The Challenge:

  • Orders were printed in the IT department, reviewed in the Customer Service department and finally delivered to the Fulfillment department 3 days after they were keyed.
  • Computer optimization of order sequencing was difficult to accomplish and unreliable resulting in the manual sortation of pick ticket/receipts.
  • Inventory within each pick station was stocked in alphabetical order and required constant unloading and reloading of shelves to accommodate new items each week.
  • Shelving units only held up to 1-2 boxes per item which created multiple stock outs each day.
  • Tipped on labels added an extra 5 cents per document.
  • Each order was manually checked for accuracy.
  • All orders flowed through the system from start to finish - no late entry or early exit. 
  • Each order was manually shipped based on look up and the operators memory. 
  • The warehouse relied on memory for storage and retrieval.
  • Ineffective process flow resulted in bottlenecks, congestion and frustration among the staff.
  • In a pre-Amazon world there were fewer options for outsourcing this type of activity.

The Solution:

  • Selected Ann Arbor Computer ( a division of Jervis B Webb) to create the functional specifications and customize their core warehouse management software PC Aim to meet the business requirements.
  • Selected WT Billard to engineer, design and install the materials handling equipment including power conveyor, diverters, carousals, in-line scale, flow rack, etc.
  • Implemented computer optimized pick sequencing.
  • Pick tickets were printed in the distribution center and inducted into the system by station.
  • Computer directed put-away and restock by location provided accountability and increased accuracy.
  • Forward pick zones included flow rack for hot moving items reducing bottle necks in the system.
  • Each pick ticket was scanned and married to a tote and then routed only to those stations requiring the next pick. When complete the conveyor would travel across a scale to check expected weight (QC) and if it matched then route directly to the packing area.
  • Tipped on labels were eliminated and instead the shipping system automatically selected the least costly method and printed the shipping label for each order. 

The Results:

Order cycle time improved, going from over 5 days to next day processing.
Over 20 million orders fulfilled and shipped through the system.
​Total savings of over 10 Million dollars during the life of the system.