Automated pick-to-tote system saves space and labor

Swanson Health Products (SHP) is a leading direct-to-consumer marketer of dietary supplements and other health products serving millions worldwide through mail-order catalogs and the Web. Following a significant growth in market demand resulting in a rapid expansion of the product range, the company began a comprehensive remodeling of its order picking processes. By phasing in a series of high-density, goods-to-person storage and pick modules, the company reduced labor costs, lowered per order costs and shortened delivery times.

SHP operates a 140,000-square-foot warehouse in Fargo, N.D., offering 15,000 products shipped globally. The system supplier (SSI Schaefer Systems International, ssi-schaefer.us) was tasked with short installation times during ongoing operations. Implementation required the adaptation of several new interfaces with existing systems and acclimation to SHP’s changing needs. The new goods-to-person (GTP) system included three high-density storage modules to provide sufficient storage for the increasing number of SKUs and future product range growth.

A year later, an additional module was installed for the addition of new SKUs. To automate SHP’s slow movers, a one-aisle, mini-load crane combined with a GTP pick-to-tote workstation was installed. The system optimized performance and space, and allowed SHP to extend its SKU range by 7,000.

In 2011, SHP extended the new carousel system with four additional modules and a second GTP workstation to maximize productivity and throughput, reduce operational costs and increase fulfillment volume. The carousel helps increase the picking and storage capacity with a performance of up to 250 double cycles per carousel per hour. It has also allowed for a 50% gain in storage space (11,264 locations in totes with dividers) and enables precise inventory monitoring.

The mini-load crane integrated into the carousel system now provides inventory replenishment on demand to all eight carousel modules. Next, SHP took a big step toward efficiency and automated the fast moving area with an A-frame for the picking of the top 400 fastest SKUs and added another mobile crane in 2013.

“The supplier used a systems approach which integrated materials handling, goods-to-person and automated picking methods,” says SHP director of operations Terry Kraft. “The design allowed us to maximize productivity, increase throughput and improve customer service.”

The systems interface with has also reduced labor costs, lowered per order costs and shortened delivery times. Operations are now 85% automated and move 55,000 to 70,000 units per day.