We are thrilled to share that 6 River Systems (6RS) has embarked on an exciting journey by becoming part of Ocado Group, a pioneer in intelligent automation solutions with 20+ years of experience in developing and operating its own platform for grocery retailers around the world. In just a handful of weeks since this partnership was announced, we have achieved impressive results by securing contracts with four new clients and expanding programs with two existing customers, including a global family entertainment company. These accomplishments exemplify our unwavering commitment to delivering top-notch fulfillment solutions across various industries.

“Becoming part of Ocado’s new Ocado Intelligent Automation (OIA) business unit enables us to broaden our capabilities and further our dedication to providing innovative, wall-to-wall automation technology that delivers immediate value to our clients, both present and future,” said Royanna Chappell, VP of Sales and Customer Success at 6 River Systems. “It represents a remarkable milestone, promising a future characterized by unparalleled opportunities to further growth with fulfillment providers in their automation journey.”

Immediate growth and expansion

As a testament to our ongoing growth and customer success, we added four new customers and two major customer expansions since May. Among the four new customer additions to 6RS’ growing warehouse fulfillment portfolio:

• Giftcraft, a home décor wholesaler offering a wide range of home décor, home accents, and more. Giftcraft is an industry-leader in the areas of design, manufacturing and distribution of a comprehensive assortment of lifestyle, fashion, decor, giftware, health, wellness and gourmet products. Offering best-in-class sales and service, Giftcraft supports the product needs of a diverse network of more than 25,000 independent, specialty, and marque retailers throughout North America.
• Answers in Genesis (AiG), a non-profit organization delivering religion-based products. The company specializes in producing and disseminating religious education media and merchandise while also organizing a range of events held at its centers across the United States.

With the addition of these four new customers, we continue to expand the breadth of applications and industries who benefit from our cutting-edge, flexible automation technology, which streamlines operations and maximizes efficiency. These additions showcase our company’s dedication to providing best-in-class fulfillment solutions and reinforce our reputation as a trusted partner for businesses seeking excellence in logistics.

The two major customer expansions underscore the immense value that our team brings to existing warehouse operators. By providing pragmatic, cost-effective solutions for companies handling high volumes of items daily, we have become an indispensable asset in our customers’ growth strategies. The expansions speak volumes about the exceptional service and support that 6RS delivers, fostering strong and enduring partnerships.

As we continue to expand our client base, the future looks exceptionally promising. With the momentum gained from these recent achievements and the continued support and expertise from our partners, we are well-positioned to lead the way in revolutionizing the world of collaborative warehouse fulfillment solutions. Our customers can expect continued innovation, unparalleled service, and seamless integration of cutting-edge technology as we strive to stay at the forefront of the industry.

Our commitment to innovation

Integration with Ocado Intelligent Automation provides additional resources and industry expertise honed by Ocado Group’s 20+ years of operational experience. This integration streamlines processes, enhances efficiency, and ultimately elevates overall satisfaction for our customers. Leveraging OIA’s diverse range of point and end-to-end automation solutions will help to propel customers forward on their automation journey. Undeniably positioned as a leading provider, OIA now offers a wider breadth of automation solutions to the fulfillment industry.

Among the impressive lineup of automation tools now offered is our autonomous mobile robot (AMR) called “Chuck,” along with system-directed algorithms for collaborative automation of putaway, pick, sort, packout, and returns. This powerful combination ensures rapid deployment and significant time-to-value for warehouse operators around the world.

Additionally, Ocado Intelligent Automation provides AI-powered piece-picking robotic automation through its prior acquisition of Kindred for e-commerce and order fulfillment. This advanced system revolutionizes the pick-and-sort process, optimizing efficiency and accuracy.

To cater to large-scale fulfillment needs, our customers will also have access to Automated Storage and Retrieval (ASRS) solutions through the Ocado Intelligent Automation ASRS. Unlike many other ASRS systems, this one stands out as a refined combination of algorithms and automation honed over 20+ years of operational experience. This autonomous, concurrent bot-and-grid design reduces the surface area and level of human oversight needed in both greenfield and brownfield sites. Flexible tote storage handles products from a wide range of industries, allowing businesses to increase order throughput with greater speed and accuracy, while reinforcement learning software orchestrates and optimizes processes.

A progressive next chapter

“We’re thrilled to officially be part of Ocado Intelligent Automation, a group renowned for their exceptional, innovative fulfillment solutions,” said Jerome Dubois, co-founder of 6 River Systems. “This partnership opens new doors for our team, enabling us to continue assisting customers in their fulfillment journey in even more exciting ways.”

Over the last few months, Jerome has had the opportunity to speak with 6RS’ existing customers and one thing is clear: they are equally as excited about the breadth of automation solutions now available to them with OIA.

“We are entering this exciting new chapter in the company’s history stronger than ever having recently secured expansion contracts and unveiled four new logos, a clear signal that our customers are unwavering in their recognition of the value 6RS provides them, “Dubois continued. “Together, we maintain our commitment to offering pragmatic, best-in-class cost-per-unit-shipped automation solutions for fulfillment providers, regardless of whether they handle hundreds or millions of items daily.”

Looking ahead 

Mark Richardson, CEO of Ocado Intelligent Automation, shared his optimistic outlook for what lies ahead. “The addition of 6 River Systems enables us to truly meet warehouse operators in their automation journey and provide growth enablement like no other automation provider. We can now leverage a wider breadth of powerful automation products for brands in any industry.”

He also highlights the company’s focus on bringing the best of innovative robotics solutions to warehouse fulfillment:

“Ocado Intelligent Automation represents a significant milestone for our company as we extend our ultra-high density Automated Storage and Retrieval System (ASRS) and robotics operations experience to customers outside the grocery industry for the first time. Adding 6 River Systems to the OIA solutions portfolio provides our teams the opportunity to deploy the best of automation solutions to any industry vertical in warehouse fulfillment, at any scale. We are truly excited to bring our expertise and solutions to a wider audience, empowering brands to achieve unprecedented productivity, efficiency, and operational excellence.”

This cutting-edge warehouse automation solution aligns with our unwavering dedication to leveraging advanced technology for unparalleled results. By harnessing the power of Ocado Intelligent Automation, businesses across any sector can now experience the transformative benefits of state-of-the-art robotics and efficient fulfillment systems.

Our partnership with OIA marks a significant milestone in our company’s journey toward revolutionizing warehouse fulfillment. Our company’s unwavering commitment to innovation and customer satisfaction, combined with the expertise and technology of OIA, sets the stage for the next generation of warehouse fulfillment automation.

Learn how our industry-leading warehouse automation solution can help you exceed your customers’ expectations, grow profits, and reduce risk.

The post Revolutionizing Fulfillment Solutions – 6 River Systems Expands Customer Portfolio and Redefines Warehouse Automation with Ocado Intelligent Automation appeared first on 6 River Systems.

1. Question: With all of the automation that’s out there, how do you determine what automation is right for my warehouse?

Mark Engleman, Senior Solutions Executive

Mark Engleman: For us at 6 River Systems, it’s a collaborative effort. It starts with seeking to understand. We need to truly understand what your current state is and what are the negative consequences. From there, we can talk about your goals and if they align to the capabilities of our technology. Then we go into building out a solution. Through the whole process we keep an eye on the return on investment.

If you’re just looking at automation in general, take a similar approach. Again, figure out what problem you’re trying to solve. Are you trying to solve a problem within the packaging space? Are you trying to solve it within fulfillment? I would encourage you to look at solving both if you have them. I think what’s really important, especially today, is that there are a lot of automation companies and startups out there. Automaton is a hot topic and rightfully so.

Implementing automation enables you to increase labor productivity and is a way to de-risk your business. Make sure when you’re talking to companies whose technology is fully developed to find references who you can talk to and go and see the product in the wild. There are a lot of companies trying to get into this space but may not have the backing — that can be a major waste of time.

2. Question: What if no automation is working for my operation, why would I change?

Mark Engleman: I’d encourage you to consider the best practices of companies who continue to hit their goals and grow exponentially.

Also, look ahead to what you envision for your operation. What’s your 5-year projected growth goal? And then with that what potential risks do you see? That’s part of this conversation too. Bring up these insights that other people are experiencing. Here are some suggested questions to ask:

• Is attracting and retaining labor a challenge or will it become one?
• Are you looking to get into new channels?
• Do you want to expand the way you fulfill products?
• Is customer retention important to you?
• How are your customer satisfaction scores?

Look at it from an eyes wide open perspective.

3. Question: What advantage do autonomous mobile robots (AMRs) have over a goods-to-person system?

Chuck, 6 River Systems’ AMR guiding an associate along the most efficient picking route.

Mark Engleman: Both technologies have their place. I would go back to what are you trying to solve and what are you trying to accomplish? Do you have a full understanding of what your problem is and the environment in which you’re trying to solve that problem? AMRs have much faster time-to-value. You’re going to get 80% of the productivity of goods-to-person at 20% of the cost. The flexibility and time-to-value with AMRs is unmatched.

4. Question: How have you seen companies address mispicks and improve overall customer experience? It seems like companies don’t have a great process in place to address customer complaints or address mispicks altogether.

Mark Engleman: Complementary technologies can help your labor force reduce those errors. When you can automate the process with visual displays, picking and putaway is directed by LED lights, which is helpful. This is measurable and we see increases in order accuracy as a result. We look at it in two ways, internal accuracy and external accuracy as well. A lot of companies will over engineer their internal process to make sure when it goes out the door it’s right. But time and dollars are tied up by doing that. Again, automation, isn’t taking the humans out of it entirely, but giving the humans a system – something to follow to the pick location. This approach has been very helpful!

Learn more about warehouse automation solutions.

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Among the 10 companies honored in 2020 for utilizing technologies that will shape tomorrow’s supply chains, NextGen has recognized 6 River Systems customer NFI with the 2020 NextGen Supply Chain Award. The industry-leading supply chain provider partnered with 6 River Systems to bring flexible automation to one of their distribution centers in Indiana, increasing productivity when fulfilling orders for their customers’ consumers.

What NFI said:

“By partnering with technology providers such as 6 River Systems, we have been able to help our customers remain flexible and agile,” said Jimmy Shafer, Senior Vice President of Integrated Design & Solutions at NFI. “This flexibility has enabled our customers to remain competitive and resilient during COVID-19, despite the challenges various industries have collectively faced as a result. Innovation remains a priority at NFI and we continue to explore and invest in new technologies that will not only provide greater efficiency for our customers, but redefine the employee experience.”

NFI’s Results:

• Increased picking accuracy to 99%
• Increased average units picked per hour to 85
• Reduced employee onboarding time from 72 hours to 6 hours
• Enabled rapid employee onboarding during peak season

Read the full release

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Over the last decade, the cost of automation has come down dramatically. Aside from the financial gains, automated picking solutions help to increase the efficiency, productivity, safety and reliability of warehouse operations. When your warehouse inventory is of standard sizes, it is quite easy to implement automated piece picking solutions. Here’s a look at the financial advantages of implementing automated piece picking.

1. Decreased labor costs

A reduction in labor costs is the most obvious financial benefit of adopting an automated piece picking solution. Automated piece picking robots reduce the repetitive manual labor involved in picking by augmenting the work of human associates. Automating these tedious, manual tasks will reduce the demands on human labor.

With traditional picking efforts, employees often must travel long distances in the warehouse. In some cases, warehouse associates are required to pick heavy inventory, increasing the risk of workplace injuries. Automated picking can reduce these risks and deliver cost savings by allowing human associates to focus on more complex tasks.

Additionally, smart automation solutions like collaborative mobile robots are intuitive to operate, reducing the time and costs associated with training and onboarding. Chuck by 6 River Systems offers onboard lighting and on-screen images and prompts to accelerate training, allowing new associates to reach peak performance standards in hours. One operator saved more than $1,000 in training costs for every new hire after implementing 6 River Systems’ solution.

2. Reduced picking errors

For a typical warehouse, the picking error rate is around 1% to 3% and is a major hindrance to improving productivity and profitability. Picking errors result in cost increases beyond labor costs, including lost sales, returns, additional shipping, customer service costs and repackaging costs. Implementing automated picking solutions is one of the most effective ways to reduce picking errors. Solutions like collaborative mobile robots guide associates through picking tasks, identifying the items and quantities to pick so associates can quickly and easily validate that they’ve picked the correct items or pieces.

3. Increased pick rates

The pick rate is the number of orders picked in a period, typically per hour. The pick rate is an indicator of the efficiency of warehouse operations. Automated piece picking solutions improve the pick rates in a warehouse dramatically. Unlike humans, robots and machines don’t experience fatigue and can continue working at the same pace throughout the entire time of operation.

The reduction in human labor demands and near-zero picking errors improve pick rates and increase productivity, reducing the cost to pick and pack the same amount of inventory. For example, one leading home goods retailer tripled its pick rates by implementing 6 River Systems’ collaborative automation solution. Another operator increased pick rates by 252%, enabling the operation to fulfill 15% more orders in 67% fewer picking hours than the previous year.

4. Increased reliability

Warehouse and distribution center operations are heavily reliant on labor, and labor shortages in the pre-COVID era made maintaining stable operational levels challenging. Maintaining shifts and managing employees’ time off is a time-consuming and high-effort task, particularly as warehouses and distribution centers cope with the need for social distancing and meeting COVID-19 health and safety guidelines.

Staffing and scheduling challenges may make it difficult for warehouses and distribution centers to have the necessary staff available for each shift, throwing a wrench in operations. As a result, companies may face decreasing pick rates, increased shipping time and reductions in efficiency, increasing operational costs and indirect costs, such as lost sales. Automated piece picking solutions help to alleviate these risks. Since robots can work continuously without breaks or time off, these solutions can help warehouse and distribution center operators ensure reliable operations around the clock.

5. Decreased safety costs

Accidents are inevitable in warehouse operations. Maximum possible measures must be taken to ensure the safety of employees and inventory. Automated piece picking solutions can reduce aisle traffic and congestion while also reducing fatigue by alleviating the manual material handling demands on human associates, resulting in fewer accidents and increased workplace safety. While it’s not possible to eliminate safety risks completely, picking robots can help to mitigate the risks significantly.

6. Improved labor retention

Automated piece picking solutions can handle labor-intensive and repetitive warehouse tasks, eliminating the long walk and reducing physical strain and fatigue among warehouse associates. Because solutions like Chuck by 6 River Systems are easier for warehouse associates to learn and improve productivity, associates can achieve performance objectives faster, boosting employee morale. Coupled with increased workplace safety, reduced physical demands and increased productivity contribute to greater employee satisfaction and retention. As a result, warehouse managers need to hire and onboard new staff less frequently, reducing hiring and training costs.

Considering the many cost-saving benefits companies can gain from implementing automated piece picking solutions, the return on investment is high. Learn more about how to transform your fulfillment operations with collaborative mobile robots by downloading our white paper, The Business Case for Collaborative Mobile Robotics.

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The autonomous mobile robots (AMR) used in warehouses can be classified on the guidance systems they use, the functionality accomplished by the robot, and a combination of two. The classification based on functionality gives a better understanding of how mobile robots fit into the regular workflow of warehouses. Here’s a look at five types of mobile robots that are changing the face of warehousing.

1. Goods-to-person AMRs

There are two ways to implement goods-to-person AMRs:

• The robot carries an entire shelf to the person picking goods. The picker can pick the product from the shelf and the robot will return the shelf to its original position.
• The AMRs queue before the stations where associates are located, the associate picks the product from the first AMR, sends it back and the next AMR in the queue comes forward.

The idea for goods-to-person AMRs is to reduce walking that warehouse associates have to undergo to pick items from a large warehouse. This model boosts efficiency by completely removing walking between pick locations and employee workstations.

2. Collaborative mobile robots

In this model, a warehouse associate follows a collaborative mobile robot as the robot guides the associate through each task. Chuck by 6 River Systems, for example, leverages artificial intelligence and machine learning to group similar tasks together and prioritize work based on the current conditions on the warehouse floor, leading associates through their work zones to minimize unnecessary walking. Chuck displays an image of the item, location and quantity to pick. The associate picks the items, scans them to confirm accuracy and places them in the correct bin, aided by put-to-light technology. Once containers are loaded, Chuck transports the bins to the next zone or work area autonomously.

Built with the same technology and sensors as autonomous vehicles, Chuck doesn’t require fixed guidance like rails or magnetic strips to navigate the warehouse, making it easy to integrate with your existing infrastructure. By eliminating the need for associates to push and pull heavy manual order picking carts and eliminating the long walk, collaborative mobile robots reduce the physical strain on your associates, allowing them to remain active and alert to work more efficiently and accurately. Warehouses that implement collaborative mobile robots can see up to 2-3x increases in productivity.

3. Autonomous forklifts

Autonomous forklifts are being developed by startups and traditional forklift manufacturers to automate full pallet operations. The fully autonomous truck relies on vision-based guidance systems to carry out its operations. Autonomous lift trucks intend to take over the most labor-intensive operation in a distribution center.

There are several types of autonomous forklifts, including:

• Pallet movers (or automated pallet jacks): This type of autonomous forklift is modeled after the traditional pallet jack and offers limited vertical load movement for reaching pallets on low-height racks and shelves or floor-to-floor operations. Autonomous pallet movers are the smallest type of autonomous forklift.
• Counterbalanced automated guided forklifts: This type of autonomous forklift counterbalances the load weight with weight located in the truck’s rear. Counterbalanced automated guided forklifts are ideal for moving pallets to and from storage and are commonly used in shipping and receiving operations.
• Straddle forklift AGVs (or outrigger AGVs): These autonomous forklifts have two horizontal legs to stabilize the truck. They require less space to maneuver compared to counterbalanced automated guided forklifts.
• Very narrow aisle width AGVs (VNAs): VNAs are efficient automated robotics solutions for transporting heavy loads throughout large warehouses and warehouses that utilize high vertical storage space. As their name suggests, they’re capable of operating in narrow aisles, so they can accommodate warehouses designed with narrow aisle widths to maximize storage capacity.

4. Enhanced sortation solutions

Sorting is one of the most tedious processes in a warehouse, requiring human workers to identify individual items and direct them to the appropriate locations within the warehouse. It’s an inefficient and repetitive task that’s prone to human error, resulting in increased labor costs for non-value-added tasks. Items diverted to the wrong location, for example, require additional time to track down those items and transport them to the correct locations. Collaborative sorting solutions, such as Mobile Sort by 6 River Systems, speed up the sortation process and improve accuracy with an intuitive interface that uses lights, sensors and images to direct associates to the correct bins and alert associates when items are placed in incorrect bins.

Other AMRs for sorting include types of mobile robots that rely on articulated robotic arms, computer-aided vision, and algorithms to distinguish various objects. If a new object needs to be added to the sorting mix the AMR needs to be trained for identifying and handling it. The current implementation of sorting AMRs are with objects that can be identified with some sort of scanner. Still others use machine learning, AI and visual sensors to identify objects. Conveyor rollers, tilt trays, and cross-belt systems are used for automated sorting. AMRs are implemented for high-speed parcel sortation, e-commerce order fulfillment and returns handling.

5. Automated storage and retrieval systems (AS/RS)

AS/RS is used to retrieve and or store products in designated locations without human intervention. These types of mobile robots are complex systems that can be implemented in multiple ways with robotic arms, cross-belts, conveyor belts, carousels, vertical lifts, robotic cranes, etc. The exact method of implementation will depend on weight, size of the product to be handled, frequency of storage or retrieval, time in storage, and other custom warehouse requirements.

The efficiency AMRs bring to the warehouse is unparalleled and will be ubiquitous in warehouse operation soon. To learn more about how to leverage collaborative mobile robots to increase labor productivity and operational flexibility, download our white paper, The Business Case for Collaborative Mobile Robotics.

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Step 2: Solution Development

Your operational metrics are securely shared with a dedicated solution designer who will crunch the numbers and deliver a report containing proposed system size, ROI, KPIs and timelines for your site.

Because we take our relationships with customers seriously, we look for a solution that will bring true value to your bottom line and we’re honest about whether or not we can provide it. This process is thorough and usually takes 5-10 business days. When everyone’s satisfied with the design, we move on to step three.

Step 3: Solution Review

Together with key stakeholders at your business, our team of experts will develop a plan for fast, remote implementation. In just a few short weeks, you can have collaborative mobile robots up and running at your operation.

Are you ready to get started?

Find a time to connect with one of our solutions experts today.

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At 6 River Systems, we maintain a laser focus on our customers’ needs and improving our solutions for them. In today’s environment, the top thing on most operators’ minds is keeping their associates safe while running their operations. In response, we devoted a team to focus solely on recommendations, updates and features to improve the safety of associates with respect to pathogens such as COVID-19.

Operations that are using Chucks for automation already have an advantage in the fight against COVID-19 compared to traditional cart pick operations: they are more efficient and require fewer warehouse associates in the building than manual operations to get the same throughput. While this is a great start, our goal is to find new ways to increase safety at our customers’ operations.

Each operation is unique; not every solution works for every site. Likewise, designing solutions during the COVID-19 pandemic is a balance between safety, efficiency, current site design and demand. Rather than offering a one-size-fits-all solution, we have compiled a list of recommendations to review and implement in partnership with each customer site. Here is some of what we’ve shared with our customers.

What we are recommending immediately:

Hardware Recommendations

Health and hygiene recommendations differ from operation to operation, though we are recommending that all associates wear protective gloves and a mask. Chuck is designed with large, easy to clean and robust action and pause buttons and lights, reducing interactions with touchscreens. Chuck’s touchscreens are compatible with styluses and with a wide variety of gloves, which helps prevent cross-associate contamination. Similarly, we have provided our customers recommendations for proper sanitation of screens and surfaces on Chuck. When an associate meets a new Chuck and before they begin the picking, induct or takeoff process, we have advised them to take a few seconds to wipe down the few areas that are touched (action buttons, pause button and touchscreen) with a sanitizing wipe which is stored on the Chuck.

Operational Recommendations

When mitigating risk of exposure to pathogens, there are two schools of thought that we are recommending to our customers: sites should seek to minimize tactile exposure throughout the warehouse and maximize social distance between associates. Regardless of the approach decided upon by the customer, 6RS is a directed system with associates simply following instructions from Chuck.

Without making any changes to a site’s operational design, Chuck enables a base-level of social distancing within a warehouse by automating long walks between induct, active picking, and takeoff areas, all of which are often crowded areas on the warehouse floor. With the exception of breaks, the associate can remain on the picking floor at a safe distance from other associates.

To minimize shared surfaces and tactile exposure, we can implement changes to limit the number of Chucks an associate works with during the day. Alternately, operators can limit cross-contamination on the pick faces by utilizing static zoning rules to ensure associates remain in place while Chuck crosses from one zone to the next. Combined with a regular sanitization of buttons, screens and other items on Chucks, this should significantly reduce contamination risk.

Our solutions and data insights teams are ready to review the impact of layout changes, such as temporarily restricting 2-way aisles to 1-way traffic. This practice, long in place at many of our sites to maximize inventory storage and recently adopted by local supermarkets, reduces in-aisle interactions between associates and supports social distancing.

We also recommend that sites picking to totes wipe them down at induct or temporarily switch to picking into shipping containers, if possible. This reduces the risk of commonly touched surfaces.

What we are working to provide:

We are working to quickly prototype and deploy an accessory to hold sanitizing wipes and gloves that we will provide to customers at no cost. In addition, we are working to enhance compliance with new hygiene practices by updating our software to remind associates to wipe down Chuck’s confirmation buttons and screen immediately after they badge in (a touchless process). Furthermore, we are working to make the entire picking experience touchless by using an associate barcode “cheat sheet” to replace most of the common touches on Chuck.

Our engineers are making software changes to ensure that when Chucks are engaged with associates, they follow social distancing protocols when coworkers do meet in picking aisles.

At MODEX this year, we announced a tote auto loader/unloader for our Chuck robots. This type of automation increases safety by reducing touches of common surfaces and will also increase our customers’ throughput during this surge in direct to consumer ordering.

Our promise:

So much of today’s dynamic environment is uncertain. We recognize that each of our customers’ sites are experiencing different challenges, be it in volume, labor, safety or uncertainty. We are dedicated to providing the right solutions for our customers. Internally, we have always championed flexibility in our solutions which allows us to rapidly make changes in times of need. We are driven by a handful of core values, one of which is we all win when our customers win. We will continue to look at new approaches and technologies to keep our customers’ associates safe. We at 6 River Systems wish you, all your employees and loved ones good health in these difficult times.

About the Author

Chris Cacioppo is the Chief Technology Officer and co-Founder of 6 River Systems.
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Chris Cacioppo is responsible for technical oversight and advanced programs at 6 River Systems. Chris is a veteran of many startups and previously ran engineering at Mimio, an education technology company. Christopher has a Masters from MIT in Electrical Engineering and Computer Science.

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Logistics is a key area that can help companies gain a significant competitive advantage. Today, a growing number of consumers are buying products online. E-commerce is growing at a rate close to 20% annually. Along with the COVID-19 pandemic, the growth in e-commerce has put enormous pressure on supply chain and warehouse operations. Today’s warehouses implement solutions such as collaborative mobile robots, automated picking solutions, warehouse analytics and warehouse management systems (WMS) to increase efficiency and accommodate demand. A “smart warehouse” gives companies substantial competitive advantages. Let’s take a look at the competitive advantages gained by shifting to a smart warehouse and the benefits of it.

1. Lower costs leading to lower prices

Labor costs comprise nearly two-thirds of warehouse operating costs on average, and average wages in the warehousing industry have been rising for more than a decade overall, with some recent dips possibly related to the increased labor availability resulting from the COVID-19 pandemic.

Smart warehouses reduce the demand on human labor and optimize the performance of human warehouse associates, which contributes to lower operating costs. These cost savings can translate to lower prices for goods and services for consumers. The price of products is a major attribute on which customers base their purchase decisions, and the ability to offer lower prices for equivalent products is a significant competitive advantage.

2. Faster shipping

In a traditional warehouse, order processing takes a disproportionate amount of time. Associates often spend significant time traveling on the warehouse floor to pick products and fill orders. In addition, picking errors cause further delays in processing, sorting and packing orders. It is estimated that the typical warehouse has a picking error rate between 1% and 3%.

Smart warehouse solutions can reduce picking error rates to near zero. Collaborative mobile robots and automated picking solutions reduce the time required to pick orders and eliminate the long walk for warehouse associates. These factors contribute to faster order shipping. Shipping time is an important buying consideration for e-commerce consumers, second only to the price of the product. Faster shipping is a valuable competitive advantage to have in this era of e-commerce prominence.

3. Fewer returns

As mentioned, a traditional warehouse experiences a picking error rate of 1% to 3%. No matter how experienced your employees are, manual picking processes are subject to human error, and picking errors are inevitable. Smart warehouses significantly reduce picking errors and help to reduce returns as a result.

Increased order accuracy in the warehouse leads to improved customer satisfaction and contributes to customer loyalty and repeat business. While some returns are still likely to occur, most returns will be for reasons other than order errors. Smart warehouses enable companies to process those returns at a faster rate compared to traditional warehouses.

Smart automation solutions like collaborative mobile robots can increase picking accuracy significantly. For example, Chuck by 6 River Systems offers a directed workflow, on-board scanner and put-to-light technology that enables associates to perform near-perfect work, saving one operator more than $80,000 in supervisor costs in year one while increasing customer satisfaction and retention. Increased order accuracy also reduces internal order auditing and rework costs.

4. Increased warehouse space utilization

Smart warehouses also can increase warehouse space utilization. Automated picking and mobile sorting solutions can allow for higher racks and narrower aisles because traffic and aisle congestion is reduced compared to traditional warehouses, increasing the amount of goods that can be stored in the same amount of space.

Increased warehouse space utilization helps reduce overhead costs per unit of goods sold. This cost savings can be translated to a lower price for end consumers or higher profit margins for the operator.

5. Predictive order processing

Smart warehouses make use of advanced analytics and artificial intelligence to gain more insights into the orders processed by the warehouse. Supply chain planning and order analytics can help in estimating future orders. This predictive capability can be utilized for optimizing warehouse operations and planning for spikes or reductions in demand. When warehouse layout, automated picking robots and employees are aligned with the predictive models, it results in faster order processing and shipping.

6. Customer satisfaction

Today, when customers often do not interact directly with products in a store, delivery, logistics and the larger supply chain infrastructure are pivotal in delivering customer satisfaction. All the benefits of a smart warehouse translate to satisfied customers. Faster shipping, lower prices and avoiding returns are all attributes every customer desires. Smart warehouses help to deliver on these consumer expectations and ensure customer satisfaction.

7. Warehouse optimization

Enterprise software, analytics tools and machine learning algorithms are widely accessible today. Smart warehouses leverage these technologies to power their operations. Perfection is an always-elusive goal and in warehouse operations, incremental improvement is much more advantageous. The tools and technology used in smart warehouses help to constantly identify the suboptimal operational components and workflows and provide insights that inform improvements.

Smart warehouse solutions such as advanced warehouse analytics enable warehouse operators to monitor key performance indicators (KPIs) and make data-driven decisions to improve those metrics. Constant warehouse optimization and improvement can be achieved by shifting to a smart warehouse.

With technologies more accessible today than ever before, it’s inevitable that warehouses of all sizes will eventually shift to a smart warehouse. Businesses that adopt these innovative technologies early can gain a substantial competitive smart warehouse advantage. Learn more about how smart warehouse technologies like collaborative mobile robotics can transform your fulfillment operation by downloading our white paper, The Business Case for Collaborative Mobile Robotics.

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Definition of a warehouse shuttle system

A warehouse shuttle system is a mobile cart that “shuttles” (i.e., transports) items in automated pallet racking. It’s used to store and retrieve stock totes, trays or cases in storage buffer. These shuttle systems are invaluable in warehouses that use goods-to-picker methodology and have high-density racking. They travel the depth of your racking to pick up or deposit pallets at either end of the racking structure.

They are ideal for warehouses with lower SKU counts and high throughput — which means frequent loading and unloading of a large number of pallets per storage unit. They speed up the circulation of outgoing (orders) and incoming (replenishment) goods and make it easier to manage racks with deep storage buffers.

This enables warehouse managers to increase their racking depth, increase the height of racking structures and eliminate aisles, thus maximizing every square inch of warehouse storage space.

How warehouse shuttle systems work

Warehouse shuttle systems use either one of two possible configurations: FIFO (first in first out) or LIFO (last in first out). This depends on whether the rack faces are accessible on only one end or both.

They are operated via remote-control, radio signal or Wi-Fi. Loaded pallets are placed at one end of the rack. A human operator transmits the order via the proper signal to the shuttle. The shuttle picks the loaded pallet and delivers it to the first free space in the lane.

Shuttle vehicles run on rails that are integrated into the racking structure. They can change levels (i.e., ascend and descend) by means of vertical transporters or warehouse lifts typically positioned at the front end of the aisle. This enables them to store and retrieve pallets on several different levels.

Uses of warehouse shuttle systems

Since warehouse shuttle systems facilitate the automatic placement and retrieval of pallets from deep storage racks, they can be used to increase efficiency in dense storage areas. Small warehouses that lack the space to deploy forklift trucks can use these systems for order fulfillment and replenishment operations. Such warehouses can also maximize their limited storage space by increasing the height and depth of racking structures.

For maximum ROI, shuttle systems should only be used in warehouses that store huge quantities of the same type of SKU such as food and beverage production/distribution facilities, meat processing, cold storage, etc. They’re not ideal for distribution facilities where there are multiple SKUs per lane and multiple items stored per pallets.

Essentially, they reduce the resources and manpower needed to move high volumes of similar products/pallets per lane. They also enhance operational safety, reduce travel time and labor costs and improve productivity.

Benefits of warehouse shuttle systems

A warehouse shuttle system is an autonomous vehicle used in place of traditional forklift trucks to handle pallets in rack areas. They minimize the need for forklifts to enter lanes, reducing congestion and enabling warehouses to maximize every square inch of floor space.

Aisles can be built closer together and racks can be expanded horizontally and vertically to accommodate more pallets/SKUs. For the right product and setting, these systems can be of immense value in enhancing productivity. They improve pallet handling, thus minimizing the risk of damage to SKUs and racks.

Disadvantages of warehouse shuttle systems

Although warehouse shuttle systems can be valuable in certain environments, they come with a lot of disadvantages. This includes:

• They have high maintenance requirements, and breakdowns can lead to downtime.
• They require significant upfront investment cost and specialized personnel for operation and maintenance.
• They’re not well-suited for piece picking operations and facilities with a large number of unique SKUs.

Collaborative mobile robots: A better alternative

Due to the rise of e-commerce, most modern warehouses handle many unique SKUs. Warehouse shuttle systems aren’t well-suited for such environments. For piece picking operations, collaborative mobile robots are a better alternative for the following reasons:

• Lower upfront capital cost and flexible investment overall
• No infrastructure changes needed — integrates with your existing infrastructure
• Improves accuracy and productivity

Cobots like Chuck navigate to inventory locations and display the items and quantities to pick to guide associates through each picking task. They leverage artificial intelligence and machine learning to optimize pick routes in real-time.

Whether you’re looking for warehouse automation solutions to solve the labor shortage problem or improve productivity/efficiency, collaborative mobile robots are the way to go. Compared to warehouse shuttle systems, cobots can deliver higher levels of productivity for e-commerce warehouses and multi-channel dealers that experience highly fluctuating order situations.

Download our white paper, 7 Reasons Why Warehouse Robots Beat Traditional Automation, to learn more about the benefits of deploying collaborative mobile robots in your warehouse. We can also discuss the solution that’s right for you. Contact us today.

The post What is a warehouse shuttle system? appeared first on 6 River Systems.

AMRs can perform several warehouse and order fulfillment functions, including executing pick strategies, transporting goods and materials and guiding/helping associates as they perform their tasks. Let’s discuss a few of the ways autonomous mobile robots can help transform warehouse operations.

1.   Reducing walking time

In traditional warehouses, associates must walk to the picking area, identify and retrieve the SKU(s) to be picked and then walk back to sorting stations. This walking back and forth increases the overall time spent on picking tasks.

AMRs, especially collaborative robots, boost productivity (by up to 2-3x) in order fulfillment operations by automating the travel between the area where orders are allocated to a cart and the inventory picking area and the travel between the end of a picking cycle and sorting stations or packing and shipping areas.

AMRs also help warehouse associates pick items for multiple orders at the same, thus reducing the number of trips. Not only does this reduce overall travel time through the warehouse, but it also reduces physical/mental fatigue thus leading to fewer mistakes and accidents. AMRs can determine and follow optimized picking routes and are particularly valuable in facilitating zone and pick-and-pass picking methodologies.

2.   Making automation easy to integrate

Compared to conveyor systems and other automation systems, it’s relatively easy to deploy AMRs in warehouses and order fulfillment centers. In fact, there’s no need to make permanent, expensive or structural changes when implementing AMRs. They can be easily deployed during working hours since implementation doesn’t interfere with the day-to-day operations of your facility.

3.   Directing workflows to improve accuracy and efficiency

AMRs are incredibly versatile. Not only can they speed up the picking process by handling the tedious task of moving products around, but some collaborative robots, like Chuck by 6 River Systems, guide associates through tasks by navigating to inventory locations, displaying the items and quantities to pick, directing workflows and keeping associates on task to improve the accuracy and efficiency of order fulfillment operations. They prioritize work and group similar tasks to increase overall productivity and reduce the time taken to fulfill orders while also reducing human error.

4.   Enabling flexible capital expenses

AMRs can be deployed without any permanent or expensive infrastructural changes to warehouses and distribution facilities — which means businesses on a tight budget can enjoy the benefits they deliver to order fulfillment operations.

AMRs use maps to dynamically navigate through the warehouse floors, autonomously identifying and avoiding obstacles. As such, there’s no need to install tracks and magnetic strips, set up dedicated paths or even restrict forklifts and humans from operating in areas where the robots have been deployed. This means there are no costly capital investments required to deploy collaborative robots like Chuck within your facility. The ease of deployment also means that they can easily be moved from one facility to another.

5.   Augmenting human labor

Rather than traveling through the warehouse and carrying items along as they pick, human workers can focus on other high-value tasks and allow AMRs to move products between workers and stations. This eases the physical strain on human workers since they no longer have to transport orders from one area to the next.

Also, AMRs work alongside human associates and help to keep them on task. They can be programmed to travel optimal routes for the assignment, thus setting the walking pace for associates and simultaneously guiding them on the best way to complete a set of tasks.

AMRs can be designed and programmed to perform any number of tasks — whether it’s delivering products to a workstation or working alongside humans as they go about executing various order fulfillment tasks. Others are designed to handle material transfers from storage bins to sorting stations or integrate with picking arms to automate your preferred pick strategy.

No matter the warehouse transformation or order fulfillment tasks, you can be sure that there’s an AMR ready to reduce the labor requirement. Looking for a collaborative robot to help your associates handle tedious, time-consuming order fulfillment operations in your facility? Check out Chuck, our easy-to-deploy collaborative robot.

The post 5 ways autonomous mobile robots are transforming warehouses appeared first on 6 River Systems.