Determining the Best Split-Case

Automated Order
Fulfillment System

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Automated Order Fulfillment Technology Increases in both
Simple, automated order fulfillment technology not only improves service levels, but also throughput and
pays for itself in a short period of time, less than two years in many cases.
storage density
Simple automation is the installation and integration of automated order fulfillment systems can often be better
within your operations. It can improve order fulfillment operations in four important
ways, and in the process, it can achieve a rapid return on investment (ROI) through cost achieved through
reductions.
simple automation
SIMPLE AUTOMATION REDUCES COSTS THROUGH:
• Reduced Labor Requirements. The single biggest cost in warehouse and distribution
of the order
center operations is labor. Simple automation improves picking rates by as much as 600% fulfillment process
per operator, reducing the need to add labor to meet increased demand.

• Increased Throughput. Improved operator productivity increases system throughput,

speeding order turnover and extending order cutoff time.

• Improved Order Picking Accuracy. Automation

with the use of supporting technology such as software
and pick-to-light systems, improves order picking
accuracy up to 99.99%+.

• Space Savings. Automated order fulfillment systems

can recover between 30% to 85% of floor space by
utilizing the vertical cube of the facility. This saved space
can be converted to income producing operations,
reducing the need for brick-and-mortar expansion.

• Improved Inventory Visibility & Management.

Even simple systems can significantly improve the quality
of information about inventory status and stock keeping
unit (SKU) location.

• Improved Ergonomics Reduce Lost Time Injuries. The warehouse labor force has the
highest turnover rate, the highest absenteeism and the highest lost time accident rate in the
order fulfillment operation. Automated systems reduce bending, stretching and reaching
by presenting stored items to the operator at the correct ergonomic work height, reducing
workplace injuries.

At first glance, it might seem easier and less costly to add labor to meet market demands,
or to increase storage capacity through brick and mortar square footage expansion, but
these options often prove to be bad business decisions. Increases in both throughput and
storage density can often be better achieved through simple automation of the order
fulfillment process, and the rapid ROI can justify the implementation of this technology.

SI Systems | www.sihs.com | info@sihs.com | 800-523-9464 | F: 610-250-9677

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Automated
dispensing/picking
system used for high
speed split case order
picking
SI Systems | www.sihs.com | info@sihs.com | 800-523-9464 | F: 610-250-9677
CHOOSING THE RIGHT SYSTEM
There are a number of automated technologies available. Each offers specific parameters
in the sizes and types of inventory they handle most efficiently, as well as storage density,
and throughput rates. When considering an automated system, here are some guidelines to
keep in mind.
• Velocity. Is the system designed to handle slow, medium or fast moving inventory items?
• Throughput. How many lines per hour or orders is the system capable of handling?
• Storage Density. How many active SKUs can be stored in the least amount of space?
• Space Utilization. Does the design of the system take advantage of unused space or
otherwise recover space required for the existing order fulfillment operation?
• Acquisition Cost vs. Cost of Ownership. Does the cost of the system fit within
budget guidelines, figuring in a proper ROI? More importantly, what is the true cost of the
system year 2, 3 and 4 vs. other alternatives? Depending on the application, there may
be more than one possible solution, and the best solution is often a blend of two or more
technologies.
DETERMINING THE BEST SOLUTIONS
A-Frame: An A-Frame is an automated dispensing/picking system used for high speed split
case order picking. It can be configured in a Pick-to-Belt, Pick-to-Tote or Pick-to-Shipper
mode to suit a wide range of customer requirements for split case order picking. In its
Pick-to-Tote configuration, the A-Frame system can handle up to 4,200 orders per hour
(the number of lines per order is almost irrelevant). The system requires no labor, other than
replenishment. Portable models are available to meet smaller scale, promotional or seasonal
order fulfillment demands.
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Floor Robots: Floor robots pick up and deliver stored items on portable storage shelving to
an operator, who then picks the required item. The robot then returns the unit to storage.
A light display
Throughput rates range from 100 to 450 lines per hour/per operator. This system offers ranging from a
good storage density, and capacity can be increased by adding robots. Programming,
equipment and ongoing maintenance costs make these systems expensive. simple “gumball”
Horizontal Carousels: Horizontal carousels are a series of bins that rotate horizontally
to alphanumeric
around an oval track, delivering the stored item to the operator. They are designed for displays indicates to
picking slow to medium moving items and cases, with throughput rates from 150 to 550
lines per hour/per operator. Horizontal carousels are commonly integrated in multiple units the picker which SKU
in a pod or workstation to enhance productivity and throughput. They offer good storage
density at relatively low cost. and what quantity
Mini-Load System: This system handles slow moving smaller sized inventory from 100 to
needs to be picked.
250 pounds, stored in trays, totes or cases. It is optimized for high density storage
with throughput rates ranging from 60 to 100 lines per hour.

Pick-to-Light Flow Rack: Sections of gravity flow rack

is used to queue fast moving inventory. A light display
ranging from a simple “gumball” to alphanumeric displays
indicates to the picker which SKU and what quantity needs
to be picked. This system allows one operator to replenish
inventory from the back while the other operator is
simultaneously picking. Carts or conveyor is used to
transport the orders from one bay or zone to another.

Robotic Carousel Systems: These systems use a robotic

extractor to retrieve items or totes as they are queued in
horizontal carousels. A single robotic extractor can service
three horizontal carousel units stacked in a tier, selecting the
required items from one unit while the other two position
for the next picks. These systems offer very good storage density with throughput rates
from 200 to 700 lines per hour/per operator. They are cost effective for handling small,
medium and large quantities of slow to medium moving items.

Shuttle Technology: Shuttle technology is used for the buffering, sequencing and picking
of items stored in plastic totes or cartons weighing under 125 pounds. Shuttles travel on
rails at each storage level and are equipped with inserter/extractor devices that remove/
replace stored items. These systems are expensive; however, they handle large quantities of
inventory at throughput rates of 200 to 700 items per hour.

Vertical Carousels: Vertical carousels are cost-effective, self-contained systems of shelves or

carriers that rotate vertically. Stored items are presented to an operator at an ergonomically
optimal height. They provide high storage density and are designed for small item order
picking of slow to medium moving inventory. Throughput rates range from 100 to 275 lines
per hour/per operator.

SI Systems | www.sihs.com | info@sihs.com | 800-523-9464 | F: 610-250-9677

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About SI Systems Vertical Lift Modules (VLMs): This cost effective system offers excellent space utilization
and storage density. Slow and medium moving items or cases are stored in columns of
SI Systems leverages its decades of
trays in the front and back of the unit, accessed by an automatic inserter/extractor. Sensors
experience as an industry leader in
analyze the heights of the items stored in each tray. Integrated controls dynamically adjust
providing hardware, software and unique
the trays’ stored positions to minimize wasted space. Throughput rates range from 125 to
engineered solutions that allow our
375 lines per hour/per operator.
customers to reduce labor, inventory and
operation costs while increasing through-
CLASSIFYING INVENTORY
put, accuracy and inventory turns.
It is important when considering order fulfillment automation to understand the nature
of your inventory. Clearly, some systems are better at handling fast movers, other more
The VWare WES, WMS and WCS software
attuned to handling medium and slow movers. Classifying your inventory will help define
suite allows organizations to use their
more precisely your automation options.
current methodologies and processes.
Rather than reinventing and retraining their
Start by classifying inventory by picking size (pallet, case, each) and by velocity of movement
operations, organizations can reap the
(very fast, fast, medium, slow, or very slow). Certain similarities will appear. For example,
benefits of this powerful software quickly.
when comparing velocity, create groups of similar SKUs together. Cross reference the labor
associated with picking each of these items against their order frequency to create a cost-
Unique VWare Features & Benefits:
to-pick graph. This is critical information in helping determine the ROI for a specific system.
• 100% true-versioned supportable
platform
• Future upgrade and backwards The most dramatic improvements in order fulfillment optimization come from applying
compatible solutions to entire categories or classifications of inventory, rather than just a few SKUs.
• Uses existing processes and This is because of the 80/20 rule that illustrates that 80% of a facility’s picks come from
methodologies
20% of its inventory. Dig into this 20% of inventory and look for similarities again. See if
• Wave and dynamic wave picking
there is another 80/20 within every 20% until you define five to 10 classifications. This now
• Modular and flexible architecture
becomes actionable to determine the best technology and solution.

The days of operations being considered

SELECTING THE RIGHT PARTNER
“overhead” are dead! Let SI Systems show
Consult with an experienced systems manufacturer or integrator. They will help you analyze
you how to turn your operations into a
your order and inventory data to determine the best solution with a proper ROI (return on
profit center. Call us at 800-523-9464,
investment). Likewise, always understand where your potential partner’s “true interests” lie
email us at info@sihs.com, write us at
when doing final evaluations.
info@sihs.com or visit our website at
www.sihs.com
Never fall in love with a technology. Often a little of something is good, but a lot of it works
poorly. Apply the best technology to the right classification of inventory. How will you know
it’s right? When the ROI matches the business plans’ net need.

The integrator may also suggest upgrading your Warehouse Execution System (WES),
Warehouse Management System (WMS) or Warehouse Control System (WCS) software to
take full advantage of the cost savings associated with automated systems. Today’s software
can help streamline the picking process and improve inventory management, resulting in
more cost savings.

By implementing automated order fulfillment systems to handle fast, medium and slow
moving inventory, a warehouse or distribution center can achieve significant gains in
throughput and order picking accuracy while reducing costs. Those cost reductions can pay
for the system quickly, under 18 months in most cases.

SI Systems | www.sihs.com | info@sihs.com | 800-523-9464 | F: 610-250-9677

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