What is driving the design of order fulfillment systems today? While an analysis of the activity profile (orders per day, daily unit volume, lines per order, etc.) points to the appropriate order fulfillment system design, there are other issues that will also have an influence on the process and system design. Here is an overview of the issues and trends impacting the order fulfillment process in the warehouse and distribution center today:
The Impact of Labor Labor force issues include: employee turnover, injuries, absenteeism, safety, ergonomic conditions, aging workforce and the increasing influence of government regulation. The sum of these issues is causing distribution operations to rethink the order fulfillment process and incorporate new methods and designs.
Distribution operations that are required to ship product to the same location on a recurring basis can increase productivity with an order fulfillment strategy referred to as "Put". Put systems offer a greater range of process control, increased order fulfillment efficiency and improved access to operator metricsRetailers and wholesalers are a prime candidate for utilization of a put system in their distribution operations since order fulfillment is performed on a regular schedule with many of the same items being sent to all or a majority of the stores. Typical delivery schedules may range from daily, every other day, three times a week or perhaps once a week..
It seems that every news article is filled with stories of the exciting new ways customers can connect with merchandise, stores and brands in stores, via their computers, virtual shopping kiosks, tablets, smart phones, Facebook, Pinterest and the list goes on. There is no question the world of retailing is changing at breakneck speeds. However, the question remains is the back end of retailing keeping up with the front end? That is, is the supply chain ready for the omnichannel revolution? Efforts by retailers inside and outside of the store to capture and retain customers are changing everyday and becoming more and more creative. However, what are the keys to managing the revolution from the distribution point of view?
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According to the Warehouse & Distribution Science published by Georgia Tech, order-picking accounts for over 55% of a typical warehouse operating cost and 90% of that cost is the result of walking, searching and associated picking paperwork. In a large scale, high volume piece picking operation, this cost can be substantial! Add the cost associated with replenishment, reslotting and misshipments and an automated picking solution becomes a very attractive alternative
The concept of automatically delivering product to pickers has been around for quite some time. It effectively eliminates the 90% non-value added pick activities by automatically finding and delivering the required products to the appropriate pickers. Historically, mini-loads and carousels were used to buffer the inventory and deliver them to operators. But mini-loads and carousels are too bulky and slow to handle the wide range of SKU profiles and the picking stations are too rudimentary to allow for sustained long term operator productivity...
Many Dematic customers know all about the advantages of our Director IT software suite, which gives you strategic control over the entire warehouse. That single point of access for control, monitoring, and management of equipment and processes gives you sightlines into your entire operation, from receiving to shipping.
Today, Dematic has taken that access and put it in the palm of your hands, with Director IT Mobile. Available for iPad, iPhone, and Android devices, you are now able to receive real-time, interactive warehouse operational information wherever and whenever you need it.