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Make storage an ally

Our continuing series looks at three ways to turn a storage scheme that impedes other operations into one that streamlines picking and more.

By Staff -- Modern Materials Handling, 10/1/2005

When it comes to storage in a DC, success is all about matching the processes and layout as well as equipment and systems to the products that are being handled. So says, Tom Guschke, managing principal, Keogh Consulting (561-775-3833).

The perfect example of that is a distributor of videos, CDs, DVDs and other entertainment products that moved into what was previously a manufacturing facility.

While the building had plenty of space, that was about all it had going for it initially. Where there had once been production equipment, there could now be handling systems for storage and related operations.

As a first step, shelving is installed in one area of the plant to store items for active order selection. Pallet reserves for stock keeping units (SKUs) are stored in the existing two aisles of very narrow aisle (VNA) pallet rack serviced by lift trucks.

That was enough to get the new operation off the ground, says Guschke. But it was sure to change as volumes increased, as is evident on the next two pages.

Shortcomings Shortcomings

  • Limited VNA rack space requires multiple SKUs per pallet
  • Replenishment from VNA is cumbersome, slowing orderpicking
  • Packing tables are basic, limited in number and fed by hand-pushed carts

MINIMAL CHANGES Minimal Changes

Wire mesh decking is installed on the VNA carton reserves rack. This allows cartons to be hand stacked on the decking. Individual cases can now be retrieved for replenishment more readily using the man-aboard VNA trucks.

Double-deep selective pallet racks with wire mesh decking are added in the back of the building. Workers hand stack individual cartons of overflow merchandise for improved accessibility compared to mixed item storage on pallets earlier. Reserve cartons are relocated to that area, allowing more trucks to handle reserves, increasing reserve carton velocity.

A simple powered conveyor replaces the carts for moving picked orders to the packing stations, eliminating cart congestion that resulted as volumes increased.

Improvements
  • Expanded storage accommodates higher volumes
  • Easier access to items in reserve storage
  • Faster replenishment

NOMINAL CHANGES Nominal Changes

Storage in the decked rack carton reserves area in the back of the building is so dense that access is difficult when small quantities of cartons are needed. The solution is to re-configure the double-deep rack to single deep for maximum access to the cartons. This doubles the number of aisles which allows more truck traffic as volumes continue to increase.

Increasing volume is also a problem for the simple conveyor line. A conveyor upgrade includes multiple packing lines with automatic diverters that feed additional packing stations. Additional packing capacity includes several carton closing lines for dunnage fill. A loose receipts area handles cases with mixed SKUs.

In addition, new carton flow rack provides additional picking efficiencies for a few new-release, fast-moving products. Carton flow rack handles new releases now, removing them from shelving.

Improvements
  • Higher throughput in decked rack carton reserves
  • Elimination of packing line bottlenecks
  • Relocation of new releases to carton flow rack speeds picking

RADICAL CHANGES Radical Changes

Finally, it's time for the VNA rack to go as volumes climb upward still. A two-level picking module replaces it. Gravity flow racks provide pick slots for about 5% of the faster moving products that account for over 80% of the volume. An automatic pick-and-pass conveyor and pick-to-light system speed picking. The flow rack holds most of the on-hand inventories for the faster moving SKUs, minimizing replenishment of those items.

Volumes now require automatic sortation from the conveyor line to the packing area. This new sorter along with in-line labeling equipment speeds throughput of batch order picks and allows sortation to order handling. Still more packing stations and related equipment accommodate higher volumes.

Improvements
  • Accommodates higher volumes
  • Higher throughput overall
  • Reduces order cycle times
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