Whilst working for a major internet and mail order
retailer of lingerie products, there was a need to find ways of reducing the
labour cost in the warehouse.
Analysis showed:
·
Average order size is very small at around 2.6 units
per order
·
The physical size of the orders, being lingerie, is
also small.
·
The method of operation was to pick each order individually from a paper-picking list,
necessitating a large amount of walking for each order.
·
The order was then placed in a holding area prior to packing for despatch,
which was also performed on an individual order basis.
·
That the proportion of time taken to walk around the
warehouse for the order pickers represented some 90% of their workload.
A “normal” way around this problem is to batch orders together, and then using
automated equipment, sort the batch into individual orders.
However:
·
The capital cost of such a solution is very high
·
It is very inflexible
·
The uncertainty surrounding the likely future volumes made this option unattractive.
What was needed was to find a way of minimising the walk
time, by ensuring that more than one order could be picked each time the picker
went around the warehouse.
The
solution:
·
A picking trolley was developed which allowed up to 24 orders to be picked on each walk sequence
·
The principle was extended to the packing operation by using part of the trolley containing
8 orders being delivered to the packing station.
·
A new layout was devised for the packing stations.
The result:
·
The theoretical picking performance increased by a factor of 12.
·
The packing performance was increased by 70%
·
The capital cost of this solution is in direct proportion to the throughput as
additional trolleys are only purchased as the existing ones become fully utilised.
·
This gives a fully scalable solution, which can easily be transferred to new
warehouses as they are set up.
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