Taking productivity to the next level in the distribution center

The best warehouses are combining expanded warehouse management system flexibility with automated materials handling to take their facilities to the next level of throughput efficiency.

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 11/30/2006

Implementing a best-of-breed WMS is the first step towards improved warehouse productivity, according to The Warehouse Productivity Benchmark Report, a survey of 180 warehouse managers at companies of all sizes in various industries by the Aberdeen Group.

To take their facilities to the next level, many companies are expanding, or plan to expand, their systems beyond core warehouse management system (WMS) functionality.

What’s more, they are integrating the WMS with automated materials handling systems to gain even more productivity from existing facilities and labor pools.

“The companies we surveyed found they can’t squeeze more productivity out of their existing WMS systems because they’re missing functionality like slotting, visibility, labor management and analytics,” says Jeff O’Neill, a research analyst with Aberdeen. “They are also discovering a role for automated materials handling systems in their facilities.”

In fact, nearly 60% of warehouse managers planned to adopt in the next 18 months warehouse analytics for score carding, measurement and analysis as well as dashboards that provide views into warehouse activities and order status. During that same period, nearly a third of managers say they are planning to implement slotting and optimization tools, systems to support cross-docking strategies, RFID tagging systems and labor management systems.

In addition to technology, plans are also in place for new materials handling systems, including investments in lift trucks, carousels, sorters, conveyors and put-to-light systems. “Fifty-three percent of the managers we surveyed indicated that they are looking to invest in additional lift trucks or related materials handling equipment,” says O’Neill.

The bottom line, says O’Neill, is that for those companies committed to improving their operations, “few companies have fully tapped the power of WMS extensions and automation. We’re advising clients to fill in the gaps in their warehouse operations by evaluating the benefits of labor management modules, slotting and layout optimization along with materials handling automation technologies.”