Different industries face unique challenges when it comes to warehouse management. From FMCG to fashion, e-commerce, and automotive parts, each sector has its own complexities. This article explores these challenges and highlights the common automated solutions that are used to address them.
Challenges:
Batch Management: Handling multiple batches of the same SKU makes inventory management and picking more complex.
Lower Inventory Days: High inventory turnover requires strict adherence to the First Expiry First Out (FEFO) method to ensure products are used before they expire.
Temperature Zones: Different products need different storage temperatures, like frozen, refrigerated, or ambient, adding to the complexity.
Solutions:
Pallet Shuttles and Stacker Crane ASRS: These automated systems improve storage density and retrieval efficiency, making it easier to manage different temperature zones and batch requirements.
Challenges:
Seasonal Inventory Management: The fashion industry must rotate stock according to the season (summer, winter, rainy) while also keeping up with fast fashion trends.
High Return Rates: With return rates often exceeding 10%, it is essential to efficiently process and restock returned items.
High SKU Count: The large variety of SKUs with different styles, sizes, and colors requires a sophisticated storage and picking system.
SKU Categories: Different SKU categories have distinct order profiles, making storage and fulfillment more complex.
Solutions:
Storage: Carton shuttles and miniload ASRS provide efficient storage solutions for the wide range of SKUs and pallet shuttle based storage for reserve inventory or bulk order fulfilment.
Picking: Goods-to-person stations streamline the picking process, ensuring both speed and accuracy.
Sortation: Mobile robots and conveyor-based sortation systems handle the high return volumes and diverse product categories effectively.
Challenges:
High Order Volumes: Managing large numbers of orders with speed and accuracy, especially during peak seasons, is crucial.
Diverse SKU Range: Storing and managing a wide variety of products requires adaptable storage solutions.
No Pareto Principle: In e-commerce, the 80/20 rule (where 20% of SKUs generate 80% of the sales) often doesn’t apply, meaning most SKUs need equal attention.
No Batching: The lack of the Pareto effect, combined with high order volumes, leads to less batching and more handling across the warehouse.
Solutions:
Storage: Carton shuttles, miniload ASRS help efficiently manage the diverse product range. and multi-tier shelving help efficiently manage peak volume with additional manpower
Picking: Pick/put-to-light systems, goods-to-person stations, and manual picking are optimized for speed and accuracy.
Sortation: Mobile robots and conveyor-based sortation systems are ideal for handling large volumes of varied orders.
Challenges:
Diverse Product Sizes: Parts vary widely in size and weight, from a 5mm nut to 5000mm chassis, requiring customized storage solutions.
Varied Inventory Days: Some SKUs may have long inventory days due to regulatory requirements, while fast-moving consumable items such as engine oils, filters, brake pads have much shorter cycles like
Prepacking: Rebranding and repackaging parts received from vendors add operational complexity.
Solutions:
Storage: Carton shuttles, miniload ASRS, and multi-tier shelving are ideal for small parts, while pallet ASRS is suited for larger items.
Picking: Pick/put-to-light systems, goods-to-person stations, and manual picking streamline the handling of diverse products.
Sortation: Mobile robots and conveyor-based sortation systems effectively manage parts of varying sizes and weights.
Challenges:
Bulky Items: Tires come in various sizes, often large and heavy, requiring specialized storage and handling.
Storage Conditions: Proper storage conditions and specialized pallets, including correct orientation and temperature control, are crucial to maintaining tire quality.
Solutions:
Stacker Crane ASRS and Pallet Shuttles: These systems are designed to efficiently store and retrieve large, heavy items like tires, while ensuring they are kept in optimal conditions.
Challenges:
Urban Space Constraints: Finding large, affordable spaces in urban areas is challenging, especially for MFCs designed to quickly serve retail stores.
Rapid Order Fulfillment: MFCs must fulfill orders within hours, requiring highly efficient picking, packing, and shipping processes.
Scalability and Modularity: MFCs need to be scalable and modular to adapt to growing demand and changing needs.
Solutions:
Storage: Carton shuttles and cube-based storage systems maximize space efficiency and higher picking speeds.
Picking: Pick/put-to-light systems and goods-to-person stations enhance the speed and accuracy of order fulfillment.
Sortation: Mobile robots and conveyor-based sortation systems are ideal for the quick turnaround required by MFCs.
Challenges:
Diverse Order Profiles: Omni-channel warehouses must manage both retail and direct-to-customer (D2C) orders, each with different profiles and requirements.
Flexibility: Solutions need to be flexible to handle variations in order types, such as apparel, footwear, and accessories, across different channels.
Solutions:
Storage: Carton shuttles, miniload ASRS, and multi-tier shelving cater to small parts, while pallet ASRS and pallet shuttles are used for reserve storage.
Picking: Pick/put-to-light systems, goods-to-person stations, and manual picking ensure flexibility in order handling.
Sortation: Mobile robots and conveyor-based sortation systems handle the diverse order profiles efficiently, ensuring smooth operations across channels.
Each industry has its own unique set of challenges, from handling diverse SKUs and managing seasonal inventory to processing high return rates and dealing with space constraints. Automated solutions like ASRS systems, mobile robots, and goods-to-person stations provide the necessary tools to address these challenges effectively. By understanding the specific needs of each sector, businesses can implement the right technology to optimize their warehouse operations, ensuring efficiency and competitiveness in today’s fast-paced market.