Reader Question

Is there any guideline that would tell us when a picking automation solution (say pick to belt with downstream sortation) would start to potentially make sense? Are there any rules of thumb we could consider without first having a full assessment?

Director of Distribution

Apparel Manufacturer

Category:

Material Handling Automation
Expert Panelist Response: From Cliff Holste, W & H Systems

 

This type of system solution involves full case batch picking technology and automatic sortation.  Daily shipping volumes should be high enough to justify automatic sorting equipment - at lease 12,000 cases per day of conveyable product.  Based on a 3 year ROI you would need to save at lease 12 to 15 people per year to pay for the even the most basic level of picking system automation. 

If a WMS is required, it would have to have its own justification. Some operations are just too small to consider automation.  There are many more things to consider but cases shipped per day is the starting point. Without enough volume - is difficult to get the justification.

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Other Responses

We have often found that when you get, on average for a large enough group of SKUs, about 8-10 cartons per stop, you can start to look a this type of automation.

That can either be at a discrete order basis, or - more complicated from an analytical basis - looking at order batching across groups of orders (waves).

Logistics Manager

Procter & Gamble