Decreasing Warehouse Costs

ECR Baltic

Leo Mikkonen

Optiscan Market Area

Turnover 12 million €

Personnel 50

1 750 000 order lines picked every day

“Optiscan has improved our business” (95% of customers, Optiscan Customer Survey)

Denmark

Russia

Norway

Sweden

Finland

Baltics

Voice-Directed Work

How does Voice work?

• “Pick list” downloaded through WLAN to Talkman

Talkman: (Go to) Aisle 11

Picker: Ready

Talkman: (Go to location) 101 level 1

Picker: 2 - 3

Talkman: (Take) 5

Picker: 5

• Very short “communications” with the Talkman

• Talkman uses built-in Speech Recognition software and Text–to–Speech Engine

• Talkman TASK = Application that guides picker through the work process

Voice benefits- Accuracy

Accuracy increase to 99,98+%

• Check digits

• Eyes-free on the product while speaking

check digit and taking product

• Avoid same check digit at adjacent isles

on the same location

Customer’s reported Picking Errors

Oppstart

stemmeplukk

Picking Errors Development 2007

0,52

0,75

0,96

0,040,00

1,04

0,12

0,06

0,16

0,010,04 0,03

0,000,02

0,75

0,30

0,00

0,20

0,40

0,60

0,80

1,00

1,20

Av % Week

39

Week

40

Week

41

Week

42

Week

43

Week

44

Week

45

Week

46

Week

47

Week

48

Week

49

Week

50

Week

51

Week

52

Week

1

Pick-by-Voice starts

Customer’s reported Lack of Products

Oppstart

stemmeplukk

Lack of Products 2007

0,39

1,23

1,07

0,92

0,75

0,48

0,66 0,66

0,28

0,360,39

0,23 0,22 0,24 0,070,04

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

Av % Week

39

Week

40

Week

41

Week

42

Week

43

Week

44

Week

45

Week

46

Week

47

Week

48

Week

49

Week

50

Week

51

Week

52

Week

1

Pick-by-Voice starts

Productivity increase by 15 – 35%

• Start and end of picking routines

• Hands-free, Eyes-free

• Batch picking (multiple orders)

• Decreasing errors

- Complaints, returns management and handling, re-picking/-sending, saldo corrections...

• Replenishment

• Reduced training time for new employees

Voice benefits- Efficiency

Work safety, health and ergonomics improved

• Pickers always on planned routes

• Eyes-free

- concentrate on moving, not reading lists

• Hands-free lifting more ergonomic

- less muscle strains etc.

• Less broken items when lifting with both hands

Voice benefits- Health & Safety

Easier process management

• Real-time picking control

• Automatic process control

• Automatic reporting

Voice benefits- Process control

Boost productivity in order-picking Increase picker productivity by 50-100%

Driverless trucks escort the pickers Give the picker a more efficient tool

Automated pick-up of empty roller container / pallet No Step On/Off vehicle Automated dispatch of fulfilled customer order

Perfect combination: 1 + 1 = 3 !! AGV technology combined with Pick-by-Voice

In existing environment Same Infrastructure

Same Process and IT solution

Pick-n-Go®

Generic ROI model – example:

Today pickers spend 30 min on a pick run Preparation for pick run (6 min)

Order administration Empty pallet pick-up Travel to 1st pick location

Picking first to last pick (17 min) Dispatching the goods (7 min)

Travel to stretch wrapper Secure and label goods Travel to and Drop at correct dock

Pickers supported by Pick-n-Go onlyspend 16 min on same pick run Preparation for pick run (1 min)

Walk to 1st pick location Picking first to last pick (15 min)

No step on / off truck Dispatching the goods (0 min)

Gain: 30 – 16 = 14 min 14 / 30 = 46,7% cut time

Productivity gain: 87,5% 1/(1-0,467)

Each picker produce 87,5% more

Pick-n-Go® Solution

Empty

Pallet

pick-up

Dispatch

outbound

goods

Dispatch

outbound

goods

17 min 15 min

6 min 1 min

7 min 0 min

6 min

17 min

7 min

Next pick run 14 min earlier!!

30 16 min

Man-to-Goods

floor level

order-picking

Pick-n-Go

Stretch

wrapping

and

labelling

Advantages of Voice & Pick-n-Go

Pick accuracy significantly improved 99.98+%

Faster picking, Voice 15-35+%

Faster picking, Pick-n-Go (Voice required) 50-100%

Work safety and ergonomics improved

Improved customer satisfaction

www.optiscangroup.com