Automated case storage maximizes labor
Changes in the supply chain are driving automation. But some believe that the tight labor supply is also behind the increased demand for automated case handling solutions.
By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 2/28/2007
Plant and distribution center managers often talk about changes to the supply chain when they talk about the demand for automated case handling. But there are two other factors driving this trend that are less talked about, according to Kevin Hume, director of consulting services for ESYNC.
1) Risk of labor disruption
2) Liability issues associated with injuriesHandling cases, after all, has traditionally been a labor-intensive process.
“I think of them as the stealth issues driving automation today,” says Hume. “No one really talks about them, but they go hand in hand with the need to reduce touches, reduce inventory levels and reduce cycle times.”
Hume recalls a network optimization study his firm did a few years ago for a large Canadian retailer. The company, he says, was a cross between a grocery and drug store chain. “The data told us that there were real transportation benefits from locating the facility in Saskatchewan,” says Hume. “Guess what? The reality is that the availability of labor precluded locating the center there because everyone is going to work in the oil fields,” says Hume.
That was then, this is now. “We’re going back up there to talk to them about transitioning to an automated case handling solution that will reduce the risk of labor disruption,” says Hume.
Add in the ergonomic benefits of automating processes that were once done manually, the reduction in cycle times, and a reduction in the cost to fix errors from manual operations and automation becomes a viable option.
Volume as a determining factor
Hume says facilities handling up to 2,000 cases a day are still primarily manual operations. Between 2,000 and 5,000 cases a day and semi-automated processes, such as a combination of voice-directed or light-directed picking from traditional storage systems, along with some conveyors, can now be justified, especially if the cases weigh 20 pounds or more.
When you get into higher volumes above 5,000 cases a day, automated solutions, including automated storage and retrieval (AS/RS), automated palletizing, along with conveyor and sortation systems to pace the delivery of product to the shipping dock, make sense.
“When you’re talking about volume and throughput, automation makes sense,” says Hume. “It doesn’t do any good to get high throughput in picking if you create a bottleneck getting it into a truck.”
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