Subscribe to our free, weekly email newsletter!


The State of Automation

Technology and innovation inside the four walls are changing the face of inventory management and transportation operations. Are you ready for the brave, new world?
By Bob Trebilcock, Editor at Large
February 24, 2011

TAKING A HOLISTIC VIEW
As is the case with Office Depot, companies that own their own stores and control their distribution and transportation processes are justifying automation by taking a holistic view of the supply chain, starting with what happens in the store. “In Europe, we are implementing systems in the retail channel where the focus is on improving the materials handling in the distribution center to reduce the cost of operating in the store,” says Strayhorn.


In the past, companies have implemented systems that build aisle-ready pallets, meaning that all of the items on a pallet will be putaway in a specific aisle in a specific store. Sophisticated examples can design a pallet so that the top layer will be stored on one end of the shelf with the bottom layer on the other end of the shelf.

Strayhorn is now seeing systems that take that concept one step further, to loading containers—and not just pallets—with product in the order it will go on the shelf. “We’ve developed a system that picks women’s T-shirts by size and places them in store-ready cartons in the order that they’ll sit on the shelf in the women’s department,” he says. “The store associate simple opens up a tote, puts the cartons on the counter, and they’re done.”

Likewise, one of Witron’s customers in Southern California justified the cost of a highly automated system on transportation savings. “The system builds a pallet in an aisle-ready fashion that ends up saving them about half a person per store over several hundred stores in their region,” says O’Farrell. “But the automation is able to build a load that is taller than the load they can build manually. That’s generating a 20 percent to 40 percent savings on transportation because they’re getting more cube on the truck.”


Looking for automation

About the Author

image
Bob Trebilcock
Editor at Large

Bob Trebilcock, executive editor, has covered materials handling, technology and supply chain topics for Modern Materials Handling since 1984. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484 and .(JavaScript must be enabled to view this email address)


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Hackett observed in the new report that China’s economy has lost steam, with actual growth falling short of targeted rates, while the United States most recent second quarter GDP reading at 3.7 percent outpaced expected targets, even though it was negatively impacted by gains in manufacturing and retail inventories.

The proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA