Warehouse & DC Management: Nature’s best deploys best of both worlds
Voice-directed picking of eaches to totes in cooler area.
September 01, 2012
Reinventing the supply chain
With such rapid growth, there was an overall sense of urgency to find a supply chain solution that could increase efficiency and a distribution model that could be easily replicated in additional DC expansions.
After much thought, McCarthy and his team decided to purge all conveyors and opt for a more conventional “pick directly to pallet” approach in which voice would be an indispensable component.
Why pick to pallet with voice? “It fits our business model beautifully,” explains McCarthy. “It’s flexible, it’s scalable, it’s nimble, and it doesn’t require massive amounts of training. I don’t have to have five mechanics standing by in case a gear breaks.” Manhattan’s Klein adds that voice is especially ideal in the freezer area where pickers are physically constrained by heavy jackets and gloves, making it difficult to manage an RF device.
To implement this new methodology, the company first needed to deploy a new WMS. In 2005, the team began a rigorous selection process for a new WMS provider. They went on multiple site tours and attended educational exchanges, speaking to users with similar operations in the same industry.
After much due diligence, they narrowed it down to three major players before eventually choosing Manhattan’s WMS software in early 2006. Along with a low cost of ownership, the base package could deliver almost everything the operation needed with minimal customization, while still providing the required direct interface to both voice and RF.
In 2006, after narrowing down candidate sites, McCarthy and his team selected Chino, Calif., as the site for the new facility. Construction on the new 410,000 square-foot DC began in 2007, with inventory being loaded in late 2007.
“Because Manhattan is a fully capable partner of ours, they did not need our assistance for integration or implementation of the voice solution,” says Ed Dumas, Vocollect’s senior strategic business consultant. Manhattan’s Klein agreed and reported that aside from the addition of a few access points in the colder areas, implementation went off without a hitch. The operation was live in early 2008.
For almost two years, the wearable voice terminals with tethered headsets consistently delivered on accuracy gains and significant labor savings—due to zero mispicks—at the Chino facility, resulting in a 12-month return on its voice investment.
In 2009, however, Vocollect approached the company to see if they would be interested in beta testing its new vehicle-mounted voice terminals, known as Vehicle Mount Talkman, equipped with Bluetooth wireless headsets.
For Nature’s Best, this was a no-brainer. “Changing out batteries added seconds, even minutes, on our standards,” says McCarthy. “That, multiplied with the total pickers, could cost hundreds, if not thousands of labor hours a year.” Vehicle-mounted voice devices would now eliminate these issues because the terminal is mounted onto the pallet jack and draws its power from the jack.
“All we issue out now are the wireless Bluetooth headsets,” notes McCarthy. According to Vocollect’s Dumas, the wireless headsets keep users untethered, allowing a total freedom of movement of about 10 meters. In 2009, they rolled out vehicle-mounted voice terminals in both each- and case-pick zones for the ambient areas of the Chino DC.
Nature’s Best’s supply chain operates with no room for error and delays. If retailers put in their orders by the cutoff time today, its trucks will deliver them to stores the very next day. Receiving is accomplished very early in the morning to allow for longer shipping windows; and by starting the shipping processes earlier, trucks can make it to as far as Seattle by the next morning.
A typical RF device is used to scan product in receiving, inventory control, put away, and replenishment. To pick, Nature’s Best uses a low-level, double length pallet jack that allows the picker to pick from the floor to 10 feet, versus the conventional floor to 6 feet. “It gives us an additional 33 percent net pick face in the same pick bay, and it reduces travel from an aisle perspective because you can pick more SKUs per bay,” says McCarthy.
It’s also equipped to handle two pallets at a time, allowing pickers to traverse the warehouse one time, yet pick for two pallets. At each pick location, pickers read back a check digit on the location label to confirm that they are at the correct location and confirm that they put the product on the correct pallet by reading the check digit on one of the two pallets.
Each-picks are picked first to totes. Case pickers then put the totes onto their pallet jack and continue to pick the rest of the lines for those pallets. Pickers then transport completed pallets directly to the dock.
Benefits came naturally
Over the years, the company has been enjoying the benefits of its voice-enabled WMS solution. Although accuracy rates were already above 98 percent, the solution raised the bar further by an additional six-tenths of a percentage point.
The vehicle-mounted devices saved the company over 1,400 labor hours and thousands of dollars in annual maintenance and asset costs. And with a hands-free, eyes-free solution, the company experiences lower accident rates and has reduced training cycle times by about 50 percent.
With the new WMS and conveyor-free picking methodology, the number of “touches” on a product has reduced dramatically, by about 75 percent. At the same time, inventory accuracy increased 14 percent, while also improving out of stocks. Slotting optimization also improved space utilization, maximizing the cube of the storage modules.
In anticipation of additional growth, Nature’s Best continued to reinvent its supply chain by opening a second 308,000 square-foot facility in Flower Mound, Texas, last year. From design to “go live” it took just nine months. And as every new distribution center comes online, McCarthy anticipates forging ahead, copying and pasting the same voice-enabled WMS and incorporating lessons learned from the previous DC.
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