Warehouse Execution Systems Can Unlock the Potential

of Automation Assets
www.mhlnews.com/warehousing/warehouse-execution-systems-can-unlock-potential-automation-assets

Chris Capshaw , Randy Marble | Feb 13, 2018 February 13, 2018

When your warehouse or distribution operations are flowing smoothly, it’s easy to become
complacent. Why fix what’s not broken, you might ask. Why go looking for trouble?

There are, however, some very good reasons to take steps to optimize asset operation.
The first is simply that performance of aging equipment is likely degrading and may even
be subject to unanticipated failure. The second is that this is coming at a time when the
need for continuous improvement is more urgent than ever. E-commerce and omni-channel
distribution are driving market expectations for rapid delivery and putting new pressure on
logistics channels. Sustained success requires continuously finding new ways to cut costs,
add value to operations or otherwise strengthen competitiveness.

It is no longer possible to view your operations through a rear-view mirror. Today is about
viewing operations in real-time, making decisions on-the-fly and anticipating future
opportunities and challenges. This requires reaching into disparate data sources and
making that data visible to those who can turn it into actionable information to fuel
continuous improvement. To accomplish this, facilities managers are increasingly turning to
warehouse execution solutions that synchronize existing automation assets with each other
and with the people who manage and operate them.

The Need for Warehouse Execution

Warehousing and distribution centers (DCs) typically involve high volumes of repeated
operations and have traditionally gained significant value from automating manual tasks.
The first wave of material handling automation involved conveyance systems, which were
eventually augmented by advanced sortation systems and automated storage and retrieval
systems (AS/RS). These systems involved coordination of many subsystems and
warehouse control systems (WCSs) emerged to enable centralized control of this
equipment.

The WCSs provided a degree of centralized control over machine operations, but did not
address the business operations—such as order processing, inventory management,
picking and shipping—upon which performance also depended.

Figure 1 illustrates the solutions that have evolved over the years. In addition to the control
and management technologies mentioned, there are fulfillment solutions, such as picking to
voice or light and robotic picking. There are optimization solutions such as predictive
analytics around KPIs and continuous improvement initiatives; and there are operational
controls, such as computerized maintenance management, operating alerting and
supervisory control and data acquisition systems (SCADA). These solutions represent
multiple vendors, none of which provide all solutions.

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While all such operations generate a wealth of valuable data that could improve
productivity, that data too often remains stranded in the equipment controls or in isolated
zones. One part of the line usually doesn’t know what is going on beyond their zone. If
there are problems or inadequate loading of a conveyor, for example, downstream pickers
could be sitting idle for extended time periods until it was resolved. Or, if the inefficiencies
were downstream, the pickers could be flooded with more items than they could handle.
Either way, the result could be costly.

While lack of coordination has always been a risk, favorable economic conditions tend to
be more tolerant of inefficiency. Today’s volatile, accelerating business conditions,
however, are putting new strain on margins and the agility to synch operations to fluctuating
demand is critical to profitability—even survival. This requires more attention to the
integrated execution of all system and human activity, which is what warehouse execution
systems provide. Warehouse execution systems (WESs) have the connectivity necessary
to reach into disparate automation systems, extract operational data and get it to the people
who need it. They can help maximize return on investment in both material handling
equipment and human resources.

Warehouse Execution in Action

Synchronizing human and automation system operation in pick module flow control
provides a good example of how a WES can tap into hidden value. In this real-world
example, the facility’s WMS released orders in waves corresponding with customer service
levels defined by contracted delivery dates. Each order was characterized by designated
transportation target times, conveyor routings, junctions and merges. Figure 2 illustrates
the resulting automated pick module.

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Figure 2. Workflow for automated picking module.

In normal operation of this module, the WMS introduced cartons into Zone 1 of the system
(lower left hand corner of Figure 2). If order volume got too high, however, that zone would
fill up, causing the cartons to recirculate, idling operators on some parts of the line while
potentially overwhelming those on others.

Balancing operator deployment in this case required an automated pick module that
coordinated order flow data from the WMS with the machine controls of the conveyor and
picking systems and sharing that information with operators in real-time. The WMS was
reconfigured to release products based on an algorithm that factored in the designated
transportation cutoff time, work that had already been released to the pick zone, and work
that had already been processed. By looking at these usually disparate factors
simultaneously, the WMS could calculate line capacity before releasing product to it,
accounting for unanticipated production changes that may have occurred after an order
was issued.

In addition to rationalizing order feed control, the WES enabled operators to adapt to the
fluctuations in workflow as well. They were given screens that would reveal bottlenecks so
they could shift dynamically. The system could also be configured to provide voice alerts
directing them to log out of low-load zones and move an overloaded zone. The result was a
20% improvement in productivity in an operation that the warehouse manager had believed
was already operating at peak efficiency.

Key Components of a WES

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WESs capture data from devices and processes regardless of vendor brand. They
interrogate multiple disparate data sources and turn that data into actionable information to
streamline operations around order fulfillment, replenishment, inventory, transportation,
purchasing and other aspects of the organization. Key elements include an operator
interface, connectivity, analytical and optimization tools, and reporting capabilities.

Operator interfaces

Operators must have some way to visualize operations and required interventions. The
example above provided operators with dashboards that highlighted pinchpoints,
supplemented by proactive alerts that saved the operator the need to keep an eye on the
monitor. Operators need the ability to instantly access the information they need to do their
jobs, as well as an overview of the entire operation. As shown in Figure 3, dashboards may
use speedometers, colored lights and other graphics, custom-built around the decision
support data that each operator requires.

Figure 3. Custom dashboard helps operators view the action in the context of other
related events.

Connectivity

How systems access operating information will vary from warehouse to where the operator
interface is usually connected to an Ethernet or similar network, which receives information
from control units, sensors, machine controls over industrial communications protocols
such as human-machine interfaces, PLCs and the like.

Analytical and optimization tools

The more accurately facilities managers can predict labor requirements, space availability,
workflow and other variables, the more effectively they can operate their facilities. WESs
make it easier to combine information from disparate solutions and provide tools for
automated tracking of key operating variables, spotting anomalies and picking up on
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trends. The result is a forward-looking view of workflow, adjustments to labor and inventory
prior to issues arising. Trending analysis supports refinement of future operations for long-
term savings on labor costs, space allocations and workflow.

Reporting

In addition to providing real-time information for real-time decision support, WESs make it
easier to parse that data for internal planning and reporting. Figure 4, for example, shows
a workflow report generated by a warehouse execution system. It depicts performance
levels of a distribution center by end-user and work type, revealing where workflow is
hanging up or where it is accelerating, enabling process regulation and optimization.

While such data is applied in day-to-day operational improvement, it can also support
longer term staff and equipment resource planning.

Figure 4. Performance levels of a DC by end-user and work type, revealing where

workflow is hanging up or where it is accelerating, enabling process regulation and
optimization.

Continuous Improvement

Spot optimization initiatives deliver maximum value as part of an ongoing continuous

improvement program. Continuous improvement programs usually identify the key
performance indicators that help the warehouse or DC gauge and implement improvement
initiatives. In addition to the line productivity improvement KPI used in the above example,
the following might guide continuous improvement programs that can be synchronized
within a WES:

• Alerts to potential work stoppage

• Putaways
• Replenishments
• Backfill and restocking
• Fork work
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• General performance of labor
• Performance by warehouse to compare against
• Outbound shipments vs expectations.

Future-proofing

Most industry watchers these days are predicting a gap between the need for industrial
workers and the number of qualified people available to meet the demand. Improving
warehouse execution can reduce training time by capturing and storing standard
procedures and guiding operators and pickers in following them. Implementing a
warehouse execution system today can not only provide a platform for balancing future
human resource needs, it can also potentially help with retention of current talent by
making their work more productive and fulfilling.

Perhaps the greatest future-proofing benefits that WESs deliver, however, is their ability to
reconcile data from multiple sources. As devices become more intelligent and more
connected, through initiatives such as the industrial Internet of things (IoT), Industry 4.0 and
Big Data management, the need to turn the flood of information into an asset rather than an
overwhelming flood becomes increasing critical. This evolution, which is already well
underway, not only makes the need for warehouse execution more critical, it will also yield
tools and technologies that will make it easier to do.

Chris Capshaw is senior vice president for software solution sales and Randy Marble is
vice president for software strategy with Wynright Corp., a wholly owned subsidiary of
Daifuku North America, and a provider of intelligent material handling systems.

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