Logistics News Warehouse Annual 2015 Sample

Logistics News WAREHOUSE ANNUAL 2015

FRQWHQWV Publishing Editor: Dianne Holton Editorial & advertising: Tel: 011-784-7697 Fax: 086-515-5247 E-mail: info@logisticsnews.co.za P O Box 784621, Sandton 2146, South Africa

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Overview

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Big data ... big results

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Warehousing: cost to growth centre

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Warehouse effectiveness

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Goodbye to bottleneck issues

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From muscles to mental abilities

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Consumer-grade mobile technology

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3D laser scanning

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Amazon’s 15 000 robots

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Responsive SCs are flexible

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New ways to use AS/RS

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Right tablet for forklift apps

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Fixing ‘messy’ problems

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Beyond narrow ROI with YMS

The publisher is not responsible for the opinions expressed by individuals.

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Make that last mile count

© No part of the publication may be copied or

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Top safety and sustainability rules

Deputy Editor: Michael Brandt Contributing editor: Martin Bailey, managing director, Industrial Logistic Systems Advertising: Juanita le Roux Tel: 082-494-6592 Fax: 086-658-9006 juanita@logisticsnews.co.za Subscriptions: subs@logisticsnews.co.za Design & DTP: Kerry Dimmer – Directions Tel: 011-792-1930 Repro and Printing Paradigm Print Tel: 011-683-1911

reproduced by any mechanical or electronic means without the written permission of the publisher.

Logistics News and LAA endorsed by: $($4" t Consumer Goods Council of South Africa CILTSA t $IBSUFSFE *OTUJUVUF PG -PHJTUJDT & Transport SA $*14 t $IBSUFSFE *OTUJUVUF PG 1VSDIBTJOH BOE 4VQQMZ 4PVUIFSO "GSJDB CSCMP t $PVODJM PG 4$. 1SPGFTTJPOBMT RFA t 3PBE 'SFJHIU "TTPDJBUJPO SAAFF t 4" "TTPDJBUJPO PG 'SFJHIU 'PSXBSEFST SAEPA t 4" &YQSFTT 1BSDFM "TTPDJBUJPO SAIIE t 4" *OTUJUVUF PG *OEVTUSJBM &OHJOFFST SAPICS t "TTPDJBUJPO GPS 0QFSBUJPOT .BOBHFNFOU PG 4PVUIFSO "GSJDB 4"4$ t 4" 4IJQQFST $PVODJM SCC t 4VQQMZ $IBJO $PVODJM TOCICO t 5IF 5IFPSZ PG $POTUSBJOUT *OUFSOBUJPOBM $FSUJGJDBUJPO 0SHBOJTBUJPO

Picking capacities and technology 36 Large case type operations 37 Small item type operations 38 Comparison of storage options 39 Typical picking for large items 40

Directory of supporting industry associations

The Logistics News Warehouse Annual Ninth year of publication GraniteWMS is the flagship product of Cradle Technology Services. Designed and developed by South Africans in Cape Town, it is aimed at the small to medium size company that needs to go beyond the stock management in its ERP system.

GraniteWMS is marketed globally through an active reseller channel.

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The challenges of growing consumer demands 8BSFIPVTFT PG UIF GVUVSF XJMM CFDPNF NPSF TPQIJTUJDBUFE UIBO UPEBZ T GBDJMJUJFT UP DPQF XJUI UIF FWFS JODSFBTJOH EFNBOET PG UIF DPOTVNFS TPDJFUZ

By Martin Bailey, managing director, Industrial Logistic Systems

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s the consumer society grows, it has developed an insatiable appetite for a greater range of products, reduced lead times and better customer service – creating a host of challenges for the warehousing industry. To meet these challenges organisations need to build increasingly sophisticated facilities – with improved processes, more (better managed) inventory, better visibility, better planning, and better infrastructure.

The rise of the Internet of Things, smart systems and smart machines is entering a new phase as these technologies advance. Presently fancy automated ‘future’ warehouse concepts are built around the predictions of a few passionate protagonists – but soon a whole new world of smart systems is going to start permeating our processes.

So what will the warehouse of tomorrow look like?

Will it be completely different to the warehouse of today? Will we run facilities that are highly automated – with a few propeller heads sitting in remote terminals running these facilities? Perhaps there will only be space for maintenance personnel – with robots replacing all the workers. Will our new warehouse be a mass of conveyors with hundreds of robots doing the fetching?

Do we look to the ‘First World’ countries to see how e-commerce has changed the way we see warehouse development – with new multi-channel systems that react faster to much smaller orders? Or will everything stay the same – and all we will see is bigger, improved centralised operations?

While we can dream about fully automated facilities – where humans only feed the system to keep it alive, in reality the warehouse of the future is likely to have a number of other features: ‹ >L ^PSS ZLL ZPNUPMPJHU[S` PTWYV]LK 0; UL[^VYRZ )L[[LY and faster and more accurate interfaces with workers to drive them to be more accurate and more efficient. ‹ >L ^PSS OH]L IL[[LY JVTT\UPJH[PVUZ ^P[O V\Y customers and suppliers. ‹ >L ^PSS ZLL ZVTL NYV^[O PU H\[VTH[PVU VM YLWL[P[P]L tasks – but with SKU and changing customer profiles – it is going to become more and more difficult to automate tasks such as picking. ‹ ;YHUZWVY[ [OL SHYNLZ[ JVTWVULU[ VM [OL Z\WWS` JOHPU

will remain the prime cost in the supply chain and will remain highly manual – and warehouses will interface accordingly. ‹ >L ^PSS IL ZLLPUN TVYL HUK TVYL JLU[YHSPZH[PVU (consolidation) and improved facilities. ‹ ;OPYK WHY[PLZ ^PSS ILJVTL TVYL J\Z[VTLY MVJ\ZLK HUK will increase market share. ‹ >L ^PSS ZLL H Z\IZ[HU[PHS YLHSPNUTLU[ VM PUK\Z[YPLZ -VY example, as we grow e-commerce and a host of new businesses, the supply chain industry is in a continued state of flux. And change means new opportunities – to service new markets – with new equipment and improved infrastructures. ‹ ;OLYL ^PSS IL KLTHUK MVY UL^ QVIZ ZRPSSLK WLVWSL more equipment, better systems, increased automation, better vehicles and all sorts of improved planning techniques. ‹ >L ^PSS OH]L IL[[LY WYVJLZZLZ Âś ^P[O ML^LY JVUZ[YHPU[Z – and much more visible reactive systems. ‹ >L ^PSS OH]L TVYL HUK IL[[LY Z[HUKI` WV^LY ZVSHY wind and others) and – as Eskom ‘dies’ – we will create our own safe environment (water, power, sewerage and others). ‹ 6\Y MHJPSP[PLZ ^PSS ILJVTL TVYL LU]PYVUTLU[HSS` friendly.

While I do not see massive moves to automated systems, JSLHYS` H THQVY JOHSSLUNL MHJPUN [OL ^HYLOV\ZPUN PUK\Z[Y` is the cost and related inefficiency and stability of the labour force in South Africa. However, as automation becomes more cost effective, and with substantial rationalisation and reorganisation, this can be countered, especially in warehousing, where automation is relatively simple to implement.

What we are thus going to see is far leaner and more efficient supply chains in the future. Maybe not fully automated facilities – but certainly facilities that are far TVYL SHIV\Y LMMPJPLU[ HUK TVYL J\Z[VTLY MYPLUKS` ‹

LOGISTICS NEWS WAREHOUSE ANNUAL 2015

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Warehousing: from cost centre to growth centre )PX BSF XBSFIPVTJOH PQFSBUJPOT BOE *5 QSPGFTTJPOBMT SFTQPOEJOH UP UIF TJHOJGJDBOU DIBOHFT BOE DIBMMFOHFT GBDJOH UIF JOEVTUSZ PWFS UIF OFYU GJWF ZFBST

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Acknowledgement to Supply Chain Services

t its most basic, warehousing is a simple concept. It’s about storing materials or goods and filling orders from one end of the supply JOHPU [V [OL V[OLY )\[ PU [OL YLHS ^VYSK VM today, tomorrow and especially five years from now, warehousing is evolving to become anything but simple.

Today’s warehouse professionals face a series of significant changes in the ways warehouses, distribution centres (DCs) and the entire supply chain operate. More facilities and larger spaces demand highspeed mobile communications virtually everywhere on or off the floor. A virtual across-the-board customer demand for personalisation is driving an increase in the number of SKUs being held, leading to increased inventory visibility, accuracy and efficiency needs. New regulations call for more accurate product tracking and tracing. The movement to re-shoring is bringing manufacturing and other business closer to the customer, creating a need for more efficient and effective cost and labour management.

Fuel cost volatility impacts logistics and much more. The growth of omnichannel transactions creates the need for increased inventory control, flexibility and faster, more accurate fulfillment. All these factors contribute to the need to convert warehouses and DCs into assets for competitive differentiation.

A recent survey revealed a forward-looking new way of viewing the warehouse, no longer as a pure cost centre in which operational focus is placed almost exclusively on wringing out inefficiencies and inaccuracies in order picking, but increasingly as a powerful asset that can drive profitable growth for the business with a heightened focus on improving inbound, storage and outbound material handling.

Reality to vision: the future of warehousing The warehousing industry – after a period of marking time while under intense pressure to reduce inventory levels to free up capital – is now in the position of having to quickly keep pace with today’s increased fulfillment

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LOGISTICS NEWS WAREHOUSE ANNUAL 2015

KLTHUKZ )LMVYL Z[HY[PUN [V WSHU MVY [OL M\[\YL HU organisation must first identify its current status, honestly answering the question, ‘where are we now?’ Once today’s reality is clearer, management must clarify its vision of where the company wants to be in two, three, four and five years, and make the critical decisions of where to invest, and what types of investments should be considered.

Ensuring IT and operations alignment Although at least partial alignment between IT and operations are seen today, in many instances there is still a basic technology divide. It starts with differences in overall assessment of current capabilities and risk perspectives for the future. Today IT often perceives higher levels of WMS integration with other systems than KVLZ VWLYH[PVUZ" PU HKKP[PVU P[ PZ JSLHY [OH[ 0; WYVQLJ[Z higher incremental integration rates by 2018 than its operations counterparts.

Today’s IT departments also tend to be more aggressive in setting new standards and deploying new tools to reduce technical risk – and to be more accepting of business risk – than operations, which is usually more risk-averse and focused on running the day-to-day operations of the warehouse with minimal technical KPZY\W[PVU )YPUNPUN [OL [^V KLWHY[TLU[Z [VNL[OLY [V

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Hidden costs of using consumergrade mobile technology 5IF TVDDFTT PG B DPNQBOZ T NPCJMJUZ JOWFTUNFOU JT JO HSFBU QBSU DPOUJOHFOU PO UIF EFWJDFT DIPTFO UP CF EFQMPZFE Acknowledgement to Motorola Solutions

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ompanies are increasingly turning to mobile technology to help drive the next level of productivity, efficiency and service in their organisations. In a recent survey of CIOs, mobile technologies in the wholesale distribution industry were ranked as the highest priority, while manufacturing CIOs placed mobility as the second highest technology priority for their organisations. In another field survey, respondents deemed mobility of technology as ‘very important’ not only for ramping up productivity and profits, but also for slashing errors.

Yet, as these same companies increasingly run [OL YPZR VM ZHIV[HNPUN [OLPY V^U LMMVY[Z )` ZLSLJ[PUN the wrong mobile technology – based on incomplete or incorrect information – they fail to realise the true benefits of mobility.

While choices of mobile solutions are wide, few options can meet all the needs for business-critical hardware, software, accessories and service plans.

What’s the difference? Too often, consumer-grade mobile devices – not designed for enterprise usage – introduce unforeseen complexities and hidden costs. )` JVU[YHZ[ HU VYNHUPZH[PVU Z[HUKZ [V NHPU [YLTLUKV\Z advantages from mobile technology that is purpose-built for use in demanding line-of-business applications.

Post-purchase blues If a company opts for most consumer devices, it may be stuck with a one-size-fits-all solution, forcing the organisation to adapt to ‘features’ that are undesirable for parts of the complex multi-environment, multiworkflow operation. Furthermore, to meet even the most basic environmental and workflow demands, it may be required to purchase additional components to augment its devices.

Consider requirements like reading barcodes, taking payments, powering through a full shift, or surviving a drop without cracking the device. Even if the organisation only requires one of these capabilities, the costs associated with augmenting consumer-grade technology to meet any of them remain – and they are passed on to the owner after initial purchase.

High churn rates stir trouble: Additionally, the speed at which technology changes makes most consumer-grade devices obsolete within 18 months, on average. Can

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LOGISTICS NEWS WAREHOUSE ANNUAL 2015

the company afford to replace mobile devices at this rate, no matter how inexpensive they initially appear?

What if a device breaks beyond repair and the latest version has different dimensions or connectors making the accessories, cases, pouches, scanners and chargers obsolete? Or consider the release of a new operating platform that prompts workers to download and install the latest version in the middle of a shift. What happens if the new operating system is incompatible with one of the critical line-of-business applications?

Short lifespans: Replacement over repair is yet another downside to most consumer-grade mobile solutions.

Many mobile technology providers make repair a complicated, lengthy process or may not provide a comprehensive coverage option at all. Short device lifespan means that upgrades are extremely limited or non-existent, and replacing a broken device in the middle of that lifespan can quickly spoil any plans for a uniform and smooth rollout.

High price paid: As a result, the business risks being beholden to technology that doesn’t truly suit its requirements, despite the lower initial acquisition cost.

These consumer-grade devices, and the technology they depend on, do not evolve at the same pace as e-business’ needs. As inexpensive as they may look at first, they can actually extract a high price in additional accessories and peripherals, rapid obsolescence and potential downtime.

UIF TQFFE BU XIJDI UFDIOPMPHZ DIBOHFT NBLFT NPTU DPOTVNFS HSBEF EFWJDFT PCTPMFUF XJUIJO NPOUIT Power of purpose-built approach )` VW[PUN MVY W\YWVZL I\PS[ TVIPSL [LJOUVSVN` MVY LHJO worker and process, a company can exercise greater control over the required features and the pace of implementing them. That’s because enterprise-grade devices are typically engineered with specific use cases and requirements in mind and are available in numerous form factors with varying operating systems, keyboard options, screen sizes, and connectivity options. This enables the business to maximise end user productivity, while also protecting investment and complying with IT standards.

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The Logistics Achiever Awards reward excellence in logistics and supply chain management by recognising outstanding achievements and innovation that have created market advantage today for a strong, sustainable foundation into the future.

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