GUEST BLOG: What is the best approach to warehouse management? Automation!

Automated warehouse management systems are designed to overcome some limitations of conventional systems by maximizing storage capacity in terms of efficiency, speed, space, precision and operating costs.

The main automatic warehouse management systems include:

Stacker crane automatic warehouse

In a stacker crane automatic warehouse, pallets are stored and handled by means of stacker cranes, and these operations are efficiently managed by means of the central WMS IT system.

The structure may be prefabricated or free-standing, can be very tall and is able to manage a large number of product codes.

The main benefits of stacker crane warehouses compared to conventional systems are:

• Picking process speed: the goods are brought to the operator, reducing order fulfillment times
• Space optimization: handling aisles are reduced to a minimum
• High selectivity and high density
• More control of products in store
• Low operating costs

This type of automated warehouse provides a clear improvement in terms of storage efficiency and operating costs, although the initial investment is high.

Vertical lift module automatic warehouse

Vertical buffer module, or Vertical Lift Module (VLM) automatic warehouses are leading-edge, compact automated storage structures which can be perfectly integrated with production processes and internal ERP systems.

Perhaps the most obvious benefit of a vertical automatic warehouse is the saving in floor space, which may be as high as 90%.

Compared to conventional models, management with a VLM also provides a sharp improvement in safety, speed and inventory precision, cutting times, costs and errors.

In other words, this is a real revolution in efficiency, the spread of which is perhaps only hampered by lack of awareness of the results and potentials of this particular automatic management model.

Those who are worried about having to stop or slow down production because they view automatic systems as complex and therefore think lengthy assembly times are required have no cause for concern. The installation times for a vertical warehouse are very similar to those for conventional static solutions and the transition to automatic operation can also take place gradually.

The idea that automatic vertical warehouses cost a lot more than conventional solutions is another of the common misconceptions about automatic warehouses. The investment is definitely not unaffordable and a rapid ROI is guaranteed. In Italy, the option of “Hyper and Super Amortization” for tax purposes under the Industry 4.0 scheme makes the transition to automatic warehouse management even more financially attractive.

In other words, there are many reasons for investing in an automatic vertical warehouse.
Now let’s take a look at the differences between them and stacker crane warehouses.

Difference between stacker crane and vertical warehouses

The first difference between stacker crane and automatic vertical warehouses is that the latter do not need aisles for transporting goods, and all the space available is used for storage.

What’s more, any type of goods can be stored in a vertical warehouse, from heavy, bulky products to small parts, without the limitations imposed by pallets.

The automated system guarantees the optimization of spaces between trays, improving storage efficacy.

Improving stock management, increasing warehouse security, speeding up inventories.These and many more are the advantages of vertical warehouses.

But how much do you really know about them?

Do you know what the main advantages of automatic vertical warehouses are?

• Saving time during picking and storage operations
• Saving 90% of floor space
• Goods are completely secure and all access to stock is tracked
• Safety and improved working conditions
  

Do you know how they work? Test yourself!

Answer these 5 questions and find out how much you know about this new logistics solution.

Join the quiz now!

https://www.modula.eu/blog/en/how-much-do-you-know-about-vertical-warehouses/

This post was written by Alice Bellelli, Modula Marketing Mananger at Modula S.P.A. Modula S.P.A is exhibiting at Subcon 4-6 June 2019 - register now for free at www.subconshow.co.uk/register

GUEST BLOG: Three things you need to know about outsourcing to China

There are many benefits to outsourcing your high-quality metal or plastics manufacturing to another country such as China or Vietnam but there are many potential pitfalls too.

There isn’t space here to go into all the details but here are three essential things you need to think about before considering outsourcing to a foreign nation.

1.    Make sure you understand the country

Every country has its own ways of doing business and you really need to go into any commercial relationship with as great a familiarity as possible with specific beliefs, cultures and modus operandi of the people you will be working with. Understanding the country can also involve getting to grips with the financial side of things – do you understand China’s VAT system, for example, or its export tax and delivery terms? Do you even know the current exchange rate? Do you know whether the country is undergoing a period of economic growth or is it in stagnation… or even decline? And precisely what is happening on the ground?

2.    What is the country’s relationship with the UK like?

Obviously, it doesn’t make business sense to be working closely with a country if there is a fractious relationship with the UK. Even though relations with China and Vietnam are perfectly cordial, you still need to be communicating with the UK Foreign Office and UK Trade & Investment as well as the British Chamber of Commerce. You also need to be able to speak the local language – or at least have someone representing you who can.

3.    What kind of sourcing do you want or need?

Outsourcing is outsourcing, right? No. You can have non-contact sourcing, which is fairly self-explanatory, or semi-contact sourcing or you can deal with the country through a separate sourcing company such as ChinaSavvy or VietSavvy. You can also connect via a sub-contract manufacturer or set up your own representative office. Do you want to be involved in the final quality checks and inspections, who is going to carry out all quality audits, and who is going to draw up the contracts and manage purchase orders, invoices and payments?

Of course – just as there would be if you were selecting a sub-contractor in the UK – there are plenty more key issues that you must take into consideration, not least the quality and skills of the engineers who will be working on your customers’ products. Is it possible to make the parts in places where costs are even lower than in China – such as Vietnam – without compromising on quality and while still taking advantage of China’s incredible engineering supply chain? Are you in a position to make an informed decision?

Lots of things to ponder, then, before you take the plunge!

This post was written by Christopher Devereux, managing director of ChinaSavvy HK and vice chairman of the British Chamber of Commerce, Guangdong, China. Find out more at www.chinasavvy.com, Twitter @Chinasavvy1, Facebook @Chinasavvy or LinkedIn.

China Savvy is exhibiting at Subcon next week - register now for free at www.subconshow.co,ukregister