For any large industrial manufacturer handling 13,000 SKUs in its assembly parts warehouse, keeping production requirements satisfied without a hitch is no small organizational challenge. But integrate into that system a full-scale aftermarket fulfillment distribution center with 80,000 additional active SKUs for simultaneous processing -- and you have the recipe for a potential logistics meltdown.
Unless, that is, you are Gardner Denver, Inc., who in the fall of 2005 completed the integration of its large, dedicated aftermarket fulfillment center into two of the company’s production facilities, pulling off the transition in record time and without missing a logistics beat. Upgrading to a state-of-the-art picking system by Remstar in the process, the company is seeing a 100% increase in picking productivity with a 50% reduction in labor hours.
Building large pumps, compressors, and blowers for industrial use, Gardner Denver is a leading global manufacturer of highly engineered reciprocating, rotary, and vane compressors; liquid ring pumps and blowers for various industrial and transportation applications; pumps used in the petroleum and industrial markets; and other fluid transfer equipment serving the chemical, petroleum, and food industries.
Switching from Dedicated DC to Integrated Warehouse
Gardner Denver maintained a dedicated aftermarket distribution warehouse in Memphis, TN, which handled its aftermarket parts fulfillment for the domestic manufactured compressor, blower, and pump products. The company manufactured aftermarket parts in its other plants, then shipped the parts to Memphis, where they would be inventoried and sent out to customers. This system was in use for the past 20 to 25 years.
Potentially sizable benefits could be garnered, however, by having the company’s aftermarket distribution come from the production facilities themselves, where the parts were actually manufactured. So Gardner Denver conducted an assessment of assembly parts needs for its manufacturing facilities, aftermarket parts needs, and lead times required for managing its inventory level.
The decision was made to move aftermarket parts fulfillment to the plants responsible for manufacturing those products, and to close the Memphis DC. This was essentially a change in the company’s distribution model: Gardner Denver determined that it could reduce its inventory costs significantly by combining its aftermarket parts fulfillment with its production warehousing at two of the company’s manufacturing facilities. Instead of maintaining duplicate sets of 80,000-plus SKUs in inventory, it could have just one set of SKUs for each of the two manufacturing sites.
The two plants designated to absorb the Memphis DC inventory and distribution activities were the company’s Sedalia, MO and Quincy, IL facilities. Exclusively production plants, Sedalia manufactured rotary screw and industrial blowers, and Quincy manufactured reciprocating compressors and pump products.
Each plants already maintained a warehouse for supplying assembly parts; this would now be expanded and integrated to handle both assembly parts inventory and aftermarket parts warehousing and distribution within the same system.
The Memphis facility had automated picking carousels previously designed and built by Remstar Int’l that were used strictly to fill aftermarket orders. The DC would receive an order from a customer for aftermarket parts, the picking carousels would house them, and the orders would then be picked and shipped out to customers. Because this picking system proved quite successful in handling the large volume of 80,000 different parts -- mostly small components -- Gardner Denver asked Remstar to again design and build picking systems to accommodate its new warehouse needs in its Sedalia and Quincy manufacturing plants.
A leader in small-parts handling, Remstar can integrate a holistic systems solution to inventory management, incorporating horizontal carousels, vertical carousels, vertical lift modules, inventory management software, and put-to-light/pick-to-light systems. So Remstar took on the role of systems integrator for the Sedalia and Quincy projects.
“Remstar was intimately familiar with the Memphis site, they visited the Sedalia and Quincy locations and saw what we were doing, and what our vision was,” says Dean Chew, director, Aftermarket with Gardner Denver. “They came back to us with a complete solution, a comprehensive plan. From the pick system carousels to the conveyers, the interface software between the conveyors and the carousels, the warehouse management system, and the integration with our enterprise resource planning system, this was a turnkey project.”
Remstar manufactured and installed the carousels as well as some of the peripherals, such ase pick-to-light. The company also provided project management on the conveyors, manufactured by Intelligrated; WMS software from Innovative Automation; and mezzanine structures, manufactured by Wildeck.
“Remstar started with the planning work on Quincy in May, and by July initiated site work by dismantling our existing picking system,” Chew explains. “The system in Quincy was completed by September. The time frame to deliver the project was extremely short; a typical process would have taken twice as long. What would normally have been a 6- or 7-month project, Remstar did in 4 months. The second phase, in Sedalia, was completed in October. These were really incredibly short time frames.”
Mixed-Use Picking for 80,000 SKUs
The picking systems needed to serve two purposes: (1) The distribution of spare parts to end users; and (2) the assembly of pick kits to feed the manufacturing floors. Such solutions tend to be quite challenging, and are unique in material handling applications. Remstar was able to design a highly workable solution incorporating both needs into a common picking system.
Quincy, the smaller of the two systems, handles approximately 5,000 SKUs between its manufacturing and aftermarket parts requirements. For this operation 4 Remstar-designed pick carousels were put into place.
Sedalia supplies roughly 75,000 different parts for its manufacturing and aftermarket requirements. Its picking infrastructure consists of 10 Remstar carousels supported by a double-tiered mezzanine – 5 carousels above and 5 below.
Carousel sizes within both facilities range from 60 to 80 ft in length, variably adjusted for space requirements. Each carousel is designed with 2, 3, or 5 picking pods, which can be adjusted to accommodate activity levels through a Remstar system known as Flexi-Pod Configuration. One operator can pick from a pod of 2 carousels up to a pod of 4 carousels with just a few clicks of a button.
This allows an operator to pick from one active carousel while the others are prepositioning to be picked the moment the operator is ready. The picking manager can balance production requirements with personnel to maximize throughput efficiency.
Remstar horizontal carousels are a system of carriers that rotate on an oval track, delivering stored items to an operator on command. The high-density design of these systems uses 40 to 60% less floor space and 80% less cubic space than traditional shelving. Sedalia had a large amount of bulk rack that was replaced by the carousels, with a considerable recapturing of floor space.
“In our Sedalia and Quincy plants we now simultaneously do the functions of aftermarket fulfillment and production floor kitting that we did separately before,” says Chew. “The production line needs parts to build a compressor or blower, so they enter an order, which goes into the carousel, it gets picked and put on a tote, then conveyed down to a workstation on the production line where those components are assembled into a product. For aftermarket, the parts get picked, put into a tote and conveyed on a different line out to shipping. Both are the same process of filling the order with similar parts, except they go down separate conveying spurs to different end points.”
The picking carousels use state-of-the-art put-to-light and pick-to-light technology, which assists the picking operators with four basic functions:
- picking a specific or active item;
- putting an item in an active order or location;
- communicating a message such as a quantity and description;
- completing the task and moving on to the next.
Pick-and-Pass Zone Batch Technology
Remstar combined pick-to-light and put-to-light, with pick-and-pass zone technology to maximize picking efficiency. Multiple orders are positioned above an LED display. The carousel is prepositioned so the picker is never waiting on it. All of the orders are automatically downloaded, so when an operator begins the batch pick process, the software shows the first available pick. The product is prepositioned. The light comes on underneath each product to be picked, indicates the quantity to be picked, and that quantity will fill the need for all orders in the batch. The picker then goes to the next carousel, which is already in position and continues the process. Pick-and-pass order fulfillment allows an order to be consolidated while picking directly onto the shipping totes.
Batches then move from work zone to work zone, bypassing zones with no picking requirements. As batches of orders are completed they are routed to the next required workstation until complete and sent to shipping, or to the floor for assembly. Pick-and-pass zone batch picking is one of the most effective split-case picking methods.
“The whole system is quite automated,” Chew explains. “The coordination of order fulfillment is remarkable -- parts are put in totes, which are sent around the conveyer system to different carousel locations where picking is required to fill an order. When an order has been completed the system will automatically consolidate those totes and then send them down a single lane for order processing.”
Underneath all of this is a sophisticated multilayered IT structure, managed by Remstar, integrating the put-to-light and pick-to-light systems with the carousels and conveyors. These are controlled by the warehouse management system, which receives ordering information from Gardner Denver’s legacy ERP system. Needless to say, the project was not without some interfacing challenges that needed to be overcome, typical for a project of this complexity.
Enhanced Productivity, Reduced Labor-Hours and Inventory
Put-to-light, pick-to-light and the Remstar Flexi-Pod Configuration of its carousels have significantly enhanced the speed of Gardner Denver’s entire inventory management process. It can now process inventory in half the time, with a 50% reduction in labor hours needed to do the same tasks.
More important, with the company’s new distribution model it is no longer maintaining a dedicated aftermarket warehouse with thousands of SKUs of duplicate inventory. Its new combined production/aftermarket inventory and distribution system has sizably streamlined Gardner Denver’s DC operating costs.