Warehouse automation - the goal or the means?

It seems my blog entries are having published articles as their catalyst.

Today's blog entry relates to the recent  DC Velocity article "Bot or not" http://ow.ly/6tcLZ .  That article debates the philosophical ramifications of "light out automation".

It my belief that a discussion about automation, for automation sake while interesting, has some disconnect from the real objectives: facilitating revenue growth, reducing cost and increasing quality.  That trio should be the primary focus of any warehouse automation investment.

In the past decade, there have been a dozen or so HUGE fully grocery automated picking systems implemented around the globe.  As one stands back in looks at the completed system, it may lead one to conclude that automation was the goal. The solutions are always tremendously impressive ... but ... those companies that have implemented such solutions TRULY appreciate the benefit, but repeatably ask themselves, is the reward really worthy of the investment?  I suspect the REAL answer to that question is no.  Further more, I believe there is an "intelligent use of automation" alternative.

This past spring, I had the pleasure of taking a MAJOR US grocer through a TGW freezer installation in Madrid Spain. The objectives of the project were simple:

1. improve the working environment for the associates
2. assure the right product get picked and delivered to the store
3. facilitate growth while minimizing additional labor and training costs

The solution pictured below was elegant in it's simplicity.

The goal was not to automate everything, but instead to surgically apply automation that could most affect costs and best improve the working environment.  The flow chart below depicts how this was accomplished.

As you see in the chart ... all manual functions were performed above freezing ... all sub-zero functions were performed automatically.  Additionally, here in the US, OSHA statistics show that order picking is the number one area of reported incidents within the warehouse.  The net results of this solution:

• improved working conditions
• greatly reduced workplace injuries
• significant increases in productivity
• a marked increase in 100% accurate store deliveries

All this realized, through the "intelligent use of automation" ... a solution that best leverages the capabilities of automation and the skills and abilities of warehouse workers.

As you tour the system, the benefits became self-evident to the grocer I was with.  They marveled that due to the simplicity, the system was just simply running ... as opposed to the many other systems that they had recently seen that were driven to months (or in some occasions even years) of debug and commissioning.

So yes, the debate of to "Bot or not" is interesting ... but what is important is (in the words of the now deceased Eliyahu M. Goldratt) what is "The Goal"?

For more information on distribution center automation, feel free to visit http://www.tgw-group.com/.