LIGHT’S OUT ECOMMERCE BUSINESS CASE
LIGHT’S OUT ECOMMERCE BUSINESS CASE
By MHI Member Company, S&H Systems, Inc.
Lights Out ecommerce may sound futuristic, but this concept is being used today to help businesses differentiate themselves and become more agile, especially during times of disruption and uncertainty.
In this business case, one retailer, with less than a 10,000 square foot facility, intends to supply their customer base with virtually any high-selling, small footprint product that can be stored between 40° and 100°. Neighborhood residents can order groceries, clothing, cleaning supplies, makeup, and many other products that are essential for day-to-day life.
Several things now separate the retailer from their competition. First, an automated distribution process allows for tremendously quick order processing times, able to deliver to the customer within 2-4 hours of initial purchase. And, using certain technologies, very little operator intervention is required to operate this fulfillment solution.
In this business case, we’ve used autonomous mobile robots (AMRs), work stations, and articulated arm robotics. Following these steps, you can see how it works:
– As product enters the building, full cases are broken down into individual items and replenished into a AMR grid-based goods-to-person system. A small 4,000 square foot grid is capable of holding 4,500 bins filled with product under a 25-foot ceiling,-
– The operator is capable of performing this induction and replenishment process with over 4,400 articles per hour at each workstation throughout a shift.
– Additionally, a completely automated order picking and consolidation process via an articulated arm robotic solution can process 600 units per hour.
– Order picking and consolidation are now made hyper-efficient with eight unique orders being processed at once. WMS software is constantly processing fleet missions to allow for methodical robotic sequences that streamline operations.
– Once orders are complete, filled cartons will be automatically routed out of the grid to an automated case sealer. With this well-structured business model, the retailer has determined what select case sizes collectively makes sense for their customers.
– Once this order reaches the case sealer, it will be scanned, and provided with a shipping label via an automated printed and apply machine.
– The now completed order is then picked up by an AMR with an integrated roller top conveyor, and delivered to the dock door, or dropped at a holding location to wait for multi-order consolidation.
This usage of AMRs for final routing provides the ultimate flexibility within the system, as the dock space is completely free for staging, and there is no longer just one point of failure, such as a sorter. This is critical for lights out style solutions.
