SSI Schaefer Automation Blogs Combine feed

Automated Distribution Design: Manufacturer/Integrator vs. Consultant

Fri, 18 May 2012 19:29:00 +0000

There are a lot of choices in the material handling business when you design a new distribution center. You can go to many sources for the conception and design of how the system will function and what it will look like.

The major divide seems to be between Manufacturer Integrators and Consultants. There are of course advantages and disadvantages to both, but the Manufacturer Integrator has a bit more on the advantage side.

The knock against Manufacturer Integrators by Consultants is that they only try to push you towards their one-size-fits-all solution. There is a point here, especially if the manufacturer only has a few options. However, in a complicated automated system, even a Manufacturer Integrator with a full tool kit may need to source some components from another manufacturer.

A good Manufacturer Integrator may even suggest that a piece from another manufacturer will be a better fit for your system over one of their own components because it is better for you as their customer.

On the Consultancy side, there is often a preexisting relationship that a Consultant has with a manufacturer. It is only human nature to tend to go with a manufacturer that you worked with in the past because of the existing relationship. The problem with that is that you may be excluding some new solutions.

Another advantage in working with a Manufacturer Integrator is that they tend to have more familiarity with the latest technology than a consultant might. This is especially true in automated distribution centers where there is an array of new solutions available. It is obvious that an outside consulting party would not have as much familiarity as a manufacturer does with their own components but manufacturers also have to pretty well versed in their competitors’ solutions as well. After all they are going toe-to-toe with them every day of the week to win projects.

The third advantage to a Manufacturer Integrator is the application of a Warehouse Management System (WMS). Major manufacturers have a built-in WMS that is designed to work with advanced automation. And while the WMS is designed to work with the manufacturer’s components it can also interact with outside components integrated into the system.

In this way the WMS is greater than the sum of its parts. In addition, the WMS from the manufacturer increases the reliability of the system overall. In essence, with one of the better Manufacturer Integrators, you are getting consultancy and the advantages of a manufacturer.

What are your thoughts on the debate between Consultancy and Manufacturer Integrators? Please comment below. And don't forget to sign up for Schaefer's monthly newsletter!

We Don’t Want to Sell Conveyor!

Fri, 20 Apr 2012 14:20:00 +0000

Well, at least not in automated distribution. In a semi-automated system you might need more conveyor true, but when we are talking automation, conveyor is a necessary evil. I mean after all it only functions to move a product.

Are your proud of Your DC’s 933 miles of conveyor? Why? The only person that should be proud is the salesperson that sold it to you. I have been in DC’s that have loops and loops of conveyor just to stall the product so that the rest of the system can catch up to it. All that does is increase the footprint and increase cost.

On reflection though, it is not solely the conveyor that is the problem, but any component whose main purpose is just to move product from the storage device to the picker or out the door. Unfortunately conveyor can be insidious and takes many various forms. Whatever shape it takes; be it traditional conveyor, forklifts, or robots. It’s all just conveyor at heart.

So if we don’t want to sell conveyor for an automated system, what do we want to sell? Well, where an automated solution is tested, where it lives and breathes, is where the product hits the hand of the picker. That is the most important part of the system.

The Goods to Person Workstation.

Let’s limit this discussion to a piece picking operation, like you would use in ecommerce. You want three things from your workstation: efficiency, ergonomics and interface.

Let’s look at efficiency first. You want a workstation that can get you the correct assortment of SKUs that the orders dictate, when they dictate it. You also want to fill as many orders as you can at a time.

These two requirements involve having a wide array of storage totes coming from the storage locations and an array of shipping totes going out to staging or shipping. Both of these are needed to drive the throughput that you want to achieve from your system.

Ergonomics is the second item we will look at. You want the people fulfilling the order to not only be able to do it fast, but do it comfortably. A ergonomic goods-to-person workstation will limit repetitive motion and all of the problems it causes.

You want to limit any movement where a person has to lift an item up. Ideally, everything should move down vs. up. You also want to present the storage units to pickers at a comfortable level no matter their height, so an adjustable platform is necessary too. The key is to limit uncomfortable motion while allowing people to retain some flexibility in stepping a bit to either side.

Third and finally, the user interface. While a lot of this is tied to both ergonomics and efficiency, it is a section unto itself. The workstation (thorough the WMS) needs to be able to guide the picker to limit mistakes and confusion. A great interface should also be easy to read, interpret, and not put any mental strain on the picker.

The best workstations will also be a nice environment in which to work. The aesthetics of a workstation are important to consider. Don’t you want to work in a nice area?

So what do you think is the most important part of a goods to person workstation? How have you eliminated “conveyor” in your DC in the interest of cost savings or increased efficiency. Let us know by commenting below!

Intelligent, Automated Case Picking for the Distribution Center

Fri, 30 Mar 2012 14:53:00 +0000

Charlotte, NC, March 30 2012 - ES3 LLC partnered with SSI SCHAEFER to further automate their distribution center in York, PA, in cooperation with C&S Wholesale grocers, the leading grocery distributor in the US. ES3 chose SSI Schaefer’s Case Picking System (SCP), the award winning solution that offers high performance with uniform automated processes from goods receiving to goods shipping.

Decrease costs, increase efficiency, increase service level – with these objectives in mind ES3 LLC focused on quality pallet packing. At the heart of this project was the continuing automation of the warehouse. ES3 implemented the first project with the extension of their distribution center in York, PA with the help of SSI SCHAEFER. SSI SCHAEFER received the order for delivering the logistics concept, detailed planning and implementation.

In 2002 ES3 moved into the warehouse, which grew over the years to become the biggest automated grocery warehouse in the United States of America. Around 20,000 different items, groceries and household items are stored in the approx. 459,000 square feet complex. The goods are supplied by the manufacturers, ordered by stores and forwarded to the forwarding agents for shipping to the retailers.

Dennis Senovich, President of ES3, explains the overall challenge, “The industry trend is an increasing number of SKUs with a slower turn velocity. The SCP is a sophisticated automation system that solves the complex problem of each picking and stable pallet building.” ES3 sought a compact, universal solution enabling the automation of the warehouse processes in addition to the automation of the order-related case picking and the shipping preparation of the deliveries.

The ideal solution for the planned extension was the Schaefer Case Picking (SCP) concept combined with the Schaefer Tray System (STS). SSI SCHAEFER’s resulting solution offers nearly 90,000 tray storage positions with variable height classes in its SCP-high-bay warehouse. The material flows and commissioning locations are on different levels, which enable a throughput of more than 100,000 boxes per day, making ES3 one of the largest, most modern and most efficient automated case pick systems in the US.

“The Schaefer Case Picking is a holistic, modular designed and extendable system solution", says Christoph Schenk, VP Operations for SSI SCHAEFER. “We were able to design an automated solution for ES3, which includes the entire process from goods receiving via storage to volume-optimized pallet creation. Physically demanding storage work was eliminated. In the enormous SCP-storage area only 12 employees per shift are required and they predominantly deal with process control and plant maintenance.”

SSI SCHAEFER installed three of the modular designed Schaefer Case Picking systems, the warehouse management system “ant“ as well as an intelligent control system with pack pattern generator “Schaefer Pack Pattern Generator” (SPPG). The SPPG interprets data from the WMS so it can build the optimal shipping pallet in the shortest time. With this information the WMS initiates the operative processes for the automated pallet creation.

SSI SCHAEFER designed the SCP-area the material flows for goods receiving, storing and goods shipping so they are on three separate levels. The goods receiving area is on the central level. The goods are supplied on pallets - up to 1,300 pallets per day.

At the good in area a teach-in process for the IT-master data capture is performed by an employee. Light grids, a scale and a camera with Machine Vision Technology capture the dimensions, weight and look of the items and file a basic draft of the packing unit in the article data base. The optical control system with the Machine Vision Technology is also used at the order commissioning in the SCP, making further internal labeling such as barcode labeling unnecessary.

After receipt the pallets are forwarded to a short conveyor system. It moves the pallets to two de-palletizing robots. The robotstake the boxes in layers from the pallets and put them on trays, which are provided on a conveyor system - 16 boxes on one tray at an average.

“With a combination of the gripping principles, the vacuum multigrip technology and a vacuum chamber with a mechanical gripping principle, the automated de-palletizing enables high functionality and gentle product handling - without the necessity of a tool change for the gripper”, says Schenk. "The dynamic parameters such as speed and acceleration as well as the gripper parameters vacuum; air flow and gripping force are always adjusted to the product characteristics and filed in the article data base.”

The conveyor system then forwards the trays to six transfer positions that lead to the storage in the SCP high-bay warehouse. Because this consists of several boxes the trays are listed in the IT-system similar to totes. SSI SCHAEFER did not use conventional storage and retrieval machines for acceptance and storage into the 36-aisle high-bay warehouse. Instead, the system uses lift systems and rack vehicles, utilizing less space.

Unlike conventional storage and retrieval machines that have a fork unit that goes below the trays, the STS has a gripping and pulling device to store and retrieve the trays. This reduces the necessary clearances in the rack system. Integrated tray-lifts, transported by the rack vehicles, take the trays to transfer positions on their respective rack level. The uncoupling of the horizontal storage movements by the rack vehicles from the vertically working lifts that carry out the sequencing, leads to very dynamic and efficient storages and retrievals. 36 STS-rack units, in approximately 12 feet high aisles, 6 aisles high and 6 wide, are installed in the rack system. The systems is 78 feet high and offers nearly 90,000 tray storage positions where SKUs are stored redundantly in several aisles in order to improve throughput. This allows the highest possible dynamic at the sequential commissioning.

Customer focus and a high service level are guidelines of the grocery industry. The delivery of store-ready pallets is one of the goals. “With the SCP, SSI SCHAEFER offers the right components to efficiently automate the processes of goods receiving, to goods shipping", says Schenk. "With trays of 47.2”x39.37” and a limit of up to 500+ lbs. per locations the system in York is optimal designed for the large range of items ES3 distributes for C&S and other customers.”

48 Case-Wheeler-lifts, which are integrated into the SCP-system and controlled by the warehouse management system, perform order-related retrieval. “This is a unique feature of the SCP-design“, says Schenk. “While conventional warehouses can only be served by lifts on the face side, the SCP-system can scale its performance up to the full efficiency of the rack vehicles by an arbitrary amount of lifts along the rack.” The trays are retrieved from the STS-rack by the rack vehicles and accepted by the Case-Wheeler-lifts - up to 4,500 trays per hour. They then transport the trays to a separate packing-level. There the item quantity on the trays is captured with the Machine Vision Technology, the necessary quantity is identified and respective box quantity - following the requirements of the packing pattern - is sequenced into one of three shoot-out-levels built on top of each other. Each SCP module is served by three conveyor belts one for every palletizing robots. The three modules of the SCP contain 3 robotic palletizers each where the cases are consolidated.

Left and right of the robots are empty pallets which are packed by the robots consecutively. The system is designed for a throughput of up to 74 pallets per hour with 5,350 cases. The packing pattern specified by the WMS considers the type of product first. This way, for example, chemical products are not packed on groceries.

The next packing criterion is the loading capacity of the products. This is a fundamental part of ensuring the stability of the pallet and that there is no damage to the product. This idea also incorporates the weight of the items - heavy boxes are packed before light ones. In addition family grouping where similar items are kept together is the last piece of information considered by the system. The pallets rest on helix lifters, which can slightly lower the mixed pallets after every packing layer until the specified pallet packing pattern is completely finished.

The filled pallets are lowered by the 18 helix lifters to the goods shipping level, at the same time automatically wrapped by an integrated stretch wrapper for further stability and then sent on a pallet conveyor system to two buffering sections in the goods shipping area. Loading forklifts take the pallets from there to the trucks.

“An intelligent system designed to fully-automate the processes for the grocery industry", summarizes Schenk. “From goods receiving via warehouse processes and the commissioning up to branch-related, volume-optimized pallet packing, an efficient system for highly dynamic intra-logistics.“

The success of this solution is recently confirmed by the renowned Research Strategies Committee (RSC) of the US-American Council of Supply Chain Management Professionals, Illinois. The association of supply chain managers awarded ES3, among other things, for the extension in York as "best and most innovative logistics solution" with the Supply Chain Innovation Award 2011. "With that SSI SCHAEFER also sets standards for the intelligent intra-logistics in the U.S.", says Schenk proudly.

About ES3:

ES3 is an experienced team of supply chain experts focused on innovation that will make product move faster, more efficiently, and at less cost than traditional supply chain models. The ES3 network spans the entire US, and includes the world's largest, multi-manufacturer collaborative warehouse, which services the Northeast with ES3's revolutionary Consolidation and D2S programs. ES3 provides consolidated warehousing, case pick and transportation services to more than 60 consumer packaged goods manufacturers. For more information go to www.es3.com. ©ES3, LLC.

SSI Schaefer is Your Strategic SAP Partner

Fri, 23 Mar 2012 14:43:00 +0000

As a certified SAP Partner, Schaefer offers integrated logistics solutions from a single source. Our services include SAP consulting, SAP migration, SAP implementation, SAP quality management and process optimization for your warehouse logistics, by applying the EWM and LES/TRM logistics modules from SAP.

Our SAP solutions are suitable for both manual and automatic warehouses. Within this video you can see a short case study of an automated distribution center with SAP implementation.

With approximately 50 IT resources in the North America alone and over 700 worldwide Schaefer is your source for warehouse management systems.
For more information contact SSI Schaefer here.

How to Ensure Your Hardware and Software Play Nice in Your DC

Fri, 16 Mar 2012 14:07:00 +0000

For an automated system to work (not even work efficiently, just work) you need both Software and Hardware. And more importantly they have to play well with one another. They should work to complement each other; the whole should be greater than the sum of its parts.

The question to ask yourself is what is the core competency of the company assisting you with your next project? Are they primarily a software company or primarily a hardware company?

There can be pitfalls with singular specialists.

Software companies often don’t try to sell hardware because they make their money on licenses and services. For them, hardware is an integration opportunity with services, but the hardware itself has little margin since it must be resold by them to the end customer. So you end up dealing with at least two separate vendors.

Hardware companies make their money on the margins they have on the machinery. To them, software is a way to sell more hardware. At best, software is way to sell more hardware, and at worst, software is an unavoidable project cost.

However, software is not a necessary evil. It shouldn’t be an excuse to sell something additional. No, it is a way to make the system perform at its best. Without software, nothing in your automated DC communicates or even moves.

Integrated Software. You want your software to be integrated into the solution, not tacked on. Ideally, the software needs be a part of the system from the beginning and built around the strengths of the material handling hardware.

So what you need is someone with a philosophy and competencies in both; a company that can stand with a foot in each world and come up with the best solution for your new material handling system.

How can you make sure that the material handling company you are partnering with has core competencies of both?

You have to ask 2 questions.

1. Do they sell hardware without the Warehouse Management System?
2. Do they sell the Warehouse Management System without hardware?

If you get a YES for both questions, the company has the core competencies to do both and might be the best choice for your automated distribution project.

If automation is part of your solution, you want a provider that has competency and expertise in all aspects of the solution delivery: hardware, software, and services.

What do you think about how the Software and Hardware should be managed in a solution? Please comment below!

The Number 1 Way to Prevent Injury in the Distribution Center

Fri, 02 Mar 2012 16:09:00 +0000

A recent RILA roundtable centered on how companies can improve best practices and prevent workplace injury. Much of the discussion focused on ergonomics and how to better design the points where employees come into contact with product.

I believe that the number one way to lessen employee injury is to focus on goods-to-person or GTP systems. The main reasons are that it prevents motion injuries and injuries occurring from employees performing their duties in an unsafe way. Let’s explore that a bit.

Less Walking: Every time you put one foot in front of the other you increase the possibility of injury. Think about it. You are rarely injured when you are stationary. Eliminating the need to trek all over the warehouse reduces a great number of accidents.

Also, in the case of adding assistance, like a forklift, you have an independent vehicle combined with movement through the distribution center, compounding the possibility of an incident.

Ergonomic workstations: An ergonomic workstation reduces repetitive injury and fatigue injuries. By presenting the goods to the person in a more ergonomic method via automation, the picker reduces injury because of:

1.   Less bending at the waist to obtain product from low elevations.
2.   Less reaching above the shoulder to obtain product from high elevations.
3.   Greatly reduced twisting motion.
4.   Adjustable height working surface which allows for a variety of different height operators to pick in the same ergonomic fashion.

Most people only consider ergonomic workstations applicable to piece picking. However, with new advances we can perform case picking ergonomically as well. A Goods to Person case system presents the person picking cases from trays instead of as entire pallet.

In addition the application of pallet lifts greatly reduce the need to lift or lower cases. With this incorporation product can be picked easier, faster and, of course, safer.

What are your thought on how to reduce injuries in the distribution center? Do you agree that Goods-to-Person the best way to prevent injuries in the distribution center? Please feel free to comment below.

Schaefer is the pioneer when it comes to goods-to-person, if you would like to get more information about ergonomics and our workstations please download this brochure.

Goods to Person Picking and Pick by Light for Retail

Fri, 24 Feb 2012 14:47:00 +0000

SSI Schaefer installed this Goods to Person picking system for Coles in order to accomodate slower moving SKUs. Out of 4000 different items 1500 items per hour can be picked at two stations. In front of the miniload a- and b- movers are picked supported by a pick by light technology at 32 workstations.

The picking stations are served by the eight SRMs of the miniload. In this area 5600 totes are picked every hour. Once the order picking process is complete a weight check is performed on integrated scales to verify the contents of each tote. A random quality assurance take place at the 4 QA workstations.

For more information about SSI Schaefer's Goods to Person systems download our Automated Brochure here

Do We Need to Look at ROI Differently for Automation?

Fri, 17 Feb 2012 14:39:00 +0000

I read an article recently in DC Velocity by James Cooke, entitled “Broader look needed in DC automation decisions, study says”. In it, the author talks about how the recent findings of Dr. Raj Veeramani and Dr. Ananth Krishnamurthy from Wisconsin University seem to indicate that companies need to look at the broader impact on the supply chain when considering automation. Veeramani and Krishnamurthy argue that the current way of evaluating ROI, labor and cost calculation, are too limiting.

I could not agree more; in fact we have spoken about the different ways that ROI can be measured. The true cost of a decision can be difficult to forecast by only looking at raw numbers.

Let’s look at the “cost” of errors. Traditionally we would say, “If we have 10 errors per 100 and because of those errors we lose those 10 customers…. our loss is $1,000.” We can quantify that over a certain period of time and see whether it is a good ROI to replace our current system with one that lessens errors.

But that is simply moving numbers around a spreadsheet. Human beings are not spreadsheets and don’t act predictably all the time. Say that you have an error and lose the customer resulting in a net loss of $100. How much are you losing in future sales? What if that customer’s needs grow and you would have ended up with $500 orders instead of $100 orders?

Another factor missing in the spreadsheet is human nature. How many people will that customer tell that you can’t fulfill your promises? How much will that cost you? A quick rule of thumb is that for every one person who praises your company, 10 are criticizing.
Let me present an additional consideration. Let’s say that with automation you are able to reduce your headcount by %15. Now, all of your employees are not the same, correct? So you have the benefit of addition by selective subtraction. You don’t get rid of employees randomly; you keep your best employees, the ones who make the best team or the ones that cost you the least in missed work.

Engineering and Management need to evaluate a great deal of different factors in deciding whether to make the leap to automation. The ramifications affect many people who don’t have “distribution” or “supply chain” in their title.

Want to talk to us about how we can help drive the real cost saving with automation? Contact us here. And don’t forget to sign up for our Visionary Automation Newsletter.

An Integrated WMS for a Small Items Distribution Center

Fri, 03 Feb 2012 16:00:00 +0000

SSI Schaefer installed 6 sorters in order to increase picking and goods out performance for Reyher. Up to 3,000 bins with goods can be buffered.
With a handling capacity of approximately 160 double cycles per hour, 1,800 bins per hour can be handled during peak times. In order to further expand the pick performance of the manual small part storage with 7 aisles it was automated and the storage capacity of bins was increased up to 120,000.
Everything is controlled by a warehouse management system developed by SSI Schafer integrated into the existing SAP system. The site is managing several warehouse areas the system also controls all goods in and out, picking and the flow of material.

For more informtation about what SSI Schaefer can do for you contact us.

The Fulfilment Factory B2B and B2C from one DC

Fri, 27 Jan 2012 15:41:00 +0000

The Fulfilment Factory is an innovative solution to the picking and packing of small items in a mix of e-commerce and retail distribution. The concept consists of steps: storage, "Infeed station", sorting and sequencing and packing station.

Being a single-item based approach; it is independent of an order structure and is also flexible to changes in the businesses structure.

This solution offers a new approach to split case order picking which is designed specifically to meet the modern challenge of multiple sales and distribution channels -- Today and in the future. Download the Guide to Modex and visit us at the booth 4709.

How All Aspects of Growth Drive Change in the Distribution Center

Fri, 20 Jan 2012 15:47:00 +0000

What are the keys to drive a company towards automation? What are some telltale signs that mean you can’t try to squeeze a little bit more or hold on a little while longer to how you have been running your distribution center? The predominant sign is growth.

However, there are a variety of variables that can “grow”. Let’s take a look at some of them and see how they might influence the need to evaluate the workings of your distribution center.

SKU: If you have growth in your SKU count, you need more pick faces. Over a year if you have growth of 5-10% in your SKU count, automation could be a great avenue to pursue. Even if the growth is only seasonal, during those times you need the additional places to pick from.

In this instance, taking into account throughput and SKU dimensions, a Goods-to-Person system could be a good fit. With good planning, automation can be flexible and a great way to increase your storage capacity while remaining within the same footprint.

Business: Let’s look at growth in another way. Let’s say business is booming. In this instance, the growth is external and you have growth in customers, or your customers order profile changes, and they need more of your products. You will obviously, need more throughput. This kind of growth could also be a signal for automation. Person-to-Goods can only get you so high a rate before the inefficiency need for space and labor cost become untenable.

Errors: Another way to look at growth is in a negative light. Let’s say your errors are growing. For example if you are in the pharma industry, the goal is Six Sigma. This is 3 errors in a million. The typical standard in a manual DC is 97% accuracy, which is not going to ensure the Six Sigma Goal. Let’s say you have a grocery DC with 97% accuracy. If you are shipping out 130,000 cases a day that means you have an entire truckload of errors every day.

How much does it cost you to deal with all of those errors? The labor and the loss of customers alone add up to another reason to look at automation.

So while in most cases, growth can be a good thing, it is closely tied to the need to reevaluate how your company operates your supply chain. Have any other thoughts on aspects of growth we missed? Let us know by comment below.

And if you are attending the Modex Show in Atlanta please be sure to visit us at booth #4709. And don’t forget to download your Guide to Modex 2012.

An Autonomous Alternative to Forklifts in Your Distribution Center

Fri, 13 Jan 2012 15:08:00 +0000

The SSI Autocruiser is an economic and flexible transport system for small and medium throughputs. It is able to convey almost any product weighing up to 66 lbs. There are also special designs for heavier loads.

This material handling system is based on a simple, yet robust track network, on which each vehicle runs autonomously. No external infrastructure is required and a household socket is sufficient for the power usage.

This makes the SSI Autocruiser easily scalable and also suitable for larger distances. It is therefore possible to replace other conveyor technology, such as forklifts and roller conveyors, in the supply chain.

For more information email us here.

ES3’s D2SSM Solution Wins 2011 CSCMP Innovation of the Year

Thu, 05 Jan 2012 14:57:00 +0000

ES3’s direct-to-store (D2S) program has been selected as the winner of the 2011 Supply Chain Innovation Award ™ by the Council of Supply Chain Management Professionals (CSCMP).

The D2S program provides a shared, collaborative warehouse for manufacturers and retailers, resulting in significant reductions in costs and carbon usage, improved speed to shelf, and increased on-shelf availability. The D2S solution was presented by Walt Lentz, Senior Vice President of Ahold USA; Dave Allen, Executive Vice President of Operations of Del Monte Foods; and Brenda Hambleton, Chief Strategy and Marketing Officer of ES3 at the Annual Global CSCMP conference in Philadelphia.

The Supply Chain Innovation Award ™ recognizes outstanding innovations in supply chain practices that reduced costs, streamlined processes, saved energy, and improved operating efficiencies. Six corporate teams competed for the award, including ADT Security Services, Inc. in collaboration with Inmar, Inc.; The Dow Chemical Company in collaboration with Dr. Timothy Pettit of the Air Force Institute of Technology; IMB Corporation; Motorola Mobility; and Polo Ralph Lauren.

Final selection was announced this morning. Upon hearing the news, Walt Lentz expressed his congratulations to the whole D2S team. “Your teams continued hard work and belief in this new concept is greatly appreciated by myself and the greater Ahold organization,” he said.

“Excellent! Congratulations! The future is even brighter,” said Dave Allen.

ES3 has the world’s largest grocery warehouse in York, PA. The facility is the first truly collaborative warehouse and serves as the Northeast mixing center for over 60 manufacturers. ES3’s D2S program provides daily delivery to retail stores directly from manufacturer inventory – eliminating the retail warehouse and a leg of transportation. This speed to shelf store is enabled through ES3’s streamlined processes and automation. ES3 uses SSI Schaefer’s SCP case pick solution to handle slow-mover case selection.

About ES3

ES3 is an experienced team of supply chain experts focused on innovation that will make product move faster, more efficiently, and at less cost than traditional supply chain models. The ES3 network spans the entire US, and includes the world's largest, multi-manufacturer collaborative warehouse, which services the Northeast with ES3's revolutionary Consolidation and D2S^SM programs. ES3 provides consolidated warehousing, case pick and transportation services to more than 60 consumer packaged goods manufacturers. ©ES3, LLC.

WAGO Partners with Schaefer for Their Distribution Center Retrofit

Thu, 15 Dec 2011 13:44:00 +0000

Charlotte, NC: WAGO Corporation announced that they awarded Schaefer Systems International the contract to upgrade their distribution center. WAGO, whose corporate office is in Germantown Wisconsin, is a manufacturer of electrical and automation components for industrial equipment.

WAGO wants to increase storage and update the overall system. The Schaefer solution meets both of these goals while substantially increasing the storage capacity of the building and automating the rest of the material handling process.

Schaefer is providing WAGO a system that includes a 2 aisle double-deep mini-load crane with rack, totes, and goods to person workstations. The software controlling the system is designed to interface smoothly with their WMS from Klug GmbH.

This project was one of Schaefer’s “Combi Projects”, meaning that the entire system, from cranes to totes, to rack to software, was developed, designed, and manufactured by Schaefer.

Gordon Hellberg, VP of ASD for Schaefer systems, said, “We are excited about this solution for WAGO. It will meet all their needs and it will interact well with all of the components that were already in place, making for a smooth integration.”

The project is slated to begin in mid-December and has a 37 week timeline.

WAGO is the leader in spring pressure connection technology that eliminates loose wires resulting from vibration and temperature cycling, while providing highly reliable, corrosion-resistant and maintenance-free connections. Products: DIN-rail, PCB and chassis-mount terminal blocks; signal conditioners; the WAGO-I/O-SYSTEM and more.

Planning and Concept for an Automated Distribution Center

Fri, 09 Dec 2011 15:11:00 +0000

SSI Schaefer took on the complete conception and construction of the distribution centers for Coles, Australia. The main objectives during the planning phase were: high availability of sku’s, synchronization of distribution and dispatch, improved reaction during peak periods and a modern design for goods flow.

Another of Cole’s goals was the reduction of storage costs and the optimized assignment of personal. Every process was analyzed to ensure they met Cole’s high requirements.

If you would like more information about how Schaefer can help you with updating your distribution center contact us here.

4 Reasons You Should Consider Carousels in Your Distribution Center

Fri, 02 Dec 2011 08:14:00 +0000

This blog was initially conceived to serve as a comparison between earlier carousels and the latest generation. However, during my research I kept running into a problem. Everyone I spoke to said, “Well, there really is no comparison. They are too different.” Nevertheless I will persevere though the only similarity between the two seems to be the fact that they rotate and the name carousel. So here are four reasons why you should consider a new generation carousel in your distribution center.

Extractor: The newest generation of carousels is much more efficient with the combination of the extractor and workstation. In the earlier models product was picked directly from the carousel, which meant it was, in essence, a “person-to-product” system. However, with the extractor and workstation it becomes a true, “goods to person”, system. Also, the extractor functions to separate the carousel (storage) and the picker (retrieval), making it possible to buffer the products.

Faster: In the better carousels the extractor carries 2 loads at a time, so you are getting a true double cycle. One load is retrieved and one is stored every time the carousel stops. This results in higher throughput for the system.
The software behind the system is also improved. It can calculate the most effective way to get to the needed totes with the least amount of movement, saving time and energy expended.

Energy consumption: The true double cycle also helps with the amount of energy that the carousel consumes. The energy consumption is lowered because there is less movement the carousel performs to make a pick or put.

In addition, the use of randomized storage also improves the energy consumption. With this system you can take any tote out that is needed at the workstation and replace it with any other tote. There is no need for the carousel to spin and the extractor to move to an assigned location for that particular tote.

Application: This is less of a function of the carousel and more a function of the supplier. A true “goods- to-person” system is the goal. In the past, carousels have been applied as a one size fits all application. This is, of course, incorrect. Carousels are better geared to your slower moving products; for instance your slower B’s and below.

So what are your thoughts on the carousel and its place in the industry? Are there any more benefits that I missed in a carousel system? If you would like to learn more about how a carousel system might be able to help solve your distribution problem, contact Schaefer Systems.

Modex 2012: Schaefer Unveils the Fulfillment Factory

Fri, 18 Nov 2011 14:55:00 +0000

Schaefer Systems will unveil the revolutionary Fulfillment Factory distribution concept to the US Market at Modex 2012 in Atlanta. The Schaefer Fulfillment Factory enables companies to process orders automatically; regardless of order profile or recipient. This unique system allows companies to operate e-commerce and direct to store distribution from the same fulfillment center. Stop by booth 4709 to see the Fulfillment Factory in action or schedule a time for an appointment at Modex.

Getting the Most out of Modex and other Material Handling Tradeshows

Fri, 11 Nov 2011 19:38:00 +0000

With the material handling tradeshow season right around the corner I started thinking about how attendees to these shows can maximize their investment. Even if there is no monetary cost to attend a show there is still an opportunity cost.

Your return can be maximized because of the singular opportunity to meet with a variety of companies and the chance of finding a great company to work with. This is especially true at the larger shows, for instance this year’s Modex 2012.

First, why do you go to tradeshows? Of course to see new products and services, but also to get a feel for a company and see how they operate. This is one of the few places that you can evaluate several potential partners side-by-side and see if a relationship might be profitable.

So how can you best evaluate a company and maximize your time at Modex?

Are they innovative? Do they have new concepts in picking systems or other solutions that can help you improve your process?   Does it seem like they are taking strides forward and increasing their offering to the market? Or are they just trotting out the same old thing you have seen for the last 4 shows? Most people are looking for an innovative partner that shows continual improvement, as opposed to a company that is stagnant and focused on older technology

Do they fill a need? Is there a real need for what this company does in your supply chain? If there is a need how well do they present how they can fill it? Can they tell the story of their product? Are there case studies or do they have a compelling presentation on how their application can help your business?   Even if the product is brand new they should have a compelling story why you should invest time finding out more about how it might be able to help you.

Do they seem like a good fit? How do you think this company will work with yours?    Do they seem actively interested in helping you or can they not be bothered? Does their company culture seem to fit with yours?

The 3 above reasons are a quick way to judge a company on the show floor, but you can also do a few things before the show to maximize your return.

Keep an open mind. There are a lot of interesting companies on the tradeshow floor. Take a moment to research a few companies that you may not have on your radar and see what they have to say.

Do your research. Write down a list of potential companies that you want to talk to. Also see if you can make an appointment beforehand so you can use your time more efficiently.

Hope this helps you find the perfect material handling partner at the upcoming tradeshows.

If you are planning on coming to Modex in Atlanta please stop by Schaefer’s booth
4709 and see our Fulfillment Factory concept and system for yourself.

Integrating a High Bay Warehouse into an Existing Warehouse.

Fri, 04 Nov 2011 14:35:00 +0000

In this project for Reyher, a producer of screws and fasteners, SSI Schaefer integrated a high bay warehouse into their existing distribution center. With 36,000 additional storage positions capacity was increased to 60,000 pallets. 5 cranes each with 2 telescopic forks operate in 5 separate aisles. With 200 double cycles an hour approximately 400 pallets can be handled. In the second phase an additional 12,000 storage positions were created.

For more information about how Schaefer can help with your distribution center project contact us

Storage and Retrieval Machines for Automated Distribution

Fri, 28 Oct 2011 15:00:00 +0000

In this automated distribution center designed by SSI Schaefer, the totes filled with products are directly stored in the storage system mini-load (SMC) or the Schaefer Carousel System (SCS). In the mini-load the totes are stored double deep in eight aisles.

Eight storage and retrieval machines (SRMs) ensure the smooth processing of storage and retrieval movements as well as transport movements to the picking stations. Next to the mini-load 2 SCS modules with its 13 levels, add another 8,000 highly dynamic tote storage positions.

For more information download the Storage and Retrieval Machines brochure and the Schaefer mini-load brochure here.

7 Qualities to Look for in Your Warehouse Management System

Thu, 20 Oct 2011 14:48:00 +0000

A Warehouse Management Solution or WMS seems complicated, but at the core is simply a tool for your distribution center. However, it is a vital one, especially when you move from a manual solution to an automated one.

The difficulty with buying a WMS is that it can be a challenge to ensure that you get the best ROI. When you buy a new conveyor system you can tell that it is in good shape and will work for the application. But you can’t pick up a WMS and hold it and look at it. So, in order to be prepared to enter the market, let’s arm you with some of the qualities that make up the best WMS’s.

1.   A WMS tracks all aspects of inventory (items, quantities, attributes, etc.) and manages location utilization. Want to know where every widget is and how many you have in each color? Your WMS knows and can give you the information instantly.

2.   A good WMS controls generation of work (movements, QC, VAS, etc.) using configurable strategies. In laymen’s terms, the WMS directs what needs to happen to get product out of or into the distribution center. Let’s say the WMS is told that 6 widgets need to go to A, it then translates that into the work to be done to meet that goal.

3.   The WMS manages the delegation of work to a resource, be it a person or A-frame, crane or conveyor. An important note is that the WMS issues the work to not just the resource that can accomplish the task, but also the one that can accomplish the task most efficiently.

4.   Your WMS manages the fulfillment of demand and execution of work by resources, using system processes that have been personalized by your specific requirements. The “resource” to do a job at one distribution center is rarely the same as one used at another DC, and even more rarely is it done in the exact same way. For the WMS to be the best tool possible, it needs to be customized to work with the labor and machines that it has at its disposal.

5.   Your Warehouse Management System keeps historical data records of activity for auditing and planning use. Not only is your WMS a tool for “now” but a tool for “then”. With a good WMS, you can mine historical information by the minute, day week, or year, and use it in preparation for the future. Who or what touched this widget and why and when?

6.   The best WMS has a flexible integration to customer host systems, forming part of a customer’s larger supply chain execution strategy. It will interact with your other systems and can even be “plug and play” to ensure that there is as little disruption as possible to your supply chain.

7.   In the best case, your WMS provides a platform for optimizing processes that increase efficiency and accuracy, thereby reducing costs. The WMS should manage and assign work and communicate with the rest of the system so that efficiencies are maximized and your automated distribution system works in the best way possible.

Bear in mind that a WCS (Warehouse Control System) can complete some of these functions, however only a robust WMS can complete all of them. Is there is anything we missed about what the best WMS should do? Let us know by commenting below.

Fully-Automated Picking for Smaller Items in Your DC

Fri, 14 Oct 2011 14:19:00 +0000

The Schaefer Robo-Pick is the first fully-automatic picking cell that can be integrated into existing distribution centers. You do not have to teach in the articles to be picked or to arrange the products in a particular position for the robot to pick them. The innovative two-step image processing system automatically recognizes the position of the products on the tray and controls the picking robot.

When combined, the robot and the vision system can achieve more than 2,000 picks per hour.

Typical users of the new Schaefer Robo-Pick are pharmaceutical companies, e-commerce companies and mail order shippers. This profile would mean compiling a shipment of 2 to 20 articles in the correct quantity according to a customer’s order from a range of 5,000 to 50,000 articles on stock. The result in picking is the incredible quantity of more than 100,000 individual articles in a typical distribution center on a daily basis. Download the Robo-pick brochure.

SSI Schaefer Optimizes Solar’s New Distribution Center

Fri, 07 Oct 2011 13:01:00 +0000

With an integrated logistics concept, a new Miniload and connected Pick-to-Tote workstations, SSI Schaefer has significantly increased the capacity and performance in the distribution center of the Danish wholesaler Solar Danmark A/S. After the project the companies formed a strategic cooperation with Schaefer responsible for the design and equipment for Solar's future distribution center projects.

Sensor systems, ventilation systems, sanitary supplies and electrical items for machine engineering are just some of the items supplied by the central warehouse of Solar Danmark A/S in Vejen. The central location in the heart of Jutland, a sophisticated distribution operation and the high quality demanded by Solar have led to a continuous growth and a revenue of more than 340 million Euros in the last year.

“The increasing order volume and the requirements to satisfy demands of modern logistics limited the warehouse capacities and the order picking strategies“, explains Lars Kristensen, technical manager of the logistics system in Vejen. The expansion of the distribution center in Vejen began in early 2009. “We had to increase order picking performance, capacities and efficiency of the order creation to meet the increasing requirements of the market. “

SSI Schaefer was chosen as general contractor for this project. “Modern technology, a good cost/performance ratio as well as the market position and the world-wide presence were the decisive criteria", explains Kristensen. Increasing order volumes made it necessary to create a concept for efficient intra-logistics, resulting in the implementation of an automatic Miniload with connected order picking stations. In addition, Schaefer delivered and integrated the tote conveyor system, connected it to the existing system and installed a tailored warehouse management and control system with visualisation.

The expansion of the 45,000 square-meters distribution center has been in operation since the end of June 2010. Forty trucks arrive at the gate every day to transport the goods. 11,000 orders are commissioned in Vejen daily and are forwarded to the recipients.

“Solar-customers can contact us 24 hours a day, seven days a week. All orders which we receive before 6 p.m. are supplied on the next workday before 7 a.m., if this is geographically possible“, illustrates Kristensen. “Nevertheless the customers expect perfection in the order configuration - and we endeavour to meet this expectation. “

The new Miniload of SSI Schaefer is helping Solar meet their customer’s needs. The bulk of the small parts orders are compiled via the new automation system and the connected ergonomic picking stations - nearly a quarter of the order volume.

The technics wholesaler has 44,000 different items in stock in the old warehouse in Vejen with 32,000 totes available for storage. The capacity of the distribution center has doubled with the compact new system, which significantly increased with the new system. To accommodate the future growth of the company, the new system was designed so that a second, Miniload can be erected on the area previously occupied by older equipment.

At present the capacity of the new warehouse complex offers Solar sufficient range even for peak output. The compact system design with associated efficiency and the high-capacity components for largely automated processes enable the current advantages. Eight single-mast Storage and Retrieval Machines (SRM), Schaefer Miniload Cranes (SMC), with a speed of 23’ per second, and a lifting speed of 13’ per second, generate a throughput of 137 totes per hour each. Their telescopic load-handling device (LHD) offers double-deep storage of totes with a weight of up to 55 lbs. into the Miniload.

For the order creation, the item totes are retrieved in sequence by the SRMs and are sent via a short conveyor to four Pick-to-Tote picking stations. The direct connection to the Miniload offers, per station, a supply and removal buffer of up to 25 totes for retrieval and storage. This enables continuous supply and constant order picking.

Of the four Pick-to-Tote stations installed at Solar - one of them is used for the quality management. “Five order picking stations were originally intended", says Kristensen. “But the simulation clarified that four stations are sufficient to cope with the full load of the Miniload.”

Contrary to the conventional thinking the order picking stations in the new plant are not positioned crosswise, but lengthwise to the Miniload. This design offers a uniform arrangement of the material flows without deviations for the order picking. The benefit for the customer is an efficient supply to the picking stations in a compact area with a smaller conveyor system.

Schaefer designed the workstations for optimal ergonomics and operator ease, which means the picking at the "multi-functional Pick-to-Tote“ stations deliver a 10x increase in capacity compared to conventional strategies. They not only meet the strict occupational safety requirements in Denmark, but also the flexible design enables fatigue-proof and stress-free order picking. Individually adjustable control elements, as well as ergonomically positioned displays and indications direct the operator. The system checks the item amount and the correct allocation of the order and, if applicable, a fault removal routine is activated. This means that Solar can increase not only the picking rates, but also the picking accuracy.

Schaefer installed two separate loops on two levels for the tote supply and removal at the work stations. Each of them offers a high density with a capacity of up to 1,200 totes. The top loop transports the storage totes, the bottom loop the picked order totes. After retrieval from the Miniload the picking positions are supplied with storage totes via the supply section. Supported through a Pick-to-Light system, the goods can be directly picked into the available order totes with a performance of up to 1,000 picks per hour. “However, the high throughput was not decisive at the design", explains Kristensen. “We have to implement numerous additional tasks at the order picking; bags or small cardboard boxes have to be opened, for example. We currently operate every station with around 200 picks per hour. The performance capacity of the stations is already designed for future growth. Safety and efficiency of the processes was especially important for us”

The order totes are linked to two bottom loops so that the picker at the picking stations can pick from top to bottom following a sophisticated picking process; from one storage tote into seven order totes. The interaction of display details and integrated Pick-to-Light system makes for clear operator guidance. The display indicates the respective items and the item amount to the picker. An integrated light grid monitoring of the destination position avoids erroneous order picking. Removal and deposit of the items are confirmed per touch screen – generating at the same time a record in the WMS.

The warehouse management system ACX installed by SSI Schaefer controls both the order-related retrieval and also the order-optimized supply at the picking stations. With its functions and the control functions tailored to the processes at Solar it covers all tasks from warehouse management and inventory management, via processing of goods receiving and shipping, up to order picking and material flow control. The plant visualisation installed by SSI Schaefer offers integrated transparency of the processes and plant status in the Solar distribution center.

After the Pick-to-Tote stations, the goods totes are transported via the top loop back to the transfer conveyors into the Miniload. The completed order totes as well as empty totes are transported on the bottom loop to a transfer position at the installed conveyor system. This serves the packing stations installed in the old plant.

In the packing stations the order items are packed into delivery boxes, equipped with shipping documents, labelled and then forwarded to the goods shipping.

The separate tote management and the decentralisation of the material flows of goods and order totes optimizes the capacity and quality indexes of the entire plant. The integrated quality controls at the Pick-to-Tote stations deliver a high reliability at the order creation. “With 99.8% of faultless Solar-deliveries we are near the zero fault command variable in the order picking" says Kristensen proudly.

Just one year after completion the management of Solar are sure about their decision. “The plan has met our expectations in efficiency and sustainability", sums up Kristensen. “Moreover we can look back on an extremely harmonic course of the project at which SSI Schaefer has not only met all schedules, but even exceeded them. We were able to complete every project section almost one week earlier than scheduled.” The plant in Vejen is a reference plant both for Schaefer and also in the Solar concern. Solar A/S has formed a strategic cooperation with SSI Schaefer. As a partner SSI Schaefer is responsible for the design and equipment provision of the intra-logistics in future projects of Solar A/S.

The Concept of Total Distribution in an Automated Distribution Center

Fri, 30 Sep 2011 14:15:00 +0000

Last week I wrote about how we define Unconventional Distribution. This week I would like to explore the concept of Total Distribution. Total distribution is controlling, and therefore maximizing, everything that goes in to your automated DC from soup to nuts. Or totes to robots.

You can’t use one technology in a distribution center. For instance, no distribution center is entirely composed of conveyor. No, you need the conveyor, the WMS, the cranes, the totes, the rack, and everything else that goes into making the distribution center to work as a whole. That’s the concept for total distribution.

Let’s talk about the advantages.

When you have one team with one concept designing and building the system you get a sum that is greater than the whole. This is similar to how Apple builds a product. They know every little piece that goes in it and how it will play with every other piece. They don’t go out and grab the cheapest or the most readily available part. They use components that they know will enhance the rest of the system. That’s the concept for total distribution, but instead of making great electronic gadgets this makes a great way to store and distribute electronic gadgets. Or say distribute pharmaceuticals.

Another advantage is totes. Specifically standard sized totes vs. designing the automated system and then going back as an afterthought and saying, “Oh yeah, we need totes that are x by y by z.”

And the dismay of finding out that those size totes don’t exist.

Of course that size can be made, but it will cost much more than if you had planned to use standard totes in the first place. The same idea with standardized conveyors sizes. With total distribution you don’t run into fun (and expensive) little problems like that. You know your components from the initial design phase.

The key is to start with the end in mind. This is actually something we have been saying for a while. What kind of performance do you want to get out of your system? Great, let’s build the system from those requirements. That requires a hard look at the design and what components will go into it. A measure twice cut once philosophy can apply to distribution center design as well.

If you would like to learn more about Schaefer and our concept for total distribution contact us today. Also visit us at Modex 2012 in booth 2105 where we will be sharing our thoughts on Total Distribution.

What Does Unconventional Distribution Mean?

Fri, 23 Sep 2011 13:56:00 +0000

If you have been reading this blog, you know that we are advocates of unconventional distribution solutions. In fact, we believe that unconventional picking and storage solutions, increase distribution center efficiency and yield the best return on investment over traditional solutions.

But what does “unconventional” mean in regards to distribution and supply chain, and how does it help your return on investment? Well to us, unconventional means finding the most efficient and effective way to solve distribution center problems. Typical or standard distribution solutions don’t rely on finding the most efficient way to do something. Typical users rely on finding any system that will work and sticking with it. They don’t take the time to find the best way it will work.

That’s similar to the approach, “if it’s not broke, don’t fix it!” There’s wisdom in that approach for something simple, like a window or a child’s toy. But for a automated distribution center that has a multitude of moving parts that can be optimized, it’s not so black and white. Look at it like this; A unicycle is a form of transportation, but just because it works doesn’t mean it is the most efficient form of transportation.

To be clear, unconventional distribution systems are not different for difference sake. Unconventional is looking at a solution and saying, “Is that really the best way to do this? What if we did this? This is how we do it now but should we do it that way again?” Finding an unconventional solution means digging in and seeing what will work best. It also means applying past knowledge to a new problem, sometimes in a unique way.

So, how do we assure that we come up with the best design to a distribution center? It starts with a different approach. For instance, people ask why we request so much data, when others don’t. It‘s because we use all that data to really get to the heart of how a system needs to perform and what a company needs to get out of it. When we get into the data and break it down, we can determine where there are opportunities to make a solution better. We want to ensure that when we design a distribution solution it is the best it can be given the budget and requirements.

What are your thoughts on unconventional distribution? Do you agree that it worth the extra effort to come up with something that works the best vs. something that simply works? Comment below and let us know.

Also remember to like us Schaefer on Facebook.

SSI Schaefer Showcases Its Total Distribution Solutions at Cemat

Fri, 16 Sep 2011 14:37:00 +0000

SSI Schaefer showcased its newest technologies for distribution center systems this year at Cemat 2011 in Hanover. The synergies of the SSI Schaefer Group, including containers, packaging, rack and automated systems allows companies to choose a sole provider for all their intra-logistic needs.

The fulfillment factory concept offers an unconventional solution for various sales channels. The newly developed individual product conveyor and sorting merges distribution technology for B2B and B2C in one process.

The SSI Schaefer auto cruiser is a new system for moving product through a DC that is both flexible and low cost. It closes the gap between conveyor and forklift movement, while costing a third of a conventional conveyor. The auto cruiser can be set up quickly with no specialized knowledge.

For more information contact SSI Schaefer here.

How Standardizing Distribution Centers Globally Can Hurt Your Company

Fri, 02 Sep 2011 15:22:00 +0000

Often in large corporations there is a desire to standardize everything company-wide. In some cases this is not limited to say, office supplies, but also to their distribution centers across the globe.

Companies think that this standardization will work as a way to control cost and ensure that everyone is on the same page. While standardization in one country or region can be a great idea, globally there are some pitfalls that could be avoided by non-standardization.

You lose flexibility: Let’s say you standardize and pick 10 components that work across all your distribution centers around the world. And then you add more DC’s in a different region. This new region may have different products, packaging requirements, Pareto curve from all your other distribution centers.

Your distribution needs and SKU base say in the US vs. Bulgaria are very different. Therefore for maximum efficiency, standardization might not be the best idea.

Technology changes rapidly: Let’s continue with the earlier example and say you have the 10 standard components. Now some new product is released that totally revolutionizes a process.

Do you go back and add it to your list? Do even have that option or have you painted yourself into a corner? The fact is that as you build new DC’s across the world there will be new technologies that could help you. And you ignore those technologies and limit your efficiency or you embrace the new products and end up without the standardization that you wanted in the first place.

Different areas have different cost: It may be very cheap to get some parts in Europe for a DC. But how much is it to get the same parts in India? In some areas labor is cheap and plentiful and in others it’s not. If you choose components that require high labor or high automation and it is not available worldwide, or even worse, availability changes, where are you then?

Also you are limiting yourself to the lowest common denominator as far as systems are concerned. Let’s says that mobile rack will work everywhere (function and budget-wise), but it is not the best system anywhere. It is just the one that works everywhere.

Why not have the best and most cost-effective systems in each location? A highbay warehouse in Europe is ideal. But a highbay where land is cheap may not be the best solution.

Do you have thoughts on global distribution standardization? Please let us know what you think below. Also be sure to subscribe to our Visionary Automation Newsletter!

4 Advantages to Dynamic Storage in Your Distribution Center

Fri, 19 Aug 2011 15:05:00 +0000

Ever look down a line of rack? What do you see? Lots of steel, lots of product on trays or pallets, and lots of…air. We spoke about the disadvantages of shipping air in cube utilization for pallets, so you probably know that storing air isn’t such a great plan either.

So what? It’s just a little empty space, right?

Then you come across a pallet with one or two cases on it. Where there should be 50. Then it matters a little more. But what other options are there? You have to build your rack for the highest possible product height? Otherwise you have products you can’t accommodate.

Well, what if the height of the products on the pallet (or tray or whatever your load unit) determines where the bottom of the next level begins? We call this Dynamic Storage.

In Dynamic Storage your load unit is supported by load arms that are not constrained by the height of product that can be stored in an opening. These load arms extend a short way from the rack upright. Because there is not horizontal fixed beam across the face of the rack, you can use the load arms you need to place your products, providing the densest storage possible.

There are a variety of advantages for your distribution center with Dynamic Storage. The first and most obvious is that you save money by reducing your foot print. Without all the wasted space and standard dedicated pick faces for every load unit you optimize your storage. Dynamic storage helps you gain a 20% improvement in storage utilization.

In addition, to the space savings from having flexible storage areas there is also the advantage of no lost cube from fixed beam heights found in standard pallet rack.

You also have added flexibility. If packaging should change for an existing product in your distribution center, you can accommodate it. Even if your business changes, with Dynamic Storage your system can accommodate your new products. Your rack height change is as easy as taking one group of products out and putting them somewhere they fit better.

Interested in learning more about how Dynamic storage can help your company save money and improve storage? Contact SSI Schaefer and lets talk.

Schaefer's Pallet Software Brings Greater Distribution Efficiency

Fri, 12 Aug 2011 14:29:00 +0000

SSI SCHAEFER has positioned itself at the forefront of Automation IT with the development of its pack pattern generator. The new software module "Schaefer Pack Pattern Generator (SPPG)" optimizes pallet-build composition from the packing density of the inner pallet arrangement, to the stability criteria in full or partly automated Case Picking Systems.

Route optimization, loading space utilization and store-optimized pallet creation are the keys for cost savings and efficient service delivery at order processing. The wide range of items now handled by retail and wholesale distribution centers presents immense challenges for multi-product palletizing. The computing time of all possible packing combinations of a store-optimized pallet is enormous due to the ever widening variety of products. In additon, there are a multitude of restrictions, which apply to the palletizing of different products, so this operation is normally carried out manually.

However, the processes in retail and wholesale trade logistics are becoming more and more automated. In the food industry the Schaefer Case Picking System (SCP) is an integrated system for fully-automatic, store-specific order fulfillment; including fully-automatic palletizing. The physical pallet creation is done by the use of a packing robot using special gripper technology.

To optimize fully automatic palletizing with customer-specific requirements, SSI SCHAEFER has developed a special pack pattern generator, the Schaefer Pack Pattern Generator (SPPG). The SPPG is available as a software module for the Warehouse Management Systems (WMS). In concert with the WMS, the generator enables the ‘impossible’: it calculates the optimal pallet building plan in the shortest time and transfers it to the WMS. With this information the WMS initiates the order fulfillment processes.

This may sound easy, however, a sophisticated software program is necessary. To reduce the number of pallets the different packages are arranged with the highest density and height possible. The SPPG exactly calculates the weight and ‘stackability’ of the packages so goods arrive undamaged to the stores. The specific allocation of goods by class in the respective stores is included in the planning, so that sorting efforts are also minimized upon arrival. I.e. ‘store-friendly’ sequencing is possible.

Further requirements arise from the different packaging and product characteristics for different customers, sectors and markets. In the food sector this affects the beverage industry, the dry and deep-freeze assortment as well as the handling of problematic packaging and fragile items.

In retail and wholesale distribution, packages differ widely in their dimensions, weights and stacking forms, and in their stackability and load capacity. There are also variations in goods type or family groups.

The most important aspects for the pack optimization are:
-   Consideration of different load capacities and weights of the packages to fully utilize the permitted maximium pallet height and weight.
-   Positioning accuracy and stability of the packages during the entire pallet creation process. Every package has to stand steady and alone at its position without the help of additional means.
-   Implementation of different processing strategies to combine different goods and family groups.
-   Maximum stability of the generated pallet to eliminate damage - not only on the conveyor system, but also in the transportion to the store.
-   Handling of problematic packages such as large packages with loose covers, light slip lids of display packages or returnable containers whose load capacity is different within the top load-bearing surface. For example, if a heavy package is put into the center of the pallet it would dip into the below package.

Store-optimized pallets, loading space utilization and the many, product-related restrictions result in partly contradictonary requirements. Nevertheless the objective of the SPPG-development was very simple: To automatically generat and build pallets better than the pallets which were built manually by the best packers.

SSI SCHAFER desigined the solution by dividing all the different aspects of the pallet build process. Then special solutions were defined for every aspect and integrated into the software. The combination of the multiple strategies into one solution created a product that solves the whole problem.

With the SPPG, SSI SCHAEFER refined the development of pack optimization software for the pallet creation. During the first application at one of the largest food wholesalers in the USA the software module was successfully proven in the central warehouse. The pallets planned by the SPPG are better than manually-commissioned pallets in packing density and the pallet volume and quantity, as well as the stability during the transportion.

In the SPPG all necessary strategies are integrated into fully-automatic palletizing so SSI SCHAEFER supplies a software module specially tailored to the individual requirement and processes of the customer. The priority of the optimization objects can, if necessary, be newly defined with every commissioning order by the users of the generator. Due to the special software process the SPPG is able to calculate the optimal pallet design within the shortest time and to adjust or balance the packing density with the requirements of the inner pallet arrangement and stability. After the system has performed calculations using the product and requirements data nothing restrains the fully-automatic palletizing in the operating area.

The result is that the SPPG enables a various range of products to undergo fully-automatic processing from order processing through palletizing. This reduces costs. The increased stability of the pallets also ensures less damage and higher customer satisfaction. Last but not least, the algorithms of the software module enable an optimal packing density and, therefore, the best possible utilization of available loading space. This reduces transport costs and improves the impact on the environment. The Schaefer Pack Pattern Generator forms an important component for further automation and efficiency of order processing.

Author: Dr.-Ing. Hua Li, Project manager SSI Schaefer

Your Distribution Center Can Build the Best Pallets In The World

Fri, 05 Aug 2011 18:00:00 +0000

I heard an interesting story today about pallets recently. A client builds mixed case pallets and ship them to their customers. As a quality control measure, the initials of the person who constructs the pallet are attached in the event of any problems, comments, or concerns.

A few months ago one of their customers called raving about how good a job “A.C.P” was doing at constructing their pallets. “A.C.P.” made the best pallet, and all the other workers should emulate them.

That’s when the customer learned that “A.C.P.” wasn’t a person’s initials, but stood for Automated Case Picker.

The point is that better pallets seem like a small thing, but when you think about it there are a lot of advantages to having better made pallets.

By making more efficient pallets, you use fewer pallets. This translates into more time building pallets vs. switching them out, which has a positive effect on throughput and on labor savings.

Better pallets means you also spend less money in transportation. You are shipping more products and less air (empty space). Your cube utilization improves, so less trucks on the road and less money in gas and drivers.

If you build your more efficient pallets that are aisle-ready you can even reduce stocking time in the store.

And if you can’t quite justify robotic palletizers (your own A.C.P.), with the right software you can maximize your pallets with even manual palletization. The right software virtually builds the pallet before the cases arrive at the operator and displays the pallet pattern case by case on a screen as each one is delivered to the operator.

The software takes into consideration all of the factors needed to construct the “perfect” pallet. Information like crush class, pallet integrity, store ready (aisle-friendly) max weight, height and overhang are all handled by the software.

So while it may seem like only a way to get items out of your warehouse and to the end user or customer, the way you are building pallets could be saving (or costing) you money.

Want to learn more about how to save money from how you build your pallets? Contact Schaefer today and see what we can od to help.

Semi-Automated, Cold-Storage Distribution for High-Seismic Zone

Fri, 29 Jul 2011 19:53:00 +0000

In late January 2011, fruit and frozen food specialist Ditzler Chile Ltda. put its new semi-automated mobile racking system into operation. The newly built refrigerated warehouse can accommodate a total of 10,042 industrial pallets.

One of the key requirements of the project was a very high standard of earthquake safety, and it was essential for the provider they chose, to have the necessary experience in this area. The South American fruit producer opted to place the contract with SSI Schaefer AG, a company with a proven track record earthquake-prone Chile. For the new Ditzler Chile racking system, the experts at SSI Schaefer AG refined their high-seismic design to create new, optimized standards for mobile racking systems in earthquake zones.

In the space of less than a year, between February 2010 and January 2011, Chile – an area of frequent seismic activity – suffered two severe earthquakes and several quakes of more moderate intensity. Unsurprisingly, the government imposes very high standards of earthquake-proof building, and individuals are held personally responsible if any defects are found. To prevent this happening, all new buildings – including warehouses and racking systems – are inspected by specialists in line with strict structural engineering guidelines.

Sturdy construction and low environmental impact

The SSI Schaefer system satisfies Chile’s long list of requirements through a combination of different built-in safety mechanisms designed specifically by structural engineers for earthquake zones.

For racking systems in high-seismic zones SSI Schaefer uses thicker materials, which offer additional resistance to powerful tremors. SSI Schaefer’s modular warehouse system concept allows it to adapt their solutions to the level of earthquake risk.

Ditzler Chile’s new refrigerated facility not only sets new standards in earthquake safety, but also in eco-friendly design. Schaefer installed 40 truckloads of special foam panels from Brazil that even exceed current EU standards. Making sure the insulating material was delivered on time was in itself a logistical challenge, but one that more than paid for itself in terms of the ecological and financial benefits.

New warehouse – new possibilities

Ditzler Chile Ltda. is a subsidiary of Louis Ditzler AG, based in Möhlin, Switzerland. The South American firm’s core business is the production of frozen fruit and fruit specialties, which is supplied to major distributors and retail chains.

The company’s own produce only fills about 10% of the capacity of the new mobile racking system. Ditzler Chile makes the remaining 9000 industrial pallet spaces available to other companies in the industry, thus opening up an additional line of business. Ditzler knew this capacity would be in demand due to the high-safety standards and European quality standard of the refrigerated facility.

The 10,000 pallet spaces in the mobile racking system are split into two semi-automated systems, with 16 and 17 double-face mobile bases respectively. As well as the automatic shelf trolley control system, automatic corridor lighting provides added convenience. Goods management is handled by an appropriate IT solution.

International partnership

Louis Ditzler AG and SSI Schaefer AG have been working together for 10 years. However, the mobile racking system in Chile was the first project awarded to SSI Schaefer by the South American subsidiary. The project represented a continuation of an already successful partnership.

The warehouse was handed over almost a year after the contract was placed, with the actual project implementation being completed in just four months. The final completion phase and commissioning took place in late January 2011. Precise planning and coordination were needed, since all the warehouse parts had to be delivered by ship and truck. The fact that all the components were supplied by SSI Schaefer proved to be an advantage here, too.

In spite of the geographical distance that at times separated the project teams at Ditzler Chile and SSI Schaefer AG, the collaboration was both productive and focused. This was thanks, in no small part, to the hard work and dedication of Bruno Ditzler, owner of Louis Ditzler AG. “The project met my expectations in every respect. Even under the more difficult conditions imposed by the earthquake safety requirements, I was able to rely fully on the expertise and cooperativeness of SSI Schaefer,” he commented.

Increasing Efficiency in Spain's Largest Refrigerated DC

Fri, 22 Jul 2011 14:01:00 +0000

Exceptional efficiency and capacity increase for southern Europe’s biggest refrigerated logistics center.

Donwload the Case Study

As part of a drive to increase capacity, Frigorificos de Navarra (Frinavarra), one of Spain’s leading providers of refrigerated warehouse logistics, looked to partially automate its 524,934 ft2 of warehouse. SSI Schaefer was awarded the contract for this challenging intralogistics project. Frinavarra chose SSSI Schaefer not only for its innovative technology, but also for its ability to deliver a complete solution. The 30% increase in capacity to 915,354 ft3 made Frinavarra the biggest logistics center in southern Europe for temperature-controlled storage.

This extraordinary project included several successful premieres. It was the debut of the fully automated Schaefer Orbiter System (SOS) shuttle solution combined with the Schaefer Compact Crane (SCC), a storage and retrieval system. Frinavarra is operating the first SOS in Spain.

Fast and reliable

Frinavarra specializes in the storage of fruit and vegetables, which make up around 85% of their inventory. In response to the high seasonal volumes of these goods, the company needed a solution that could handle high throughput and temperature-controlled processes reliably, flexibly, dynamically and – most importantly – automatically. A channel storage system with its efficient use of space was the perfect answer.

SSI Schaefer designed a fully-automated channel storage system with over 11,000 double storage locations (two pallets, one on top of the other), offering a total capacity of 22,000 pallets. These are divided between 500 channels, each containing 22 pallet locations, on five levels, installed in a refrigerated facility 282 ft long, 180 ft wide and 50 ft high and at a controlled temperature of -82.4 ºF. The channels are 22 units deep, facilitating the transfer of stock from truck to warehouse, as the vehicles usually transport this number of pallets containing the same product. SSI Schaefer used its channel storage rack system to build the custom racking needed for this project. It has the advantages of being compact and constructed of galvanized steel.

Transfer to storage and picking follow the FILO principle. The warehouse is stocked using the highly efficient combination of the SOS shuttle vehicle and the SCC automatic storage and retrieval system from SSI Schaefer, which also transfers the SOS to the individual channels. Frinavarra’s daily goods throughput, averaging 45 pallets per hour or 720 pallets a day (on a two-shift pattern of 16 hours), is handled by just one SOS and SCS, which demonstrates the flexibility of the system. At maximum capacity the system can move 75 pallets an hour. Another positive impact on efficiency and reliability was delivered by the state-of-the-art functional and energy technology of the SOS, which uses patented eco-friendly power caps instead of batteries.

Well connected

The connection between the new chamber and the relatively distant loading and unloading stations is provided by the automated conveyor system from SSI Schaefer. The system allows goods to be picked within the cold chain, transporting them directly to the refrigerated chamber. This maintains the high efficiency achieved by the channel storage system.

Everything under control

SSI Schaefer used the warehouse management system WAMAS® to handle the logistics processes in the new refrigerated facility. The logistics software covers all processes in manual, part-automated and fully automated warehouses. The capabilities of WAMAS® – from the provision of key inventory data through a track and trace system to RFID integration – played an essential role in increasing efficiency in this project.

The WAMAS system supplied to Frinavarra has a special function that provides additional process optimization for goods provision and truck loading. All the prepared pallets for one truckload are positioned in separate channels inside the refrigerated warehouse at the position nearest to the loading point. This has the effect of reducing the pallet transfer time from the refrigerated area to the truck to a matter of minutes, which in turn reduces loading times. The company also controls automatic reorganization of the new warehouse with its own software feature, which is operated through WAMAS. This makes it possible to maintain the storage processes in spite of substantial seasonal fluctuations in capacity utilization, and any mixed storage necessitated by capacity reasons is reorganized into non-mixed channel storage.

Perfect interplay

In what could well be a record for a venture of this complexity, it took just 11 months to implement the project, including the time to build the new refrigerated storage facility.

The project owes its success not only to the experience and expertise of the supplier, but also to the close collaboration between Frinavarra and SSI Schaefer. “Our contacts at SSI Schaefer were very flexible and always ready to meet our requirements, some of which only became apparent after discussion. SSI Schaefer also showed its expertise and professionalism in the work carried out prior to the signing of the contract and the very detailed requirements analysis,” says Frinavarra’s director Jorge Fernández-Miranda.

Moving to Automation? 9 Things You Must Know About Your Load Unit

Fri, 15 Jul 2011 18:35:00 +0000

When we talk to a customer in the early stages of a distribution center design we need some intial information. For instance, what is their load unit?

And we get a very quick answer. People will say, GMA pallets or totes or boxs.

And then we ask the follow up question. “Do you use that a 100% of the time?”

Then we get a slower answer, a more hesitant answer, “Yes….I think”.

But who cares it’s only the pallet or tote right? It’s just a small thing, pretty cheap too, compared to anything else in the system.

However, it is also the lynchpin, especially when you talk about advanced material handling systems with lots of moving parts and small tolerances. Everything from the conveyor to the AS/RS are built around your unit load. It seems a little more important now doesn’t it?

In light of that, here is a quick list of exactly what information you need to know before your design process moves on.

1.   Do you use a pallet, a tray, a carton, or a tote? Or a combination? If a combination, what is the breakdown by percentage?
2.   Do you use a standard unit? Are there specifications to which all of your load units must adhere?
3.   What are its dimensions?
4.   What is the weight of it full and empty?
5.   What is the deflection? I.e. what happens to your load unit when you just hold it by the sides?
6.   Where is the barcode located on the unit?
7.   What is the design of the bottom of your load unit? (Is it conveyable)?
8.   Is it stackable or nestable?
9.   How much flexibility do you need for future load units?

With this information in hand you have taken the firsts step in designing your automated distribution center.

Thinking changing or totally redesigning your system? You might want to pick your load unit first before you decide on anything else. Sounds counterintuitive, but download our whitepaper on Picking the Tote First for Automated Systems and learn how you can save a lot of time and money.

From a Static Warehouse to a Dynamic Distribution Center

Fri, 08 Jul 2011 14:47:00 +0000

SSI Schaefer completes the biggest investment in the history of Pistor AG

Pistor was founded in 1916 as a retailer cooperative for the bakery and confectionery branch in Switzerland. Pistor AG is the leader in the bakery/confectionery industry throughout Switzerland and the only independent wholesaler in the catering industry. Pistor's customers benefit from a comprehensive array of products ranging from bakery, kitchen, and restaurant to kiosk and store. The individual services include the combined delivery of fresh and deep-frozen products as well as hard goods, financial services such as ordering and accounting aids, state-of-the-art IT, as well as versatile sales support measures.

Due to the massive growth of the business and the desire to be the best in every sector, Pistor was pushed to its performance limits. It was time for a major step so Pistor made the biggest investment in its history: The new construction of a state of the art distribution center (WUZ West) with a sky walk that connects to the existing small package warehouse.

This project represented a quantum leap, which required the skills of a solid partner. That's why Pistor decided to once again put its trust in SSI Schaefer, which supervised the logistics of the entire project as general contractor.

"High-tech distribution center" for a secure future

The long-term goal of Pistor is to achieve a full product range. The objective of the new distribution center near Luzern, Switzerland was to optimize picking processes and the goods supply, to reduce cycle times as well as variable costs, to create ergonomic work stations and to ensure future expansions. The complete integration of the existing small package warehouse during operations played a significant role for this project.

Another major challenge was the strict schedule. Within only two years of construction time, a volume of more than 300 single-family houses was built on a 21,980 ft2 building area. Stacker cranes, weighing several tons and up to 78’ long, were positioned over the roof by the biggest mobile crane in Switzerland.

One of the key benefits of the project is that future extensions of the warehouse capacity can be added any time during running operations.

Quality on the move

More than 8,000 different articles are automatically stored in the high-bay warehouse and dynamically prepared at the picking front, which is the centerpiece of the system. The variety and different sizes of the SKUs require an extremely flexible picking system. That's why Schaefer designed the high-bay warehouse for pallets, small bins and trays. At the same time, the various requirements of the product range had to be taken into consideration since the goods are stored according to temperature.

The goods are picked on roll containers according to the principle "from heavy to light" in 8 picking tunnels in the high-bay warehouse. Due to the exact calculation beforehand by the warehouse management system, WAMAS and the alignment with the planning of the next day, a total of 12 different customer orders can be picked simultaneously per picking vehicle.

The retrieval aid (drawer system) supports the employees ergonomically. This helps the pickers attain a peak performance of over 400 tons a day.

Articles from the small package warehouse located opposite the DC arrive simultaneously via the sky walk in the consolidation area. Once automatically wrapped, they are forwarded along the conveying system towards the goods-out. Not only in the high-bay warehouse, but also in the Pistor trucks, goods are stored according to their temperature sensitivity. Three different temperature zones in the trucks allow the storage of all product ranges, i.e. dry, fresh and frozen goods.

Customer-orientation from one single source

The biggest advantage is that WAMAS organizes all the various systems of Pistor from one source. The warehouse management system (WMS) connects the actual warehouse management with the software of the business processes, including the order processing, tour planning, distribution and invoicing.

In addition to the role as general contractor for the entire logistics installations, SSI Schaefer supplied its in-house WAMAS warehouse management and material flow system, as well as the control engineering. Another major highlight represented the innovative safety concept featuring a safety PLC across all systems, which was employed for the very first time.

"Although the commissioning phase was pretty hectic since the picking was carried out in the old and new warehouse and two WMS systems were applied simultaneously, we managed to process all customer orders in time" recalls Roland Schweiger, manager of Pistor WUZ West. Even during the comprehensive testing period, the system was in fully running operations every day.

Profitability, quality, ergonomics & sustainability

The WUZ West characterizes the future development of Pistor. The completion of the new distribution center generated a number of outstanding advantages, which include process and personnel cost savings due to the continuous logistics software, a higher energy efficiency, as well as ergonomic work stations.

This technological leap is now has become THE sales tool in customer meetings. Pistor AG can profit from a continuous growth, product range extensions, as well as a major competitive edge.

"We know SSI Schaefer as a very solution-oriented and professional partner, which also has the necessary flexibility when it comes to troubleshooting, fast decision-making and unconventional solutions", says Richard Betschart, project manager as well as logistics manager and member of Pistor's executive board, about the collaboration with SSI Schaefer.

Pistor AG and SSI Schaefer look at a bright future together and further plans after the official inauguration are already in process. Richard Betschart said about the plan: "The construction of the WUZ West for goods that are stored at room temperature was only the beginning. Two additional centers for refrigerated and frozen products are about to follow. Of course we are going to entrust this project to SSI Schaefer again and are convinced to have found the right partner for a successful future for Pistor."

For more information contact Travis A. Baker

SSI SCHAEFER adds New Products to the Miniload family

Fri, 01 Jul 2011 12:44:00 +0000

SSI Schaefer is adding storage and retrieval devices to the Schaefer Miniload Crane family with two compact twin-mast devices. Newly developed drive technology enables fast, vibration-dampened transport of loads weighing up to 660 lbs at heights of up to 78 feet.

For CeMAT 2011, SSI Schaefer added two new Miniload Cranes to its product portfolio. These add an automated shelf solution for containers, boxes, and trays. The SMC 2 and SMC 2 XL were designed in response to market requirements for dynamic processes for higher loads.

Based on the two new SMC 2 machines customers can use a closed lifting trolley to hold two standard or one large piece of load-carrying equipment. The new machines can access heights of up to 39 ft (SMC 2) or 78 ft (SMC 2 XL) resulting in high payloads and greater throughput.

Irrespective of their different features, all models in the SMC family are designed using the modular principle. An extensive array of tested components are available for the Schaefer Miniload Cranes. Schaefer supplies the single-mast devices up to 36 ft tall fully assembled while, other SMC’s, ranging from ground beam, mast, lifting trolley and head section to on-board drive and control cabinet, are supplied fully pre-assembled, with the main modules commissioned in the factory. This ensures short assembly times and convenient adaptation to the user‘s individual application.

Customers can choose from a wide range of equipment features to individually tailor an SMC. For example, Schaefer can provide the lifting trolleys with a host of load-carrying equipment ranging from combined telescopes, grippers, and pulling fixtures for containers or trays to box and package grippers.

As in the first series, the cranes of the SMC 2 series offer impressive and extremely stable masts and optimum use of space due to their low clearances. A special production process incorporates very high resistance torque, in spite of their low inherent weight. The twin-mast variant can move up to 660 lbs (SMC 2 XL) in a distribution center with closed load-carrying equipment.

The on-board control cabinet is an eye-catching and significant feature of the SMC family, and is found in the SMC 2 variants, as well. The mast reinforcement strut is guided through a recessed groove allows the control cabinet to integrate into the device conserving space. This particular design feature also prevents the mast from vibrating, and perfectly guides the forces to the chassis.

Other quality features of the new SMC 2 include the usual standards for SSI Schaefer self-servicing devices. High quality, and tested machine elements produced in-house ensure low maintenance, as well as longevity. SMC components are highly standardized both in terms of design and production, resulting in quick availability, short assembly, and start-up times.

Green Crane technology, from SSI Schaefer, also ensures minimal energy consumption. Examples of this technology include: a DC network of drive controllers, or energy-optimized overlapping of motion to use and recover braking energy. This approach both conserves the environment and saves money.

Do Disruptions in the Supply Chain, Change Your Supply Chain?

Fri, 24 Jun 2011 14:15:00 +0000

When there is a large event that disrupts the Supply Chain process, there is a collective shudder in the industry. Everyone takes a moment and reappraises their operation.

However, does that fear really change the industry or drive it to adopt better technology and practices?

With the recent disaster in Japan, here are some concerns in the market and where they might lead.

JIT is Scary. Just in Time doesn’t work when there is a substantial destruction of infrastructure. If there aren’t roads or ships or trains to transport goods, the JIT Supply Chain is out of luck.

With companies having products on the other side of the world does it makes sense for you to keep only the bare minimum you need in your Distribution Center? Electronic companies and automakers have been the hardest hit with this recently. Does that make them more cautious and likely to keep more inventories on hand?

Let’s say that is true and that JIT will begin to be rolled back. That would mean more storage capacity is needed. According to a recent DC velocity article about site selection, 4-5% of the cost associated with a DC is leasing and 50% is transportation. So, while suppliers see risk in not having enough goods or materials on hand there are also rising fuel costs to consider.

To make it more interesting, a recent article by the Journal of Commerce talks about how vacancy rates for large spaces 500,000+ square feet has dropped to less than 10%. Leased space is going to cost more.

So we want, more storage, that is closer to our destination, yet there is less availability….. doesn’t that lead us logically to the efficiency of a high-bay warehouse?

With a high-bay warehouse you have a smaller footprint with greater storage and you can locate close to where your end user or outlets are.

Is this the point where the US begins the transition to automation in the Distribution Center?

What do you think? Will the recent disruptions change how we think and accelerate the growth of the automated warehouse or not? Let us know by commenting below.

Also be sure to sign up for the Schaefer Monthly Visionary Automation Newsletter

Why Pestering is a Positive in Designing an Automated DC

Tue, 14 Jun 2011 13:44:00 +0000

You’re in the process of getting quotes for your automated distribution center or you are appraising some new partners to see what kind of designs they come up with.

One of the companies keeps asking you for more information. They ask questions about the data set you have, or how your business operates as whole. The other companies are plugging away with the data you gave them, but the first one keeps coming back asking for more information. What a pain!

So why should you rein in the annoyance you, your team, and probably your IT people have, with the pestering company and see this detail collection as a positive angle? And why should you see it as a negative when a prospective partner takes the bare minimum information you give them and goes off to design your system with no more questions?

Various Technologies: As we’ve mentioned before, beware of the “one solution fits all” providers. The reason they don’t need as much information is because they can’t apply it.

If you only have a one arrow in the quiver you don’t have to go through them all to find the best fit. It won’t matter what your data set says.

However, if you have technology that fills many different roles, you need a lot more data in order to ensure that you offer the best solution.

Automation vs. Standard: With a traditional system you don’t really need that much data, maybe a number of SKUs and quantity. If all you have in the warehouse is rack and forklifts, more information isn’t really going to serve much of a purpose.

However, with an automated system you need much more data to design an effective automated system. Want to know kind of data you need for an automated distribution center?

Business Model: To effectively design the best system for your distribution center, your supply chain partner needs to know how your business works; How it ticks, what makes you money, and how your distribution center fits into that.

That story is told in the data of your distribution system.

If the companies you are working with don’t seem interested in how your distribution fits into your business as a whole and don’t ask a lot of questions then, instead of a partner you might just have a vendor.

So, now I hope that you won’t be so irritated when your supply chain partner asks you for more or better data. Remember that they have your best interest in mind and a little time spent now will yield dividends in the future.

Remember to sign up for our Schaefer’s Visionary Automation newsletter here and join SSI Schaefer on facebook.

Fulfilment Factory: Maximum efficiency for B2B and B2C

Thu, 02 Jun 2011 14:02:00 +0000

In 2011, SSI Schaefer unveiled its Fulfillment Factory at Hanover. This is a new, innovative conveyor and sorting system, which combines the intra-logistics processes of B2B and B2C orders in one order fulfillment concept.

Via the integral “Fulfillment Factory” concept, SSI Schaefer is offering a totally new product for combined order processing for various sales channels. The newly developed individual product conveyor and sorting technology will merge intra-logistics for supplies to end customers (B2C) and store and wholesale business (B2B) in one order fulfillment process. A patent application for this concept has already been filed.

The Fulfillment Factory concept can be tailored to the user’s logistical requirements across all sectors in terms of range of items, production volumes, spread over various sales channels, and type/structure of picking orders. It is the first system to allow batch-picking, product sorting and order consolidation to be cost-effectively combined following the “goods-to-man” principle.

The Fulfillment Factory is a modular concept including warehousing, ergonomically and logistically optimized batch order picking- a totally new, space saving conveyor module and efficient buffering and sorting of batch items. It also contains ergonomic workstations for the integrated process of order assignment, packing and a link to shipment with a shipment buffer as an available option.

Manufacturers and retailers optimize the sale of goods by continually expanding various sales channels. Customers increasingly have the choice of whether they want to purchase items in a store or on-line. This is a huge challenge for distribution centers, because the logistics requirements and features of supplying end-customers and stores/wholesale are very different. B2B processes involve periodic delivery cycles, 20 to 500 order lines with up to 100 items per line and a targeted number of delivery addresses. The B2C sector is characterized by rapid, ad-hoc deliveries of small quantities at short notice with single-figure order lines each containing up to five items.

However, the spread and increase between the various sales channels is getting harder to plan, and consequently requires a lot of distribution flexibility. In the past, processing these orders simultaneously greatly limited resource efficiency, because of separate storage locations, or order-picking areas for the corresponding sales channels; therefore, compromising process efficiency.

The Fulfillment Factory from SSI Schaefer is the first integral, yet modular system to combine high efficiency with new levels of flexibility. By using standardized system components and a special carrier system, the new order fulfillment system enables both individual products and item quantities to be conveyed in integral system technology. The Fulfillment Factory concept is also perfectly suited to return processes, which have become a very large part of distribution logistics.

Batch order picking coupled with sorting at individual item levels is the most efficient, and also the most flexible way of operating a goods distribution warehouse. In the past, the system technology required for this was so complex and expensive that it was not cost effective to use. The Fulfillment Factory from SSI Schaefer is, therefore, not only a technological breakthrough but a financial one, as well. It delivers maximum efficiency and flexibility for a variety of sales channels.

Mobile Racking Reduces Distribution Center Footprint

Thu, 26 May 2011 14:06:00 +0000

The proven technology from SSI Schaefer enables a smaller footprint for your distribution center.

You can get maximum storage capacity in a given space
or minimum use of space with given storage capacity.

In addition the essential customer benefiets for mobile racking are :

■ Area of utilization: up to 80 %
■ Direct access to all pallet storage locations => no restorage operations
■ Reduction of labor costs
■ High throughput thanks to intelligent storage strategies
■ Optimal adaptation to logistics processes
■ Maximum economic efficiency
■ Maximum system availability
■ Modularly expandable by expansion of the VNA vehicle fleet
■ Modularly expandable by expansion of automated racking blocks
and/or VNA vehicle fleet
■ Flexibly adaptable to currently required throughput

Click here for more information about Schaefer System's Mobile Racking.

Is Better Conveyor Worth the Cost?

Tue, 17 May 2011 13:46:00 +0000

In Material Handling, conveyor is perceived as a commodity; like soy or grain or oil. The price is the only difference in the equation.

However, when you step back and think about it conveyor is one of the most important components in your automated distribution center. There is a strong case for buying “better conveyor” in order to reap the benefits of a greater ROI in your automated system.

Think of the pieces of your automated system, e.g., A-frames, cranes, etc. as tourist destinations. Now think of the conveyor as the roads. It doesn’t matter how great the destination is if your roads have backups and traffic jams or are shut down entirely.

More Uptime: How much does it cost you to be down? In addition to the injury of the downtime, is the insult of the cost of personnel needed to fix the conveyor. Better parts and better manufacturing yield a higher degree of reliability.

Let’s say you have 100 feet of conveyor and you have one AC motor that runs it all. If that motor breaks, the entire 100 feet of conveyor is down. Nothing is reaching its destination.

However, with advanced conveyor, you may have DC motors every few feet. If one motor goes down the system is still operational until the motor can be repaired.

Power consumption: Most standard powered conveyor runs as long as it is on. However, one of the advantages with more advanced conveyor is the ability for the system to tell the conveyor when it can cycle off and on. The DC motors inside the conveyor run only when it has to move product in its area.

Ergonomic Benefit: Spend any time in a distribution center and talk to someone 3 feet away. Then exit the distribution center and speak in the same volume.

Does it feel like you are yelling at them? It’s because you are.

The ambient noise generated by standard conveyor puts a strain on communication. Highly-advanced conveyor and tote systems can come in as low as 10 db, which is less than ambient noise. Compare this to standard conveyor at about 75-80 db.

With all the hidden cost of standard conveyor, is it something you can afford? Want to learn more about “better conveyor” and how it can help you? Follow us on Twitter and sign up for our RSS Feeds and get automated download of our articles.

High Density Pallet Storage from SSI Schaefer

Tue, 03 May 2011 13:07:00 +0000

The Schaefer Orbiter System provides high density pallet storage with channels in excess of 20 pallets in depth. The innovative automated storage system consists of a robotic shuttle vehicle and a docking station. The key to the system is the electrical driven shuttle, which runs on rails below the pallets.

Schaefer designed the Orbiter to meet all European Safety Standards, while substantially increasing capacity over a traditional Drive in Storage System.

One of the major benefits to customers is, that despite the impressive storage density, pallets can be stored for either FILO (First In Last Out) or FIFO (First In First Out) modes.

Using Radio Frequency controlled orbiters, the system provides a far more efficient and cost effective solution over traditional racking systems.

For more information download the Schaefer Orbiter brochure here

Guarantee Your Automated Picking Accuracy for Shipping

Tue, 26 Apr 2011 14:10:00 +0000

New technology from SSI Schaefer performs fully automated verification on shipments from your distribution center.

The fully-automated Order Verifier fulfills all legal requirements regarding consistent documentation of shipping products, especially for pharma shipment.

Using the Order Verifier you can easily meet track and trace requirements and are provided with a solid basis for creating an extensive shipping documentation and proving the origin of the shipped goods (pedigree law).

For more information download the Order Verifier brochure here.

Sophisticated Order Picking Strategies for Automated Distribution

Fri, 15 Apr 2011 13:24:00 +0000

The largest Danish retailer of consumer goods, Coop Danmark A/S, recently completed a major logistics center. SSI Schaefer provided the concept of material flow, the high-performance system components, the ergonomic work stations, and an optimally designed warehouse management system.

From the customers point of view, delivery reliability and quick reaction times are two main criteria for quality logistics services. Intelligent storage and distribution systems ensure the quality of logistic services. The best intra-logistic technology cannot deliver if sub-standard warehouse structures limit the quality of logistic services. Also, shuttle transports between warehouses, and unnecessary repeat-handling decrease the results of intra-logistics technologsy. This being the case, the Danish retailer, Coop Danmark A/S, decided to restructure and reconfigure their logistics in 2008. Seven regional warehouses were to be combined into one central warehouse in Odense, Denmark. The central warehouse was to be equipped with state-of-the-art order picking processes. After an international invitation to tender, the contract for designing a suitable logistics concept, as well as the turn-key creation of the logistics center, from construction to furnishing a high bay warehouse, and the installation of an individually-tailored warehouse management system (WMS) was awarded to the intra-logistic specialists, SSI Schaefer, in Giebelstadt, Germany. "In view of our diverse product range, we were looking for a solution with intelligent material flow and well-defined order picking strategies", explains John Møller, warehouse manager at Coop. "SSI Schaefer offered the best solution for our requirements along with an ideal price/performance ratio".

Coop Danmark A/S has more than 9,000 non-food-items in store, from TV’s to video games and clothing. They supply approximately 800 supermarkets throughout Denmark, the Faroe Islands and Greenland. Coop Danmark A/S is Denmark’s largest retailer of fast moving consumer goods. The company operates the retail chains Kvickly, SuperBrugsen, Dagli'Brugsen, LokalBrugsen, the subsidiaries Fakta A/S and Irma A/S, and is owned by FDB. Coop Danmark A/S, together with the co-operative societies, has an annual turnover of approximately DKK 50 billion and has 1,200 stores all over Denmark. The company has approximately 35,000 employees, in total. Many of the products are items from advertising campaigns that must be supplied to all of the stores at a certain time. Since January 2010, supply has taken place from the new central warehouse in Odense. For exactly this purpose, the three-block high bay warehouse (HBW) with four aisles per block and a total of over 36,000 storage locations for single-deep storage of pallets that may weigh up to 1,000 kilograms was constructed by SSI Schaefer. The high bay warehouse (HBL) started running in the beginning of April 2010. Altogether twelve storage and retrieval machines that move at a speed of up to 250 meters per minute ensure quick storage and retrieval of more than 500 pallets per hour. The HBW serves as a supply and transfer warehouse.

Parallel to the high bay warehouse, SSI Schaefer created the warehouse management system for the manual low-bay warehouse. There, storing positions for man-to-goods order picking of fast-moving items are available across three shelf levels. "Stock and processes at the warehouse in Odense are governed according to advertising campaigns" explains Peter Lambrecht, project manager for SSI Schaefer. "The objective is to achieve a high throughput in a short time. In addition there are also finishing treatments that take place at the logistic center. Due to the complex product line, different types of storage areas as well as several different order picking strategies characterize the flow of goods at the Coop logistic center."

Coop does not necessarily achieve utmost flexibility through maximum automation. Due to the complex product line, order picking strategies are, in fact, vastly oriented toward the efficiency of manual processes.

Items delivered on pallets are logged in goods receiving, and then transferred to the high bay warehouse or block storage. Articles like Playstations, which will have CD’s added, will be allocated to the workstations immediately when required. After the addition, they are stored in the high bay warehouse as a new stock item. Smaller, high-value items are stored in a separate paternoster system. Order picking shelves with an attached gravity-roller-conveyor are installed for small volume commodities, like CD’s that are not large enough to be picked directly from the pallet. Both systems are supplied from the high bay warehouse, or as the case may be the manual warehouse; depending on the advertising campaign. "Supply of order picking positions and the picking process itself are controlled by the WMS 'ant' designed by SSI Schaefer", informs Lambrecht. "Particularly due to the varied order picking strategies that Coop pursues in Odense, this project was a special challenge for our IT department."

Up to 25,000 order lines for just under 600 orders are processed daily at Coops central warehouse. Depending on the items in the order and the advertising campaign, five partially linked order picking strategies are designated for this task. Thus, each of the three HBW blocks is equipped with a picking station to palletize items for large orders. Two people can be assigned to each station. Controlled by the WMS, source pallets are retrieved from the high bay warehouse and allocated for order picking at six source positions of each block. There, supported by height adjustable, ergonomically designed working platforms, items are picked from the source pallets onto seven target pallets. Therefore, the six people assigned to order picking can process 21 order pallets. This takes place in three stages. Hence, an hourly output of up to 60 readily picked pallets can be achieved in this area.

Partially used and pre-picked pallets are stored in the high bay warehouse again; empty pallets are removed automatically. Readily picked target pallets are transferred to consolidation points. If the commissioned work is complete and the automatic load securing has taken place, they may be forwarded directly to the three dispatch areas via the conveyor system and the installed lift systems. Parallel to this, the WMS arranges for the disposal of packaging waste. The waste is collected in lattice boxes and removed by forklifts.

"Due to the high portion of smaller consignments (approximately 30 percent) that have to be picked in order commissioning, we followed the recommendation of SSI Schaefer and created a separate picking area for this range of articles." explains Møller. For this purpose, a three-level flow rack, with a total of 120 channels for up to five bins each, was installed and connected to the pick positions for larger consignments. The facility is equipped with a Pick-by-Light-System. Pallets containing items that have been ordered by many stores, and that must be pre-picked are supplied from the high bay warehouse.

"With operating units designed especially for this application, pallets can be brought to the ergonomically ideal height" says Møller. "In Denmark strict guidelines for ergonomics and occupational safety are in place." Items from pallets are picked into boxes or bins made available on trolleys- up to 12 storage aids per trolley. After a container has been filled or one product group has been completed, the order picker generates a label for each box and applies it to the outside of that box. Subsequently, the boxes are temporarily stored in the channels of the shelf system. In case the number of boxes exceeds the capacity of a channel, a new channel will be assigned.

"Once picking for a specific shop in the large consignment area is complete, and this shop also ordered goods of a pre-picked product group, a box from the shelf-channels is added to the shipping pallet.” Møller comments on the subsequent steps of the process. While being transported on the conveyor system, ready-picked pallets pass through a wrapping station, and then are transferred to the consolidating or dispatch area via the lift system. "Apart from a high picking-rate and a low error rate the advantage of this concept lies in the verifiably improved shipping package and safety for items as well as the preventive theft protection after the handover of goods.” explains Møller.

In the consolidation area, pallets from the large dispatch area are consolidated with pre-picked or whole pallets from the high bay warehouse, as well as with picked items of the manually operated storage areas to complete the order. Alongside small items of the shelf-system with gravity-roller-conveyor and the high-value items from the paternoster system, the two top shelves are used as replenishment. Order picking is done from the pallets in the lowermost shelf. Pick-vehicles are in operation to support employees. Depending on product group and number of items, vehicles can be equipped with up to two roller containers. That way items for up to four different orders can be picked using optimized routes. Correspondingly, the possible pick-strategies also vary. "Combined with material flow for storage and retrieval movements of goods received and pre-picked pallets in the high bay warehouse, the WMS has to control and monitor five types of order picking overall.” states SSI Project Manager Lambrecht. "Moreover, all goods movement with respective status are continuously booked and governed by the WMS." Furthermore, a visualization installed by SSI Schaefer offers continuous transparency. With an incorporated Gate Management program the IT department of SSI Schaefer also provides order and structure to the docking of trucks for loading and unloading.

"Using ideal utilization of space, high flexibility, and reliable order processing, SSI Schaefer designed a very efficient solution. Not only did it increase our throughput and process reliability but it also offers us capacities for further expansion of our business areas and activities.” Coop Warehouse Manager Møller sums up. "Our expectations of the restructured logistics and the effectiveness of the new central warehouse were met with the system by SSI Schaefer."

How Can Warehouse Automation Help Outside the Distribution Center

Thu, 07 Apr 2011 13:11:00 +0000

We often talk about how Warehouse Automation can reduce cost within your distribution center. Did you know that, automating within your warehouse can even help once your shipment is outside your warehouse, i.e. on the road to customers or outlets? Your warehouse efficiency shouldn’t stop at the dock door and your in-transit goods shouldn’t be off the map. Here is how you can incorporate more visibility into your logistics. Automated Systems demand a substantial Warehouse Management System (WMS), in comparison to manual DC’s, to manage the material flow. The WMS can keep all the product information including the location within the distribution center or when it is loaded and on what truck. With current technology you can incorporate a tracking device into each vehicle of your fleet and have the WMS communicate directly with the trucks giving you more visibility. There are some notable advantages in integrating Trace and Track technology into your supply chain.

Manage Expectations: Your customer or your retail outlets have certain expectations on delivery and customer service. If there are delays, tracking can let you be more confident when informing your customers. Instead of, “Yes the driver called and there was an accident on I-95 and they should be there soon.” You can say, “There was an accident on I-95, your delivery is 6 miles from your facility at Exit 19.”

Competitive Advantage: The certain knowledge of where all the product in your supply chain is, gives you an advantage over your competitors. This is especially useful if you need to present competitive differences to a prospective customer.

Help your customers: This is all part of servicing your customer. If you can help your customer manage their resources, you are seen as a partner vs. a supplier or vendor. If your distribution centers service your own outlets you can also build tighter synergies between the outlets and the distribution centers. The outlets can optimize resources needed to unload the trucks and not waste the time or money of having underutilized headcount.

Save Energy: With more visibility into where your drivers are, you can optimize routes and save money and energy. In an emergency, you can also reroute needed products to other outlets or customers.

If you have temperature controlled or perishable products you can route those products quicker to ensure there is less waste.

We would love to know your thoughts about how visibility into the supply chain has helped your company. Remember to sign up for the Warehouse Automation Newsletter and to follow us on twitter. If you have any question about how SSI Schaefer can help your distribution center visibility, contact us.

SSI Schaefer's Forum Focuses on Sustainability for Distribution

Fri, 25 Mar 2011 15:06:00 +0000

At the Intra-Logistics forum, organized by SSI Schaefer, the focus was on sustainability as one of the most important aspects of distribution. Construction services, plant engineering experts, and logistic systems operators all agree that the rapid development of information technology, including material and system development; offer excellent prospects for achieving a balance between economy and ecology.

Green Logistics links the supply chain with the economy, and creates a safer environment using time optimization, space, employee, energy, and materials utilization. The requirement for resource efficiency applies during implementation of new systems, retrofits, or modernization of the system and the plant components.

Users and experts of the Fraunhofer Institute presented practical examples of the latest trends and innovative solutions in the field of Green Logistics. More than 170 representatives, from 89 different companies, and 27 countries used this event to exchange information regarding proven solutions and the latest technological developments. They focused on increasing the value by using aspects of effective Green Logistics; which, in turn, created striking results.

Gerhard Lohmeiter, environmental consultant at Hellmann Worldwide Logistics, presented real-time initiatives for implementing the requirements of Green Logistics. Hellman, a Logistics service provider, concentrates on overall reduction- specifically the neutralization of CO2-emissions that occur during transport, storage, and commissioning. They can reduce daily CO2-emissions by approximately 50,000 kilograms by relocating 300 swap trailers from the street to the train; Hellmann used various route planning and emission calculation tools to arrive at this figure.

In addition to the transport carriers and the introduction of CO2-neutral transports, Hellmann targeted the processes of the entire value added chain, especially their energy consumption. The process uses energy-efficient lamps to create regenerative energy for the distribution center. Another important goal that Hellmann identified was that of energy-efficient conveyor and lifting technologies.

Companies recently increased resource efficiency for conveyor and lifting technology’s by using plant engineering. SSI Schaefer summarized one topic, “Green Crane Technology.” Effective, optimized-drives, lightweight construction, and low rolling resistance materials yield improvements in mechanics. Enormous energy savings are possible for the new and future system developments.

Companies can reduce up to 50% of their energy consumption by integrating power recovery systems which can result in an ROI for modern technology in less than three years. The same applies to the models of a reduced-wear, low-load operation (20 % saving, ROI less than 1 year) and the DC-link connections (12 %, < 1 year), an intelligent drive cycle control (8 %, < 1 year) or energy-efficient, efficiency-optimized drives (4-8 %, 8-15 years).

The more these energy-saving approaches are used, the larger the savings will be. SSI Schafer presented an example of this, using a small parts storage and retrieval system (MiniLoad) with draft cycles using a comparative calculation. They reduced energy consumption from 71 Watt/h to around 54 Watt/h using a power recovery system. A power recovery system with a low-load operation and intelligent driving cycle control reduces the energy consumption up to 45 Watt/h; resulting in an energy savings of more than 35%. An SSI Schaefer system using the latest developments on intelligent drive cycle controls, results in possible energy savings of 25%.

Energy-efficient motors in the conveyor system yield similar results. In this scenario, highly engineered drive motors use the highest energy efficiency (efficiency class 4). As an innovator and the leading manufacturer, SSI Schaefer must implement an energy-efficient comprehensive resource in intra-logistics, especially for conveyor systems, and for the development of new systems. This begins with planning and layout, optimal-efficiency drives, actual consumption points, and stressing awareness on responsible power consumption.

Economy and ecology don’t have to be in conflict with each other. You can achieve 50% energy savings with longitudinal and lateral transports using modern conveyor systems and careful system planning. Other solutions include: pallet lifters with counter-weights, reduced on-site stand-by consumption, and parallel storage and retrieval systems.

SSI Schaefer’s main focus is on developing effective processes in intra-logistics. They achieve this by avoiding waste, and with the installation of efficient processes; which, can increase the competitive capability, and can also meet the requirements of “Green Logistics.”

However, companies must find inefficiencies in time to avoid them. Often problems like overstocking, multiple handling of items, insufficient warehouse and commissioning strategies, missing replenishment processes, time-consuming voucher systems, and lacking transparency are discovered too late. The requirements for intra-logistics increase the need for flexibility, on-demand-reaction, ergonomics, and environmental compatibility.

Dynamic systems from SSI Schaefer such as the Schaefer Carousel System (SCS), the Schaefer Case Picking (SCP), or the mobile racking systems are the most important components for the system design incorporating ecologic aspects of land utilization. These systems processes are designed for sustainability and combined them with a high-performance Warehouse Management System (WMS) to increase efficiency.

Stephan Stucky, from the Swiss logistics provider Coop, presented which capabilities for resource efficiency can be developed by using the correct commissioning. Coop controls the processes in 16 regional and national distribution centers with SSI Schaefer’s IT-systems, SSI Schaefer WAMAS and SAP as the superimposed system. Controlled by the WMS-system, WAMAS is commissioned by a Pick-by-Voice with a forklift terminal (whole pallets), manual terminals (small amounts), and Pick-by-Light (deep-freeze area). This results in flexible, transparent processes with optimum efficiency, and savings of resources.

The implementation of the high-performance, homogeneous logistics system of SSI Schaefer led to a significant decrease of process interface, and an overall reduction in complexity, as presented by Stefan Gaechter, area logistics manager at Valora. In addition to the standardization, and the safety of processes, Valora can show a reduction of overall logistics costs of 14%.

From considering the examples presented at the Intra-logistics forum the industry learns that efficiency and responsible handling of resources do not have to contradict each other. It begins with the construction and planning concept, integrating high-quality, and environmentally-friendly building materials; this reduces energy demand via the Green Crane Technology. Modern dynamic systems and ergonomically designed work stations give SSI Schaefer an extensive product portfolio, designed for resource efficiency and economy.

The newest products, which will be presented to at CeMAT 2011, illustrate that SSI Schaefer is not resting on their laurels. New material flow systems, such as the Schaefer AutoCruiser save up to 80% of the energy of conventional systems. SSI Schaefer is continuously involved in numerous research projects with the results directly influencing product development.

For example, cooperation in energy-efficiency studies for small-parts storage and retrieval machines, at the institute for logistics and material flow engineering, at Magdeburg University. These studies deal with recording energy consumption and recovery for drive axles. SSI Schaefer, as research partner, provides a one-aisle warehouse with a Schaefer Miniload Crane (SMC), and supports the analysis, data evaluation, and their integration into new developments.

As SSI Schaefer integrates challenges of sustainable, environmentally-friendly logistics into the development of innovative solutions; proccess optimization for resource efficiency, and the implementation of Green Logistics can be economically combined with each other.

In the future, SSI Schaefer will continue to play a significant role in the research and development of new technologies and information systems that further the implementation of Green Logistics and sustainability. Resulting innovations will provide companies with considerable room for improvement in their in-house value added chain, especially in intra-logistics. The high standards of Green Logistics can be aligned with economic requirements of modern business strategies. These investments are well worth it.

Schaefer Meets the Demand for Distribution Center Retrofits

Fri, 18 Mar 2011 14:39:00 +0000

Demand in the market-place for system retrofits is growing. DC’s can be updated to state-of-the-art technology quickly and cost-efficiently for these projects. For this particular market segment, the service department at SSI Schaefer offers a comprehensive program. Business activities range from demand-oriented concepts; including investment estimates, completion timelines, energy efficiency, and IT-solutions.

Automation and modern intra-logistics solutions increase the productivity and efficiency of a warehouse. Rapidly changing product offerings, more orders with smaller lot sizes, and an increased demand for flexibility combine to require new, more efficient systems and holistic solutions for faster cost-effective access to the goods.

However, the "optimum solution" is not always necessary nor is it possible. System modernization and/or expansion, retrofitting, is often an alternative. By modernizing systems and their components, the operational safety is increased, the warehouse availability is improved, and the personnel costs are reduced up to 30 percent. Intelligent resource management, and green logistics offer even more potential. Based on these parameters, retrofit projects have become more and more important. Updating the IT-environment, along with drive and control engineering, is also a significant aspect of retrofitting.

SSI Schaefer responded to this development in the early stages by forming a specialized group. Using their business strategies, warehouse and production systems can be updated quickly and safely to the latest state-of-the-art technology. The systems are updated by exchanging components, expanding and/or modernizing IT, and adding new material flows; which can be optimally linked to existing production systems. This applies to old systems from SSI Schaefer as well as systems from third parties.

During the past few years, SSI Schaefer completed many retrofit-projects per year. For the most part, the failures of the old systems that were in operation would lead to problems. Due to this fact, the time frame for the system reorganization is short. Also, existing, and often restrictive, building structures have to be considered during the planning phase for the future logistics concept. Meeting schedules, flexibility, and expertise regarding business-specific processes and available technologies are required from the plant engineer.

These requirements are fulfilled by SSI Schaefer with an extensive service offer. First, the necessary requirements for retrofit-measures are determined by SSI Schaefer specialists. When planning the new intra-logistics concept, the focus is on the mechanical and electrical optimization of the system and the processes, while taking into consideration optimal space utilization and/or creating free space. The ultimate goal is optimization and transparency of material flow, sizing of the load carriers that are to be used, as well as the design of the work station. Safety concepts following new machine guidelines are also taken into consideration. A schedule for implementation is prepared with the customer with as little impact on production as possible. SSI Schaefer recently exchanged the entire tray conveyor system, including drive and control engineering, for the storage and retrieval machines at KHS in Dortmund in ten weekends.

When modernizing dynamic system components, special emphasis is placed on the integration of e.g. energy-efficient drives. This ranges from efficiency-optimized drive versions, deadweight balance via intelligent control of SRM-main axles, including power recovery devices, and scheduled shutdowns. Old drives and converters are replaced by modern, energy-saving, and powerful aggregates. Also, the controls are modified to Siemens S7, and the communication to TCP/IP-protocols.

Orders are currently in progress for logistics providers, Geodis or Plastal in Hambach.

Replacement of the existing warehouse management system with the SSI Schaefer software "ant" was successfully completed in the last few months for SKF, Berlin. The existing order-picking workstations and computer hardware were also modernized and updated.

Last but not least is the topic of maintenance and availability. The newly installed components not only increase the efficiency and throughput by improving networking of the single controls; but also, the new systems are lower-maintenance, and generally offer better and faster remote maintenance possibilities.

The brand manufacturer Braun, located in Marktheidenfeld, indicates that such projects can be planned and implemented with SSI Schaefer. The continuous modernization of a nine-aisle high-bay warehouse was coordinated and implemented with the customer over several years. At this point, the components are state-of-the-art, and the 1982 system has subsequently received a CE-certificate.

These examples confirm that retrofitting is a good alternative to the high investment of constructing a new system. Companies who regularly modernize always receive state-of-the-art systems; and economically, they gain the benefits. SSI Schaefer’s first priority is: "As much optimization as possible, as little disturbance to daily operations as necessary.” The result is a single-integrated solution. Also, the high availability, and the extended life span of the modernized production system offer good protection for the investment.

Promat: 5 Tips to Find A Material Handling Solution And Maximize ROI

Thu, 10 Mar 2011 15:00:00 +0000

Promat is the largest show for the material handling industry in the US. Every Exhibitor in the hall invests months of planning in order to get the most out of the show. However, as an attendee, there is considerably less planning required, but going into the show with a plan will give an optimal return on your investment.

Know Your Goals: You and your team should all be on the same page about your goals for the show. Whether it is gathering information, finding a new supply chain partner, or closing deals; everyone should be able to articulate what your company wants from its’ attendees. Promat is an investment, so having set goals for what your company wants to take away from the show is the difference between a good ROI and a poor one.

Research: Do your research before you step onto the show floor. At the very least, you should look over the layout, and decide which companies you would like to visit. Once you have your list of companies, go to their website, and get some background information. Determining how they may be able to help you meet your needs, will save you time in the long run, and it will allow you to do some initial vetting of providers and partners.

Plan: After doing your initial research, you will have a good idea of where most of your time should be spent. Having a plan will prevent you from mindlessly walking around the aisles, or wasting your effort.

Be flexible. “No plan survives contact with the enemy.” You need to go in with a specific goal in mind, but the great thing about a show like Promat is that there are so many new ideas; you need to be flexible. Yes, you may think that one piece of machinery or solution is going to satisfy your needs, but don’t write it in stone. There may be something new to the industry that fulfills the same requirements and has ancillary benefits that you weren’t expecting.

Network: While the machinery and solutions are important, the people representing those solutions are the key. They have experience with their product, and they know how it may work to your advantage. Remember: Promat is a great place to extend your knowledge and your network.

If you are looking for cutting edge automated material handling solutions, be sure to include Schaefer Booth (2303) in part of your plan. Not going to Promat? See what other shows and conferences that Schaefer will attend. As always, you can sign up here to receive your Visionary Automation monthly newsletter.

SSI Schaefer takes over Handler A/S

Fri, 04 Mar 2011 15:06:00 +0000

The worldwide leading logistics provider Schaefer acquired Handler (Humlebæk/DK) complimenting their material handling portfolio with the important storage lift segment.

With more than 2,500 references, Handler A/S occupies a strong market position in the storage lift segment, particularly in the Scandinavian region. SSI Schaefer, with the integration of the Danish Company, has broadened its product offerings, becoming an even more complete provider for material handling. Now, SSI Schaefer has more potential for synergy production, distribution, and project management, as well as in customer service and support available for Schaefer customers.

The LogiMat® storage lift is future-oriented and user friendly. Thanks to the ergonomically conceived components, the LogiMat® integrates seamlessly into the SSI Schaefer product range, Ergonomics@Work®. Stepless, height-adjustable access openings, and incline devices on the trays allow ergonomically correct removal of goods. The Logimat® can also increase economic efficiency; thanks to its compact storage and modular design.

Compared to a common static solution, the storage lift only requires 1/10 of the storage space. The intelligent SPS control can be supplemented by the in-house software package Wamas® and/or integrated seamlessly into the existing inventory management system. Various options for an increase of efficiency and maximum optimization of the picking speed complete the package.

SSI Schaefer will present the LogiMat® storage lift for the first time in May 2011 at the CeMat in Hannover.

A Future-Oriented Automated Distribution Solution for Beverage

Fri, 25 Feb 2011 20:04:00 +0000

For the well-known Czech brewery Budweiser Budvar, SSI SCHAEFER created and implemented a growth-oriented, material handling concept at the company's production site, České Budějovice (Budweis). SCHAEFER utilized up-to-date plant technology, RFID integration, and an intricately engineered WMS, which significantly increases process reliability.

The original Budweiser lager, from the Budweiser Budvar Brewery in the Czech Republic, is considered one of the world's best beers among connoisseurs. Brewing history has been made in the town of České Budějovice since 1265. Since the end of the 19th century, these delicacies originated in the Czech Joint Stock Brewery. The Czech Joint Stock Brewery later became the Budweiser Budvar brewery.

The brewery now produces roughly 1.3 million hectoliters of beer each year. Almost half of the production is exported to around 50 countries on every continent. Over 200,000 hectoliters of Budweiser Budvar beer is sold in Germany, alone– and the trend is on the rise. As a result, bottling production lines and internal logistics in Budvar have been continuously modernized since 2005.

The contract to implement the project, including the logistics concept, the roof, the wall construction, the steel framework, and the pallet conveyor technology was awarded as part of a bid process to SSI Schaefer as the general contractor.

"We were looking for a solution that met our complex requirements using the latest technology", explains Pavel Panek, Head of Logistics and Purchasing at the Budvar brewery. "The key objectives included maximum utilization of existing limited space, 100 percent process control, real-time tracking and the integration of our RFID-led block warehouse into the new Warehouse Management System which is integrated with existing ERP system. SSI Schaefer offered the best concept to meet these needs with an attractive price/performance ratio."
Seamless, future-oriented solution for Beverage

The most recent development is a 28.43 yard high-bay racking system. In three different aisles, 3,000 pallet storage locations are available for pallets with a weight of up to 900 kilograms. These pallet storage locations are directly connected to production.

Assembly work on the warehouse construction was started in March 2009. The work was completed in less than 20 weeks, including technology and sheathing. The warehouse went into operation with the first incoming pallets in August 2009, as scheduled. The new plant has been running at full operation since the end of September 2009. Up to 50 HGVs are loaded each day to send the precious brew on its way to over 50 countries around the world. "This is achieved without any problems due to the transparent goods flow, the additional capacity and fast throughput using the plant technology", says Panek.

However, “The high bay racking system demanded a little creativity even during the basic planning stage", says SSI Sales Executive Jan Rindt. "Firstly, the spatial specifications were critical, and secondly, the goods flow and the storage space management of existing warehouse structures had to be integrated."

Together with the brewery, the necessary warehouse capacity was defined, and an appropriate layout was created. "With the specified height of 26 meters for storing 3,000 pallets of finished products, a building with a conventional steel or steel/concrete hall construction was quickly dismissed due to time restrictions, engineering and financial reasons", explains Rindt. Instead, work began on a silo design high-bay racking system almost six meters below ground level. The self-supporting racking system forms the basis for securing the external shell and the roof.

When selecting the materials for the high-bay racking system, special precautions had to be taken into consideration, such as, excessive heat build up, the effects of frost, and certain fire protection criteria. Sandwich panels with high insulation properties, a high fire protection rating, and heat-dissipating flaps were installed on the roof to ensure that the required thermal conditions were met.

A large consolidation and preparation area, in front of the high-bay warehouse, was taken into spatial consideration, as well. This area restricted the number of warehouse aisles in the high-bay warehouse. To achieve the required number of storage positions, and to fully utilize the existing available space; the first row of shelves, the storage unit, and the retrieval devices were designed for double-depth storage. Single-depth storage is provided in the two other racking aisles, "this means we quickly have direct access to the single pallets needed", says, Head of Logistics, Panek.

The materials flow:
The beer crates are stacked on 120 x 80 cm pallets using palletizing robots that pass through the high-bay warehouse via roller track and conveyor belt technology, and to the transfer station. Around ten meters above the warehouse ground level, the contours and weights of the goods are recorded, and entered into the Warehouse Management System installed by SSI Schaefer. Controlled by WMS (storage location assignment) and control technology (conveyor technology drives), the pallets are then conveyed to a pallet lift. The remaining processes are controlled by the WMS. The lift transfers the pallets either directly to an outgoing goods table or onto a transfer table into the high-bay racking storage units and retrieval devices. A transfer station has been set up for inside storage into the high-bay racking system. Also, a rotary table ensures that the pallets are aligned correctly.

For pallets with stackable goods that need to be buffered in approximately 4,000 storage spaces from the previous stock of the existing block warehouse, information technicians needed to deploy all their skill. "At the start of the project, Budweiser decided to apply the principles and strategies for controlling the automatic high-bay racking system in the existing block warehouse, as well", explains Rindt. "A key feature was that the warehouse processes in the block warehouse are processed via Radio Frequency Identification (RFID). As a result, inventory management and process control functions needed to be integrated into the new WMS both for the automated high bay racking system and for the manually operated block warehouse equipped with RFID."

To accelerate the inward and outward storage processes in the block warehouse, Budweiser places considerable emphasis on avoiding unnecessary delays via storage space scanning and confirmation sequences. “Therefore, we have decided to use RFID not in connection with product, but in connection with storage location” stresses Panek. All warehouse channels in the block warehouse are, therefore, identified using RFID tags. In addition, RFID tags are also fitted to all transfer stations on the conveyor system.

Display is used to assign the jobs to the forklifts from the WMS. The forklifts are equipped with RFID aerials. When a forklift drives into the storage channel, the forklift information is automatically captured and read by a reader. The job information stored on the WMS defines whether the forklift carries out inward or outward movements, and to what extent. "The liquids in the environment, itself, can represent a challenge for the RFID", says Rindt. "What is more, the different technologies and control processes need to be programmed into the WMS."

The result is "a highly efficient Warehouse Management System that takes the features and parameters of the individual storage zones into account and unites the warehouse system to create a compact unit", explains Panek. A comprehensive overview of the system utilization level, and the resources, is provided using a visualization system installed by SSI Schaefer.

The WMS initiates the outward storage processes in the high-bay racking system and in the block warehouse for order picking. With its speed of 130 meters per minute and a lift of 54 meters per minute, the storage and retrieval devices achieve a throughput of up to 100 two-way movements per hour. The outgoing pallets pass through utilizing roller tracks, chain conveyors, and corner switchers via the installed conveyor technology. Then, they move to the acceptance station for the forklifts; which are connected directly to the high-bay racking. At the same time, the RFID-aided order picking processes are carried out in the block warehouse. In the preparation area in front of the high-bay racking system, the jobs are then compiled and prepared for dispatch.

"A seamless and compact, future-oriented solution", said Panek. "As part of a rapidly and reliably implemented project – in terms of the complexity of the task – SSI Schaefer designed an intralogistics concept for our processes that provides maximum warehouse capacity and throughput with maximum space utilisation. The integrated process control has also resulted in the minimisation of order picking errors. Our objectives have been realised in full."

And there's more. The system is designed to integrate future changes to the business processes in the plant. For example, a rail connection is already in the works. In the medium-term, the conveyor technology is currently being used to convey 120 x 80 cm pallets, only to be re-designed to transport the larger industrial 120 x 100 cm pallets. "This will require external guidance of the pallets", explains SSI Sales Executive Rindt. "Thanks to the modular design of our components we will then be able to retrofit our systems at the appropriate time without any significant downtime for Budweiser."

4 Tips to Mitigate Risk in Supply Chain Projects

Thu, 17 Feb 2011 15:44:00 +0000

In a recent article by DC Velocity called “Supply chain doubts grow” recent surveys indicate that worry is on the rise for distribution center and supply chain management. Most of this is attributed to the rise in transportation cost, as well as general concerns about the future.

Worry and fear tend to lead to deferring decisions. However, both action and inaction have a cost. The question you need to ask is does your cost of inaction (losing clients, not being able to grow, etc) outweigh the cost of action in building or retrofitting your facility. If the cost of inaction is higher now may be the time to act even with greater concerns in the marketplace.

The problem is that you need to get everyone on board by proving the high risk of inaction and past the paralysis of fear?

The best way to do that is to lower the feeling of risk.
A good way to lower the feeling of risk is to find a company you can partner with. Emphasis on the word partner.

A vendor is not going to help mitigate your fear of the unknown. They will also help other members of management feel secure about a decision. You need to find a supply chain partner that you can work with that will spend the time to understand your business needs and not just see you as a customer.

So how can you qualify your prospective partners?

1) Talk to their other Customers: What do their current customers say? How did they feel about the experience of working together? Did they feel like they had a partner or someone trying to sell them something?

2) Talk to their competitors. Ignore the blast of vitrol that might come and only listen to the reasoned arguments. Ask “Why do you say that?” and make them back up their statements. Sometimes enemies know you better than friends.

3) Talk to impartial experts in the field. What are people saying on the show floor? What do other people in the industry say about your prospective partners? What about the trade magazines?

4) Talk to the people they buy from. How do they treat them? Are they just seen as vendors or are they partners as well?
With these tips in mind you can narrow the field of possible vendors even before the RFQ.

So how do you mitigate risk in your operation? Do you have any suggestions we might have missed? What are your concerns in the next year in regards to your Distribution Chain?

Remember to vist SSI Schaefer at Promat at booth 2303 and sign up for our newsletter here!

Schaefer Robo Pick voted “Best Product 2011“

Thu, 17 Feb 2011 13:11:00 +0000

At this year’s LogiMAT, an independent expert jury named the Schaefer Robo Pick (SRP) “Best Product 2011”. Against a number of competitors, this picking system finished first in the category “Picking, Packing, Securing”. The award is among the most prestigious ones in the entire sector.

Representatives from business, science and media thoroughly evaluated the line-up of contestants prior to the LogiMAT 2011. Awards were given to products which contribute significantly to streamlining, reducing costs and increasing productivity in material handling. The Schaefer Robo Pick by SSI Schaefer won the award “Best Product 2011“.

The SRP is the world’s fastest picking system, able to pick goods of different sizes, shapes and weight at a speed of 2,400 items/hour. It maintains this pick rate while working error free and gently on the products.

The SRP is the first fully-automated picking cell and because of its design can be smoothly integrated into existing storage systems. With its newly developed double-stage image processing system – a combination of procedures from 2D and 3D image processing – it does not require any time-consuming teach-in of product parameters or position. The degree of flexibility is unique and makes the SSI Schaefer Robo Pick suitable for a broad range of applications. The image processing cell takes less than one second to “know” the position of a product on the tray and then operates the universal picking robot accordingly. Depending on the order structure, 10 to 20 orders can be handled simultaneously. In comparison to manual picking, this system reduces error rates by a factor of 10 to 100.

Procedure: In a typical order picking process, a conveyor delivers containers with sorted products to the Robo Pick. By using 2D- and 3D-cameras, the exact position, height and center of area are detected with double-stage image processing. Specifically developed image processing software recognizes continuous shapes and edges within a fraction of a second. After image recognition, the robot receives its orders. The robot places the requested products into order containers, based on requests from the warehouse management system. Goods of different sizes, shapes or surface texture are picked up gently by a vacuum gripper.

Ceremony for best Product

Download the PDF Version

The ROI in Distribution Center Accuracy

Thu, 03 Feb 2011 15:20:00 +0000

97% accuracy in your distribution center sounds good, right. I meant that’s an A+ in highschool math. That is a pretty normal number in most distribution centers that employ traditional manual systems. Speaking of numbers let’s crunch some and see where the 97% accuracy puts after applying some volume to the equation.

Let’s say you ship 30,000,000 orders a year. Not too bad, a nice decent volume. So with your 97% accuracy

30,000,000 x 97% = 900,000 incorrect orders.

But, hey that’s means that 29,100,000 orders are correct, not too bad, right?

Well let’s apply some cost now. You spend $.30 shipping an order from your distribution center out to your outlets.

.30 x 900,000 = that’s $270,000 in incorrect orders. That’s a lot for shipping expense for sending the wrong items.

Oh and don’t forget the return of those items. That is more expensive because the outlets aren’t set for mass shipping like your distribution center. Lower volume, so cost is higher. Let’s say it cost $.70 to return an incorrect order.

So 900,000 x $.70 = $630,000

And if we add our original $270,000 to the $630,000 that results in $1,000,000.

A year. In wasted shipping cost.

But there will always be mistakes in shipping right? Well yes, nothing is ever entirely perfect. But incremental changes in percentages could reduce that wasted $1 million a year.
Let’s apply the same variables with an automated systems accuracy rate.

30,000,000 x .99.8 = 60,000 incorrect orders shipped.
Now another benefit of an automated distribution center is that they lower your cost of units shipped. So let’s say conservatively it lowered it to $.17 per order shipped.

60,000 x $.17 = 10,200 in incorrect orders shipped. A little better than our original $270,000, right?

Now the automated distribution center can’t lower the cost of unit shipped from your outlets so you are still looking at .$70 to return an item

60,000 x .70 = 42,000 in return items so that brings us to 52,200 in wasted money with the automated system.
Now for the final analysis

1,000,000 – 52,500 = $947,800

For those keeping score at home that means that if you are looking for a 3 year roi you have north of 2.8 million to work with from this simple exercise. That doesn’t include payroll for the people shipping the incorrect orders back and forth.

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How is a Good System Integrator like a Playoff Team?

Fri, 28 Jan 2011 14:53:00 +0000

To a lot of people, January means playoffs and bowl games. As I watched the games I thought about how a good system integrator is like a successful playoff team. Whether it is for a championship or a completed project, both want to win. When you get down to it, a good team is a good team no matter whether it is in sports or material handling.

But how can you ensure that you partner with a “winning” automated material handling company? The ways in which the sports team and a material handling team win have similarities. In football you count points in touchdowns and field goals. In automated material handling you select a winner by counting points too.

Point 1 Good Groundwork: There are hundreds of variables that come into play with making a team successful. From personnel, to game plan, to strategy, to coaching, to owners; millions of little things affect the outcome. It is the same thing when designing a complex automated distribution center.

So you must ensure that little things are taken care of when you interact with a company. Is attention given to small things? Do they keep small promises? Be sure the initial groundwork is done right.

Point 2 Personnel: To have a successful team in football and in material handling you need the right people. You need to be sure that your partner has able people in key areas to have the “best” team.

Point 3 Teamwork: Does everybody seem to know the plan inside and out and their role in the plan? The quarterback needs to know what the receivers are doing and the running back needs to know what the offensive line is doing.

Likewise, sales must know what engineering is doing and engineering has to be on the same page with project management. There needs to be real communication to guarantee everyone on the team works together.

Point 4 Leadership: In sports you have coaches who lead, and players who lead, but everyone knows which way to pull the rope. In material handling, it is the same thing. The team you chose for your material handling requirements must have leadership that coaches the team to pull in the direction you need.

Point 5 Adaptable: While material handling and football teams are built around a certain concept, they have to adapt to challenges. If you have the same game plan for opponent or every project, you jeopardize your chance of success.

Your supply chain partner needs to be adaptable and have a team that can tackle new challenges or business requirements.

Point 6 Tools: The tools for a football team are the individual player capabilities on the field. For automated material handling, tools translate into technology. Do they only do one thing well? What do they have in their offerings? Can they integrate the new technology that you need?

So there are your 6 points for picking a winning material handling integrator. Want the extra point? Subscribe to our email newsletter or follow us on twitter.

Is the Turn-Key Distribution Center a Myth?

Thu, 13 Jan 2011 19:50:00 +0000

When I say “turn-key automated system”, what do you think of? In a recent survey, I found that different people have different ideas of what the phrase “turn-key” means.

So is a turn-key system “turn-key” when a system is built? When it is delivered? When it is installed? When it is commissioned? There also seemed to be a lot of qualifying words attached to “turn-key”.

That seemed odd since so many companies have “turn-key” in a description of their systems. Does that make that a turn-key distribution center doesn’t exist?

I think the problem is more one of definition. The question for someone buying such a system is what exactly defines turn-key and how do they make sure that they get what they expect? Disappointment and an adversarial relationship can result without a clear understanding of what you get, when you get it and all the sticky little details.

The answer is to define your needs and wants, but that can be more of a problem than it seems

So how do you know you can avoid a problem in definition?

Listen: You need your supply chain partner to listen to what your definition of what you, as the customer, expect when you say turn-key. Be specific. If you are doing a Distribution Center RFQ write it out your requirements plainly.

Respond: Let them respond. Maybe what you want it is cost-prohibitive; maybe you need to open the field to other companies. If you have a great partner they should be able to help you look at alternatives to get you closer to what you want.

Define: Make sure that wherever your definition of turn-key lands, you and your partner agree on it and it is spelled out in any contracts or proposals.

So what is your definition of turnkey? Have you experienced a situation where requirements weren’t fully laid out and you bought less then you thought you were going to get? Please let us know by commenting below.

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Automated Distribution System for Bins

Tue, 04 Jan 2011 15:03:00 +0000

This automated system that SSI Schaefer designed for Heinemann showcases the WMS and storage of bins.

The packed bins run through a contour check and are registered by the computer when the system reads the barcode

The conveyor system rotates the bins so that they face the correct way and transport them to one of the locations specified by the warehouse management system in one of the 36 commissioners.

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What Do You Want to Know About Distribution Center Automation?

Thu, 30 Dec 2010 16:02:00 +0000

The end of the year is a time for reflecting on the year and looking forward to the next. We are going to try to do a lot of the former and a little of the latter in this post.

First, by talking about some of the topics we covered this year and ask a question to you about the topics you would like us to cover more.

Picking a Supply Chain Partner. We covered this is a few different ways. First in one of our earliest postings we talked about “3 Considerations in Choosing your Automated Systems Partner”.

Then when we explored the “Handover of an Automated System” we talked about it from the prospective of transfer of the system from build and commissioning to a part of your supply chain.

Eliminate Cost. This is one of my favorite topics when it comes to automation. There is a lot of focus on the price of equipment, but what is sometimes lost are the costs that an automated distribution center eliminates.

Two of my favorite articles focusing on this are “Eliminating a Costly Component” and “14 ways Automated Material Handling keeps Money in your Pocket”.

ROI. ROI is one of the main goals for leadership. There is no point in making an investment in automating your distribution center if you can’t show a return. It would be wiser to just put it in the bank.

Along these lines we discussed “Secret ROI”, which covers over 40 aspects of ROI’s you might not be taking into account. There were also more focused articles on particular technology introduced like in the article “How you can gain 20% more storage space” and “7 Reasons Why you should Use System Pallets”.

General Automation: From how to “Make your Distribution Center Flexible” to what is “True Automation” we obviously spent a lot of time focusing on this topic.

The reason for that is while elsewhere in the world automation is the norm, in the US it is still on the fringes. So we also explored when that might change in the “Tipping Point For Automation”.

Those are the main themes we covered this year. So my question to you is: What should we focus on next year? Although we write it, we want this to be your blog. We want to be a resource for you, so we want to know what you want us to focus on.

Should we focus on more of the same from different perspectives? Are there subjects you felt we glossed over or missed completely? Let us know!

You can email me here or respond below in the comments section. You can also connect with us on facebook and twitter.
I hope you had a great 2010 and wish you a happy and profitable 2011. Happy New Year!

An Automated Warehouse for Retail

Tue, 14 Dec 2010 15:36:00 +0000

SSI Schaefer undertook the complete conception and construction of the automated warehouse at WIP. The main goal was to increase the output with the same number of employees.

SSI Schaefer met the customer’s needs and even assured that the warehouse management system cooperates with the existing browser based system from WIP.

To learn more about how SSI Schaefer can help your company contact us here and sign up for the SSI Schaefer RSS feed here.

Unit-Load Warehouse Automation for Spirits

Tue, 07 Dec 2010 13:59:00 +0000

For this solution for spirits, SSI Schaefer utilized a high-bay warehouse with pallet conveyor to meet the distribution demands for our customer. The automated storage system stores product double-deep in order to increase capacity.

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Ergonomic Workstations for Retail Distribution

Tue, 30 Nov 2010 14:13:00 +0000

This SSI Schaefer workstation emphasizes product-to-person technology increasing efficiency for the pickers.

The RFID System captures the identity for the WMS and tracks the items on their return to the distribution center.

SSI Schaefer constructed these workstations to have multiple functions for distribution. So in addition to eliminating walking time in the warehouse, pickers can perform picking and consolidation and other task without going to different areas of the warehouse.

For any questions about SSI Schaefer's warehouse automation please email SSI Schaefer here. You can also sign up for our RSS Feed to the right to instantly download new content as it becomes available or follow us on Twitter!

SSI Schaefer at IMHX Logistics and Supply Chain Show

Tue, 23 Nov 2010 14:25:00 +0000

SSI Schaefer was in Birmingham England to showcase a variety of our product offerings. Included, were the new garment storage system and the ergonomic workstations for product-to-person picking.

Also on display was the Schaefer Orbiter featuring high-density storage with channels in excess of 20 pallets.

Order Fulfillment with Pick by Voice for Food and Dry Goods

Tue, 16 Nov 2010 14:57:00 +0000

SSI Schaefer implemented this automated storage solution using pick by voice for a grocery distribution center. The picking occurs in pick tunnels in the high bay warehouse. The 9,700 pick locations are replenished by AS/RS cranes.

This solution yielded optimized inventory cost, an increase in delivery quality and a reduction in transport cost.

To learn more about how SSI Schaefer can help you build a distribution center with superior ROI contact us.

Automated Storage and Retrieval for Beverages by SSI Schaefer

Tue, 09 Nov 2010 15:46:00 +0000

The goals for this beverage project were to increase throughput and storage capacity, while optomizing allocation – by concentrating four warehouses into new automated distribution warehouse.

As the general contractor SSI Schaefer handled everything from simulation and material flow all the way to the warehouse management system and project completion.

At the center of the system is a modern high-bay warehouse that is connected directly to the production lines through a transport bridge with an electro Monorail.

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High Bay Warehouse for Home Goods

Tue, 02 Nov 2010 13:54:00 +0000

In this solution SSI Schaefer created an expandable depalletizing station for home furnishings. This two level layout maximizes space and efficiency for the customer. SSI Schaefer designed this automated distribution center so it fits into the company’s long term plans.

Improving Small Parts Picking and WMS Integration

Tue, 26 Oct 2010 15:19:00 +0000

This automated distribution center is a solution for Reyher, a manufacturer of fasteners and screws.

The objectives given to Schaefer were:

Savings on warehousing costs
Increase storage capacity
Increase delivery quality
Improve reaction times

To this end, SSI installed 6 increase picking and goods out performance. Up to 3000 bins with goods can be buffered. With a handling capacity of approximately 160 double cycles per hour, 1800 bins per hour can be handled during peak times.

In order to further expand the pick performance of the manual small part storage SSI converted it to automated picking and the storage capacity of bins was increased up to 120,000.

SSI Schaefer developed a warehouse management system and integrated it into the existing SAP system. The site manages several warehouse areas and controls all goods in and out, picking and the flow of material.

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Automated Order Picking System of Cosmetics

Tue, 19 Oct 2010 13:16:00 +0000

This is an example of a Product to Person Picking system for Heinemann. Picking is possible at one location for over 70 "pick faces" in this automated distribution center.

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Retail Material Handling System with Flexible Pallet Conveyor

Fri, 01 Oct 2010 13:29:00 +0000

SSI Schaefer built an automated warehouse for Netto, a leading discounter. A highlight is the high flexibility of the pallet conveying system and the material handling equipment which can handle euro as well as half pallets.

With the integrated electric monorail system, Netto can handle 209 storage and 234 retrieval functions per hour. The high bay warehouse with 8 aisles and 10480 pallet positions enables double deep storage. For more information about this or other installations please email travis.baker@ssi-schaefer.us

Award Winning SSI Schaefer Orbiter

Fri, 07 May 2010 14:44:00 +0000

Since the debut of the Orbiter Shuttle System, in the summer of 2009, SSI Schaefer has acclaimed international success for this revolutionary piece of warehouse technology. An independent industry jury awarded the SSI Schaefer Orbiter System the "Suisse IVS Innovation Award 2010" using the criteria of uniqueness, marketability, degree of innovation, and environmental/resource optimization. The Orbiter System was also chosen among hundreds of highly qualified applicants for the "2010 Industrial Prize" at the Hannover Trade Fair in April of 2010.

These international awards recognize the newest development in the SSI Schaefer storage product line. The Orbiter Shuttle System sets a whole new global standard for pallet storage solutions. Not only is it setting new standards, it is a unique system regarding safety, efficiency and productivity. The innovation is in the power caps. The Orbiter Shuttle System is not battery driven; it is equipped with state-of-the-art, maintenance-free, power caps, similar to those used in Formula One racing.

This revolutionary product has sparked great interest in the marketplace. Companies including Pepsi Cola India, LGI (a German 3PL service provider), and Boots (a drug store chain in the UK), have to decided to use this modern piece of technology. Benno Reichmuth, Director of Dynamic Storage Systems at SSI Schaefer Switzerland, states that "the Orbiter Shuttle System is a simple pallet channel storage solution for highly efficient order picking processes with a low degree of automation and an easily justifiable investment."

Many years of experience, innovative developments and a continuous evaluation of customer and market needs allow the material handling expert, SSI Schaefer, to offer solutions that not only meet, but exceed the industry's demand for economic efficiency and non-environmental impact. These factors prove the Schaefer Group's capabilities and innovative strength compared to competing manufacturers.

To get more information or the Orbiter Press Packet complete with pictures please email travis.baker@ssi-schaeefer.us.