For Fast ROI, Six Steps Towards Simple Automation Order Fulfillment 

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rapid return on investment

Simple automation order fulfillment is the installation and integration of automated order fulfillment technology within your operations. It can improve efficiency in service levels and order fulfillment operations and in the process, it can achieve a rapid return on investment (ROI) through cost reductions. As an added benefit, it may indeed pay for itself in a short period of time, less than two years in many cases.

Simple automation order fulfillment for fast return on investment:

  1. Reduces Labor Requirements – The single biggest cost in any warehouse and distribution center operation is labor. Simple automation order fulfillment improves picking rates by as much as 600% per operator, reducing the need to add labor to meet an increased demand.
  2. Increases Throughput – Simple automation order fulfillment improves operator productivity, increases system throughput, accelerates order turnover and extends order cutoff time.
  3.  Improves Order Picking Accuracy – Simple automation order fulfillment with the use of supporting technology such as software and pick-to-light systems, improves order picking accuracy up to 99.99%+.
  4. Space Savings – Simple automation order fulfillment systems can recover between 30% to 85% of warehouse and distribution floor space by utilizing the vertical cube of the facility. This saved space can be converted to income producing operations, reducing the need for brick-and-mortar expansion.
  5. Improves Inventory Visibility & Management – Simple automation order fulfillment systems can significantly improve the quality of information regarding inventory status and stock keeping unit (SKU) location.
  6. Improves Ergonomics Reduces Lost Time Injuries – The warehouse labor force has the highest turnover rate, the highest absenteeism and the highest lost time accident rate in the order fulfillment operation. Simple automation order fulfillment systems reduce the excessive bending, stretching and reaching by presenting the stored items to the systems operator at the correct ergonomic work height, eliminating the significant number of workplace injuries.

At first glance, it might seem much easier and less costly to add labor to meet market demands, or to increase storage capacity through brick and mortar square footage expansion, but these options often prove to be bad business decisions. Increases in both throughput and storage density can often be better achieved through simple automation of the order fulfillment process, and the rapid ROI can justify the implementation of this technology.

Consult with an experienced systems manufacturer or integrator. The right partners will help you analyze your order and inventory data to determine the best solution with a proper ROI (return on investment). Always understand where your potential partner’s “true interests” lie when doing final evaluations.

SI Systems has been providing world class automated software and material handling systems to order fulfillment, distribution center, warehouse, manufacturing and assembly operations for over 50 years. Systems include WMS (Warehouse Management Systems), WCS (Warehouse Control Systems), and WES (Warehouse Execution Systems) software, order fulfillment dispensing A-Frames, towline in-floor conveyor, slotting and integration services. Visit www.sihs.com for more information and white papers on this subject or email: info@sihs.com.

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2 Comments

  1. Nicely Done! says:

    It’s difficult to find experienced people for this topic, however,
    you seem like you know what you’re talking about! Excellent article!!
    Thanks

  2. Bob R says:

    Good post but I was wanting to know if you could write a
    little more on this subject? I’d be very grateful if you
    could elaborate a little bit further.