Storage/Staging: Vertical storage systems provide unexpected benefits

Hauni is a leading supplier of manufacturing technology for the international tobacco industry. At a facility in Richmond, Va., specialists dismantle and remanufacture machines using quality components. By installing vertical lift modules (VLMs), the company was able to reduce the stockroom’s footprint by 60% while still supplying production with more than $14 million in parts inventory.

Initially, the company investigated a reduction in overall inventory to save space. “We found we couldn’t reduce our quantity of parts on hand without slowing down manufacturing,” says Clarence Cox, divisional manager at Hauni Richmond.

Instead, the company installed five VLMs with integrated inventory management software and an 18-position batch station. They also incorporated pick-to-light technologies and label printers to manage the stockroom inventory.

“We needed a complete solution and the supplier was the only vendor that could do it all, from the initial cube analysis and equipment installation to providing a logical parts slotting plan and physical parts loading through long-term support,” says Cox.

The stockroom manages more than 16,000 stock keeping units (SKUs). The VLM area holds 15,000 SKUs while the bulk overflow area holds 1,000 SKUs. The stockroom fills sales orders for shipment to an end user and manufacturing orders for delivery to a manufacturing production cell.

While order volume and SKU count has remained the same, the company is now picking 75% faster with 47% less labor. With an average of 628 picks and 278 puts a day, the system performs more than 223,000 transactions per year.

The previous manual system required 17 workers, who averaged 3,200 overtime hours a year. The new automated system requires nine workers and virtually no overtime.

The initial project was justified and approved based on space and labor savings. Cox says the system achieved a return on investment in 12 months, and he plans to purchase four more VLMs this year.

Kardex Remstar
800-639-5805
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