Automated Order Fulfillment Systems Space and Labor Survey Provide Big Benefits
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Posted On :
Apr-14-2013
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Article Word Count :
713
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Doing a space and labor saving survey, for ecommerce, multichannel order fulfillment, kitting, assembly, buffer storage using automated warehousing helps perform with high efficiency automated material handling systems that provide a fast ROI
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Wixom, MI – April 2, 2013 – Being competitive in today’s evolving order picking environment whether you require an ecommerce multichannel order fulfillment system, a manufacturer doing assembly, kitting, a warehouse doing order picking or a retail store chain doing distribution to your stores, gaining an edge with a high efficiency, lower cost fast ROI material handling and integrated systems is imperative. Today competitiveness is backing up good research and development with reductions in the cost of doing business. Two of the biggest cost factors in every facility and industry are space and labor. Space is the physical footprint required to manufacture, distribute and/or manage a product or service.
By minimizing this operational footprint, manufacturers, warehouse and distribution operations, medical supply and service companies, and other businesses can significantly reduce operating costs. There are many common and best practices that can be easily employed to minimize an organization’s footprint and provide the increased value and savings associated with it.
Labor is often the largest cost consideration of a business and is the most difficult to manage and control. Good practice here also requires that the elements that add to the cost of labor, such as health insurance and training, be minimized without risking output or quality or time to market. A quick fix to reducing space and labor costs has been to set up offshore operations.
Clearly the simpler the manufacturing process and commoditization of the product dictates the success of these operations. Going offshore provides space and labor for pennies on the dollar when compared with direct costs of operating in North America. However, many businesses are seeing the true cost of offshore operations as being much higher than anticipated. By calculating the additional costs due to an extended supply chain, poor quality control, loss of intellectual property, corporate officer’s personal legal liability for product issues, and lack of responsiveness to the marketplace is turning many companies back to North America.
By conducting a space and labor survey, manufacturers, warehouse and distribution operations, medical supply, and other business organizations can quickly gain insights into space and labor dynamics and how they influence profitability. A survey allows an organization to find the processes best suited to optimization, which translates into the competitive advantages required to excel in today’s global economy.
Space…Use it or Lose It
There is an intrinsic value associated with space, and successful organizations convert space into opportunities. For example, consolidation and optimization might be the right solution for too much space. Can multiple facilities or departments carrying spare parts for manufacturing, maintenance, customer service, customer walk-ups, ecommerce, mail order, retail and wholesale facilities be combined? Consolidating operations, particularly non-value added operations such as storage, not only reduces inventory, but also recovers space for more valued-added operations. In some cases, entire buildings can be removed from operations.
Space optimization, or the reclamation of unused space, can be achieved through process improvement and the installation of high-density storage and material handling equipment. Improving processes often translates into balancing zones better, reducing buffer storage, eliminating inventory and human touches by combining applications and areas. By reducing the amount of space required for operations, companies can construct smaller, more energy efficient buildings, shrinking the construction footprint by up to 15% in some cases, conserving natural resources and reducing maintenance costs. This improved space utilization helps reduce energy costs, which helps reduce an organization’s overall carbon footprint. With a proper survey these space optimization elements can be observed, measured, analyzed, and implemented.
The solution can be in process and inventory levels or could be by optimizing automated material handling systems. Reconfiguring conveyor systems to meet current requirements and best practices often saves valuable floor space. Likewise integrating automated storage and retrieval systems such as mid load automated storage systems, horizontal carousels, VLMs (vertical lift modules), vertical carousels, pick modules and other systems can be integrated into an existing facility, department or zone to bring tremendous reductions in space and labor. When a proper survey is conducted, an ROI (return on investment) can often be found in less than twelve months or less. Integrated Systems and Design – ISD provides such surveys to help find the efficiencies organizations need to compete and exceed in today’s business environment.
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Article Source :
http://www.articleseen.com/Article_Automated Order Fulfillment Systems Space and Labor Survey Provide Big Benefits_260765.aspx
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Author Resource :
The author of this article has expertise in material handling and integrated systems. The articles on automated storage system reveals the author’s knowledge on the same. The author has written many articles on ASRS, controls as well.
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Keywords :
Material Handling, Conveyor, Integrated Systems Design, inventory management system, automated storage system, automated mat,
Category :
Business
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Business
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