Features/Benefits Provided:   Near 100% Inventory Accuracy for more than 60,000 SKUs. Increased Productivity. More Vertical Space Made Available. Improved Ergonomics.

In the 1990’s the leader in employee recognition companies was faced with an increase in demand for merchandise awards requiring the company to lease off-site warehouses for increased storage space. They had over 4,000 merchandise awards to choose from and wanted to offer a customized selection of recognition awards from a single facility that would be completed on budget and on time and would deliver the promised benefits.

A team of five managers were assigned to build a new award distribution facility with the help of material handling personnel. After two studies and complete justification, the design phase was implemented, incorporating a number of material handling concepts:

• Receiving incoming pallet loads in a Unit Load Automated Storage & Retrieval System (AS/RS) and individual cartons in a Mini Load ASRS.
• Identifying parts and orders with bar coded labels.
• Picking orders from pallet loads and containers and conveying the items to workstations where emblems would be attached or other processes, like engraving, would take place.
• Conveying the completed awards to consolidation stations and shipping.

The craftsmanship content of the merchandise awards process wouldn’t change, but the manual material handling and chasing back and forth to complete orders would be automated. During the information gathering phase of the project, it was demonstrated that a worker would walk as much as 5,100 feet to take an order through the emblem attachment and shipping processes.

The application requirements for this company were:

• Consolidate four warehouses while increasing capacity 25-30%
• Eliminate non-value added steps in manufacturing and distribution processes
• Improve direct labor productivity 100%
• Achieve near 100% inventory accuracy

The system solution initially began with a five year plan that consisted of a two-aisle Mini Load with 5,060 storage locations and a two-aisle Unit Load with 1,438 storage locations all controlled by a Real Time Inventory Software System. Today, the system includes a four-aisle Mini Load with 10,120 storage locations and a four-aisle Unit Load with 2,876 storage locations. All company requirements were achieved with productivity improving 120%; order cycle time cut 70% and production up17% with fewer workers. The new system also reduced workers walking from conveyed merchandise to and from the workstations to near zero.

is a Proud Member of the AS/RS Product Section of Material Handling Industry of America

5202 Douglas Corrigan Way
Salt Lake City, UT 84116
Toll Free: 800-253-1003  |  Phone: 801-359-9900  |  Fax: 801-359-9911
info@DaifukuAmerica.com
www.DaifukuAmerica.com