Staci Americas Blog

Podcast Discusses Automated Order Fulfillment

Staci Americas' CEO, Harry Drajpuch, was a recent guest on the Digital Supply Chain Podcast hosted by Tom Raftery, former global VP and Innovation Evangelist at SAP. Harry and Tom chatted about a range of topics, but mainly automated order fulfillment.

Here are a few tidbits from Harry's interview to whet your appetite.

 

Digital Supply Chain podcast-inlineOn warehouse robots...

In the typical picking approach, 50% of the time (and cost) is spent walking, not picking products. Robots can eliminate that walking, providing a 2X productivity improvement through automated order fulfillment.

 

On the cost of robots...

I can spread the cost of robotic automation across 10–12 customers in a fulfillment center. In a 3PL facility, customers don't have to pay for a robot to sit idle during off hours.

 

On drones…

We used to have 2-3 people doing nothing but cycle counting inventory in a fulfillment warehouse. Now, a drone operator can handle this cycle counting during off hours – and do it more accurately than a human.

 

On automation and associate training…

Some of the automated order fulfillment technology – pick to light, voice picking, collaborative robots – is so simple that training time goes from weeks to hours to get new workers to full productivity.

 

On low-tech automation…

When you ship 17 million orders a year like we do, that's a lot of boxes that need to be constructed. Simple automation equipment like carton erectors can replace 2 or more full-time associates. Similarly, auto labelers and tape machines have a quick payback.

 

On the impact of automation on worker retention…

The turnover rate for warehouse workers is 43% or higher per year. Automating fulfillment reduces worker turnover because the job becomes less physical and less stressful.

 

On data analytics…

While we used to look at performance during an 8-hour shift and make adjustments, today we look at real-time data down to the individual level. It's like the difference between an X-ray and an MRI. The two-dimensional X-ray is useful, but an MRI shows you what's really going on.

 

On outsourcing fulfillment…

When you outsource fulfillment to the right partner, you gain access to their automated order fulfillment technology and can avoid those capital investments.

Want to hear the full episode? Check it out below.

 

 

 

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