devices. This capability can be provided through the integration of a Warehouse Control System (WCS), so that during periods of slow to moderate order processing requirements, MH equipment speeds slowdown, 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, the MH equipment runs at its maximum capacity, thereby supporting the higher throughput requirements.

In January of last year we published a Material handling Tech Note entitled “Advances in Conveyor Technology Increasing System Flexibility” in which we reported that a relatively new generation of Motor Driven Roller (MDR) conveyor, as well as various types of sorting systems, are now being offered by conveyor manufactures that have this kind of built-in flexibility. This is important because it gives DC managers the ability to adjust system performance in accordance with demand, thus maintaining the most efficient operation based on actual throughput requirements.

 

 

Going Multi-Modal Enhances System Communications & Flexibility

 

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

 

To better manage this dynamic, more adaptable multiple data collection technologies are emerging that enable pickers to pick orders and collect data while using a single PDA (Personal Digital Assistant) device. This capability is referred to as “multi-modal”.

 

For example, let’s say that in a voice directed picking application, the operator must record a lot number for tracking purposes (a common requirement in many consumer goods operations). Voice will direct the pickers to the location and tell them what to pick. Then, they scan the lot number because that’s more accurate and faster than speaking a lengthy number. With multi-modal, these technologies, along with RFID, are on one device and system, thereby eliminating the need to manually switch from the voice application to the scanning application. This may seem like a convenience rather than a benefit. However, when applied across multiple pickers and shifts per day – the incremental time saved can really add up.

 

It’s appropriate to note that all of the above system dynamics can be managed effectively and efficiently with current generation Warehouse Management Systems (WMS) & Warehouse Control System (WCS). For more specific information see “Can a New Warehouse Control System Breathe Life into a Tired DC?”

 




Final Thoughts

 

Most tools in common use today are adjustable, for example - variable speed drills, and all types of battery operated hand tools. That’s because there is a practical need for tools that are quickly adaptable to changing “on-the-job” requirements.

 

So it is with material handling systems and processes; intelligent systems that ramp up and down with demand are currently available, and can be retrofitted into most recently deployed systems. It’s a piece of automation technology specifically designed to manage system volatility ... and, it’s definitely worth looking into.


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