© 2012 Material Handling Industry®. Copyright claimed as to audiovisual works of seminar

sessions and sound recordings of seminar sessions. All rights reserved.

.

Welcome to Session 216

Sponsored by: Presented by:

Bill Leber

Director, Business

Development

Solving the Piece Picking Challenge

with Award-Winning New Technology

CONTENT

• Retail Trends

• Order Fulfillment Improvements

• Application Profile

• Case Study of Actual Application - Komplett

RETAIL TRENDS

RETAIL MARKET TRENDS

RILA 2010 Annual Meeting

– RILA represents the leading retail corporations in the US

Key conference presentations

2010 State of the Retail Supply Chain Study

Retailing 2015 - New Frontiers

RETAIL MARKET TRENDS

• Increasing Complexity & Speed of Change

– Shifting demographics

– Better educated consumers

– New channel formats

– Customized „standard‟ product offerings

– Faster Product introductions

– Shorter life-cycles

• Breaking the 80/20 Rule

– No longer will 20% of SKU‟s be 80% of sales

– „Longer tale‟ demand items

increasing share of sales & profits

RETAIL MARKET TRENDS

• Retail Runway „Runs Out‟ – Major retailers running out of room

in core concepts by 2015

Growth rates slowing

– New growth from:

New Concepts/Categories

New Customer Segments

Multi-Channel Experience

• Sustainability Drives Downsizing – Increased demands for localization,

segmentation and customization

• Supply Chain Evolution – Past driven by mass merchandising

– Future more niche Oriented

– Focus on „fast movers only‟

will result in Lost Sales

“Same Store Sales” – The Key Metric

NEW YORK (CNNMoney) –

Wal-Mart, stung by an

embarrassingly long sales

slump, is finally ready to do

something about it.

On Monday, Wal-Mart

announced it is bringing back

thousands of products that

were unceremoniously

dumped from stores, saying it

is ready to roll up its sleeves

to win the lowest-price battle

with its rivals.

8500 SKUs added

April 11, 2011 Headline

RETAIL MARKET TRENDS &

ORDER FULFILLMENT IMPLICATIONS

Order Fulfillment Implications

Less single SKU pallets, more case

storage & handling

Less Case storage at point of sale, move

to more piece handling

.Com (Internet ordering process) takes

volume away from traditional store units Small order quantity handling; <2 lines per order on

average

Source of „Multi-channel‟ growth strategies

“Superior distribution will help define

retail success in an era of global

reach, niche retailing and accelerated

lifestyles”

ORDER FULFILLMENT IMPROVEMENTS

• Solution Description

• Benefits

• Case Study

• Summary

Robotic 3D Bin Storage and Retrieval System

Video

THE SOLUTION The Grid

Is used to align the

bins into correct

position and to

support the track

for the robots.

Is easy to install.

Is easy to expand

and relocate.

Is flexible and easy

to integrate into

existing

warehouses.

The Bin

Is used to store

the goods.

Consists of 2 sizes

with max load of

65 lbs:

– ~24”x~16”x8” H

(inside)

~24”x~16”x12.2” H

(inside)

Is made of Plastic.

The Robot

Can reach any

location.

Is equipped with a

lift.

Runs on the top of

the grid and brings

a bin with the

goods to a port.

Is wireless

controlled.

Is Battery operated.

AutoStore Overview

The Port

Transports bins to

and from

operators.

Many varieties of

picking process

design depending

on application

Can be combined

with other

technologies, ie.

voice, pick-to-

light…

The Software

Is responsible for

controlling the

robots, ports, and

scheduling tasks.

Provides service

and support

functionality.

Has flexible and

configurable alert

system.

BENEFITS

Density: Increases storage density as much as

300% in conventional buildings

AutoStore Overview

BENEFITS

Density: Increases storage density as much as

300% in conventional buildings

Redundancy: Highest redundancy compared to

other technologies, providing near 100% system

availability

AutoStore Overview

BENEFITS

Density: Increases storage density as much as

300% in conventional buildings

Redundancy: Highest redundancy compared to

other technologies, providing near 100% system

availability

Productivity: Goods-to-person and ergonomic

workstations increase picking rate as much as

200%

AutoStore Overview

WORKSTATION

OVER / UNDER

Product

Bins

Order Tote

PTL

Lights

denoting

picking

location

WORKSTATION

U SHAPE

Order

Totes

Order Tote

Conveyor

Product Bins to

Pick Station

Product Bins Return

to AutoStore

Operator

Access

WORKSTATION

IN-LINE

Product

Bins

Order Tote

Conveyor

Order

Totes

WORKSTATION

CAROUSEL PORT WITH ORDER MATRIX

Product Bin

Order Totes

BENEFITS

Density: Increases storage density as much as 300% in conventional

buildings

Redundancy: Highest redundancy compared to other technologies, providing

near 100% system availability

Productivity: Goods-to-person and ergonomic workstations increase picking

rate as much as 200%

Simplicity: Transports, stores, sequences, and reslotting with one technology

AutoStore Overview

Storage Lift Conveyor Simplicity

BENEFITS

Density: Increases storage density as much as

300% in conventional buildings

Redundancy: Highest redundancy compared to

other technologies, providing near 100% system

availability

Productivity: Goods-to-person and ergonomic

workstations increase picking rate as much as

200%

Simplicity: Transports, stores, sequences, and

reslotting with one technology

Flexibility: Configurations are limitless and fits

around building obstacles

AutoStore Overview

BENEFITS

Density: Increases storage density as much as

300% in conventional buildings

Redundancy: Highest redundancy compared to

other technologies, providing near 100% system

availability

Productivity: Goods-to-person and ergonomic

workstations increase picking rate as much as

200%

Simplicity: Stores, sequences, transports, and

self balances inventory with one technology

Flexibility: Configurations are limitless and fits

around building obstacles

Adaptability: Easy to modify and mobile asset

AutoStore Overview

Y

X

BENEFITS

Density: Increases storage density as much as

300% in conventional buildings

Redundancy: Highest redundancy compared to

other technologies, providing near 100% system

availability

Productivity: Goods-to-person and ergonomic

workstations increase picking rate as much as

200%

Simplicity: Stores, sequences, transports, and

self balances inventory with one technology

Flexibility: Configurations are limitless and fits

around building obstacles

Adaptability: Easy to modify and moveable

asset

Sustainability: Low energy consumption

AutoStore Overview

BENEFITS

Density: Increases storage density as much as 300% in

conventional buildings

Redundancy: Highest redundancy compared to other

technologies, providing near 100% system availability

Productivity: Goods-to-person and ergonomic

workstations increase picking rate as much as 200%

Simplicity: Stores, sequences, transports, and self

balances inventory with one technology

Flexibility: Configurations are limitless and fits around

building obstacles

Adaptability: Easy to modify and move asset

Sustainability: Low energy consumption

Economic: Minimizes capital investment, and reduces

building and operational costs

AutoStore Overview

Piece picking

– Small parts (apparel, automotive parts, catalogue/internet, computer, electronics,

HBC, hardware, jewelry, office suppliers, pharmaceutical, software/music, etc.)

– Low to high quantity of units per orderline

– Slow to medium-fast moving SKUs

– Any bin to any workstation

IDEAL APPLICATION – FEATURES

Piece picking

− Small parts (apparel, automotive parts, catalogue/internet,

computer, electronics, HBC, hardware, jewelry, office suppliers,

pharmaceutical, software/music, etc.)

− Low to high quantity of units per order line

− Slow to medium-fast moving SKUs

− Any bin to any workstation

Space limitations

− Existing building in particular – stay where you are!!

− Any space configuration is applicable

− Square, rectangle, “L” shape, different floor elevations, multiple

floors, etc.

High inventory or SKUs

− Pareto curve = 80/20 or better

System redundancy important

Future requirements potentially changing or unknown

IDEAL APPLICATION – FEATURES

Mini-Shuttles, vs. Mini-Loads vs.

3D Robotic Bin Systems

Thro

ugh

-pu

t

Inventory

Shuttle

Systems

Mini-load AS/RS

3D Robotic Bin Systems

AutoStore Overview

Case Study – Komplett

Piece Picking via Automated Technology

Komplett - $600mio Internet Retailer

PCs, Components & Electronics

for all Scandinavia, via 1 DC

Increased SKU‟s + volume growth, filled DC

Required building expansion

Investigated alternative material handling solutions

Case Study – Komplett

Piece Picking via Automated Technology

Komplett - $600mio Internet Retailer

PCs, Components & Electronics

for all Scandinavia, via 1 DC

Increased SKU‟s + volume growth, filled DC

Required building expansion

New Solution selected for ~80% SKU‟s

Densified Storage within existing DC

Case Study – Komplett

Piece Picking via Robotic 3D Bin AS/RS

Komplett - $600mio Internet Retailer

PCs, Components & Electronics

for all Scandinavia, via 1 DC

Increased SKU‟s + volume growth, filled DC

Required building expansion

Instead New Solution selected for ~80% SKU‟s

Densified Storage within existing DC

Results – following 2007 Implementation

+10,000 SKU‟s and space for expansion

Case Study – Komplett

Piece Picking via Robotic 3D Bin AS/RS

Komplett - $600mio Internet Retailer

PCs, Components & Electronics

for all Scandinavia, via 1 DC

Increased SKU‟s + volume growth, filled DC

Required building expansion

Instead New Solution selected for ~80% SKU‟s

Densified Storage within existing DC

Results – following 2007 Implementation

+10,000 SKU‟s and space for expansion

2X Increased Throughput – w/existing labor force

Case Study – Komplett

Piece Picking via Robotic 3D Bin AS/RS

Komplett - $600mio Internet Retailer

PCs, Components & Electronics

for all Scandinavia, via 1 DC

Increased SKU‟s + volume growth, filled DC

Required building expansion

Instead New Solution selected for ~80% SKU‟s

Densified Storage within existing DC

Results – following 2007 Implementation

+10,000 SKU‟s and space for expansion

2X Increased Throughput – w/existing labor force

Annual volume now 1.4 mio orders processed

10 Employees x 2-shifts (8hr) per day

Case Study – Komplett

Piece Picking via Robotic 3D Bin AS/RS

Komplett - $600mio Internet Retailer

PCs, Components & Electronics

for all Scandinavia, via 1 DC

Increased SKU‟s + volume growth, filled DC

Required building expansion

Instead Automated Solution selected for ~80% SKU‟s

Densified Storage within existing DC

Results – following 2007 Implementation

+10,000 SKU‟s and space for expansion

2X Increased Throughput – w/existing labor force

Annual volume now 1.4 mio orders processed

10 Employees x 2-shifts (8hr) per day

2 Expansions (10,000 + 14,000 bins)

References (1/2) End user Year Application Bins Robot

s Orderlines/Hour Port

s

AVNET 2011 Distribution of electrical

components

45 000 37 1,000 16

XXL 2010 Distribution of sports items 21 000 10 280 4

Onninen 2009 Distribution of electrical

components

27 500 24 660 10

Vestas Wind

Systems

2009 Production of wind turbines 5 200 10 265 6

Hattelco 2009 Distribution of computer

components

9 700 15 410 6

Komplett 2008 Distribution of consumer products -

- electronics, computers, etc.

33 700 55 1 500 14

Otra 2008 Distribution of electrical

components

10 400 10 250 5

Pro-Design 2008 Production of projectors 8 400 5 140 4

Tingstad 2007 Distribution of fasteners and tools 12 900

+ 6 200

15 400 8

GNT 2005 Distribution of computer

components

11 800 14 390 7

Elotec 2004 Production of alarm systems 6 000 5 125 3

Sub-Total 197 800 200 96

References (2/2)

End user Year Application Bins Robots

Orderlines/Hour Ports

Confidential 2011 In-

progress

Electronic consumer products 76 000 114 3 100 10

Antalis 2011 Printed media and gift and

distribution

18 000 10 245 4

Confidential 2011 In

progress

Distribution of fasteners and tools 22 000 56 1400 12

Confidential 2011 In

progress

Auto parts 22 000 27 750 10

Stormberg 2011 In

progress

Distribution of sporting goods 16 000 8 200 4

Confidential 2012

Expansion

Distribution of components 27000 14 400

Summary – Dense Storage

Do I utilize my building space ??

AMAZING

This looks better …

I can really use this

free space !!

Space 15%

efficient

Space 35%

efficient

Space 90%

efficient

Summary – G-t-P Efficiency

Finally, have all 9 pickers walking the floor

…

REALLY,

JUST

TJ &

TOM

Not bad, reduced

walking and only need

6 pickers now

90 order-lines

/h / picker

150 order-lines

/h / picker

400 order-lines

/h / picker

© 2012 Material Handling Industry®. Copyright claimed as to audiovisual works of seminar

sessions and sound recordings of seminar sessions. All rights reserved.

For More Information:

Speaker: Bill.Leber@swisslog.com

Home Page: www.Swisslog.com/AutoStore

MODEX - Booth 3105