Automated storage carries benefits inside and out

Deploying an automated storage and retrieval system (AS/RS) can deliver internal benefits like automating much of the picking process and saving space, but the benefits aren’t just internal: Operations can gain a customer service advantage. That’s because automated storage solutions make fulfillment processes speedy and accurate, and with the space savings, more SKUs can be carried in the same footprint.

Bristol Hose, a specialized fitting and connector distributor based in Melrose Park, Ill., found that an AS/RS deployment brought it internal and external benefits. It saw efficiencies in storage and labor productivity within the four walls, but also highly accurate order fulfillment and improved stock availability to enhance customer service.

One of only three certified Parker Hannifin distributors in the greater Chicago area, Bristol Hose is a vital parts provider for the region’s manufacturers. Along with their reputation for excellent customer service and high-quality parts, what sets them apart is being the sole local distributor dedicated to fitting and connector group (FCG) parts. These parts fill a specific niche in manufacturing and are used to convey any fluid or air by hoses, hose fittings, hose adapters, quick couplers and other products.

Founded in 1985, Bristol Hose started out in a 1,000-square-foot facility, but with steady growth over four decades and more rapidly the last several years, it transitioned to larger sites. The first move was in the year 2000, when it moved to a new 30,000-square-foot facility. This DC served its purpose for 20 years, but Bristol Hose wasn’t done growing.

In 2018 and 2019 order counts rose sharply, and subsequently did the need to increase on-hand inventory. This resulted in constantly having to reshuffle bins and rearrange the inventory in static shelving. Because they were so busy, they didn’t have the staff to effectively handle these inventory management tasks, resulting in backups and overall efficiency loss.

In the face of these issues, Bristol Hose made the strategic decision to explore solutions, including adding more shelving or moving to an AS/RS. As luck would have it, an opportunity to sell the DC they moved into in 2000 literally came down the tracks when a local rail company offered to buy their warehouse. In 2020, right as the pandemic was hitting and business was slowing, Bristol Hose seized this opportunity, sold its existing warehouse and moved into a brand-new 65,000-square-foot facility.

As part of the move, the company evaluated and chose to deploy an AS/RS solution (Kardex Remstar) to support its operational and customer service objectives. The company installed three Kardex Shuttle Vertical Lift Modules (VLMs) with Kardex Power Pick System software. With this solution, Bristol Hose, which previously picked orders manually to carts, increased labor productivity by 30%, saved 90% on floor space versus static storage, and improved order picking accuracy and inventory control.

VLMs work on a goods-to-person principle to automatically deliver goods to an ergonomic picking station, eliminating non-value warehouse travel versus picking from static shelves.

Tony Tuminaro, director of operations at Bristol Hose, says that by boosting picking productivity, Bristol Hose can dedicate staff to other high-value activities.

“We’re not trying to reduce our staff. Before, we had three people constantly picking orders every minute of their shift. Now, our pickers are done picking by three o’clock and they have time for other tasks—such as general equipment maintenance in the shop or auditing production and assemblies. Instead of hiring more employees to do these value-added tasks, the VLMs have made our existing employees more efficient and prevented us from having to hire more people.” -Tuminaro says.

Additionally, Bristol Hose’s new hires can be productive in their first few days on the job, something that could take as long as two to three months before the VLMs.

“Previously, when we hired a new person in the warehouse, it took them at least two months to learn the layout confidently on where they’re going and where to find the bins… versus with the Kardex machines you hire people and on their first day they’re already picking,” Tuminaro says.

Bristol Hose saved significant floor space when transitioning from static shelving to compact AS/RS. In their previous 30,000-square-foot warehouse, approximately 15,000 square feet was dedicated to static shelving and storing parts, accounting for 50% of the total space. In the new, larger facility, they have consolidated 85% of their parts into three VLMs that occupy 1,200 square feet­—1.5% of their total floorspace.

Previously, Bristol Hose’s picking process was a manual, pick-to-cart process, which not only consumed labor time in the form of walking to pick locations, it also made pick selection accuracy challenging given the similarity of many of the SKUs. By contrast, the VLMs eliminate worker travel, and ensure extreme accuracy with a Display LED-Navigator at the workstation to guide associates on what to pick from the trays in front of them.

“With the Kardex Shuttles, we go six months without an error just because inventory is where it’s supposed to be,” Tuminaro says. “It’s very rare that I see errors anymore.”

The supply chain issues caused by the pandemic presented a challenge to many, and Bristol Hose’s customers were no exception. When parts became scarce, Bristol Hose’s VLMs helped them better serve customers.

As Tuminaro concludes: “In the previous system, we had to be very selective in deciding what we add to our inventory, because so much went into adding items to the system and stocking the shelves. Now, we can easily put new items in stock and add a lot more value to our customers. We are able to keep a lot more things that we wanted in stock, and all that investment into our inventory is really paying off. We know it’s an advantage over our competitors.”