Data at the heart of automation

Access to accurate dimensional data leads to more intelligent picking and packing decisions. DATA AT THE HEART

OF AUTOMATION

As the industry continues to implement automation across all aspects of fulfilment operations, Rhett Talley, Marketing and Business Development Manager at Diverseco says accurate master data is the foundation of running a successful operation.

During the COVID-19 pandemic, many retailers have had to ramp up their e-commerce offerings. Leading grocery retailer Woolworths has reported a 320 per cent increase in online customer demand and has since doubled its capacity in this area.

E-commerce speciality stores such as Kogan, Catch, Adore Beauty and Amazon are experiencing growth levels like they have never seen before. Many consumers are shopping online for the first-time ever and it is likely that this growth is here to stay.

Warehouse and distribution centre (DC) operations are being pushed to their limits as the stress to meet this peak in demand is leading many to explore automation capabilities.

Mobile goods-to-person picking robots, mezzanine storage and stock retrieval automation systems, and automated conveying sortation systems are now commonly found in DCs across Australia.

According to Rhett Talley, Marketing and Business Development Manager at Diverseco, the foundations of all successful warehouse automation operations lies in accurate SKU dimensional data.

Historically, if a supply chain manager or warehouse management system (WMS) knew the length, width, height and weight of an SKU it was deemed a sophisticated operation. But now, as retailers and thirdparty logistics providers (3PL) run increasingly automated operations, this is not enough to satisfy the intelligent systems found in a warehouse today.

The benefits of automation across a logistics operation have been proven. Goods-to-person methods minimise waste, reduce time between picks, and also significantly increase pick efficiency. However, for this kind of automation to work, it has to have access to very reliable and precise SKU dimensional measures, Rhett says.

INBOUND AND OUTBOUND OPERATIONS

Access to SKU dimensional data has significant benefits for both inbound and outbound operations, Rhett says.

“If you have access to accurate dimensional data about all of the SKUs coming into the warehouse, then you can make better decisions around layout, types of automation you will deploy, space saving and facility design,” he says.

With regards to outbound operations, accurate dimensional data is absolutely key to running an efficient operation.

“If a customer orders three different SKUs from your store, you need to pick and pack those based on the data you have about these items. Is the item bendable, stackable, nestable, fragile, heavy, foldable? All of these criteria will go into the decision that the operator will make for packing the items,” Rhett says.

Carton optimisation programs as well as box-on-demand solutions

are becoming increasingly popular in e-commerce operations and if the program has access to dimensional data it can make an intelligent decision for the operator to pack the boxes into a certain size carton.

This also has implications for shipping costs. “Most shipping providers require that you declare the correct packed weight and dimensions of the item being shipped as that’s what they are charging you for. When you’re being charged for space on trucks or planes you want to minimise the cubic dimensions of the package or carton as much as possible. And accurate dimensional data allows your WMS to make the most intelligent decisions it possibly can around picking and packing,” Rhett says

It can also make decisions around how pallets should be packed. For example, ensure that heavy and nonbreakable items are backed at the bottom of a shipment. All of these decisions can impact efficiency, accuracy and cost.

MAKING THE MOST OF YOUR WMS INVESTMENT

Rhett says that organisations often start to consider the benefits of accurate dimensional SKU data when they introduce a new upgraded WMS system.

“There is usually a business trigger that causes someone to make the decision to automate the capture of SKU dimensional data. This could be implementing a new WMS or a new goods-to-person automation system, or even when building a new DC. Without accurate SKU data, you cannot get the most out of these investments,” Rhett says.

A common issue for logistics operations is that the data they receive around SKU properties is often out of data, or simply incorrect. “Quite often DCs can’t trust the data that vendors supply to them with regard to SKUs. It may have been correct once, but the packaging could have changed, so DCs will often need to audit or re-check weight and dimensions and update it within the WMS,” Rhett says.

Diverseco is the exclusive supplier of Cubiscan in Singapore, Australia and New Zealand. Cubiscan is an automatic dimensioning system that captures dimensional data for SKUs.

Many e-commerce retailers, distribution centres, and 3PL service providers use the Cubiscan system in their operations, including Catch. com.au, Adore Beauty, Toll, Amazon, DHL, Bollore, DB Schenker, Linfox, Australia Post, CEVA, Office Works, and many more.

“Many of these retailers have tens of thousands of SKUs, and they are getting new ones all the time. To ensure that they have the right data for each and every product they sell, every new item goes through the Cubiscan before it enters any picking area and all that information is entered into the WMS in real time,” Rhett says.

Rhett gives the recent Drakes DC in Adelaide as an example of where this data really comes into its own. “At the Drakes DC they have a very sophisticated Dematic goods-to-person and goods-to-robot operation. A robot can pick an SKU and drop it into a tote. But in order to do that, the robot has to know more about the SKU. It has to know what pressure it can apply, how crushable it is and therefore what height it can be dropped from without causing damage,” he says.

A Cubiscan will give all of this data to the WMS, allowing the robot to make intelligent decisions of how it will pack and handle the goods.

“As automation becomes more intelligent, it will benefit from having a better understanding of SKU characteristics besides just height and weight,” Rhett says.

Additionally, if you have accurate data for SKUs, any errors can be highlighted before the shipment leaves the warehouse. If an order consists of four items, all recorded to weight 1kg each, but it weighs 3kg at dispatch, then it is immediately known that there is an error with the order.

“An operator may miss this kind of error but having accurate data for every SKU in the warehouse will ensure that this order does not leave the warehouse,” Rhett says.

LOCAL SUPPORT

The Cubiscan is designed and manufactured in the US, but Diverseco has developed its own software for the operation of Cubiscan.

“We have designed our own software so that we can support our local customers in real-time. Whenever we supply a Cubiscan, we are supplying our Diverseco designed CubeMaster Software. This means we can dial in through team viewer in real-time and troubleshoot as necessary,” Rhett explains.

Diverseco has had great success with the Cubiscan product offering, leading retailer Catch.com.au purchased a Cubiscan more than eight years ago when their business first started to take off. Now they have two and use them every single day, Rhett says.

“For Catch, accurate SKU dimensional data is the foundation of their operations. That’s how they can pick, pack and dispatch accurately and efficiently,” Rhett says.

Accurate dimensional data underpins any efficiencies that the WMS can offer, without the accurate data the WMS cannot make intelligent decisions. “Any investment in automation or WMS software needs to also coincide with investment in being able to offer these sophisticated systems the most accurate data possible, Rhett concludes. ■

Diverseco is the exclusive supplier of Cubiscan in Australia, Singapore and New Zealand.