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Partnering July, 2012
Replenishing Horizontal and Vertical Carousels and VLMs By Ed Romaine, Sapient Automation, Hatfield, PA
T
he benefits of automated stor- age and retrieval systems (AS/RS), Horizontal and Verti-
cal Carousels and Vertical Lift Mod- ules (VLMs) are improved through- put, more accurate picking, less oper- ator strain and fatigue. The result is significant improvement in order picking and fulfillment efficiency. One aspect of automated stor-
age and retrieval system operation that electronics organizations often misunderstand, however, is the re- plenishment side of the picking and fulfillment operation. The misunder- standing is that automated storage and retrieval systems, such as Hori- zontal and Vertical Carousels and VLMs, cannot be restocked as easily and efficiently as traditional rack and shelving systems. Replenishment plays a critical
role in fulfillment operations; im- properly performed, it can reduce system throughput and overall pick- ing efficiency. While this is true for any kind of material handling sys- tem — whether it is shelving, flow rack, carousels, mini-loads, or VLMs — the impact of inefficient replenish- ment procedures can reduce the overall effectiveness of Horizontal and Vertical Carousels and VLMs and negate some of the benefits asso- ciated with their use. To realize the true value of
these automated storage and re- trieval systems to bottom line im- provement, it’s important to consider replenishment as well as retrieval.
Plan for Performance Generally, replenishment be-
comes an issue when an organization fails to understand the dynamics of the complete order fulfillment
process. It’s vital to the success of an au-
tomated storage and retrieval system that management build a stock keep- ing unit (SKU) profile that describes inventory, how and to whom it’s dis- tributed, and in what quantity and time frame specific products in the inventory are distributed. This data collection process should include a listing of part numbers and descrip- tions, part sizes and weights, stock quantity, reorder point and reorder quantity, the quantity of the individ- ual product picked, a list of products that are used or picked together, which products move faster because of seasonal and other factors, and product/process throughput and flow. Use this information to catego- rize the inventory. Assign products into categories
of velocity, for example, fast, medium and slow movement. Categorize them by their physical characteris- tics such as small, medium and large sizes, light or heavy, conveyable or not conveyable, and by the manner in which they are packaged. By tak- ing the time to categorize parts and group them by families or common usage, the time saved in retrieval, and, consequently, replenishment will be significant and productivity will improve.
Matching Storage Cube With this information in hand,
it’s relatively easy to match each SKU’s velocity (speed of demand) plus the physical size of the SKU for order picking efficiency by selecting the right equipment for the items to be stocked and for the type of picking operation required. Once the proper system is se- lected, it’s a matter of initially stocking
the system for the most efficient opera- tion by the assignment of items to a particular location in a storage and re- trieval system to maximize system ca- pacity and improve the efficiency of the operation. Storing parts in their appro- priate distribution quantities signifi- cantly reduces part handling time and, consequently, the costs associated with unnecessary handling, whether that be in picking or restocking. By incorporating bar code scan-
ning, pick-to-light technology, voice picking, and RFID with automated storage and retrieval systems, the picking and restocking operations be- come even more efficient. These tech- nologies not only improve picking and restocking throughput, they also improve accuracy to 99.99 percent.
The 5 to 10 Percent Solution When should replenishment
occur? The efficient flexibility of Hor- izontal and Vertical Carousels and VLMS makes it easy to replenish on the fly-restocking as picks are made- or between waves, during off peak times or slower shifts. What is more important is how much to restock. To take optimum advantage of
the efficiencies of Horizontal and Vertical Carousels and VLMs, is to restock no more 5 percent to 10 per- cent of SKUs each day, regardless of what typical supply is. For example, some operations might keep a month’s supply of specific SKUs on hand, whereas another operation might keep a week’s supply on hand. If items move so fast that the re-
plenishment requirement is more than 10 percent per day, then a storage and retrieval approach different from Hori- zontal and Vertical Carousels and VLMs should be considered.
One alternative is the flow rack
pick module. These rack systems can be replenished from the rear of the rack while picking is done at the front. The disadvantage is that pick- ers have to walk and search for items. It is not uncommon for pickers to have to walk miles per day and use up to 75 percent of their time travel- ing rather than picking. While pick modules often appear to be a good so- lution to efficient picking/replenish- ment needs, they are often underuti- lized because they are stocked with inventory that doesn’t require daily replenishment.
A Better Solution A better solution is the univer-
sal workstation concept. The univer- sal workstation is a combination of Horizontal or Vertical Carousels or VLMs and a manual pick-to-light flow rack. This is where understand- ing the SKU profile is extremely im- portant. Faster moving SKUs are stored in the flow rack for more effi- cient picking. Slow and medium movers are stored in carousels or VLMs where they can be efficiently retrieved and replenished. Batch picking and replenish-
ment can also improve overall auto- mated storage and retrieval system efficiency. Batch picking and replen- ishment is most frequently used in conjunction with Horizontal Carou - sels and universal workstations inte- grated with inventory management software. Batch picking is the tech- nique of picking multiple orders si- multaneously. Batch replenishment is the process in reverse. Software di- rects operators to the correct restock location, just as it directs them to the correct pick location, in the system. Using this technique, an operator can replenish an automated system with the same speed and accuracy as items are picked. Horizontal and Vertical Carou -
Complex components need reliable protection.
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sels and VLMs offer significant ad- vantages in space utilization, picking accuracy, employee productivity, sys- tem throughput, and improved er- gonomics. Improved productivity re- sulting from the installation of auto- mated storage and retrieval systems can reduce labor costs, make more ef- ficient use of floor space and reduce maintenance and energy costs. These savings often result in a return on in- vestment (ROI) in 12 months. Like- wise, these systems often help organ- izations realize sustainable design, Lean, JIT, Six Sigma, and Good Manufacturing Practices objectives. The Sapient Automation tech-
nologies include the Viper Vertical Lift Modules (VLM), Avenger Vertical Carousels, Hornet Horizontal Carou - sels, Shark Inventory Management Software, PickaMed Carousels, Mini- Avenger Vertical Carousel and Cart System and Spit Fire Pick Carts and
pick to light systems. Contact: Sapient Automation,
2398 North Penn Road, Hatfield, PA 19440 % 888-451-9711 or 267-640- 8172 fax: 509-694-2074 E-mail:
eromaine@getsapient.com Web:
www.GetSapient.com r
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