Foster & Gallagher Co.

Hytrol Distributor: KMH Systems, Inc. (Dayton, OH)

WMS and Integrated Conveyors Help Deliver Record Productivity Levels

Catalog Fulfillment Center enjoys productivity increase of 30%, together with dramatic increases in capacity and order accuracy.

An improved order flow system at Foster & Gallagher's Catalog Fulfillment Center in Dayton, Ohio, has had an immediate, positive impact on all facets of the operation: productivity is up 30 percent; capacity has doubled; order accuracy is markedly improved.

The new system, which became operational in August 1997, incorporates a real-time warehouse management system, using a combination of pick to belt, and radio frequency/voice activated worker prompting tools. Central to efficient package movement and handling is an integrated conveyor system that expedites product flow all the way from the packing area to the outbound shipping docks.

These kinds of operational improvements are essential to the business success of Foster & Gallagher, a direct marketing firm headquartered in Peoria, IL. The Dayton center handles orders from its Children's Group catalogs. Typical items processed here include toys, crafts, books, and apparel items for boys and girls.

Prior to installation of the updated system, the center used a variety of conveyor equipment, recalls Dave Eckley, Foster & Gallagher's senior vice president of operations. But, these conveyors were not effectively integrated.

During normal or off-peak shipping periods, the old approach could keep up with demand-despite a considerable amount of manual movement of product around the facility. The problems came at peak order periods, especially the Christmas season. During the most critical time of the business cycle, the center struggled to keep pace with the heavy order demand.

Working with KMH systems of Dayton, Foster & Gallagher developed an order-flow solution to the capacity constraints and in the process realized a host of other operational benefits. KMH is a leading system integrator and a distributor of Hytrol conveyor equipment.

Developing an Integrated Solution

The 188,000 square foot Catalog Fulfillment Center now incorporates the latest in order processing technology with a streamlined conveyor operation. Handheld RF scanners accurately track inventory throughout the facility. A combination of real time worker prompting and paper pick lists direct the picking activities. The installed WMS supports a variety of picking methodologies, allowing Foster & Gallagher to select and utilize the correct tool for the various pick areas.

The picking technology combines with an efficiently designed conveyor system, enabling the center to achieve new levels of throughput and productivity. A number of conveyor types are used, including 2810-pressure accumulating straight belt, and live roller units. A high-speed sortation conveyor is used to accelerate the flow of orders to the shipping area. All of the new conveyor equipment in the center is manufactured by Hytrol.

Orders are either picked to cart or picked to belt, directly into the shipping container. A cubing algorithm selects the correct box, during the waving process. At order completion, the boxes are moved by cart to the packing area. Here, quality audits are performed on a sampling of orders, and the contents are checked for proper loading to prevent product damage in transit, and repackaged if required. Boxes are then transported by live roller conveyor to in-line void fill and carton sealing stations.

Sealed boxes move by live roller conveyors to an incline conveyor, which inducts the boxes to an elevated loop conveyor. This line, which incorporates both live roller and belt conveyor segments, feeds the high-speed QS-1 sortation conveyor. An overhead laser scanner reads the bar coded package number, which contains a preselected divert lane, associated with a carrier method.

The QS-1 plays a key role, in helping the center reach the desired throughput and productivity levels. The unit is particularly well suited for the Dayton center because it is designed for high-speed applications where diverting needs to be positive, yet gentle to avoid product damage. The sortation conveyor transports the boxes on flight tubes. Then, divert blocks move diagonally across the conveyor to physically push the product down one of eleven chutes. The chutes are connected to skate wheel extendable conveyors, to support fluid truck loading.

Counting the Benefits

The improved materials flow system has been in place for 18 months, and Foster & Gallagher has enjoyed a host of benefits...and expects even more to come. The center now can routinely handle 30,000 plus orders a day during the peak holiday season. Total capacity, in fact, has doubled over the old system.

Productivity is way up, too. With the integration of the WMS, the picking technologies, and the high-speed, high-capacity conveyor flow, the catalog center can accomplish more with fewer people. Productivity has increased by 30 percent since the system was completed.

Order accuracy has reached a new high as well. The center now is approaching 99 percent accuracy on all outgoing orders as it moves toward the ultimate goal of 100 percent.

Finally, as an added benefit, the center never shut down during installation of the equipment. "The installation process for the Hytrol equipment was outstanding," says Dave Eckley of Foster & Gallagher. "Our vendor (KMH Systems) installed around us. It was all very well coordinated. The material handling system came up on time and worked the way it was supposed to." That seems to pretty much sum up a successful installation.

THE DAYTON CATALOG FULFILLMENT CENTER

Using best practices in picking technology, workers begin the order fulfillment process at Foster & Gallagher's Catalog Fulfillment Center in Dayton, Ohio. Once the orders are complete, the open boxes move to the packing stations. Packers sample audit order contents, and ensure item integrity to prevent damage in transport. Live rollers then move the orders through in-line void fill and carton sealers. An incline conveyor that leads to a high speed sortation conveyor. Divert blocks move diagonally across the line to send the boxes down one of eleven chutes to the shipping area, where they are fluid loaded into trailers spotted for the selected shipping service.

Details on the Operation

Company: Foster & Gallagher
Facility: Catalog Fulfillment Center
Location: Dayton, Ohio
Size: 188,000 square feet
Employees: 50 (up to 200 during peak periods)
Sr. Vice President of Operations: Dave Eckley
Product: Children's books, toys, crafts, clothing
Throughput: 30,000 orders a day (peak shipping season)
Picking Technique: Paper pick lists and radio frequency.
Systems Integrator: KMH Systems, Dayton, OH