Modern Materials Handling - December 2011

modern system reportorder, and the carton is automaticallyreturned to storage.”Similarly, items for a pack-and-holdorder are prepared for the customerand then automatically delivered to theother mini-load, where they are held invery dense storage until a customer isready to pick them up.While this is a highly automatedfacility, it was automated with a purpose.The idea was to get the benefitfrom automation without being boundby automation. “We were very sensitiveto cost,” Galliher says. “Every time weadded a component, we weighed whatwe were trying to achieve against thereturn on investment to decide wherewe could get value from automationcompared to a conventional solution.”For example, the mini-load in theloose pick area is designed to handlethe facility’s normal capacity. A conventionalprocess was designed for thespikes in demand that occur on one ortwo days at the end of each quarter. Atthose times, the system diverts someof the loose-pick cartons to a conventionalpalletizing station early in theshift. The pallets are then staged inlanes until the items are required atthe induction area for an order wave.Yes, it’s manual, but it was a more costeffectivesolution than sizing the automationto handle volumes that mightonly occur four to eight days a year.Skechers also relies on conventionalprocesses in the value-added servicesarea located on the mezzanine. “We havecustomers who do pre-orders and giveus their packaging and labeling requirements,”says Galliher. “Those used to beprocessed in a different building fromour other orders. Now, we do everythingout of one facility. That means that thelook of the packaging, the paperworkand the product will be the same.”The new facility has only recentlygone live, so hard metrics on the performanceof the new facility are not yetavailable. But, Skechers is optimistic.“We designed the facility to deliver afive-year ROI,” says Galliher. “If we dothat, we will have achieved what we setout to do.” MOptimized case handlingSkechers’ new facility brings together automated storage,cross-belt sortation and conveyor to handle multi-channelorder fulfillment from one system.By Bob Trebilcock, Executive EditorThrough the consolidation of fivefacilities into one, large and highlyautomated facility, Skechers isable to fill orders for its own retail stores,other retail and wholesale customers aswell as direct-to-consumer Web orders.Receiving: Located about 80 milesfrom Long Beach, Calif., the facilitySkechers USARancho Belago, Calif.Size: 1.82 million square feetProducts handled: footwearStock keeping units: 70,000Throughput: 17,000 pairs of shoes perhour through pick and pack operationsEmployees: 300 in operationsShifts/Days: 2 shifts/5 daysInboundqualityassurance4Receiving15Reservestorage2 Inboundconveyorsystem5 ReservestorageShipping10Value addedservices3 Palletizing119 Packing area8 Unit sorter6Mini-loadAS/RSInboundqualityassurance412Pack andhold AS/RS5Reservestorage7 Induction areaReceiving12 Inboundconveyorsystem5 Reservestorage3 Palletizing18 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com