Page 18 - Logistics News Oct Nov 2020

Knowing the above information
tory item SKUs, or items with
possible to gauge if the operation
and verifying its accuracy are
is best suited for single-deep or
more than 30 pallets per SKU, are
crucial to form an initial idea of
whether or not warehouse automa-
multiple-deep storage. With mul-
assigned to a storage block that is
anywhere from seven to 12 pallets
tiple-deep storage, considerable
tion is a good fit. By analyzing the
space savings are achieved but
deep. The rest of the items are
inventory data in more detail, you
can determine the average inven-
selectivity is reduced. Therefore,
assigned to another storage block
tory levels per SKU and divide
that ranges from two to six pallets
you generally want to store the
deep. Of course, with automated
these into logical groups.
same SKU in a multiple-deep
storage lane. Automated systems
systems each lane at every lev-
have an advantage in that they
The following breakdown groups
el is accessible. Compared to a
can be used as a guideline:
drive-in or drive-through rack, it is
can rewarehouse pallets automat-
ically as long as this work is not
obvious that an 8-deep automated
Inventory levels per SKU of
high-density warehouse will result
performed during peak shipping
less than 7 pallets – use single
hours.
in a higher storage utilization than
deep storage
a 4-deep, 3-high drive-in rack
For most manufacturing opera-
system serviced by conventional
Inventory levels per SKU of 8
tions, a small number of items
fork-trucks. In the automated case,
to 14 pallets – use double deep
typically account for 80% or more
to get to the eighth pallet, seven
storage
pallets must be removed. In the
of the volume and inventory. So,
conventional case, to get to the
how deep (storage lane depth)
Inventory levels per SKU of
last three pallets, nine pallets must
should these manufacturers store
15 and greater – use multiple
be removed.
their inventory? Again, this
deep storage
depends on the inventory levels
AS/RS By defining these conditions, it is per SKU. Generally, high inven-
Understanding AS/RS
So You Want to Automate? Courtesy Westfalia Technologies 11
Automated storage and retrieval systems (AS/RS) take the complexity created by growth and
increased SKUs out of the hands of manual warehouse processes and place it in the reliable
hands of automated machinery and software provided by the AS/RS manufacturer.
A HIGH-TECH AS/RS offers companies the ultimate Along with this comes the user friendliness
combination: a long 20-30+ year lifespan with of software interfaces and the accessibility to
internal rates of return (IRR) generally over 20 operational metrics.
percent. The savings are real. The returns are high.
The reliability is incredible. AS/RS design
It is all possible due to the following reasons: With continued growth and SKU proliferation,
Optimised space utilisation: An AS/RS can enable manufacturers and distributors are struggling
the selection of a tight site or landlocked building by to find the necessary space for storing these
densifying and adding height to the storage system. products. Warehouse space is at a premium and new
Existing buildings can often be retrofitted, and construction can be an expensive undertaking if not
new building heights can enable corporate growth planned properly. By retrofitting their facilities or
by providing the proper inventory levels to meet expanding with high-density, multiple deep AS/RS,
customer demands. these organiations can essentially ‘do more with less’.
Reduced labour and equipment costs: Although Often, these systems can eliminate off-site storage,
every warehouse situation is unique, a single crane cross-docking to remote facilities or other inefficient
operating on three shifts can generally do the same double handling and extra transportation of product.
work as three forklifts and nine employees. With transport and storage costs averaging as much
Less waste: An AS/RS results in less product damage, as 50 cents per case, these savings can quickly add
and theft is eliminated by ‘locked’ inventory. Further, up.
stretch wrapping costs decrease because less wrap is Robotic systems can also complement an AS/
needed to secure goods on a pallet. RS. They can release cases and layers to fulfill orders
Lower maintenance costs: Forklift leasing and and be replenished from the AS/RS. The warehouse
maintenance costs generally exceed normal AS/RS execution system (WES) ties it all together, triggering
maintenance requirements. automatic replenishments and managing all product
Lower energy costs: Businesses experience lower movement into and out of the warehouse. These
energy costs, often on the order of 30 percent systems are often called ‘order fulfillment systems’
or more, especially in refrigerated and frozen and add another level of automation to the process.
warehouses. An AS/RS allows businesses to operate Today, two storage and retrieval machines (S/
using less square footage and in a tighter cube with RMs), or cranes, can be placed in the same aisle, an
smaller ingress/egress openings. Thus, there is less AS/RS innovation made possible by greater flexibility
space to cool and less refrigeration tonnage needed. in controls and WES software. So, if throughput
These are just some of the reasons why companies increases are anticipated, the addition of a second
worldwide are investing in high-tech AS/RS. Better crane in one aisle may handle the volume with ease.
still, the efficiency gains realised through optimised Plus, the second crane provides redundancy should
warehouse operations and the cost savings accrued the other be undergoing routine maintenance.
via maximised space utilisation are only expected to An AS/RS also allows for better management of
rise as new innovations advance this technology. SKUs. Modern AS/RS implementations can be flexible
Most of the advancements a user will see are in hybrid systems. In a hybrid configuration, some lanes
the stability of systems and robustness of equipment. are single deep, some are double deep and some
16 October/November 2020 | Logistics News