A U T O M A T I O NThe Intelligent Material Handling Company
S A P I E N T
Translating Carousel & Vertical Lift Module (VLM)Productivity into Prosperity
W H I T E P A P E R S E R I E S
30 South Pine Street | Doylestown, PA 18901 | [email protected] | www.GetSapient.com
877.451.4044 215.489.7820
Subsidiary of MDCI
It’s becoming more apparent that the U.S economy is in a
slow but accelerating recovery. According to the Institute for
Supply Management (ISM) semi-annual forecast, the U.S.
manufacturing sector will grow in 2011, with manufacturing
revenue increasing by 5.6%. ISM also predicts that business
investment, a major driver in the U.S. economy, will increase
substantially in the manufacturing sector.
In the ISM survey, manufacturers also indicated that they
expect employment in the sector will increase by 1.8%.
Along with that employment increase, respondents said
they expected labor and benefits costs to increase an average
of 1.9% in 2011.
In positioning business to take advantage of the growing
economic recovery, companies and organizations have to take
a close look at their methods of operation and find ways to
improve productivity in all areas, particularly in view of the
potential for rising employee compensation costs.
In a strict economic sense, productivity is the ratio of the
quantity and quality of units produced to the labor per unit of
time. This means that improved productivity can and does have
a significant impact on bottom line profitability by producing
more for less. Therefore, to take full advantage of the
economic recovery, it is imperative that businesses look to
improving employee productivity as a means to ultimately
improve profitability efficiency.
One area in many organizations and companies that is ripe
for improvement is storage and retrieval operations.
According to Operations and Fulfillment Magazine, in most
warehouse operations, 45% of costs are for direct labor while
an additional 16% are for indirect labor. Picking and packing
activities account for the majority of those costs.
Automating for ProductivityHow can organizations reduce labor costs and improve
efficiency and customer service at the same time? One way
many companies and organizations have met this challenge is
by looking at automated storage and retrieval systems as a
means of improving employee productivity.
Automated storage and retrieval systems, such as vertical
and horizontal carousels and vertical lift modules (VLMs), can
increase productivity by 2/3 or more through the simple
concept of bringing goods to man, rather than having man
search for goods.
W H I T E P A P E R S E R I E S
P R O D U C T I V I T Y
30 South Pine Street | Doylestown, PA 18901 | [email protected] | www.GetSapient.com
877.451.4044 215.489.7820Subsidiary of MDCI
2
Automated storage and retrieval systems work by
delivering stored items to an operator an ergonomically
positioned removal area. By delivering items to the operator,
these systems eliminate one of the most costly factors in
retrieval operations—walk and search time. Conventional
static storage systems like shelving require employees to spend
up to 70% of their time traveling aisles searching for items and
only 30% actually retrieving items.
Typically, using automated storage and retrieval systems,
an operator’s walk and search time is reversed from that
of conventional systems to 70% picking and only 30%
searching time.
When operators spend more time picking and less time
searching, they become more efficient and the productivity
of the picking operation increases substantially. Because
operators are more efficient, businesses and get by with fewer
of them, even when the business begins to grow. Indeed, some
businesses might not be able to keep pace with increased
demands, no matter how many pickers are added to the staff
simply because more labor doesn’t necessarily translate into
more efficiency and productivity.
To find out how much productivity and reduced labor
your organization can obtain through using carousels and
VLMs, organizations such as Sapient Automation
(www.GetSapient.com) provide free on site analysis.
The access area of automated systems is ergonomically
designed to present stored items at an ideal height for picking,
usually about waist high. This location of the access area
contributes to employee safety since this positioning design
eliminates the bending, climbing and stretching associated
with conventional shelving and rack systems. Throughput
generally improves as well.
Redundant or non-essential handling can be reduced with
automated systems by using retrieval techniques such as batch
picking and slotting. Batch picking is the process of picking
multiple orders simultaneously. Since an operator will visit a
storage location once for the batch total picking time is
reduced. The time saved also results in less operating cost and
usually improved customer service. Labor costs are reduced due
to quick retrieval times and the capability to meet varying
throughput requirements while not being bound by thresholds
imposed by limited-access systems.
Slotting is the assignment of items to a particular
location, and in appropriate quantities for specific distrib-
ution needs, in a storage and retrieval system to maximize
system capacity and improve efficiency. Storing parts in
their appropriate distribution quantities significantly reduces
W H I T E P A P E R S E R I E S
P R O D U C T I V I T Y
30 South Pine Street | Doylestown, PA 18901 | [email protected] | www.GetSapient.com
877.451.4044 215.489.7820Subsidiary of MDCI
3
W H I T E P A P E R S E R I E S
P R O D U C T I V I T Y
MMH_9951_0_0211
30 South Pine Street | Doylestown, PA 18901 | [email protected] | www.GetSapient.com
877.451.4044 215.489.7820Subsidiary of MDCI
4
part handling time and, consequently, the costs associated
with unnecessary handling.
Saving Space, Improving AccuracyAnother reason for choosing to automate storage and
retrieval operations is improved space utilization. Automated
storage and retrieval systems can recover up to 85% of the
floor space typically required for rack and shelving systems.
Recovered floor space can be re-allocated from cost-associated
functions of inventory to value added production operations.
Improved space utilization can also extend the useful life of
existing facilities, eliminating the need for expensive brick and
mortar expansion to meet growth requirements.
Automated storage and retrieval systems, when combined
with microprocessor controls, position indicators, information
displays, and PC-based inventory management and control
software, offer increased speed and picking accuracy levels of
99.9%. Higher accuracy levels reduce waste and can result in
significant savings, while improving customer service.
Accelerated ROIWhat is the return on investment for an automated
storage and retrieval system? At Sapient Automation, we’ve
found that most customers who chose to install an automated
storage and retrieval system reported an ROI in the range of
nine to 18 months. This is based on a number of factors
including labor savings, recovered floor space, increased
manufacturing capacity or additional lines, reduced inventory
levels and increased inventory turns, fewer mis-picks and
returns, reduced training costs, fewer injuries and possible
litigation costs.
Reducing costs and adding value translates into economic
prosperity for the company, and its employees. Automated
storage and retrieval systems are a cost effective way to reduce
the cost of doing business and position a company for growth.
About Sapient AutomationSapient Automation, a subsidiary of MDCI, is a leading
provider of automated storage and retrieval systems for
manufacturing, distribution, warehouses, institutions, retail
and wholesale. For information about the Viper VLM, Avenger
Vertical Carousel or Hornet Horizontal Carousels, please call
800-639-5805 or visit the Sapient Automation web site at
www.GetSapient.com/
Space Savings(sq ft)
317 - 328461 - 472569 - 616713 - 724821 - 868to 929
Space Savings(percentages)
76%82%85%88%89%91%
CeilingHeight
15’20’25’30’35’40’
EliminatedShelving Sections
31 - 3545 - 4959 - 6573 - 8087 - 94to 100