E-Commerce Solution｜Shuttle AS/RS for high SKU management

What are the pain points of the E-commerce industry faced with thousands of goods? 

iAmech spotted the pain points for the e-commerce industry in logistics inventory management, we analyzed problems and came up with solutions. 
For the core management of huge amounts of inventory, we provide our customers an applicable intelligent logistic center solution. 

Purpose and estimated benefits 

In response to the growing business volumeshortenedening delivery time for our e-commerce clients, the speed of delivery processing in logistics centers will deeply affect the online shopping experience of e-commerce consumers across Taiwan. 
Through the implementation of automated equipment, the overall efficiency of logistics, information flow, and hardware and software integration in the supply chain of the e-commerce industry is expected to be greatly enhanced, order management will be unified electronically, and the status of each item will be easily tracked.
Independent but closely related logistics workstations will be established at each station, creating a smart logistics management center for the e-commerce and also third-party logistics industries.

Solution

• Layout & Process

  This case study adopted high-speed Shuttle Rack AS/RS, electronic labeling system, cross-floor handling system, and distributor sorting system to design an automation total solution for the high volume of goods requirements.

  
  The process is divided into four sections, Incoming Quality Control (IQC), picking, sorting, tallying, Quality Control (QC), and boxing, and sorting.
  The process shown below: 
  
• Incoming Quality Control & sorting 

  First of all, Incoming Quality Control (IQC) is to count the total number of boxes or pallets to see if they are correct, then unpack the boxes and read the purchase orders to get the acceptance details, and then conduct general acceptance or quick acceptance and sort the goods according to the supplier's rating. 
  Here we use ABC analysis to classify the goods into A, B and C categories, as shown in the picture below.

  
• Stocking into the shuttle rack
  

  After the incoming goods are classified according to the ABC analysis, they are ready for storage in the Shuttle Rack. Here it will optimize the storage location, and after the optimization process, the A-type goods - i.e. the goods with the lowest percentage of inventory and the highest annual consumption - will be placed in the position with the shortest transportation path and the fastest picking in this automatic warehouse.
  Then, place the B and C goods in order, so that each type of material can fit into its own place through this analysis method.

  

  iAmech Shuttle Rack

  
  

  Storage space optimized 
• Picking- ASRS single-area/ multi-area operation 

  Single-area: All goods in the list can be picked from a single storage area.
  Single-area picking process:

  

  Multi-area: All items in the list should be picked from multiple storage areas
  Multi-area picking process:

  

  The difference between single-area and multi-area picking is that multi-area picking orders must first be picked from non-Shuttle Rack after picking the products in the storage area of the box and putting them into the Shuttle Rack, the order can be completed only after converging with the products that must be picked in the original Shuttle Rack storage area.

• Tally- Computer Aided Picking System (CAPS)
  
  
  
  The AS/RS can pick up to 15 orders at one time, the CAPS will light up the corresponding input storage position light according to the product barcode, and the staff will put the products into the storage basket according to the light number and quantity indicated by the CAPS.
• Quality Control (QC) and boxing 

  QC Process： Before shipment, we need to ensure the quality of the goods through the Quality Control system.
   

  

  step1Read the order label in the stocking basket to get the QC details.

  step2Read the barcode item by item to confirm the picking, and then put it into the carton after completing the QC.

  step3The quality control system records various abnormalities such as missing items and defects and saves the QC variance records.

  step4Print the shipment details, put them into the carton, and seal it.

  step5Transfer the carton to the shipment sorting line to complete the quality control operation.

• Sorting

  The sorting system integrates a high-speed image recognition module. When the shipping parcel is put in, the image recognition system scans the label on the parcel, and based on the scanned information, the system identifies the shipping distributor and sorts the parcel into multiple chutes. 
  The automatic sorting system is not restricted by climate, time, or humans, and can operate continuously to optimize sorting performance and reduce sorting error rates.

  
  Cross-belt sorting system 
  
  

Improvement results 

The customer experience is deeply affected that whether e-commerce logistics centers are operating well or not. The implementation of AS/RS warehousing system helps to handle the tedious and trivial picking and handling process, and the adoption of the "Parts-to-picker principle" significantly reduces the operating time and improves the picking efficiency. Also, it is equipped with the Cross Belt Sorter system, which is developed by iAmech to sort orders more quickly and accurately, speeding up the last mile to the customer.

• Customer success：
• First AI automated warehouse in Taiwan
• Shuttle Rack with up to 15,000 storage spaces
•  Satisfied 12,000 orders per day
• Sorting accuracy rate of more than 99.5% and sorting capacity of 11,000 units per hour
•  Achieves 80% of real-time operations with the use of Parts-to-picker
• Environmentally friendly with paperless operation, reducing operating costs
• Only 10 minutes from inbound to outbound, reducing the outbound time by 60%, successfully preparing for the double 11 festivals