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The evolution of the traditional retailer
is challenging suppliers to think more
laterally in terms of the way they store
and process stock. The ‘metro’ version
of the conventional supermarket and
the introduction of click and collect
locations mean suppliers have to think
more agilely in order to provide an
efficient service.
Well-organised warehouses should
incorporate a bespoke mix of manual
and automated picking systems in line
with the popularity of specific items or
product lines. Many suppliers already
incorporate this thinking by designating
fast-moving aisles for popular products.
This is where it’s appropriate to use
automated pickers. Slower moving
aisles are then more suitable for
items that are ordered less frequently
meaning that they can be manually
picked. More routes to purchase from
retailers mean that the variety and
volume of popular items is likely to
increase. For suppliers servicing the
sector it can make sense to increase
the number of fast-moving aisles
and incorporate the automation of
additional popular items in the process.
By Nigel Crunden, business specialist at Office Depot.
Suppliers
should evolve
Running parallel with this is the need
for suppliers to manage higher levels
of stock than ever before. This is
partly because of immediate demand
from retail clients. However, the most
forward-thinking suppliers closely
anticipate future demand in line with
a core understanding of the seasonal
and spontaneous needs of retailers.
Optimising existing warehouse space
to allow for additional storage space
saves money as well as increasing
internal efficiencies. Creating
mezzanine floors adds much needed
floor space without sacrificing or
‘doubling up’ on space-related
requirements within existing areas of
the warehouse.
Taking this route also means that the
safety of warehouse operatives is not
compromised. However, it is important
not to forget the importance of human
input. Whilst automation directly aids
efficiency, there is the potential for
occasional errors to be made. Sufficient
quality control by operatives to ensure
items have been correctly picked and
allocated can help safeguard against
this.
Managing returns
For retailers, increasing the routes to
purchase can result in a higher rate of
returned items. Here, suppliers should
look to get these processed and back
in the retailer’s supply chain in time for
them to be sold at the maximum RRP.
Although automation plays a key role in
driving this, some choose to designate
a specific warehouse zone that is solely
focused on processing returned items.
Determining whether this is necessary
or not means suppliers should monitor
sharp uplifts in the volume of returned
items and act accordingly.
Some already take the idea of zones
a step further. For example, by
allocating ones that only deal with
specific purchase routes, such as
click and collect, metro stores and
traditional store zones. However, this
is inadvisable. While a designated
zone works well for returns, it is best to
process all primary orders within one
centralised and efficient function with
clearly marked destinations for each
order. This allows for quicker collation
ahead of being delivered and avoids
the risk of a fragmented approach to
the way each zone is run.
Now more than ever is the time for
suppliers to examine the efficiency of
their warehouse operations to ensure
they are ‘retail ready’ for the variety
and volume of demand in the sector.
Even those suppliers that are already
aligning their warehouse functionality
need to regularly review their approach
to check it fits the needs of retail
customers – or risk losing out to the
competition.
46
Logistics Business Magazine | September 2015
WAREHOUSE AUTOMATION