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The case for automating your case picking operation

Case picking has traditionally been performed in warehouses using some form of pick-to-pallet operation, often relying on paper tickets or pick-to-voice systems.

Pallets of SKUs are brought into the warehouse and stored in pallet racks. In some setups, the floor-level pallet serves as the active pick location, while the racks above are used for reserve storage. In other cases, all pallet locations are active. The efficiency of the pick route depends on how pallets are slotted and put away.

“The ROI for automated systems demonstrates significant savings, with fulfillment costs per case reduced by up to 50% compared to manual operations.”
Andy Lockhart
Director of Strategic Engagement

Case picking has traditionally been performed in warehouses using some form of pick-to-pallet operation, often relying on paper tickets or pick-to-voice systems.

Pallets of SKUs are brought into the warehouse and stored in pallet racks. In some setups, the floor-level pallet serves as the active pick location, while the racks above are used for reserve storage. In other cases, all pallet locations are active. The efficiency of the pick route depends on how pallets are slotted and put away.

Several disadvantages of this manual pick process stand out:

> Human Errors: Manual picking is prone to mistakes, such as selecting the wrong item or quantity, which can lead to customer dissatisfaction and increased returns. This issue is especially prevalent when paper pick tickets are used.

 > Inefficient Processes: Operators spend significant time walking through the warehouse to pick cases. On average, 70% of their time is spent walking, not picking. This inefficiency leads to longer order processing times and higher operational costs.

> Physical Strain: Repetitive lifting and handling of heavy cases can cause physical strain and injuries, impacting worker health and reducing productivity.

> Labor Shortages: Manual operations require more manpower, making it challenging to find and retain skilled workers. Employee turnover adds costs for hiring, training, and onboarding new staff.

> Space Constraints: Manual warehouses are often inefficient in their use of space, requiring additional room for operators to move and access items.

> Inconsistent Performance: Productivity and accuracy vary among workers, causing inconsistent performance and potential bottlenecks.

Benefits of automating your case picking operation

Automating your case picking operation addresses these challenges and offers numerous advantages:

> Increased Efficiency: Automation significantly speeds up the picking process by eliminating unnecessary walking, reducing order fulfillment time.

> Cost Savings: Although automation requires a significant upfront investment, the long-term savings from reduced labor costs and increased productivity are substantial. Automation can cut fulfillment costs per case by up to 50%.

> Improved Accuracy: Automated systems deliver the right cases in the correct order, reducing or eliminating errors and enhancing customer satisfaction.

> Scalability: Automation enables operations to scale efficiently to meet increased demand without proportionally increasing labor requirements.

> Enhanced Safety: Automated systems handle cases ergonomically, minimizing worker injuries. The reduction in forklift use also decreases accidents and damage to racking. OSHA reports that there are approximately 62,000 forklift-related accidents annually.

What does an automated case picking system look like?

A fully automated case picking solution enables single-SKU pallets to be received and multi-SKU or rainbow pallets to be shipped. These outbound pallets can be optimized for transport or store requirements, enhancing supply chain efficiency beyond the distribution center.

  1. Reserve Pallet Storage: Pallets from vendors are received, checked, and stored in high-bay automated pallet storage. This storage system is designed to maintain appropriate stock levels based on demand.
  2. Depalletization: Pallets containing SKUs required for daily orders are retrieved from high-bay storage, depalletized, and sent to the carton storage area.
  3. Carton Storage: Cartons are stored in a level-roaming shuttle system, placed randomly on trays for efficient storage. This method allows for higher density and accommodates cartons less suited for automation.
  4. Palletization: Mixed-SKU pallets are built for store delivery. The shuttle sequences cartons from storage to palletizers in the required order to create stable pallets. Rules, such as placing heavier cartons at the bottom and lighter ones on top, ensure pallet stability. Once built, pallets are automatically wrapped and transported to the shipping dock for loading.

Conclusion

Labor challenges and the need for greater warehouse efficiency make the case for automating case-level picking increasingly compelling.

While implementing a fully automated case-picking warehouse may seem daunting, working with a material handling vendor with expertise can make the process manageable, ensuring a viable solution is delivered on time and within budget. The ROI for automated systems demonstrates significant savings, with fulfillment costs per case reduced by up to 50% compared to manual operations.