AUTOMATING THE WAREHOUSE FOR A GREATER RETURN ON INVESTMENT
Automated solutions for distribution centers and warehouses have been around for years. Many systems are complex with many moving parts featuring sophisticated technologies and software. Introducing such systems into a warehouse can be a large and intimidating project, involving a good deal of time and money up front. So, how can companies justify such projects? The answer varies largely and is dependent upon a number of variables:
- How many SKU’s are in a given warehouse?
- How much inventory is in the warehouse?
- What is the size of the warehouse?
- What is the business case and requirements needed for automation?
- What is the payback period the client is expecting?
At Cirrus Tech, we know that successful projects begin with a well-documented understanding of these requirements in order to provide a sufficient ROI for the customer. That’s why before we implement an automated solution:
- We gather all the data needed to perform the financial analysis.
- We analyze all the numbers to find the most cost effective and efficient solution that provides the best possible fit for your business.
- We determine if the solution makes business and financial sense to implement.
Deciding to move to an automated warehouse needs to be a careful exercise in balancing risks with rewards. For us to implement an automated solution, it must meet the right blend of automation and common sense criteria for each customer. Does the ROI justify implementing the automation project and is the automated solution going to deliver on the ROI to provide a better, more productive and efficient way to manage operations? Cirrus Tech will work with your team to determine if the solution for your warehouse is the right blend of automation and common sense.
With the gravity-feed conveyor of the Cirrus Tech Crane System, it's just first in, first out...So it just eliminates all of the touching for about 70% of your product.
In terms of receiving, I don't have to carry a pallet 100 feet, 200 feet. It's just 20 feet away to getting input into our Cirrus Tech Crane System and I can input between three and four trailers at a time.
With Cirrus Tech we will receive product and put it in a rack location - it's in the system with one touch. The next time we touch it is for order building, and so we plan to take a minimum of four touches out of the process. That's where the efficiency is.
By choosing “The Crane” ASRS System from Cirrus Tech, we will gain efficiencies through our entire warehouse; how we receive, rotate and shuffle back stock, cycle count and replenish pick locations. The real surprise will be the efficiencies gained on the load building side. Cirrus Tech’s “Crane” and voice solutions will help us in all areas of the warehouse.
The Cirrus Tech Crane System provided our company an opportunity to consolidate an entire warehouse (Norfolk, NE) into the existing warehouse here in Fremont, NE. It will incorporate 5 years of growth while providing less than a 5 year ROI with the efficiencies of the system.
My picking with the Cirrus Tech Directed Picking solution is at least 3 times faster and more accurate than when our employees picked orders manually using a sheet of paper.
The Cirrus Tech Crane System not only saved us from doing a costly expansion, it also helped us organize our warehouse in a manner that put efficiencies in places that we would have never realized by building a new warehouse.
A major advantage of the Cirrus WMS is being able to know where all of the SKU’s are at any given time. This is especially helpful during crunch times when that rarely requested item would otherwise have to be hunted down in the warehouse. Now, the system instantaneously tells us where to find it.