JULY 2019

Discussion Document

Warehouse of the Future

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Warehouse Automation is a critical element of Digital Supply Chain transformation

Network optimization

Digitally-enabled SC segmentation

Digitally-enabled S&OP

Demand sensing and advanced forecasting

Manufacturing and Quality optimization

Transportation optimization

Warehouse optimization / automation

E2E dynamic inventory management

Planning and scheduling optimization

Digital ambition and solutions roadmap

Collaborative CMO and distribution optimizationE2E cost modeling and portfolio optimization

Enablers:

Control Tower:

Data architecture,

contextualization and governance

Process redesign

and automation

Agile

methodology

E2E Performance

Visibility

Seamless Supply Chain

Orchestration

Predictive

Alerts

Technologies:AI and Machine

LearningBig Data Blockchain

Cloud based

systems

Augmented

realityIoT

Prescriptive

Analytics

Digital operating

model

People

capabilities

Dynamic Integrated Business Planning

Digital SC strategic decision making

E2E Operations Optimization

Digital Supply Chain Transformation

Our Focus

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2

Improve productivity and quality

control to reduce costs

Reduce dependence on labor

that is hard to recruit and retain

Leverage automation to

accelerate order cycle times

Increase storage density to

reduce real estate cost

Market trends increasingly favoring warehouse automation

Key Benefits from

Warehouse Automation

Pressure on costs• Increasing labor wages

• Low productivity

• Facilities moving towards cities – increasing

cost for hiring

Pressure to reduce facility footprint• Warehouse leasing costs higher

• Trend towards locating facilities closer to

cities increasing real estate costs

Push towards faster fulfillment• Customer expectations changing – same

day/next day delivery increasing

• Pressure to reduce cycle times and increase

throughput in warehouses

Pressure on labor• Labor becoming scarce

• Aging workforce

• Employee health focus

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Automation can drive significant cost reduction

0.70

0.25

0.12

0.24

0.0

1.0

0.5

0.30

Non-labor

savings

Total costs

per case (%)

Reductions

in warehouse

productive

labor

Per-case

costs with

automation

0.25

0.04

Reductions

in other

warehouse

labor costs

System

maintenance

technicians

and operators

0.02

Automation

parts and

replacement

components

0.21

1.00

-145%

Net labor cost savings (~4/5 of savings):

Non-labor savings(~1/5 of savings):

Primary drivers: shrink, damage, DC supplies

Labor

related costs

Non-Labor

related costs

Cost reduction via automation – Warehouse

Client Example

-55%

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Picking is a major cost driver in Warehouse Operations

1.11

0.15

0.70

0.15

0.10

Receiving TotalPrep for

outbound

PickingPut away Loading

0.01

Warehouse process costs per unit

(Manual Process)

63%of Operating

Cost/ unit

Client Example

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There are critical elements to drive a successful automation transformation initiative

Strategy

Design

Implementa

tion

• Evaluate automation benefits in line with core strategic vision

• Consider the full spectrum of benefits not just "four-wall" savings

• Determine investment appetite based on concrete time-bound ROI goals

• Establish a clear stage-gated, ramp-up plan

• Build a rigorous business case and secure buy-in across the organization

Description Example

• Expanded strategic options – segments, geos

• Throughput, integrated network benefits

• Full automation payback pd. can be 5+ yrs

• Start with hubs, standardized packages

• Bottom-up site and network analysis

• Conduct site-by-site greenfield vs. brownfield cost-benefit analysis

• Optimize first, then automate

• Future-proof site design with built-in flexibility

• Diversify integrators across sites to avoid predatory price-ups

• Typical per site cost is $100-200M vs. $10-40M

• Streamlining current processes allows org to

avoid costly do-overs

• Initial build should be enabled for horizon

technology, e.g. 3D picking

• Integrator agnostic, and cross-site compatible

• Start as soon as possible to mitigate lengthy implementation period

• Invest in the right software, integrated enterprise-wide across sites

• Maintain manual sortation center as failsafe during transition

• Track both automation and human efficiency with key metrics

• 12-18 mo. incl. integrator setup of 6-8 mo.

• Software must integrate across sites, into ERP

• Single-shift site for seasonal scale-up

• Cycle time as well as T/O rate, feet traveled

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Today's mature technologies are being used to enhance warehouse efficiency

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain

Up-f

ront

invest

ment

Labor

cost Man-to-goods

Goods-to-man

Automation

Bots &

Grids

Mobile

Robots

Shuttles

A-Frame

sorter

Conveyors

& sorters

Carousels

RF

scanners

Pick to

light

Voice

directed

picking

Unit

Load

Mini

Load

Auto

label-

ling

Auto

pallet-

ization

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Today's mature technologies: main players

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain

Up-f

ront

invest

ment

Labor

cost Man-to-goods

Goods-to-man

Automation

RF scanners Pick to light

Carousels

Conveyors

& sorters

Shuttles

Mobile

Robots

Bots &

Grids

A-Frame

sorter

Voice directed picking

Unit-Load &

Mini-LoadAuto labelling Auto-palletization

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Receiving Put away Picking & sorting Packing Loading

Important to define priority areas to start automation journey

Sensor &

ID tags

Mobile

wearables

Cloud

& AI

Emerging technologies can support activities across the entire warehouse value chain

Robotics

Visibility

(Enhanced) labor

Tech enablers

Live

Monitoring

Procurement

Sync.

Carrier

Connection

Customer

Connection

Labor

Planning

Big DataCloud

collaboration

Drones Cobots

Autonomous

Robots/

AGVs

Wearable

Robotics

Aug-

mented

Reality

Smart

Machines

Warehouse Execution Systems (WES) /

Warehouse Control Systems (WCS)

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Receiving Put away Picking & sorting Packing Loading

Robotics

Visibility

(Enhanced) labor

Tech enablers

Emerging technologies: Main players

Drones Cobots AGVs

Carrier Connection Live Monitoring Truck Loading

Labor Planning Augmented Reality Wearable Robotics

Mobile Wearable Sensor & ID tags Cloud Collaboration

Management Systems

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Execution plan requires rigorous program office

Change Management• Internal & external

communication plan

• Prioritize and address concerns

• Manage perceptions and drive

change

Playbook• Hands-on training of team from

development thru implementation

Eco-system of partners• Develop third party partnerships to

enable use case development and

scaling

Team structure• Develop cross-functional team for use case

development

• Planning & purchasing team:– Logistics: Select technologies, evaluate vendors– Procurement: Negotiate contracts, issue PO

• Installation team:– Warehouse manager/project owner: oversee

installation– Logistics engineer: conduct SAT1, FAT2

– IT programmer: integrate WMS and ERP– Safety supervisor: convey safety guidelines, provide

signoff• On-going team:

– Logistics engineer: provide maintenance, maintain AI/ML system

– Technician: repair breakdowns

Governance and funding model (Program Office)• Develop on-going project review cadence and metrics

• Adjust approach as required to ensure maximum benefits

• Set-up funding model for pilot development and scaling

Executive champion• Prerequisite for successful implementation

• Exec. to sit on SteerCo, set high bar/challenge

team and ensure funding

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Case Study: E2E automation of warehousing processes

• Client is a food retailer looking to improve warehouse

operations to enable their long-term strategic growth

Context

• Provided strategic review for warehouse operations

• Evaluated different distribution system structures

• Developed business case to select optimal structure

• Identified vendors and developed evaluation model to

select vendors

• Supported vendor negotiations on price, service, and

commercial terms

What BCG did

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Strategic

review

Development of

business cases

Technology solution

screening and evaluation

Vendor evaluation and

negotiation support

• Evaluated multiple

solutions that will enable

long-term strategic

growth for client

• Developed rigorous

business cases to

evaluate strategic

alternatives for client

• Supported client with

evaluating various

automated technologies

• Designed warehouse to

optimize specific

business parameters

• Identified vendors and

conducted detailed

assessment of short-

listed vendors

• Negotiated with vendors

in order to get best value

for client

Stage-gate approach leveraged to evaluate and develop solution

Go / No-go

decision

Implementation

kick-off

Case Study

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Conducted strategic review to assess options to enable long-term growth

“Baseline”

(manual-pick warehouses)

Current network is kept …

… with limited investments …

• Only investment to manage

product families currently

handled in those warehouses

… in order to manage growth

of current assortment

• only within today’s assortment

• Minor planned changes

Adjustments within

current structure

Current network is kept …

… with additional investment

in increased capacity…

• Handle new product groups and

increased SKU assortment

… in order to manage

additional SKUs and product

families

New manual-pick

warehouse

Current network is changed …

… through construction of a

new manual-pick warehouse

• Some existing warehouses

consolidated and closed

Investment in additional

capacity for some new items …

… but only moderate network

(warehouse) centralization

New centralized

automated warehouse

Current network is changed …

… through a new automated

& centralized warehouse

• Some existing warehouses

consolidated and closed

Strong centralization …

• Large volumes going through the

new warehouse

… with investment in additional

capacity for new items

Strategic Options for Evaluation

A B C D

Change to Current Network

& CapabilitiesLimited Significant

Case Study

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Created rigorous business case to assess investments and benefits

Investment and ongoing costs

• Technical solution

• Construction, including external

support costs Capex

• Changes in facility maintenance

• System maintenance and service

• Labor across DC operations

• Transportation from DC to store

• IT

Ongoing

Costs

• Current warehouse shutdown

• New warehouse ramp-up

• Project management

• Truck purchase or disposal

Transition

Costs

Potential benefits

Improved DC

labor efficiency

• Increased efficiency of manual work

• Changes in processes from automation

• Retail-level labor savings due to

reduced restocking time

• Reduced inventory

Store-friendly

pallets

• Rent savings/additional income

• Reduced energy use across system

Warehouse

operations

• All stores in network have access to

items previously put through DSD

Increased

delivery

capacity

Go / no-go decision: New centralized automated warehouse (scenario D)

Case Study

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Appendix: illustrative technical solutions

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Critical to determine potential use case to define right technology to adopt

Mobile-robotic

systems

AS/RS solutionsWhen is it most appropriate?

Very flexible & scalable solution for when space efficiency is not critical

Unit load

Mini load

Bot and grid

systems

Solution for pallet sized, heavy and large goods

Space efficient solution for high SKU flexibility

ShuttleSolution for high throughput rates when future demand is certain

CarouselSimple high density solution for low volumes of small items

High density & scalable solution when throughput is not critical

Source: Expert interviews; BCG analysis

Example – Evaluation Process for AS/RS Solution

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

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Several companies offer a full solution for automating warehouse processes

Company Industries served (non-exhaustive)

Unit

load

Mini

load Shuttle

Bot &

Grid

Carousel

and

vertical

drop

Mobile-

robotic

system AGV

Automated

picking

and sorting

Transport

/

Conveyor

Software

(WMS)

Schaefer Fashion, food & beverage, healthcare, cosmetics, retail

Swisslog Healthcare, logistics automation

Dematic E-commerce, grocery, apparel, food & beverage, parcel,

manufacturing, pharma/healthcare

Daifuku Manufacturing, automotive, airport

Vanderlande Fashion, food, retail, e-commerce

Bastian Aerospace, automotive, pharmaceuticals, retail, Industrial

Products

Egemin Automotive, CPG, electronics, food & beverage, pharmaceuticals

Witron Food, healthcare, automotive, e-commerce, fashion

TGW Apparel, grocery, e-commerce, spare parts

KNAPP Healthcare, fashion, retail, food retail

Honeywell CPG, E-commerce, food & beverage, pharmaceutical & medical

supply, postal & parcel, retail

Kuecker Retail, e-commerce, food and beverage, pharmaceuticals,

healthcare, apparel, automotive

Core ASRS Special ASRS Adjacent offerings

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

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Case Study: Drones in beta, not yet ready for prime-timethough companies are developing and testing for inventory mgmt. in warehouses and stores

https://www.hardis-group.com/https://www.pinc.com https://www.supplychain247.com

2016 –

Wal-Mart Stores Inc. is testing drones that

it says will help it manage its warehouse

inventory more efficiently, which it plans to

roll out to its distribution centers.

During the trial, sensor-equipped drones

flew in the aisles of a distribution center

and alerted management to products that

were close to being out of stock or were

not in their assigned slot, the New York

Times reports. At the time, Walmart said it

would move forward with implementing the

technology in more warehouses within the

year.

PINC is an established yard management

software company. Thier UAS (Unmanned

Aircraft System) is called PINC AIR,

Aerial Inventory Robots™.

The drone solution allows companies to

apply drone technology, coupled with

advanced optical, RFID, and barcoding

sensor capabilities, to significantly

improve the operational effectiveness

and efficiency of warehouse inventory

cycle count.

Eyesee is one of the first inventory

drone solution on the market.

It operate inventories in warehouses

with a full autonomous drone.

After three years of research and

development, with our partner and

client FM Logistic, first drones are now

commercialized.

Put away

Warehouse Value Chain Benefit

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Background Illustration Benefits

2018, DHL Supply Chain is

rolling out the next phase of

its Vision Picking Program

following a successful trial of

the AR technology in the

Netherlands.

After completing a series of

pilot programs across the U.S.

and Europe throughout

different industries, DHL has

now established Vision Picking

as the solution for the long

run, and they’re looking into

additional applications for AR

such as training,

maintenance, dimension

calculations, transportation

optimization, last-mile

delivery and more.

Over the three weeks of the test, 10 order

pickers succeeded in fulfilling 9,000 separate

orders by picking more than 20,000 items.

The resulting productivity improvements and

reduction in errors increased the overall

picking efficiency by 25% and cuts on-

boarding and training times by 50%.

https://www.dhl-in-motion.com/en/esports/article/dhl-rolls-out-global-augmented-reality-program

https://www.prnewswire.com/news-releases/vuzix-smart-glasses-used-in-dhls-successful-trials-dhl-making-smart-glasses-new-standard-in-its-supply-chain-logistics-300498459.html

Smart glasses, testing Data collecting & QR code

Picking goods with visionSuperimposed AR code

Warehouse Value Chain Benefit

Picking & sorting

Case Study: Enhanced Labor, "Vision Picking" at DHL

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Robotics can drive more agile, productive and accurate warehouse processes

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

Illustration Benefits

Example(s) from the field

Vendors

Cobots

• Collaborative robots are

intended to physically

interact with humans in a

shared workspace

Autonomous Robots

• Driverless forklifts

• Automated palletizers

• Mobile inventory robots

(no human intervention)

Drones

• Warehouse inventory

checks are powered by

autonomous drones

• Aerial robots are

enabling organizations to

use employees more

efficiently and improve

inventory accuracy

• Overall cost savings

• Reductions in labor

• Improved quality in operations

• Increasing throughput in the warehouse

• Deployed autonomous forklifts

and picking bots with vision

guidance system

• Recognizes environment &

gestures

• Automated picking,

commissioning transportation

and unloading of pallets / boxes

Technology components

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AI and Geo-locational capabilities can improve end-to-end visibility

Illustration Benefits

Example(s) from the field

Vendors

Live flow monitoring

• A warehouse control tower

Smart Machines

• Machines having real time

indicators of performance

Carrier & Customer

Connection

• Real-time geolocation and

accurate ETA information

communicated between

truck driver and the

customer allows to create

a more reactive planning

of warehouse resources

Procurement

Synchronization

• Rationalizing goods in QC

by tracking shipment

quality, punctuality,

delivery conditions

• Reallocate resources real time

• Monitor equipment utilization, failure

• Autonomous and preventive maintenanceUltrasound

transmitters on

workers ,robotic

transporters with

receivers in the

ceiling

The data is used to

visualize flow lines for

work patterns, layout

and worker allocation

Cost savings of $5M/mo.

by visualizing flow lines

• Work pattern

monitoring

• Redundancies ID'd

• Layout optimized

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

Technology components

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Wearables and Exoskeletons impact workforce efficiency and quality

Illustration Benefits

Example(s) from the field

Vendors

Optimized labor planning

• Optimizing picking routes

to minimize total distance.

Optimizing accessibility,

weight and dimension of

the object

Wearable robotics

• Tablets

• Head mounted systems

• Exoskeletons that assist

in picking and shipping

Augmented reality

• Augmented reality (AR)

picking using wearable

technology provides

faster, hands-free

solution for industrial

environments

• Improved picking, routing, inventory

management, shipping

• Improved labor productivity

• Soft robotic wear on the back

and legs, which assist with the

lift mechanism

• The suits store and release

energy as a person bends and

lifts, similar to a bow and

arrow.

(www.lowesinnovationlabs.com)

Assistive suit at Lowe's

https://www.dhl-in-motion.com/en/esports/article/dhl-rolls-out-global-augmented-reality-program

https://www.prnewswire.com/news-releases/vuzix-smart-glasses-used-in-dhls-successful-trials-dhl-making-smart-glasses-new-standard-in-its-supply-chain-logistics-300498459.html

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

Technology components

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Case Studies: Exoskeletons in beta, near ready for prime-timeOEMs, retailers, and logistics companies are developing and piloting warehouse applications

2016 - Activelink Co., a robot development

unit of Panasonic, is selling the unit for

testing and is planning a rental service.

This wearable robot is designed to assist

workers by providing torque at the hips and

reducing the stress on the spine.

The suit automatically detects the user's

motion in the lower back and then sends a

signal to the motors to rotate the machine's

gears.

In partnership with the Assistive Robotics

Lab at Virginia Tech, Lowe's kicked off the

exosuit pilot with stock employees at

Lowe's of Christiansburg, VA in April of

2017.

Application is a soft robotic wear, designed

with carbon fiber rods on the back and legs,

which assist with the lift mechanism. The

suits store and release energy as a person

bends and lifts, similar to a bow and arrow.

2017- 3PL, Geodis, has

begun using exoskeletons

to support and protect

employees’ backs during

their work in its

warehouse in Venlo, the

Netherlands. Staff wear

the exoskeletons—an

external type of brace—

for lower back support as

they lift and carry

objects during their pick

and pack activities.

“Staff are fitter after a

working day thanks to

these skeletons,”

explains Sjors van

Enckevort, site manager

at Geodis.

https://exoskeletonreport.com/ http://www.lowesinnovationlabs.com http://en.laevo.nl/

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

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IOT, AI and Systems are critical enablers for automation transformation

Illustration Benefits

Example(s) from the field

Vendors

Sensors and identification

tools

• Tracking, security, tracing,

inventory management,

etc, comprising the IoT

within the warehouse

Big data & Analytics

• Using data to optimize

processes within the

warehouse. E.g., WCS,

WMS, WES

Mobile

• Tablets, glasses, etc. assist

in picking, routing,

shipping

Cloud & AI

• Optimize particular

constraints and KPI, such

as order accuracy, safety,

productivity, fulfillment

time, facility damage, or

inventory accuracy

• Visibility and control over warehouse

processes

• Enablers of larger automation technologies

• Avoid costs from labor, errors, damages

Technology components

High-speed electronic sorting equipment with six-sided package scanners to capture barcodes, weights and dimensions as packages move along at 540 feet a minute through a network of conveyor belts and chutes

By using smart algorithms and real-

time position technology it is

possible to utilize all resources at

site with intelligent push-

technology

By leveraging simulation and

analytics it is possible to solve KPI

issues even before they exists

• Improved efficiency for

warehouse procedures, increasing

goods handled from 200 per hour

to 400 per hour

• Improved accuracy on item

distribution

• Delivered engaging in-store

customer experiences

Inventory management with RFID

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

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Warehouse Value Chain Benefit

Automated loading / unloading improves labor efficiency and load optimization

Solution components Illustration Benefits

Example(s) from the field

Vendors

Smart loading AGF

(custom)

• Components include:

chassis, telescopic

conveyor belt, 3D

laser scanner, and a

gripping system

made up of an

articulated robotic

arm and a grabber

• Advanced navigation

• Force sensors in

forklifts

Cobot (UR10)

• Safety without cage

• Right payload and

reach

• Pick from bin, place

in rack

+ Significant labor reduction due to fully

automatic execution of unloading process

+ Potential to extend solution to trailer loading

and increase savings

+ Outbound load optimization

For unloading, robot is

positioned in front of a

container to unload and

uses its laser to scan all of

the boxes. An integrated

computer then analyzes the

various sizes of parcel and

determines the optimal

unloading sequence

Technology not deployed

yet

• Wynright (Daifuku)

currenty offers prototypes

• DHL invests in 4 new

collaborative robots

Sawyer, the Cobot employed by DHL,

features a 7 degree of freedom

Trailer loading adds further

complexity as the system

now has to determine the

best way to stack boxes.

Potential to leverage Cobots

in truck loading

Receiving Packing Loading

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Sensors and scanner tunnels greatly improve read rates

Solution components Illustration Benefits

Example(s) from the field

Vendors

Automatic Identification

and Data Capture (AIDC)

• AIDC technology

automatically identifies

packages, collects data

about them, and enters

that data into

computer systems

Ability to process various

data formats

• Identification through

e.g., bar codes, RFID or

Optical Character

Recognition (OCD)

Sophisticated systems

combine multiple

technologies

• Weighing stations

• Volumetric

measurements

+ Much higher read rates than conventional hand-

held laser scanning solutions

+ High-speed sorting can greatly increase

efficiency of sortation process from unload to

reload

+ Helps to avoid costs from labour, errors,

damage

FedEx uses high-speed electronic sorting equipment with six-sided package scanners to capture barcodes, weights and dimensions as packages move along at 540 feet a minute through a network of conveyor belts and chutes

Significant labor cost

savings in sortation step

• ~80% of packages

touched only twice-

during loading and

unloading

Warehouse Value Chain Benefit

Picking & sorting

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Advances in conveyor-based sorters continue with 500 cases/min. now possible However, limited flexibility in layout remains a challenge

High speed

pusher

Pivoting

wheel sorter

Narrow belt

sorter

Active roller

board (ARB)

Sliding shoe

sorter

Bombay

sorter

Tilt tray

sorter

Cross belt

sorter

Depiction

Description Pusher arms

divert products

to take-away

conveyor

Wheels "pop

up" and divert

products

Rollers raise up

between

narrow belts to

transfer items

Products rest

on free-

spinning angled

rollers rather

than belt

Tube/slat-

based belt with

sliding "shoes"

pushing off

sorter

Items are

dropped from

conveyor belt

into bins below

Conveyor

carries trays

that "tilt"

objects at

location

Conveyor

composed of

perpendicular

belts

Primary use Ship/production Ship Ship Ship/production Ship Production Ship/production Ship

Cases/min. 50 75 100 150 250 300 375 500

Sides 1 1,2 1,2 1,2 1,2 1 1,2 1

Package size Med-large > 5" X 7" > 8" X 6" All All Small only All All

Divert angle 90 30 30,90 90 22,30 N/A 90 90

Cost Low Low Low Med Med High High High

Pros/Cons • Inexpensive

• Fast setup

• Slow

• Indelicate

• Noisy

• Inexpensive

• Expandable

• Slow

• Space

inefficient

• Inexpensive

• Expandable

• Slow

• Sticky

• All purpose

• Expandable

• Multi-point

induction

• Slow

• Fast

• All purpose

• Delicate

• Downtime

• Fixed

• Fast

• Accurate

• Space-saving

• Expensive

• Indelicate

• Fast

• All purpose

• Expensive

• Pkg type

limitations

• Fast

• All purpose

• Expensive

• Fixed

Vendors

Warehouse Value Chain Benefit

Picking & sorting

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Case Study: Food manufacturer improves storage density and efficiency with innovative retrieval system

Robotic shuttle FIFO Density and Efficiency

2018-

A powder ingredients food

manufacturer, Huijbregts,

has a new block of racks

run by Mecalux' Pallet

Shuttle System with a

capacity of 2,295 pallets in

its production warehouse

in the Netherlands

managing 2,500 raw

material SKUS and 14k

FGs.

Mobile

https://interlakemecalux.com

Wi-Fi connected control tablet

directs the Pallet Shuttle and

facilitates inventory counts and

operations viewing

Incoming goods flow through one

side and outgoing through the

other

Thanks to the Pallet Shuttle

system, Huijbregts has boosted its

storage capacity, and streamlined

the handling of products at the

same time.

Between February and August 2018,

Huijbregts has seen ~8% revenue

uplift

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

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Sortation singulators and conveyors enable faster, more customizable sorting

Solution components Illustration

Example(s) from the field

Singulator

• Sorts parcels into

straight, uniformly

spaced line/s for faster

sorting

• Uses video

cameras/algorithm/spec

ial motors to push

parcels into a algorithm

determined direction

• Takes up less space than

traditional sorters

Conveyor

• Conveys parcels to

appropriate destination

with diverters or rollers

• Linear shoe sorter can

sort 10,000+

parcels/hour

• Cross-belt sorter can

sort 18,000+

parcels/hour

Increased sorting capacity

at Cologne Hub

• Nearly doubled

capacity from 100K to

190K parcels/ hour by

upgrading traditional

conveyor system

+ Singulation enables faster sorting by

arranging parcels into single line

+ High level of control in speed and

orientation of each individual parcel allows

for customization (e.g., different type of

parcel or warehouse layout)

High performance

singulators can

singulate up to 9,000

items per hour in a

continuous flow without

recirculation

Once parcels are in a

single line, cross-belt

sorters with roller lines

allow for flexible

manipulation and

diversion of parcels to

desired destination

Vendors

Warehouse Value Chain Benefit

Picking & sorting

Benefits

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Sortation bots provide increased flexibility vs. fixed conveyors

Solution components Illustration Benefits

Example(s) from the field

Vendors

AGVs for sortation

• Flexible navigation (to

bin locations)

• Applicable to small

parcel sortation, with

many destinations

Control can be

optimized• Sortation bots are

flexible, scalable, and

modular solutions

• Bots equipped with

traffic management

system that interfaces

with WMS/WES, AMRs

able to surround

obstacle

• Utilizes “tilt tray” top or

cross-belt top to deposit

parcels from induction

to a destination location

SF Express gains

• 30% improvements in

efficiency

• Increased sorting capacity

to 200,000/ day

+ Sortation robots offer flexibility in range of

destinations for parcels compared to

conveyors (pre-defined destinations)

+ Flexible to demand change- e.g. able to

allocate more robots to destination with

higher demand

Sortation robots,

normally operated in

large fleets, carry

load from entry point

to destination bin.

Sortation appears

chaotic – but WMS

self-optimises to

increase density and

pick speed

Bots are equipped

with tilt trays to

deposit the load

into destination

bays

Tilting tray

Destination

bin

Warehouse Value Chain Benefit

Picking & sorting

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Bin matrix sorters improve space efficiency and increase throughput

Solution components Illustration Benefits

Example(s) from the field

Vendors

Drop conveyor

• Induction operator at

workstation places

items on short

conveyor

Multi-sided scanner

• Scan identifies parcel

and designates order

bin

Bot delivery to bin in

matrix

• Waiting iBot delivers

item to designated bin

• Bins organized by zip

code, etc.

+ Handles "eaches" with complex variables

+ Extremely compact, modular design for

space efficiency and scale

+ High throughput potential for small parcel

delivery

Drop

conveyorScanner Bin matrix

iBOT delivers item to

order bin located on either

side of a dense storage

aisle that can be expanded

by adding modules

Drop conveyor, scan

module can handle

small to medium eaches

with complex variables,

determines bin

designation

"I love this technology for small parcel and

cross-docking because it's so space efficient,

accurate and scalable. It's like an automated

wall…"

- Head of West Coast Sales, Dematic

Warehouse Value Chain Benefit

Picking & sorting

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Automated microfulfillment centers improve speed and efficiency of order picking and delivery

Solution components Illustration Benefits

Example(s) from the field

Vendors

Microfulfillment centers

• Operate in small spaces

and house 40k-50k SKUs

in a vertical racking

structure

Warehouse Mgmt System

• Operates the open

shuttle system and

conveyers to process

1200 orders per hour

Shuttle Storage System

• Collects totes from

elevator and transport

to storage

• Optimize placement of

item bins

Shuttle System Picking

• Retrieve goods from bins

and deliver to manned

workstations to be

bagged

+ Improved order picking and delivery speed

+ Assembles online orders cheaply, using

limited space to lower costs to

supermarkets and fees to shoppers

+ Provides E-Grocery automation solutions at

a hyper-local scale

Warehouse Value Chain Benefit

Picking & sorting

Customer places an order using Takeoff's app or

Ahold's eCommerce platforms

Software

coordinates a

series of crate

bots that shuttles

food around a

railed system

Items are automatically brought to a human who bags the

order

Items will be available for pickup and delivery

Ahold Delhaize formed a JV

with TakeOff to build micro-

fulfilment centers to inside

local Stop & Shop stores for

online grocery orders

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Case Studies: Sensors and Identification

Smart Shelving

Smart shelving units such as cabinets,

refrigerators, shelves, and displays are

outfitted with RFID hardware. Items are

affixed with RFID tags and kept in the unit

to be inventoried and monitored. Smart

shelving units keep real-time inventory

counts in order to solve common problems

experienced with inventory management.

https://blog.atlasrfidstore.com/what-you-

need-to-know-about-smart-shelving-units

https://www.cribmaster.com/solutions/rfi

d

https://www.keonn.com/systems/view-

all-2/smart-showcases.html

The Avery Dennison Freshmarx suite of

solutions include food labeling, food safety

and compliance and RFID inventory

management to help ensure food safety,

increase efficiencies, save money, reduce

waste and enhance the consumer

experience. With restaurants, grocery and

convenience stores at the core, Freshmarx

solutions are purpose-built to solve

challenges throughout the food supply

chain.

https://www.rfidjournal.com/articles/vie

w?18033http://printers.averydennison.co

m/en/home/industry-solutions/food.html

https://cstoredecisions.com/2018/05/30/f

ood-operations-solutions/

A fashion retailer, Patrizia Pepe, finds

Simple, Easy Warehouse Inventory

Management with RAIN RFID

RAIN RFID provided a hands-free, always-

on answer to streamlining complicated

distribution logistics. Their solution:

• Improved efficiency for warehouse

procedures increasing goods handled

from 200 per hour to 400 per hour

• Improved accuracy on item distribution

• Delivered engaging in-store customer

experiences

https://www.impinj.com

Warehouse Value Chain Benefit

Receiving Put away Picking & sorting

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Warehouse control systems (WCS) connects to automated equipment within the four walls to manage activities in real-time

Solution components Illustration Benefits

Example(s) from the field

Vendors

• Machine control

integration

• Pack sort and

automated pick

management

• Ship sort management

• Put-to-light

management

• Automated conveyor

zone skipping

• Mobile and fixed

scanner integration

• In line scales

+ Integrates & automates across products to

standardize activities within the four walls

+ Provides (near) real-time view of

equipment and material flow across a

warehouse

+ Hardware-independent design allows for

equipment flexibility and compatibility

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

Warehouse Control System (WCS)

Enterprise Resource Planning (ERP)

Order

flow

Inventory

data

Planning Automation Integration

Fulfillment Visibility

Envista's WCS enabled Men's

Wearhouse to consolidate

multiple systems, dynamically

change its product flow and

achieve more effective

resource utilization

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Warehouse execution systems (WES) blend capabilities from traditional WMS & WCS, merging real-time capability with business process logic

Solution components Illustration Benefits

Example(s) from the field

Vendors

• Workload planning

• System balancing

• Dynamic order

allocation and shipping

• Replenishment

execution or

management

• Integration with WMS,

WCS and ERP

• Real-time notification

on order allocation

• Inventory and

automation equipment

+ Integrated WMS & WCS functionality

improves transaction processing efficiency

+ Assists automated facilities in optimizing

labor and equipment in response to real-

time inputs

+ Incremental, modular implementation

supports warehouses with high demand

growth

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

Warehouse Execution System (WES)

Enterprise Resource Planning (ERP)

Planning

Automation

Integration

Order Fulfillment

Visibility

Receiving

Returns

Waving

Picking

Pack & ship

Real-timeinputs

Labor/equipment

coordination

Order

flow

Inventory

data

Adore Me, a women's apparel

company, implemented

Bastian's WES which improved

order handling by 2-3x,

allowing for two-day shipping

WMS WCS

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Case Study: DHL is at the forefront of cutting edge technology adoption

AR Cobots Flow Monitoring

Over 3 weeks of the test,

10 order pickers

succeeded in fulfilling

9,000 separate orders by

picking more than 20,000

items. The resulting

productivity

improvements and

reduction in errors

increased the overall

picking efficiency by 25%

and cuts on-boarding and

training times by 50%.

https://www.dhl-in-motion.com https://www.roboticsbusinessreview.com

Cost savings of $5M/mo. by

visualizing flow lines:

• Work pattern monitoring

• Redundancies ID'd

• Layout optimized

DHL creaties a mixed-reality

simulation of warehouse

operation processes

Modifications are overlaid in

the real environment

to ‘field test’ and adjust

planned redesign measures

This supports and reduce the

cost of warehouse redesign

and labor planning

Planning

http://www.dhl.com/

DHL in partnership with

Effidence collaborated on an

automated order picker.

Pickers are supported with

automated carts, sending to

drop off location, and an new

cart automatically find the

picker.

Receiving Put away Picking & sorting Packing Loading

Warehouse Value Chain Benefit

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Case Studies: On-demand (Airbnb) warehousing unlocks resources for e-commerce merchants

March, 2018

Flexe has announced its integration for

Shopify, making it easier for e-commerce

merchants to find warehouse space in

real-time.

With the integration Shopify merchants

now have access to the more than 850

warehouses in the Flexe network.

Merchants can build a on-demand

fulfilment network with enhanced order

management and inventory visibility.

https://www.supplychaindigital.com

August, 2018

UPS has launched Ware2Go, a new tech

company and digital platform that

matches available warehouse space and

fulfilment services with merchants who

need to get online orders to customers.

“Ware2Go uses innovative online

technology to match excess warehouse

and fulfilment capacity with merchant

demand to provide transparent

inventory, order fulfilment and final

delivery,” said Scott Price, CTO.

https://www.supplychaindigital.com

November 2017

A paper company turned empty space into

extra revenue

A U.S. Corrugated manufacturer had extra

capacity after moving into a bigger space.

Shortly after listing their warehousing space,

they had 2 customs and their slower moving

inventory.

Flowspace manages orders and invoices,

while paper company manages necessary

labor.

https://www.flow.space/

Receiving Loading

Warehouse Value Chain Benefit

38

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