Managing E- Business Operations

Assignment

Submitted by:
Himanshu Sagar

Role of material handling equipment at fulfillment center

Introduction

Talking about material handling, it cannot be avoided in logistics, but can certainly be reduced to
minimum levels. The productivity potential of logistics can be exploited by selecting the right
type of handling equipment. The selection of material handling equipment cannot be done in
isolation, without considering the storage system. Investment in the material handling system
will be sheer waste if it is not compatible to the warehouse layout plan. The layout will create
obstacles for free movement of equipment and goods, resulting in poor equipment productivity.
Recent trends indicate preference for automated system with higher logistics productivity to
enhance the effectiveness of human energy in material movement. The more control the firm
have, the better you perform. Similarly good material handling systems give you control on
productivity. Distribution, manufacturing, and warehousing are the areas where material
handling plays a major role. To do these things well, the firm need control of processes, of
equipment, of personnel, of space and also of time.

Infact material handling systems power today’s efficient distribution and manufacturing
facilities. It is the secret weapon in logistics operations for improving system productivity.
enhancing customer service and speeding up throughputs. By gaining control of the warehouse, a
company can gain control of its profitability. Effective material handling systems create savings
that helps directly to improve your bottom line. If the business relies heavily on manufacturing,
warehousing, storage or distribution, the potential savings are perhaps the greatest opportunity.

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Productivity
potential for
goods being
handles

Compatible
Material
to storage
Handling Cost
system &
System Implication
warehouse
Decisions
layout

Hygiene
and
human
safety

Figure 1: Material handling system decisions

Current state

In the last several years material handling has become a new, complex, and rapidly evolving
science. For moving material in and out of warehouse many types of equipment and system are
in use, depending on the type of products and volume to be handled. The equipment is used, in
loading and unloading operations, for movement of goods over short distances. The handling of
material in warehouse is restricted to unitized forms, which require smaller size equipment.
However, for bulk handling of material at logistics nodes such as shipyards, ports and airports
different type of equipment is used. In warehouses, material handling operation is performed at
the following stages:

 Unloading the incoming material from transport vehicle

The efficiency of material handling equipment adds to the performance level of the warehouse.
The internal movement of goods has a direct bearing on the order picking and fulfillment cycle.
The warehouse, wherein the material handling equipment is in use, is more sensitive to labor
productivity than the manufacturing center as material handling is more labor intensive. There is
a scope for reducing labor and enhancing productivity by emerging technology in material
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handling. A good material handling system will enhance the speed and throughput of material
movement through the supply chain.

Examples (Global)

Pneucon- Pneucon offers total solution of material handling through its single most
comprehensive and innovative range of in-house designed products through its best team of
technocrats. It aims at being a provider of cost effective and cutting edge solutions in the area of
pharmaceutical, food and construction processing with products and services that are
unparalleled in the industry.

Tesni Pharmaceuticals- The Conveyors for Tesni pharmaceutical warehouses are generally
designed with specific requirements in mind, including ease of cleaning, disassembly and
maintenance. They are designed to meet containment level regulations. The types of conveyors
available include those maximized for containment, systems integration for batch and continuous
processing, and clean-in-place (CIP) designs.

Examples (Domestic)

Godrej- Godrej has a strong pallet racks material handling solution. The racks are relatively
strong and durable. One can easily store it for bulk storage. The pallet racks are known for their
consistency, durability and versatility. The spacious shelves make it more usable. The software
Enabled Solutions for intelligent warehousing and work center solutions for enhancing shop
floor productivity and value adding warehouse consulting.

Asian Paints- The company employed a ground storage approach to store its inventory. As the
name suggests, finished goods were stored in pallets on the floor and on two level racks. The
entire warehouse operations of pick and put away were manual. This was laced with chances of
error. Besides it had high area and manpower requirements.

Future state

The new-generation material handling system are highly automated system based on latest
technologies, provided with flexibility capable of changing its own structure or function in
response to changes from manufacturing systems, and autonomous functions to enhance system
reliability.

 Responsive: Responsive to changes that may take place in manufacturing technology and
environment, type of product or material to be handled, work schedule and load.

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 Flexible: Capable of transforming itself and altering its function to meet any change in
handling requirements.
 Autonomous: Able to make decisions on its own (to enhance system availability).
 Highly automatic: Incorporated with next-generation automation technology.
 Multi-functional: Having such functions as assembling, packaging and disassembling,
besides transporting.
 Modularized: Composed of various modules, each with a distinct function; e.g. planning
module, basic module, tool-setting module, communication module, capable of
associating or dissociating one another to organize themselves into a configuration as
required.
 Multi-level: Designed into multi-level sub-systems so as to be capable of co-operating
other independent material-handling equipment including AGVs and mobile robots.
 Compatible: Capable of adapting itself to other existing material-handling systems.

Figure 1: Material handling system design for increased delivery performance and lower buffer levels

Conclusion

The material handling is important activity in the logistics system. The speed of the material flow
across the supply chain depends on the type of the material handling equipment and the
sophistication in the system. In the logistics operation the material handling system is designed
in and around the warehouse. Commonly, the following material handling operations are
performed in the warehouse, unloading the incoming material from transport equipment, moving
the unloaded material to the assigned storage place, lift the material from its storage place during
order picking, move the material for inspection and packing, and load the packages on to the
transport vehicle. These operations are performed using manual, mechanized or computerized
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controlled material handling equipment. The mechanized system shifts the fatigue to machine
and brings effectiveness to human efforts. The selection of the appropriate system depends on
the factors such as volumes to be handled, speed in handling, product characteristics (weight,
size, shape) and nature of the product (hazardous, perishable, crushable). The prime
consideration before going in for mechanized material handling systems is the layout of the
warehouse. The investment in the material handling system will be sheer waste if it is not
compatible to the warehouse layout plan. The layout will create the obstacles for the free
movement of equipment and the goods. The mechanized equipment requires the space for the
free movement across the warehouse. They should have the accessibility to storage area for
material loading and unloading during storage and retrieval. In the mechanized version the
variety of equipment are used for the specific application. The range covers common types are
wheeled trolleys, forklift trucks, conveyors, cranes, towlines and carousal etc. The more
sophisticated systems such as robotics, automatic storage & retrieval and automatic guided
vehicles systems are used in semi or fully automatic warehouses for speedy material movement.