Holste Says: DCs can take advantage of the more modular/scalable material handling solutions now available to provide improvement in two key areas - speed and accuracy. What Do You Say? Click Here to Send Us Your Comments Click Here to See Reader Feedback

For the most part, businesses are successful by offering products and services that are unique and perceived by customers to be cheaper and/or better than that offered by the competition. Often this differentiation, no matter how slight, is the key to having a thriving business.

Accessing warehousing and distribution technologies that can lower per piece handling cost while maintaining order accuracy and speed can be challenging for small scale DCs operating on a tight budget.

According to various industry surveys, while the majority of DCs today are equipped with warehouse management systems (WMS) and radio frequency (RF) devices, they are predominately manual operations depending on fork trucks and push carts to a great extent. For these companies, regardless of physical size or shipping volume, DC automation is not considered to be an appropriate alternative. Cost and lack of flexibility appear to be the most common concerns.

Fortunately, this is rapidly changing. DCs can take advantage of the more modular/scalable material handling solutions now available to provide improvement in two key areas – speed and accuracy. Well established technologies like RF, pick/pack-to-light, and voice directed picking can be easily integrated into a material flow system to further enhance performance.

Another benefit, and perhaps the most important one, is that an integrated system solution allows the company to move away from departmentalized thinking towards viewing the operation as one entity. This is made possible with real-time communications between the host, the WMS, and the material handling system, which is essential for companies that wish to maximize returns on their system investment.

Benefits typically include:

• Optimize material handling resources – people and mobile equipment;
• Minimize inventory levels and increase inventory turns through improved cycle times;
• Faster order processing times;
• Minimize non-value-added travel through batch-order picking or product-to-picker strategies;
• Improved order accuracy.
• Ability to more easily integrate multi channel marketing, including an e-Commerce initiative into the order fulfillment mix.

As mentioned above, a material handling solution is most effective when integrated with a WMS so that the various devices communicate in real-time to optimize DC operations. Today, most automation system providers support the major industry standard integration protocols. However, customers who have older equipment and software systems, or who are considering purchasing a low-end WMS, may face several challenges:

• Multiple Business Flows – System equipment, control and software design can affect a wide range of business processes. Without standard integration protocols, custom code must be developed, tested, and then proven on-site.

• Integration Complexity – Integration often involves interfacing not only with other systems, but also with low-level components or material handling devices like a carton sealing machine using PLC commands.

• Absence of Standards – Because each vendor interface is unique, a robust, easily configurable WMS integration is essential for a compatible and smooth running system operation.

To eliminate the integration layer, companies should consider vendors that support standard or universal protocol as part of their solution. This will make it possible to connect directly from the ERP/WMS to the material handling system and enable the company to reduce its total cost of ownership and benefit from a more flexibility deployment.

Communication standards are constantly improving with more robust integration layers becoming common across leading ERP/WMS and material handling solution providers. This will result in less need for third party control systems, less complexity and lower cost options. All of which is good news for the small DC operation looking to compete with the big guys.

Final Thoughts

From time-to-time companies need to re-think their commitment to manual operations. This is especially true for more vulnerable and/or at risk operations. Adaptable material handling technology is available that will rejuvenate an existing operation while maintaining the uniqueness that differentiates the company from its competitors.

An excellent place to start looking and learning can be found January 21 thru 24 at the ProMat 2013 Expo in Chicago www.ProMatShow.com.