From Manual Bottlenecks to Sweet Success: FloStor Transforms American Licorice Company’s Warehouse and Packing Operations

The Challenge

Inefficient materials handling, high labor costs, manual packing limitations, safety concerns, long fulfillment cycles.

The Solution

Integrated warehouse automation including custom conveyors, automated sortation, pick-to-light, pallet racking redesign, WMS/ERP integration, and a dedicated automated carton assembly and handling system.

Introduction

American Licorice Company (ALC), a beloved confectionery manufacturer with a rich heritage spanning over a century and home to iconic brands like Red Vines® and Sour Punch®, faced significant operational challenges as it managed a growing portfolio of over 1,000 SKUs shipped daily to more than 40 countries. Recognizing that their existing materials-handling and packing processes were straining resources and hindering growth, ALC sought a strategic partner. They engaged FloStor Material Handling Solutions, specialists in designing and implementing turnkey conveyor, automation, and warehousing systems, to engineer a comprehensive solution.

The Challenge: Growing Pains in a Complex Operation

ALC’s warehouse operations were grappling with several critical issues impacting efficiency, cost, and safety:

•   Inefficient Workflows: Both pallet movement throughout the warehouse and the manual carton assembly process were creating bottlenecks, leading to delays and increased handling times.
•   High Labor Costs & Overtime: Manual sortation and packing processes were labor-intensive, frequently necessitating significant overtime (spikes reaching 30%) to meet demand.
•   Safety Concerns: Congested workflows and manual sortation contributed to an average of 5 safety incidents per quarter. The manual packing process also presented ergonomic challenges.
•   SKU Proliferation & Accuracy: Managing over 1,000 SKUs strained storage and retrieval. Manual sortation led to errors, resulting in costly mis-shipments, returns, and rework.
•   Extended Fulfillment Cycle: The average order fulfillment time stood at a lengthy 48 hours, impacting responsiveness and customer satisfaction.
•   Limited Packing Throughput: The manual packing process—where operators individually formed, taped, filled, and sealed cartons—severely capped the facility’s output capacity.

ALC needed a holistic solution to streamline operations from storage and picking through to final packing, addressing inefficiency, reducing costs, improving safety, and enhancing their ability to meet escalating market demands.

The Solution: Integrated Automation from Warehouse to Packing

FloStor collaborated closely with ALC, conducting a thorough needs analysis and workflow mapping exercise to pinpoint key pain points. The result was a multi-faceted, integrated automation solution addressing both warehouse-wide flow and the specific packing bottleneck:

1. Warehouse Optimization:
   •   Custom Conveyor Systems: Designed and installed optimized conveyor layouts to facilitate efficient, seamless movement of goods.
   •   Automated Sortation & Pick-to-Light: Implemented automated sortation technology and pick-to-light systems to drastically reduce manual errors, improve picking accuracy, and accelerate order fulfillment.
   •   Pallet Racking Redesign: Reconfigured pallet racking to maximize storage density and improve accessibility for the diverse SKU range.
   •   WMS/ERP Integration: Ensured seamless data flow and system coordination by integrating the new automation technologies with ALC’s existing Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) system.
2. Automated Carton Assembly & Handling:
   •   Centralized Carton Preparation: A state-of-the-art automatic case erector (like the Little David LD16A) now efficiently forms cartons and securely tapes the bottoms.
   •   Automated Transport: Ready-to-fill cartons are transported via a Hytrol incline belt conveyor directly to the packing area.
   • Intelligent Distribution: Using Hytrol conveyors, diverters, photoeyes, and PLC controls, the system intelligently distributes cartons to four packing stations.
     •   Normal Operation: Cycles through active stations, delivering batches (e.g., 10 cartons) sequentially.
     •   Demand-Based: Photoeyes monitor levels; if a station runs low, the system prioritizes it before resuming the sequence.
     •   Flexible: Operators can deactivate stations; the PLC automatically redistributes batches among active stations.
   •   Streamlined Operator Focus: Operators now focus solely on efficiently filling the cartons presented to them.
   •   Automated Sealing: Filled, open-topped cartons move via conveyor, ascend on a vertical lift (like Hytrol Model VC), travel overhead (like Hytrol Model TA), descend via gravity chute, and are automatically sealed by a top case sealer (like Little David SP304), ready for manual palletizing.

Implementation & Collaboration

FloStor managed the installation efficiently, collaborating closely with ALC teams to minimize disruption. The commissioning process involved thorough testing of all components, ensuring the mechanical systems, automated equipment, and control software functioned harmoniously and integrated seamlessly with ALC’s existing WMS/ERP infrastructure. Comprehensive training was provided to ALC staff, ensuring user adoption and maximizing system utilization from day one.

The Results: Measurable Gains in Efficiency, Cost, and Safety

The implementation of FloStor’s integrated solution delivered significant, quantifiable improvements across ALC’s operations:

•   Accelerated Fulfillment: Pick-and-pack time was reduced by 35%. The overall order fulfillment cycle saw significant improvement from the initial 48 hours.
•   Increased Packing Productivity: The automated carton assembly system yielded a productivity increase of approximately 14%, as reported by John Nelson, Plant Engineer at ALC.
•   Reduced Labor Costs: Optimized workflows and automation eliminated 20 labor hours per week and reduced reliance on costly overtime.
•   Rapid ROI: The warehouse optimization project achieved ROI in just 14 months, while the automated packing system demonstrated a payback period of only 1.5 years.
•   Enhanced Accuracy: Automated sortation and pick-to-light significantly reduced manual errors and mis-shipments.
•   Improved Safety & Ergonomics: Automated processes reduced congestion and manual handling risks. The packing system dramatically improved ergonomics for the staff.

Conclusion: A Partnership for Future Growth

Through its strategic partnership with FloStor, American Licorice Company successfully transformed its warehouse and packing operations. The integrated automation solution addressed critical bottlenecks, significantly boosting efficiency, reducing operational costs, enhancing safety, and improving ergonomics.

“The new [carton assembly] system not only dramatically increased speed and efficiency but also significantly improved ergonomics for the valued packing staff,” stated John Nelson, Plant Engineer at American Licorice, highlighting the tangible benefits of the packing automation project.

By leveraging FloStor’s expertise in material handling automation, ALC has streamlined its supply chain, positioning itself strongly to meet future growth and continue delighting customers worldwide with its beloved confectionery brands.

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Ready to unlock similar efficiency gains in your warehouse or packing operations? Contact FloStor Material Handling Solutions today to explore how tailored automation can revolutionize your business and drive tangible results.