Today's Class: How layer picking can mitigate the effects of SKU proliferation - Körber Master Class ...
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Today’s Class: How layer picking can mitigate the effects of SKU proliferation
Speakers
Julia Arlinghaus Klaus Kristensen
Professor
Head of the Chair for Production Systems and Sales Manager
Automation at the Otto-von-Guericke University Layer Picker Solutions
Magdeburg in personal union with the head of the Körber Supply Chain Automation
Fraunhofer Institute for Factory Operation and
Automation IFF.
4/13/2021 2
Supply Chain Master Class:
The Right Storage Method for Your Warehouse
Why are we here? What are we trying to accomplish?
Class Schedule:
• April 6: The Right Storage Method for Your Warehouse
• April 13: How layer picking can mitigate the effects of SKU proliferation
• April 20: Increasing productivity of person-to-goods operations
• April 27: Improving a goods-to-person Order Fulfilment System
Master Class Series - On-Demand
• Addressing Labor Challenges
• Cold Storage Trends • SAP Supply Chain Excellence
• Warehouse Technology Excellence • Disruption Mitigation
• Workforce Efficiencies & Safety • Sustainability
4/13/2021 3
Housekeeping
All phones lines are muted
Recording of today's class and slides will be email you within 48 hours
Questions:
• Ask questions during today's class in the GoToWebnair Questions window
• Questions will be addressed at the end of today's class or we will follow up with questions via email after class
Poll Question:
In your current operation, how do you pick orders for full layers:
1. Manual picking with individual case picking
2. Semi-automatic (fork lift + operator)
3. Using automation solutions
4. Not applicable to my current position
5. None of the above
4/13/2021 4
High Customer Expectations
Determine the product assortment and price segment on retail stores
ability to choose between in-house
cheap, medium and brands
expensive brands
regional many different
products brands
GMO-free fair trade
grocery stores products products
with different
price segments
PRICE
Organic ASSORTMENT food for
SEGMENTS
products intolerances
ability to choose exclusive food products for
among many (delicatessen, halal, immediate
different brands kosher) consumption
IFH Köln 2018
4/13/2021 5
One-Stop-Shopping
Customers prefer a bundled offer of goods
2018 2015 2011
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
84,5%
I like to seek out grocery stores where I can do all my
75,5%
shopping.
77,6%
42,2%
If a store doesn't offer a wide enough selection, I don't shop
42%
there.
40,4%
IFH Köln 2018
4/13/2021 6
SKU proliferation is inevitable with a growing business
Powerful stores require powerful warehouses
• High demand for logistics space close to urban areas -
heterogeneous use of logistics real estates and retrofitting of
individual storage modules and real estates
• Brownfield uses and revitalization of existing buildings
• Optimization of warehouse layout and technological
exploitation of vertical storage spaces
• Dynamically changing customer preferences and need of
product variety
• Shift of customer expectations towards delivery speed and
product pallet
• Competitiveness of the market
• Explosion of small brands and niche products
• Seasonal products - short-term increase of SKUs
• Less space in stores and higher efficiency for replenishment
Sorbis / Shutterstock.com
4/13/2021 7
Pain Points of SKU Proliferation Emerge in the Warehouses
Increasing complexity challenges warehouse operations and business productivity
Operational productivity problems caused by SKU proliferation
• Excellent warehouse operations prerequisite to excellent store
operations - pallet mix individually optimized to stores` need -
rainbow pallets / sandwich pallets
• Highest accuracy of order fulfilment
• Smaller ordering quantities and shorter order cycle times
• Increased labor and operating costs
• Tracing and track-keeping of perishable goods
• Additional storage spaces, replenishment and picking areas
Automated layer picking can contribute to
• Better space utilization: less or non picking areas needed
• More efficient and accurate order fulfilment even for small orders
(rainbow pallets / sandwich pallets)
• in the long term, capacities can be optimized and costs reduced
SKU Stock Keeping Unit
4/13/2021 8
What has changed?
Distribution Center Distribution Center Distribution Center
Past - Decentralized Distribution Center(s) Small volume – 100.000 cases/week and 100 SKUs as an example
97%
97.000
2% 1%
Picking
complexity:
2.000 1.000
Low
What has changed?
Super size Distribution Center
Today - Centralized Distribution Center - High volume 1.000.000 cases/week and 1.500 SKUs as an example
75%
750.000
20% 5% Picking
complexity:
200.000 50.000
HighLayer Picker Solution – Combining pallet storage with Layer Picking
13 April 2021 11Gains with Automated Layer Picking
98%
SKU #
13 April 2021 12Gains with Automated Layer Picking
Higher efficiencies
13 April 2021 13Gains with Automated Layer Picking
Scalable 1.000 10.000
layers/day
13 April 2021 14Gains with Automated Layer Picking
Higher picking accuracy
13 April 2021 15Gains with Automated Layer Picking
Full
13 April 2021 16Gains with Automated Layer Picking
Vacant
13 April 2021 17Gains with Automated Layer Picking
Investment
Fully automated
warehouse
Automated
Layer Pick
Return
13 April 2021 1813 April 2021 19
When to consider Layer Picker Solution?
• Have a requirement for picking more than 1.000 layers per day
• The complexity of the layer picking is high due to more than 100 SKU and/or
a have a flat ABC curve
• Have made a strategy to increase the throughput and capacity of the current
operation using automation
What to provide for the next step?
• Production data, order line
• Product master data
• Building drawings
• Product pictures, examples
• Brief description of your operation and what you want to gain from the
automation
• Input that helps determine the business case
13 April 2021 20Layer Picker Solution examples
13 April 2021 21Layer Picker Solution examples
13 April 2021 22Questions & Discussion
Next Supply Chain Master Class
April 20
Increasing productivity of person-to-goods
operations – key considerations for your
project
Better understand AMRs solutions. How can
AMRs take over transport activities inside the
warehouse while voice technologies can keep
worker’s hands and eyes free to improve picking
efficiencies.
In this week’s session, we will explore how voice
and robotics technologies can augment person-
to-goods case-picking workflows and help
improve job satisfaction.
Contributor:
Anton Du Preez | Group Sales Director
Körber Supply Chain
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