Holste Says: |
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The rapid pace of change in the global world of logistics requires a high level of operational flexibility. |
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What Do You Say?
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For many logistics managers the question is - what’s so unique about the Kiva system that caused Amazon to buy the entire company. Understandable, many are now wondering if a “Kiva type” solution, or perhaps some aspects of it, may be right for their order fulfillment operations. It’s a very good and appropriate question to ponder.
Because picking orders is the most labor intensive and expensive part of the order fulfillment process, it is appropriate that thoughtful consideration be given to choosing a picking strategy before deciding on the type of equipment and system design. It’s not a matter of what has the most bells and whistles.
The evaluation of alternative picking strategies demands a thorough business and operations analysis. The right solution may be the one providing the most flexibility, adaptability, and scalability. While these are desirable features for all companies, for some they may come at an unacceptable ROI.
Look Before You Leap!
While it’s true that the Kiva solution is, from a technology and system design standpoint, new and unique, the picking strategy it is based on is not new. In fact “Product-to-Picker” solutions have been available for quite some time.
Developed in the early 1980’s, “Product-to-Picker” solutions typically deploy various types of Automatic Storage & Retrieval System (AS/RS) technologies, including horizontal carousels and/or vertical lift modules (VLM) to bring products to the picker. These are all bolt-to-the-floor stationary systems.
The Kiva system (developed in the mid 2000s) is also a “Product-to-Picker” AS/RS approach utilizing small wheeled AGVs to deliver a constant stream of items to stationary pickers. As such, it is not considered to be a bolt-to-the-floor solution. Products are stored on small sets of shelves known as inventory pods. When particular SKUs are needed, the management control system dispatches a robot (guided by optical markers placed on the floor) to pick up the required inventory pod and deliver it to the appropriate picking station. Here, a picker selects items from the inventory pod, and places the item in the appropriate customer container, as directed by the computer screen and a laser light. When the picker is finished with a particular inventory pod, the robot takes it back to storage, or to another picking station, while at the same time another inventory pod is moved into the pick station and the pick cycle continues.
What makes this system unique is the controls software that keeps the AGVs on the move efficiently and without collisions, while optimizing delivery of product to picking stations. Because, the system is not bolted-to-the–floor, it can be easily scaled up or down and quickly reconfigured.
Of course, each picking strategy will have an ROI and TCO that will have a bearing on which strategy and system configuration is cost justified.
So, How Do You Choose the Best Picking Strategy?
A good start includes answering the following questions:
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