Storage/Staging: Warehouse optimizes order picking through gradual automation

Swanson Health Products (SHP) is a leading direct-to-consumer marketer of dietary supplements and other health products. It reaches millions of shoppers worldwide with mail-order catalogs and its Web site. In 2006, the company began remodeling its order picking processes following significant growth and a rapid expansion of the product range. After installing a series of high-density, goods-to-person picking systems, the company improved productivity, throughput and customer service.

SHP planned for short installation times during ongoing operations, including adaptation of several new interfaces with existing systems. The automated warehouse was designed in phases, beginning with a goods-to-person system with three high-density storage modules. The company had sufficient storage for the increasing number of SKUs and future product range growth. A year later, an additional module was installed for the addition of new SKUs. To automate slow movers, a one-aisle module combined with a goods-to-person workstation was then installed. The system optimized performance and space and allowed the facility to extend its SKU range by 7,000.

In 2011, SHP further extended the use of automation with four more modules and a second goods-to-person workstation. This resulted in further improvements in productivity, throughput, operational costs and fulfillment volume. The existing software integrated into the new system to provide inventory replenishment on demand to all eight modules. In 2013, SHP added another module and automated the fast-moving area with an A-Frame for the picking of the top 400 fastest SKUs.

“The supplier used a systems approach that integrated materials handling, goods-to-person and automated picking methods,” says SHP director of operations Terry Kraft, who cites reduced labor costs, lowered per-order costs and shortened delivery times. “The design allowed us to maximize productivity, increase throughput and improve customer service.”

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