MODERN Most plans for facilities of this size, 1.2 million square feet, require a great deal of automation to be productive, due to the distance of travel. What were your thoughts as you chose your design?

KM We looked to design a world-class facility that would drive efficiencies. Some people were concerned that we would never be able to manage a building over a million square feet, but you can if you build it with the right technology and the slotting to manage it. If this were a 2 million square foot building, we could run it just as well. After studying the options, we decided that we did not want to automate unless it was the best approach. We felt that greater improvements could be achieved more economically by concentrating on our processes. A big change was moving from pick-to-order to making batch picks. We also improved the slotting of our products in the building. Combined with interleaved tasking [multi-tasking of picks and equipment], this process has allowed us to have a great deal of flexibility.

MODERN What criteria do you use to determine your slotting?

KM We use zone storage spread around the building. We then have bands within the zones where product is slotted. We have bands for fast movers, and others for medium and slow movers. Fast movers are placed as close to the docks as possible. We also look at whether the SKUs tend to move as full pallets or partials. Partials are slotted next to the pick modules.

MODERN What are some of those priorities as they relate to storage in your reserve racks?

KM Instead of operating first in/first out like many facilities, we are driven by the expiration date of the product. Dwell time is also considered in our slotting, and seasonal products may be slotted in certain locations. For example, some seasonal items that will move quickly are placed where they are easier to reach.

MODERN Are there other characteristics of the products that affect where they are stored?

KM We factor in the crush class of the product. Upper portions of the racks are reserved for lighter weight products. The lower portions hold heavier items, such as syrups. This also saves us on lift truck battery power. We don't want to lift heavy items to the sixth or seventh level. Bags of cocoa are also slotted for bottom racks because if they puncture, they can make a mess. We try to store similar SKUs near each other, but not so close that there is congestion if the SKU is picked simultaneously from several locations.

MODERN How does slotting occur in your case areas?

KM We use two mirrored pick tunnels for our miscellaneous picking, or partials as we call them. Within the tunnels are four lanes that hold the products. About 800 positions contain fixed SKUs, while another 800 can be assigned dynamically. The dynamic slots can be reassigned throughout the day. The fixed positions are re-slotted about every two weeks.

MODERN Along with re-slotting the SKUs, you have also changed how you pick orders in the new building. How has that driven productivity?

KM In the past, we did pick-to-order. We maybe had one or two people working on each order, doing the miscellaneous [case] picks. Now with our interleaving, we may have ten people working on an order. We have also increased the space at our docks for staging. Before, we had used some racks near staging to hold product until the trailer arrived, but that was prime real estate. With properly sized docks, now we can pick multiple orders per truck and have the room to stage them. This allows us to base picks on the most efficient moves.

MODERN Are there other factors to your slotting success besides the software that coordinates it?

KM Software can do a lot, but you still need a team that can get the most out of the system. It is the people using the technology that makes you successful.