GET THE FACTS:The Latest on Goods-to-Person Order Fulfillment Technologies

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With all the hype surrounding goods-to-person solutions these days, you might think the concept was brand new, but in fact, technologies such as carousels, automated guided vehicles, and automated storage and retrieval systems have performed goods-to-person order fulfillment for decades. They perform the basic goods to person functionality of retrieving stored product and bringing it to an operator for order picking.

The difference between these technologies from today’s more advanced goods-to-person systems is in their level of performance. The latest order fulfillment technologies far exceed their predecessors in terms of productivity, space utilization and flexibility. Although carousels, AGVs, and ASRS are still important order fulfillment technologies, the advantages of new, advanced systems are hard to ignore.

So, why has there been such a focus on creating advanced goods-to-person solutions? There are two main reasons:

1. Growth in online sales: Goods-to-person order fulfillment is a great solution for many e-commerce companies, and in recent years, the growth in online sales has been tremendous. In 2012, ecommerce sales in the U.S. grew 15.8% according to Internet Retailer magazine.

2. Increasing labor costs plus demand for faster shipping: Labor costs continue to rise, making it more expensive for fulfillment companies to do business and stay competitive. Combine that with increasing demand for 24-hour ship times and an efficient order fulfillment system capable of reducing cycle time becomes even more critical.

Now that you have a little background, let’s get down to the key facts on the latest in goods-to-person order fulfillment to help you decide whether these systems are right for your operation.

1. The latest goods-to-person systems:In the past few years, there have been several new goods-to-person systems brought to market that are providing strong results in order fulfillment operations, but the four mentioned below are some of the newest and most notable to date.

• Hatteland AutoStore – a dense grid of storage modules with stacked bins retrieved by overhead robots traveling up to 10.2 ft./second

• OPEX Perfect Pick – an energy-efficient picking and storage solution using iBots to make up to 1,000 picks per operator per hour

• Muratec Uni-Shuttle HP – an automated storage and retrieval system capable of handling various container shapes and sizes

• Schaefer Carousel System – a unique, four-carousel system equipped with a decoupled automatic storage and retrieval unit and ergonomic, high-speed batch picking station.

Goods-to-Person Order Fulfillment

Key Facts on Advanced Goods-to-Person Solutions

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OPEX Perfect Pick: Picking Station

Key Facts on Goods-to-Person Solutions

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2. Benefits of new goods-to-person technologies:• Ergonomics – product is delivered to an operator, no

walking required• Productivity – without travel time, operators become

more productive with fewer errors; increased through-put and storage of multiple products per tote also increase picks per cycle

• Space – the density of goods-to-person systems reduces total storage footprint while increasing use of vertical space

• Security – products are safely stored out of reach unless prompted by the system software

• Scalability – as a highly scalable solution, goods-to-person systems can be expanded as companies grow

3. Ideal SKU/order profile: • Items small in volume (weight and dimensions)

• Provides the ability to store many products per bin

• Helps to avoid high replenishment activity• Non-perishables products• High number of total SKUs• Low to medium SKU quantity per order line• Each (less-than-case) picking is most common, but case picking is possible

4. Throughput range for goods-to-person systems:• Range of 100 to 1,000 lines per hour• Can add storage locations and/or retrieval

mechanisms (bots) as needed

5. These systems are not a good option when:• SKUs are very fast moving• There is a low number of total SKUs• Dual cycles per hour required is less than 600 per

aisle or operator

Perfect Pick Autostore Uni-Shuttle HP Schaeffer Carousel System

* Dual Cycle means the shuttle (or other vehicle) handles at least two totes/bins during its trip–as a product is put away, another product is retrieved.

Perfect Pick Autostore Uni-Shuttle HP Schaeffer Carousel System

Max Throughput Rate1,000 totes/hour/aisle 400 bins/hour/pick station3,000 cases/hour/aisle 900 dual cycles/hour

Max Weight Tote Dimensions(lbs) per tote (L x W x H)60 lbs. 20.6” x 30” x 10” or 16”66 lbs. 25.5” x 17.6” x 8.7” or 13”55 lbs. 23.6” x 17.7” x 23.6”55 lbs. 23.6” x 15.7” x various heights available

Hatteland AutoStore

6. Financing goods-to-person systems:• Throughput - Required throughput is reached by determining the most cost-efficient combination of storage locations plus retrieval mechanisms. • Payback - Average payback period = 2-4 years• Price - Estimated starting price = $1 million (can be less depending on desired throughput)• Scalability - The scalability of these systems are good for fast growing companies, especially in the e-fulfillment industry for two reasons:

1. If there is limited capital to purchase automation, the foundation can be purchased now and expanded incrementally as needed.2. Future order volumes are difficult to predict, so with scalable goods-to-person systems, more automation can be added as order volumes are met.

7. Industries that have recently adopted advanced goods-to-person order fulfillment include: • Pharmaceutical • Medical devices• Retail distribution (non-perishable)• Consumer electronics• Building/maintenance components

Goods-to-person order fulfillment has come a long way in recent years, but are these technologies right for you? It can be difficult to determine without some analysis of your budget, current operations, SKU profile, and future plans. However, if you know a few key details, you can at least determine if these systems warrant a closer look. Ask yourself the following:

• Do you have more than 1,000 different SKUs?• Is your desired throughput more than 600+ picks per operator?• Do you have a budget higher than $1 million?

If you are unable to answer yes to most of these, then an advanced goods-to-person system might not be the best option. Perhaps a series of AGVs, carousels, or even pick modules equipped with light- or voice-di-rected picking will suffice. If you did answer yes to the questions above, installing an automated goods-to-person system such as AutoStore, Perfect Pick, or Uni-Shuttle could help maximize your order fulfillment process.

Key Facts on Advanced Goods-to-Person Solutions

Is a Goods-to-Person Solution for you?

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OPEX Perfect Pick

For more information on order fulfillment solutions or to request a quote , please contact our engineers at info@bastiansolutions.com or 800-772-0464.

You can also visit www.bastiansolutions.com/automation/goods-to-person for more details on goods-to-person order fulfillment systems.