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Business Technology

Sunday, April 08, 2007

Warehouse Automation--What's Really Working For Pallet, Case, and Piece Pick Operations

January 2007 from the Aberdeen Group – “Warehouse Automation” is a broad term that encompasses many different individual technologies. The following is a list of the primary technologies Aberdeen has analyzed for this benchmark report:

Bar-Code Scanning
Bar-coding has been used in distribution centers for decades, and it remains the most commonly adopted form of warehouse automation today. It is reliable and relatively inexpensive. Bar-coding is typically used in a real-time environment, with data being transmitted back and forth via a Wireless Local Area Network (WLAN).”

Voice-Directed Picking
Voice-Directed Picking was widely introduced in distribution center environments in the 1990’s and now is used heavily in certain industries such as grocery distribution. It is used in areas where workers benefit from being able to use both hands to perform their work, without ever having to take their eyes off of the task at hand.

Cart-Based Picking
Cart-Based Picking is both a technology and a methodology. Cart picking excels in cluster pick operations, where several orders are picked at the same time with a single pick path through the warehouse. Keeping track of which items belong in which orders can be challenging; hence, cart-based cluster picking often involves secondary technology such as bar-code scanning, voice-directed picking, and pick-to-light systems…”

Aberdeen has broken out its Best in Class framework according to three key metrics:

  • Labor cost reduction
  • Percentage of on-time and complete shipments
  • Pick accuracy

Very few companies were Best in Class for all three categories – meaning that there is more than ample opportunity for even those considered top performers to improve their operations…”

180 View – Many ERP systems have the basics, but don’t include features such as cart-based picking and other technologies discussed in the Aberdeen report.

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