Over the last few years, numerous articles have been published on the benefits of material handling automation (MHA) in the DC. While the adoption rate is high and growing in selected vertical market sectors, most small to medium DCs appear to be holding on tightly to their pallet jacks and forklifts, see – “While The Trend Towards Automation in the DC is Undeniable – Still 70% of DCs Are Not Automated”.

Holste Says: The truth is that in today's economy, DCs are more likely to adopt a "selective automation" strategy preferring to avoid, or at least delay, the larger capital expense and disruption associated with a total system approach. What Do You Say? Click Here to Send Us Your Comments Click Here to See Reader Feedback

Based on comments from our readers, many logistics managers who have manual operations expressed interested in automating underperforming processes, but not the total DC. They are hesitant to contact consultants or equipment providers for fear of getting in too deep.

The truth is that in today’s economy, DCs are more likely to adopt a “selective automation” strategy preferring to avoid, or at least delay, the larger capital expense and disruption associated with a total system approach. Going forward many companies will automate only that part of their operation that is underperforming while postponing more comprehensive system-wide upgrades until a more opportunistic time. Deploying smart, efficient, and cost effective standalone MHA equipment and systems will play an important role in the success of this strategy.

Modularity, adaptability, reliability, and speed are the keys to cost effective automation. As operational complexity increases, intelligent equipment and systems that are designed to run as fast, as safe, and as accurately as possible are essential for business growth and profitability. However, DC automation does not have to be an all or nothing proposition. Within the traditional DC model there are many practical applications for selective automation.

The following are few examples of the most popular standalone MHA systems:

Automated Print & Apply Labeling

In a manual receiving and/or picking operation getting the right customer bar code label onto the proper case can be a time consuming headache. In the early 1990s MHA providers developed various automated methods for systematically printing and applying customer specific bar coded shipping compliance labels (GS1-128 formerly called the USS-128) to the side, top, or end of case. The sketch below shows a typical standalone equipment arrangement.

Pre-engineered labeling systems similar to the above arrangement are available on mobile base frames so that they can serve multiple locations in the DC.

Automated Pick Carts

We generally don’t think of a pick cart as a piece of automation but, when equipped with GPS tracking, and voice commands or pick-to-light devices to direct and confirm actions, all driven by a robust order fulfillment software package, the result is computer directed (automated) task management.

Picking carts of all types have been in use in DCs for as long as there has been DCs. However, time has not stood still for the ever popular pick cart. MHA providers like Intelligrated (www.intelligrated.com) have greatly improved on the idea and they will be demonstrating their Real Time Solutions® GoKart™ mobile picking system at the Internet Retailers Conference and Expo (IRCE) June 5-8 in Chicago.

A few years ago GNC used in-house expertise to develop their own “automated” piece picking carts. According to GNC’s director of distribution Kevin Klocko, the company looked at pick-to-light and voice technology along with other approaches to semi-automate their piece picking process for its three US distribution centers, but in the end, went with a unique pick cart system it developed in-house that enables very high levels of throughput and accuracy. For more details, pictures, and video, see – “GNC Uses In-House Developed Pick Cart to Turbocharge Piece Picking”.

Automated Weigh-In-Motion, Cubing and Manifesting

There are many MHA providers that offer pre engineered weigh-in-motion shipping manifest systems that can process up to 50 parcels per minute, depending upon carton size. These systems can have unattended conveyor lines with automated cubing, weighing, rate shopping, routing, labeling, manifesting, and shipping sortation. The systems are scalable to meet the needs of a wide range of operations, large and small, and run on proven industry leading technology.

With this level of automation, once the system knows the cube and weight of each item on a customer’s order, the data then can be sent to a real-time host system or to a WMS to automate the calculations and determine the most economical shipping case size based on DIM weight pricing. An added benefit will be realized in fewer back-charged bills from carriers.

Other popular examples of where selective automation equipment can be adopted include: A-frame picking machines, Horizontal Carousels, and Vertical Lift Modules.

Of course the cost of deploying an automated or semi-automated standalone system depends on many factors. However, industry reports indicate that these types of investments pay for themselves in months by reducing labor and eliminating inaccuracies inherent in manual processes. Designed and applied properly they can become building blocks leading to a more fully automated and integrated operation.

Final Thoughts

Driven by multi-channel marketing and customer demand for higher levels of VAS the justification for MHA in the order fulfillment process has more to do with intelligent planning, control, and processing strategy than it does with movement of goods. However, smart isn’t always a good thing, especially if it becomes overly complicated. On the other hand, simple can be one-dimensional. It’s always best to have a master plan in mind before selectively investing in automation.