Enormous variety - huge potential

An order picking solution has to fulfil seemingly contradictory requirements: The picking technology must be fast, because who likes to wait for their delivery? Picking errors must be minimised, as returns are expensive and the recipients are dissatisfied. At the same time, the picking technology must be economically viable. FM asked well-known suppliers about the state of the art and, above all, about new and further developments.

What range of picking solutions and services do the participants in the FM trend survey offer?

The range of today's order picking technology is enormous - as the suppliers' answers show. Helmut Prieschenk, Managing Director at Witron Logistik + Informatik GmbH in Parkstein, Upper Palatinate: "We plan, realise and operate highly dynamic automated picking solutions. These include container picking systems, pallet picking systems, layer picking, solutions for piece picking, case picking, picking and packing processes, whole container picking, picking of beverage crates as well as heavy and bulky parts." The company covers the entire spectrum in terms of the degree of mechanisation.

Markus Müllerschön, Head of IT Consulting at Viastore GmbH in Stuttgart, describes the company's range of products and services as follows: "We offer all picking solutions from man-to-goods to goods-to-man, from pick-by-light to put-to-light, from pick-by-voice to radio data transmission, from high-performance picking HPPS to our high-performance picking workstation HPWS to the fully automated picking system Viapick."

Manfred Preiß, Head of Sales at SSI Schaefer Peem in Graz, Austria, which is part of the SSI Schaefer Group in Neunkirchen in the Siegerland region, says that the company's product and solution portfolio for storage and picking is probably the most comprehensive in the world. "The portfolio ranges from channel storage systems for the beverage industry to small parts picking using automated picking machines and picking robots. The picking range includes the automated picking of pallets, the separation of layers and layer picking as well as the picking of cartons and individual parts - right down to the size of a lipstick."

The Austrian TGW Logistics Group GmbH, based in Wels, has a similarly wide range of services. Christoph Wolkerstorfer, Managing Director of TGW Mechanics GmbH, explains: "Our portfolio includes modular goods-to-person, person-to-goods and fully automated picking systems that can be customised to the customer's individual requirements." A combination of different picking systems is very often used.

Aberle Logistics GmbH in Siegen also supplies holistic solutions. "We are a general contractor and system integrator in the market that is independent of mechanical engineering. As such, we also offer a complete range of products and services in the field of order picking solutions that are at the cutting edge of technical development," says Managing Director Volker Knuff, outlining the company's offering.

The Business Development Manager at Vanderlande Industries GmbH in Mönchengladbach, Peter Bimmermann, summarises the company's services as follows: "We supply a wide range of order picking solutions. They range from 'classic' systems such as goods-to-person in all its forms to zone picking systems (also known as handover systems), batch picking with and without automatic sorting
and many other systems and combinations of these."

Heimo Robosch, Executive Vice President at Knapp AG in Hart bei Graz, is very brief: "We offer the entire range of picking solutions: from manual systems to shuttle systems and fully automated robot systems."

PSB Intralogistics GmbH, based in Pirmasens, primarily offers automated intralogistics systems, explains Volker Welsch, Sales Manager Germany. In these systems, supporting systems such as pick-by-light, barcode scanners and radio data transmission, pick-by-voice, put-to-light and others are used at the manual picking workstations.

Which target groups do the customers of the participating companies come from?

Basically, it can be said that almost all customer groups are interested in the latest picking technology. But there are focal points: Picking solutions are increasingly in demand from manufacturers and service providers from the pharmaceutical, health & beauty, beverage, fashion, food, e-commerce and omni- and multi-channel sectors who sell their goods via one or more sales channels.

There is also demand from logistics service providers and retailers. They appear to need to invest in modern intralogistics systems and increasingly in '1-piece picking' in order to be cost and performance efficient. Other important users are the operators of spare parts warehouses, for example for the automotive industry, the optical industry, the media sector and the electronics industry.

Around 80 per cent (SSI Schäfer) to 98 per cent (Knapp) of enquiries come from abroad. Companies such as Viastore (export share 60 per cent), PSB (export share 50 per cent) and TGW did not name any specific customer groups. They pointed out that they are established in very different sectors.

Do the participants in the FMTrend survey have special order picking solutions for very specific industries in their quiver with which they can score points against the competition?

Markus Müllerschön from Viastore states: "Automated picking solutions are particularly suitable for special tasks where high reproducibility and high performance are required. If throughput requirements exceed a certain limit, an automated solution becomes unavoidable. We see this clearly at our customer Sberbank in Moscow: the more than two million cartons are picked by robots, which would be impossible to handle otherwise. Tasks such as palletising, depalletising and picking become part of an automated process."

Christoph Wolkerstorfer from TGW explains: "We have very efficient, ergonomic and economical picking solutions in our core sectors of textiles, food and general merchandise. One example is an innovative modular system based on the 'Stingray' shuttle system, 'Kingdrive' conveyor technology and 'Pickcenter' workstation technology."

According to Helmut Prieschenk, his company continues to set standards in the food retail sector with what is now the third generation of the fully automated storage and picking system 'OPM' and the 'Case Order Machine' (COM). However, the new multi-channel solution 'FMC/DDS' (food), the e-commerce solution 'OFS' (non-food) and the 'BOS' system for the fresh food and beverage sector, which was presented in October 2014, are also convincing.

For many years, SSI Schaefer has seen itself as the market leader in order picking solutions for pharmaceutical wholesalers and mail-order pharmacies. The speciality of this market is that customers are not differentiated from the competition by their products, but by the service they offer. For this reason, the pressure to automate was very high in this market right from the start.

Manfred Preiß describes specific examples: "We have developed picking systems and optimised processes that enable a warehouse throughput time - from order start to dispatch - of less than half an hour."

Peter Bimmermann from Vanderlande emphasises: "By focussing on specific target industries, we are also able to develop special products for these industries. For example, our 'ACP' (Automated Case Picking) has been developed for retail companies and discounters to replace time-consuming picking for store deliveries with a highly automated system in the long term." The 'Adapto' shuttle system is also a storage system that makes it possible to implement goods-to-person systems with a low initial investment and, depending on growth, to expand these later both in terms of performance and the number of storage locations.

Volker Knuff from Aberle is a little more general: "We offer a complete range of products and services, from which we develop the right solution for every customer requirement. We certainly generate additional advantages when we develop complete solutions in co-operation with 'Körber Logistik Systeme', which also incorporate the strengths and product developments of our sister companies."

Knapp AG sees its expertise in its target sectors of pharmaceuticals, fashion, multichannel/e-commerce and food retail as one of its most important core competences. "There are many examples of this," says Heimo Robosch. "Among others, we have implemented pioneering automation solutions in the food sector for the Migros Cooperative in Switzerland and for 'Spar' in Austria."

Volker Welsch from PSB emphasises the proven 'Rotapick' high-performance picking system for small parts and, in particular, the overhead conveyor systems that have been further developed over decades. "They were traditionally used exclusively for picking hanging garments in the textile and fashion industry," says the sales manager. "By using the bag on the same basic overhead conveyor system, this conveyor system can now also be used for picking so-called flat-packed goods, i.e. for fashion accessories as well as for small parts from all other industries - right up to oil filters in the automotive industry."

Which components of the picking systems supplied by the participants in the FM trend survey are developed and produced in-house, and which are supplied? Is the software developed in-house?

TGW comments on this as follows: "All components are developed, tested and produced in-house. Of course, we sometimes buy in specific components, but in principle, all of our solutions come from TGW. Control systems and software are no exceptions, on the contrary."

Software is also a key focus of Viastore's work, as Markus Müllerschön explains: "We have been developing warehouse management systems since the end of the 1970s, and we have had our standard WMS 'Viadat', which is used by more than 12,000 users worldwide, in our programme since 1991 and have been continuously developing it ever since. It is one of the most comprehensive systems on the international market."

With production sites in Europe, Asia and North America, SSI Schaefer has a vertical range of manufacture of 85 per cent. All products are developed in-house. Only special sorters or customised machines such as carton erectors and sealers are purchased. The control system and software are developed in-house and range from SAP expertise to the 'Wamas' WMS and material flow computer.

As a general contractor, Witron assumes complete functional responsibility from planning to realisation, mechanics, IT, control, service and system operation. All key elements of a logistics system are developed and manufactured in-house.

PSB also focuses on the company's own added value when supplying the complete intralogistics system, i.e. mechanics, control and IT. "All components of the order picking systems we offer come from our company. The only exceptions here are supportive display aids," says Volker Welsch.

The approach at Vanderlande is similar. "We manufacture all components such as storage and retrieval machines, shuttle systems, sorters, conveyor technology, robot applications, ergonomic workstations and the associated software ourselves." If the customer wishes, Vanderlande can also use software from other manufacturers. This can be an advantage in some circumstances if this software is already available or if SAP EWM is to be used, for example.

In his answer, Heimo Robosch from Knapp describes the activities and distribution of tasks within the company group: "All systems - including the warehouse logistics software 'Kisoft' - are developed and produced by Knapp itself. With 1,500 employees, the headquarters in Hart bei Graz is also the Group's largest production site. We also have local competence centres, for example at our subsidiary Dürkopp in Bielefeld, at Knapp Systemintegration in Leoben and at Ylog Industry Solutions in Dobl in Austria."

Aberle Logistics GmbH has a different philosophy. As Volker Knuff emphasises, being a general contractor does not necessarily mean that all system components have to be sourced from one and the same supplier. "On the contrary: with such a decision, clients often limit the efficiency and flexibility of their system themselves. A system integrator like us usually has a much broader potential for optimisation. They select the best components for the respective application." Innovations are not excluded just because they come from the company itself, such as the system solution for fully automatic, robot-supported layer palletising developed by sister company Langhammer GmbH. As Volker Knuff also emphasises, the IT systems and control technology are the decisive factors for a system.

More and more orders with fewer and fewer items have to be processed economically, and not just because of the increasing online trade. What special techniques and strategies are companies using to fulfil the increased demands on picking technology in terms of picking speed and quality?

Manfred Preiß from SSI Schaefer: "Thanks to our portfolio of solutions in the field of medicine distribution, where speed and accuracy have always been important, we have built up the relevant expertise that can also be applied very well in other sectors. For example, a special sorter significantly reduces the number of processes between incoming goods and the final dispatch check. The process also includes six-sided identification and code reading, which achieves a Six Sigma quality level."

Witron's Managing Director Helmut Prieschenk emphasises that speed and quality are and remain important criteria for all industries. "In the age of e-commerce and multichannel logistics, however, pick and pack solutions in fulfilment centres are another decisive competitive advantage. The aim is for the customer to receive their order not just on the same day or the next day, but within a fixed time window. In addition to an economical mechanical solution, this also requires multifunctional warehouse management systems that communicate with the customer's merchandise management and route planning systems via simple interfaces."

Volker Knuff has a very definite opinion on this: "There's a new hype every year. The day before yesterday, pick-by-voice was all the rage, yesterday it was said that the ergonomics of the picking stations were the be-all and end-all. Today, everyone is talking about pick-by-vision and Google glasses. The best solution, technology and strategy for customers are determined by their products and their individual requirements, such as throughput and storage capacity."

Efficient technologies and strategies in terms of picking speed and quality cannot be named across the board - nor can they be offered off the shelf. "In principle, picking quality is of great importance in all projects, but it takes centre stage when it comes to high-value goods," says Volker Welsch. This is understandable: A quantity error in the picking area of high-quality smartphones has more far-reaching consequences than a quantity error in the picking of low-cost promotional items. Nevertheless, accuracy is becoming increasingly important, as more and more goods are being sent directly to the end consumer. As a result, picking errors are increasingly leading to direct financial losses. The expert brings up another argument: returns management. "Modern picking systems integrate the returned items into the flow of goods in such a way that they are immediately available for dispatch again after quality assurance, without having to sort these goods back into the original storage locations."

Markus Müllerschön from Viastore sees the situation as follows: "With the atomisation of orders and increase in shipments, errors inevitably increase and the physical strain on the picker increases. Sensible, IT-supported automation ensures high process reliability, increases picking speed and significantly reduces sources of error." One such solution has been realised for medical technology manufacturer Bort, for example.

Peter Bimmermann from Vanderlande: "We have been supplying systems for online retail for many years. The solution implemented in each case optimally supports the respective business model. What they all essentially have in common is flexibility and scalability, as realised by our shuttle system, for example." The systems often also need to be stress-resistant to peak loads or fluctuations. "The keywords here are 'Black Friday', 'Cyber Monday', Christmas and other seasonal factors, as well as peaks throughout the day."

Christoph Wolkerstorfer from TGW explains: "By speeding up the processes in the distribution centre itself, longer transport times can often be compensated for. This means, for example, that returns that will soon be needed again for dispatch are stored temporarily in an automatic buffer and can be made available immediately for picking. In addition, the
software immediately detects errors at the pick centre workstations and offers a user-friendly interface with display guidance."

"Since the start of e-commerce development, our all-in-one shuttle concepts have been in particularly high demand," emphasises Heimo Robosch. "Not only speed, but above all a high degree of flexibility can be incorporated into technical solutions." Quality also plays a decisive role, as everyone knows that an incorrectly supplied customer is a lost customer. This is where Knapp's 'Zero Defect Warehouse' principle comes in: "In an environment in which, on the one hand, legal regulations demand ever greater product and supply chain tracking and, on the other hand, the costs for error correction and returns processing are rising, we focus on quality assurance in the workflow instead of error detection in the final inspection," says Robosch.

Which systems or strategies do the participants in the FM trend survey use to ensure optimum flexibility?

"The aim is to develop solutions together with the customer that enable a high degree of flexibility and picking quality," emphasises Helmut Prieschenk. "A high degree of flexibility also means that all distribution channels are naturally integrated into the overall system."

The new multi-channel solution already mentioned ensures cost-effective delivery and networking of all formats in the food retail sector - from a single logistics centre. "Multi-channel business is commonplace today," states Markus Müllerschön. "The key element here is the right warehouse management software that controls and manages the whole thing. It processes the orders that are received via the Internet, via MRP orders from shops or from sales staff via the ERP."

The task of the WMS is to optimise the use of existing plant resources and manpower - with strategies that are adapted to the current situation. It is crucial that the recipient receives the ordered goods at the right time. Manfred Preiß comments: "The goods-to-person system offers the greatest flexibility here, as it does not require ABC warehouse allocation and is not critical in terms of slotting. We have developed our 'Fulfilment Factory' to be able to serve shop deliveries and B2C e-commerce from one and the same warehouse. This is based on overhead conveyor technology with pocket sorters." In addition, the ergonomically designed manual picking workstations, which increase efficiency and flexibility, should not be underestimated.

Christoph Wolkerstorfer emphasises that TGW's order picking systems have a modular structure. This means that the system can be optimised according to the current workload. In addition, further modules can be added to increase throughput if required. "Our systems allow the order structure to fluctuate or even change up to a certain limit without having to make any changes to the technology."

Volker Knuff is of the opinion that there is no single system for efficient intralogistics behind the web shop. "However, we can define the basic requirements for efficient, flexible hardware and future-proof systems and solutions. Modularity and scalability are the two corresponding attributes. They also provide the basis for the expandability and changeability of the systems in the medium and long term."

Peter Bimmermann emphasises that his company is able to implement all conceivable concepts thanks to its broad portfolio. "It is always important to look not only at the hard facts, but also at the special features that set the respective customer apart from the competition. This can lead to different concepts being used for similar products in the same market."

Heimo Robosch favours shuttle systems in this context. They are ideal for handling enormous picking volumes with small batch sizes. "Our shuttle makes all the goods in it available around the clock. It doesn't matter where they are currently stored in the system. At the same time, our 'Pick-it-Easy' goods-to-person system means that the goods stored in the distribution centre can be accessed from one workstation, making it easy to cope with fluctuations in demand and product range changes."

Volker Welsch comments: "We use highly dynamic picking solutions, for example for the mail order business. Due to seasonal fluctuations, flexibility is the top priority in this area. Semi-automated solutions have proven their worth here, whereby the systems can be used by more or fewer employees." The PSB order picking system 'Rotapick' also contributes significantly to flexibility, as this system can be operated in different modes.

Automated order picking solutions have long been used in the food industry. Which industries are such solutions also recommended - and which are not?

At Vanderlande, they believe that automatic whole-bin picking systems such as the company's own ACP can be used wherever similar conditions prevail, i.e. a product range of up to 20,000 items and a sufficiently high throughput of 30,000 to 500,000 bins per day.

According to Witron, it is not possible to make a generalised statement here. Helmut Prieschenk. "In principle, each individual case must be examined to determine whether automation is economical or not. Generally speaking, we are currently receiving a lot of enquiries from the non-food e-commerce sector and whole container handling, such as fruit, vegetables and beverages."

TGW also mentions specific sectors: "Automated picking solutions can also lead to a reduction in operating costs in the textile and general merchandise sectors. We are currently working on innovative systems that will make further automation profitable."

Knapp AG is less sector-specific. Heimo Robosch: "Regardless of the industry, fully automated picking solutions are suitable for picking small quantities, especially with standardised product packaging in picking machines or single-item picking robots, and for delivering single-item standard packs to shops or shops."

Viastore does not recommend any sectors either. Instead, Markus Müllerschön is of the opinion that "it always depends very much on the user's item structure and delivery requirements".

Manfred Preiß from SSI Schäfer writes that the pharmaceutical industry was and still is a pioneer in terms of automation with the wholesale trade. Preiß: "Due to the restrictions for people in the deep-freeze sector, automation has quickly established itself here too."

The pharmaceutical sector is also the keyword for PSB: "There have been automated picking solutions in the pharmaceutical sector for many years." However, if the products to be picked have a definable similarity in weight and dimensions, there is generally no limitation to specific sectors.

As already mentioned, Aberle Logistics is currently experiencing increased demand for automation solutions from logistics service providers and retail logistics companies.

Are new trends in order picking technology emerging that will be here to stay?

"After more than 40 years, we can say that customers generally don't focus on trends," says Witron. Customers are looking for a functioning and holistic solution that gives them a competitive edge both internally and externally. The customer is usually results-orientated and not technology-orientated.

Manfred Preiß from SSI Schäfer explains that "the demand for multichannel warehouses is increasing. These need to be as flexible as the market they serve. Here, 80 per cent automation with effective ergonomic workstations is often a good solution."

Volker Knuff also addresses the multichannel issue: "The increasing demands on multichannel distributions, smaller order volumes, shorter order throughput times and higher labour costs are driving the development of shuttle systems forward. The possible applications will continue to develop from storage machines or as order buffers to the partial replacement of continuous conveyor technology."

Christoph Wolkerstorfer from Wels emphasises: "We are noticing that current trends are moving towards intelligent user guidance and systems that correctly interpret the user's actions and thus eliminate system-related ancillary activities."

Heimo Robosch from Knapp believes that changes will occur in the areas of direct order picking, where robotics will open up completely new possibilities. "We also expect major changes in the area of operator guidance and error detection in the process through the use of the latest optically guided systems."

From PSB's point of view, the main demand remains for (even) more flexibility. Manual, semi-automated and fully automated systems have their place and will continue to do so in the future. "Another important trend is the use of augmented reality solutions," says Volker Welsch. "This example shows that technologies from other sectors can also provide important impetus for improving performance in intralogistics."

Peter Bimmermann from Vanderlande is certain that user interfaces will continue to develop as an area of ergonomics. "Data glasses such as 'Google Glass' or 'Oculus rift' and other 'wearables' will find their way in. I also see co-operative robot systems that work in interaction with the operator as realistic."

Markus Müllerschön from Viastore puts it succinctly: "Automation will continue to advance, making order picking systems even more flexible and dynamic, because that's what users need."

All companies participating in the FM trend survey were satisfied to extremely satisfied with 2014. They had pursued the right strategy with the new developments and were able to acquire new customers. The providers of order picking technology therefore feel well equipped for current and future tasks.

Source: FM The Logistics Magazine Issue:3/2015

Author: Wolfgang Degenhard