Warehouse Performance: Being smart and getting the most out of picking (part 4/4).

Let's move on to the last part of the Warehouse Performance series. Parts 2 and 3 dealt with optimized inventory reservation and batch planning, which already ensure an enormous reduction in picking paths and times. In this article, we'll go one step further and show how you can minimize route times even further by intelligently placing products. How exactly does this work? With our newly developed "Warehouse Healing®" strategy. True to the motto: "Data is the new oil", data is the raw material for the strategy to generate real added value. The goal is to recognize existing patterns in the order history and to generate sensible stock transfer and putaway suggestions from them in order to minimize picking paths.

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The concrete implementation follows a simple, investment-saving principle. But let's go into more detail about the individual steps of the strategy.

The first two steps: Data collection and integration followed by visualization and interpretation.
Before we can use the data and generate real added value from it, we need to identify it. Relevant data can be found in inventory levels, topologies, item information, shopping carts and movement data. Once the necessary data has been collected and gathered, the next step is to visualize and interpret it.

The new "Warehouse Healing®" strategy defragments the warehouse. Intelligent analysis of movement data and shopping baskets reduces travel times for man and machine. In Figure 2 you can see the visualized data from step 1 of the strong warehouse fragmentation. Based on this recognizable situation, the next step is to analyze, evaluate and identify patterns. This data forms the basis for the next phase. Model creation and training to generate real added value from the data.

‍Steps3 and 4: Model creation and training, and application of the results
The next step is to define the score of a storage area. The following applies: the higher the score, the better. A high score occurs when items that have a strong affinity to each other are stored far away from each other. Or when items that are ordered frequently have a long picking path. To find stock transfers after which the score is lower than before, algorithms are used. These incorporate experience from the order history. The results of the algorithms are used to simulate healing processes and defragment the warehouse beyond the normal level. Initially, this is done without any impact on the ongoing business processes. At this point, the main goal is to create an optimized virtual target state that is used to train the optimal combination of model parameters. Automatic training experiments in the background continuously improve the results. Via progress indicators, the user can follow the realization of the potentials and enjoy the savings.

You are probably asking yourself, "How do I know whether the application of such a strategy is even an option for me and my warehouse?" That's where a potential analysis comes in handy, based on which we look at the extent to which the "Warehouse Healing®" strategy affects the warehouse area in question. The strategy places particular emphasis on a fast "time-to-value". This is achieved by using an algorithm to determine the stock transfers with the greatest effect and executing them first. After just a few hundred stock transfers, for example in multi-story shelving systems, it is possible to save up to 40 % of travel time in the best case. Using artificial intelligence and simulations of changed model parameters, the result is constantly adapted to changing conditions over time. In this way, the sum of the retrieval costs remains minimal. The strategy drastically reduces travel times and thus optimizes the extremely labor-intensive process of order picking. It is important for our data science experts to evaluate the results together with you and discuss the expected benefits. Our experts will give you a neutral assessment and support you in the decision-making process.

Your benefits in the course of applying the strategy: performance increases, optimal utilization of workflows and efficient resource planning in the logistics centers.

One of our customers tested the "Warehouse Healing®" strategy as a pilot project and introduced it due to the super results. To the success project: Running marathons in the warehouse? Not with Technilog. Store goods sensibly and reduce travel times.

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You would also like to make good use of your existing data? Feel free to contact us.‍