It takes radical thinking to reach the ideal

By Art St. Onge, president St. Onge Co. -- Modern Materials Handling, 6/1/2000

Wouldn't it be amazing if customer demand could be satisfied with no errors at no cost? This would be the ideal fulfillment center.

To attain this goal we would have to ask, "How close can materials handling designs come to achieve the ideal fulfillment center?" Perhaps an outrageously low cost can occur if the cost to pick, pack, and ship each order is greatly reduced. The fulfillment center would definitely profit and a significant competitive advantage would be the result.

One system design approach is to focus on substituting technology for manual labor. This could be accomplished in the high labor functions, such as pick line replenishment, order selection, packing, staggering, and truck loading. These functions performed by sophisticated, reliable technology can effectively and economically create highly automated centers. Does this approach produce a result that comes close to the ideal? I believe the answer to this question is no.

Simply automating traditional fulfillment center functions can take labor out of the operations, but stretching toward the ideal requires more radical thinking. A fresh look at the fulfillment center functions with an eye toward eliminating functions will take us down the path of radical thinking.

Suppose it was possible to eliminate the pick line and the associated function of replenishment. Wow! That is certainly radical thinking. Let your imagination dwell on how a fulfillment center would work without pick lines and replenishment.

Imagine cases of merchandise arriving at a nearly "lights-out" fulfillment center operated by a limited staff. Cases pass through devices that identify each case and remove carton tops. They then travel onto an automated buffer where they are transferred onto trays and remain until called to the several pack out stations.

Most of the staff members work at the pack out stations. These stations allow an operator to service multiple orders with appropriate products dispatched from the buffer. Empty shipping cartons or totes automatically replace those that are filled at the stations. Completed or partial orders in the form of shipping cartons are sealed, labeled, and returned to the buffer system to await loading on delivery trucks. The buffer system also sequences the cartons in proper order and delivers them either directly to waiting trucks or first to automated palletizing stations and then to the delivery trucks.

Pack out station operators can sustain piece rates exceeding 1,000 pieces per hour in this scenario. And because this is the only time pieces are handled, a very small staff is required with this design.

Properly designed, this radical approach is a winner-The Ideal.