By Luke Nuber, Director of Sales Operations & Sr. Account Executive, DLN Integrated Systems, Inc.
Part two of a two-part series
Deciding to modernize a warehouse in this highly competitive landscape is a big step — and usually a smart one.
But it’s only the beginning.
The steps that follow will make the difference between successful versus mediocre results. These actions include performing due diligence; considering the most effective technologies to leverage; and making key planning decisions.
The good news is there are proven modernization success strategies, even as they continue to evolve in today’s quickly changing environment.
This is the second of a two-part series on warehouse modernization. The recently published first article outlined considerations that go into the all-important decision of whether to modernize a facility or build a new warehouse. That article emphasized the point that modernizing is the best choice for most companies.
This piece takes the discussion further by guiding leaders who have decided on modernization. It points to the best success paths based on DLN Integrated Systems’ many years of experience.
Begin with an Analytical Approach
A successful modernization project needs to start with a careful analysis of the current facility and the organization’s goals.
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- Identify Performance Gaps: A gap analysis is needed to help identify current performance and desired capabilities. The difference between current and desired capabilities are the additional capabilities that need to be created through the modernization.
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- Understand Capacity Realities: A capacity analysis should also be conducted to identify the maximum throughput of each process and piece of equipment. This analysis will identify the bottleneck of your facility and typically will also show that other parts of the facility are producing less than their maximum. Investing in additional capacity at the bottleneck, which is sometimes as simple as turning up the speed, may unlock dormant capacity for the rest of the facility at a very low cost.
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- Analyze Space Dynamics: The capacity analysis should also include analyzing the current facility for opportunities to gain space. This includes finding unused space within the four walls and investigating opportunities to build up or bump out a building.
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- Take a Deep Dive into Infrastructure: An important foundation for modernization is conducting a maintenance audit that identifies the state of the existing infrastructure. This can make clear the age and condition; whether components are obsolete; and even whether upgrading one aspect will require a series of additional upgrades as well.
Identify Technologies to Drive Success
Organizations need to focus on the types of technologies and equipment that line up well with modernization projects. Typically, the focus will be on high efficiency technologies that maximize current assets and are flexible enough to fit into existing infrastructure with minimal modifications.
COLLABORATIVE ROBOTS
Collaborative robots — also called co-bots or autonomous mobile robots (AMRs) — are good fits for many modernization projects. This technology can help improve the productivity of workers by up to two times. Typically, the robots handle transportation of items to reduce the walking time of pickers, allowing the pickers to spend more of their time on the vision and dexterity-intensive pick tasks where humans currently outperform robots
This technology is very suitable for modernization strategies because it is scalable. Capital-constrained organizations can purchase just enough robots for current needs and add more later, and there are many opportunities to lease this technology or buy it as a service. It can also usually be deployed to existing pick areas without significant reconfiguration.
Organizations need to consider whether the cost structure and the ability of the bots to maneuver will be on target for their facility’s needs. The scalability of this technology presents a great opportunity to pilot this technology to confirm compatibility and benefits before scaling it up.
GOODS-TO-PERSON
Goods-to-person is an automated solution that brings items to stationary pickers. It makes workers more productive by eliminating their need to walk through a warehouse. Most GTP systems also have excellent storage density and selectivity, improving the utilization of precious space and the ability to handle a larger SKU assortment without eroding picker productivity. Most have good scalability, allowing companies to add storage or throughput over time as needs change.
Companies considering this technology should ensure that the advertised benefits will apply to their specific facilities, given variables in aspects such as order profiles and infrastructure. There are many goods-to-person solutions on the market with wide-ranging characteristics, so this is a great time to engage a technology-agnostic consultant to develop a fair analysis of the options and help determine the best-fit option for each specific operation.
2D PALLET SHUTTLE
The 2D Pallet Shuttle is a high-density automated storage and retrieval system. It is ideal for operations involving large numbers of pallets of each SKU. It is highly flexible and scalable; enhances productivity; optimizes the use of warehouse space; and in some applications can automatically replenish inventory during picking.
Moreover, it avoids limitations of earlier generations of pallet AS/RS systems. In the 2D version, pallets are lifted by stationary elevators and then transported by robotic shuttles that can move in two directions. The advent of the 2D shuttle avoids the need for large cranes that were used in earlier AS/RS versions, which decouples throughput requirements from storage requirements. 2D shuttles allow companies to purchase exactly the needed elevators, shuttles and storage independently from each other rather than purchasing in increments of full crane aisles. They can also independently add these components in the future if throughput and storage do not grow in proportion to each other.
Companies should first verify that this type of technology is a good fit for their operations, taking into account the specific nature of their inventory and pallets.
Win Through Strategic Approaches
Despite the considerable benefits of a modernization project, the process of executing on it is almost always more complex than building a greenfield facility. This is because the modernization will inevitably impact the existing operations of a facility, which requires strategic approaches to drive success.
It’s important to anticipate hurdles and, like in chess, plan out moves in advance.
Think Creatively: Leaders will do well to embrace adaptability in modernization projects. As one example, it may be necessary to temporarily clear out workspaces by moving some volume to other parts of operations or shifting work areas to a temporary location.
Start Planning Early: Workarounds needed for modernization projects often require complex planning. It is important to start early to make sure all potential workarounds are identified before beginning estimation and budgeting and planning the time flow.
Build in Extra Time and Budget: Organizations need to be flexible in mapping out the details of timing and budgeting. A good approach is to add 10% to 20% to the typical time allocation and to leave open periods in the schedule to allow for catchup if needed. Similarly, companies should allocate additional budget dollars for unforeseen issues and costs.
Drive Success with a Trusted Partner
Warehouse modernization is a powerful strategy because it is more affordable than building new and allows companies to use more of their existing warehouse assets. Given the wide variety of warehouses and the range of solutions available, it is important to solicit unbiased expertise to evaluate individual needs.
DLN Integrated Systems is a trusted partner that is not locked into using specific brands of equipment or technology. It analyzes each situation uniquely and provides comprehensive integrated solutions using equipment and technologies from a range of manufacturers. This enables DLN to implement the most efficient and cost-effective solutions customized for each client.
Check out our case studies and learn a bit more about our recent projects.
