DC Velocity - January 2012

the order tote can bypass that zone and return later when the bottleneck is cleared up. (Picking in the zone bypass area is directed by a voice system supplied by Vocollect.)

Along with retooling the pick area, Schaefer supplied
three A-frame automated order picking units for the facili-
ty’s fast movers. Together, the units feature 6,300 channels
that hold 4,600 different products—mostly small bottles
and boxes. Fast movers in
A conveyor belt runs under the
A-frames. When products are
needed for orders, they’re
dropped onto the belt and then
gently deposited into an order tote
that waits at the end of the line.
Approximately 78 percent of picks
in the building occur within the
A-frames, which can service up to
1,800 totes per hour.

Along with these process improvements, Schaefer added a tote buffer system, two tote destackers, an automated tote labeling system, and software that cubes the totes. In combination, these systems have virtually eliminated the need to handle totes manually.

“We have to be more efficient
here to offset decreased margins and higher labor costs,”
says Rogers. “The automatic label machines and the zone
bypass are where we gained most of our labor productivity,
saving the equivalent of 16 positions.”
at a lower put station, following directions provided by
lights. Smith Drug has workers deposit items one at a time,
with a light barrier above each tote keeping count of how
many times the worker reaches across. This assures that the
correct quantity is placed into the tote.

NO RESTING ON LAURELS

The productivity gains notwithstanding, the facility was not done with improvements. In 2008, it embarked on another round, installing eight Schaefer carousels containing 43,000 dense storage locations. This system, which is arranged in two pods of four units each, has a footprint of only 6,600 square feet. Storing the same amount of inventory on static shelving would require more than 45,000 square feet. On top of that, a mezzanine was installed over the carousels, further boosting capacity.

When items are needed for orders, the carousels spin to make the required storage tubs accessible to a worker stationed at each pod. Lights direct the picking, indicating the location and quantity of items needed. Since a single storage bin might have as many as eight compartments, the system is set up with an additional light to indicate which compartment holds the required SKU. Up to seven orders can be selected at once.

Workers gather the picked items into order totes located

SO FAR, SO GOOD

As for the results, the process improvements introduced over the past seven years have allowed Smith Drug to accommodate volume growth that prior to the recession, averaged 20 percent annually. Better yet, the facility was able to absorb the added volume without any loss of productivity or accuracy. In fact, Rogers reports that productivity at the Spartanburg DC jumped 55 percent after installing the A-frames, zone-bypass picking, carousels, and the automatic tote labeling equipment. Order accuracy now stands at 99. 99 percent.

The system has also helped alleviate backups during peak
periods—typically, Sunday and Monday nights. “Before, we
had two or three nights a week when trucks would always
go out late. Now, that happens only about five times a year
total,” says Rogers. “And often on those days, workers would
be here 12 to 14 hours to get the orders out. With the
automation, we rarely have any overtime now.”
The success of the Spartanburg projects led Smith Drug
to duplicate many of the automated processes at a facility it
opened in Valdosta, Ga., in 2009. Among other benefits, the
system’s space-saving features enabled the company to keep
the building’s footprint to just 108,000 square feet. “The
carousels paid for themselves the first day because they
allowed us to build a smaller facility,” says Rogers.

Not satisfied with standing pat, Rogers says he has Schaefer working on automating the quality control area, where prescription drug orders are verified. It will be just the latest chapter in Smith Drug’s ongoing search for ways to reduce costs, create efficiencies, and improve customer service. ;