Apex Tool Group implements software

Apex Tool Group (ATG) is a leading global manufacturer of professional hand and power tools. Based in North Carolina, the manufacturer’s 500,000-square-foot central DC serves multiple channels, including direct-to-consumer fulfillment, B2B distribution to retailers and shipments to other ATG DCs throughout the world.

Similar to other DCs, ATG is operating in a tight labor market. To help alleviate labor challenges, reduce penalties and efficiently meet the stringent quality demands of its customer base, ATG has implemented a Work Execution software solution.

Prior to the installation of the software solution, a warehouse management system (WMS) provided radio frequency (RF)-based work execution for picking and other DC processes. In addition, the WMS integrated with conveyor and sortation systems, along with a pick-to-light module for each picking.

With this in mind, ATG teamed up with the software provider to design a consistent picking process across various areas and product types, primarily to replace its RF and pick-to-light technology, while also supplementing its legacy WMS with new reporting and management tools.

The solution optimized and simplified complex processes through a flexible work creation to support alternative batch picking strategies and voice-directed processes for all warehouse zones: each pick-to-carton on cart, each pick-to-carton on conveyor (replacing pick-to-light), case pick to conveyor, non-conveyable picking (pick-to-pallet) and post-pick sortation. Additionally, the solution included a post-pick QC/Audit application that uses bar code scanning to replace a manual visual audit process.

A cornerstone of the project was Dynamic Work Optimization (DWO), an AI-based engine that reduces travel and maximizes batch picking productivity. To optimize efficiency across different order types and profiles, the system creates assignments for three different types of picking carts.

“Using different cart configurations allows us to consolidate pick-to-cart and do a much more efficient batch picking process, using DWO for batch optimization,” says Chris Rufa, senior director of global distribution at ATG.

Meanwhile, Jennifer, the voice of the Work Execution software solution provider’s Move voice-directed application, directs users through their assignments, following an optimized pick sequence. In addition to voice and speech recognition, Move allows users to scan bar codes, where appropriate, while also providing screen-based information. And, DWO significantly reduces travel, compared to first-in, first-out (FIFO) batching and traditional pick sequences.

ATG did a mock go-live two weeks before the final implementation for testing purposes. Then, all areas of the DC went live over five days.

ATG has reduced picking errors by 63%, resulting in significant cost savings. It has also been able to perform more audits in less time and has reduced total man hours, due to gains in picking productivity. Direct picking productivity gains were the most considerable in the pick-to-cart area that used DWO.

The solution also allows ATG to cross-train employees across all picking tasks, as they have fully embraced the new technology.

“You rarely implement a new system and have users tell you, ‘It’s made my life so much easier,’” Rufa says. “Making the process better for associates makes them more productive. And, that’s better for the business.”

Lucas Systems
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