No doubt the major theme of ProMat 2011 was material handling automation. While automated sorting systems have been the centerpiece of DC automation for decades, given the variety of automation technologies on exhibit at the show, today there are many alternatives and options to consider. Thanks to a trend that started in DCs across the USA about a decade ago, and is expected to continue well into the future, logistics managers have more choices as to where to begin automating their operations.

A popular starting point has been picking and shipping. This is probably because consultants and material handling system providers know, for example, that batch-order picking and automated sorting is a sure fire way to increase order picking productivity and shipping capacity. However, it often requires a considerable initial investment making it difficult for some to justify - see “Thinking Sortation for Distribution? What will the Costs Be?”

According to phone interviews conducted by Distribution Digest many companies, who are seriously interested in exploring the benefits of automation, want to start small – take baby steps. For these companies the receiving dock may provide the best opportunity for a relatively easy and quick ROI.

For example, continuing to rely on manual receipt of goods armed with a clipboard, receiving documents, and pencil - such as reading a purchase order, manually checking quantity received, or assigning a stocking location, is way too slow not to mention error prone. Paper shuffling on the receiving dock increasingly is a factor that marks a second or third rate operation - it’s like stepping back into a 1970’s environment.

Paperless Receiving & Putaway

Receiving and putaway are where the physical flow of materials and the parallel flow of information on received items join and must be efficiently and swiftly routed downstream in synchronization with one another.

By adopting Automatic Identification & Data Capture (AIDC) technologies, the first speed-bump (paper shuffling) on the path to greater speed and accuracy can be eliminated. Technologies typically considered as part of AIDC include bar codes, laser scanners, and Radio Frequency Identification (RFID).

An automated receiving and putaway operation begins with employees on the dock equipped with bar code scanners and RFID terminals. RFID units mounted on the lift trucks used in receiving and putaway will further expedite paperless processing.

All the data collected electronically must be managed electronically as well for greater efficiency. Even the most basic Warehouse Management System (WMS) can do so readily. Within the receiving department, WMS software, fed data from bar code scanning and RFID units, perform such functions as identifying and recording receipts by SKU, updating inventory, directing putaway, and assigning storage locations.

Several of the exhibitors at ProMat 2011 offered AGV systems that when integrated in the WMS can automatically move pallet loads from receiving to storage locations, picking areas, and/or crossdocked to shipping.

Work With Vendors as Partners

Even with WMS capability internally, your facility's receiving operations need to be linked externally by electronic means to upstream members of your supply chain. With Electronic Data Interchange (EDI) links to inbound shippers and transportation companies, the receiving dock will know ahead of time what's due when, and in what quantities. With the type of EDI transaction known as an Advanced Shipping Notice (ASN), moreover, dock managers can preplan how they'll handle the inbound materials flow for highest efficiency.

Require all of your suppliers/vendors to add bar codes and/or pallet tags that can be scanned to identify a pallet, a carton, or a product to your receiving system. This data can then be linked to either an EDI or an identifying number in your purchasing/receiving system. Although you may not get every vendor to comply, you will find that many are already set up to do this.

Keep a scorecard on your vendors to give them feedback and to identify those that regularly fail to measure up. Work with vendors to solve problems, and consider changing vendors if you find resistance, or a failure to improve.

Manufactures apply UPC bar codes to cases to identify SKU content. This makes it feasible to deploy a receiving conveyor system that can automate and streamline loose case receiving. For example:

• Receiving cartons are manually placed on a conveyor (that extends into the receiving trailer) where they can be automatically scanned and electronically assigned to an outbound order/shipment.

• A bar-coded shipping label is automatically printed and applied (manually or automatically) to each carton.

Note: The use of automatic printer/applicators expands on the benefits that material handling equipment provides. While automatic printer/ applicators are by no means a new technology, advances have been made that yield higher throughput rates over a wider range of package sizes.

• The material handling conveyor system routes the cartons to the shipping sortation system.

• The shipping label is scanned and the product is sorted by customer and/or shipment and routed directly to the shipping dock where it is taken from the conveyor and palletized or floor-loaded directly into the shipping trailer.

• Loose case product that is not needed immediately to fill orders is conveyed to the shipping sorter where the cases are scanned and automatically sorted by SKU to palletizing stations for staging and/or putaway into inventory. Here robots can automate the palletizing operation.

This practice is commonly referred to as flow-through or crossdock and works well for many retailers, especially door-per-store operations. The carton is handled once at the receiving dock and once at the shipping dock. Except for cartons which are rejected for some reason, the carton/order/shipment does not require any operator intervention within the distribution center. In addition to minimizing handling, the inventory is never waiting for processing in the distribution center. Instead it is on its way to the retail outlets where it will be available for sale.

Checking and inspection of case goods or full pallet loads can be limited to random audits except for vendors that have known quality issues.

Final Thoughts

DC automation is all about facilitating the fastest journey from receiving to shipping. Every stop, every move, and every item dropped in a temporary storage/staging area takes space, takes time, increases the chances for damage, makes stock hard to find, increases errors, and reduces productivity.

One of the many benefits of automating receiving is that it forces logistics managers to methodically think all the way through the process step by step to figure out ways to minimize the time from the receiving dock to the customer.

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.