Transcript Auto Parts Industry

Nanitec, Inc.
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8/23/2005
Copyright 2005 Nanitec, Inc.
Confidential Information Protected Under US & EU Patents and/or Patent Pending
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Background
• Consumer demand for “next day” delivery, coupled with the
retail industry’s shift to smaller but more frequent
replenishment, has made fast, accurate picking the “order” of the
day for distribution centers.
• The solution to this challenge lies in automation. However, the
high cost and difficulty of implementing even simple picking
automation are daunting. The best compromise to date has been
semi-automation (such as pick-to-light systems).
• Popular semi-automated solutions such as pick-to-light continue
to rely on picking labor. Yet laborers are unreliable, difficult to
train, costly to retain and are always in short supply for peak
activity cycles.
8/23/2005
Copyright 2005 Nanitec, Inc.
Confidential Information Protected Under US & EU Patents and/or Patent Pending
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Background
• Up to now, there hasn’t been a machine that can pick “any” item
off the shelf, regardless of shape size or weight, much less pack
it into the shipping container at the same time.
• Nanitec, Inc., is a consulting company tightly focused on the
analysis and re-engineering of distribution center operations.
• Nanitec has developed a proprietary suite of robotic inventory
flow solutions. The next slides will highlight Shelver, the suite’s
“pick and pack” solution.
8/23/2005
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Confidential Information Protected Under US & EU Patents and/or Patent Pending
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Objective
Nanitec’s objective is:
To enter into a strategic alliance with a leader in the auto
parts distribution industry to develop a new paradigm in
distribution center operations.
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“Shelver”
Automated Picking
and Packing System
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If you were to select a few typical items from the thousands
processed daily in distribution centers, you would notice that…
These products come in a great variety of package shapes, sizes
and weights.
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Picking and Packing an Order at the Distribution Center
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Picking and Packing an Order at the Distribution Center
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Let’s take a look at the tote’s contents after
the completion of a pick and pack cycle
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Cost Comparison
• The following is a comparison of the costs
associated with the picking and packing
processes at a distribution center
Assumptions:
• Broken case (by the piece) picking methodology
• Average fully loaded hourly wages = $20.00 per
employee
• Work cycle = 8 hours/Shift, one shift/day
• Weekly work cycle = 6 days/week
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$9
$8
$7
$6
$5
$4
$3
$2
$1
$0
Wireless
Pick-the-light
Shelver
50
00
0
75
00
0
10
00
00
12
50
00
15
00
00
17
50
00
20
00
00
22
50
00
Annual Cost (Millions)
Annual Cost Comparison
Items Picked per Day
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Shelver delivers benefits like:
– Makes no mistakes
– Works 24/7
– Handles “any” package form factor
– Handles “any” item weight
– Easily reaches up 40 feet high
– Never takes breaks
– Reduces inventory shrinkage
– Requires no training
– Knows where an item is located in the
warehouse at any given time
– Performs daily inventory auditing (an added
bonus)
– Shortens fulfillment cycles
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Shelver decreases…
•
•
•
•
•
•
•
•
8/23/2005
Distribution labor payroll by up to 60%
Shrinkage costs
Training costs
Quality assurance costs
Merchandise damage costs
Workers-comp costs
Supervisory/management cost
Warehouse cost
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Additional benefits are….






Adaptability to B2B and B2C models
Quick ROI improving business agility
Leveraging existing IT investments
Utilizing standard h-frames and shelves
Adaptability to non-standard shelving
Flexibility and quick scalability to fit any pick volume
requirements
 Modular design for easy maintenance
 Built-in recovery and redundancy
 Ability to Smartly “pack” items into container (heavy items
first, lighter/fragile items on top)
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How Does Shelver Work?
 Receives order data from host system via wireless
ASCII or XML
 Generates packing labels
 Verifies item availability
 Determines item pick location
 Determines when to pick order based on JITP
methodology
 Calculates volumetric requirements
 Ascertains optimal pick route
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How Does Shelver Work? (cont.)
 Pick requests are distributed to all appropriate picking
module(s)
 Real time QA and inventory updates are performed as
items are picked
 Generates order manifest and exception reports
 Delivers picked items container to a conveyor at end of
picking aisle
 Creates and performs a “virtual pick” prior to actual
pick
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Software
• The “Brains” of Shelver
• Open and Distributed Platform
• Adaptable for Small or Large Scale Deployments
• Simple Integration with Any Host System
• Provides Failure Recovery and Redundancy
• Real-Time Feedback to Host System
• Advanced Customization
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Copyright 2005 Nanitec, Inc.
Confidential Information Protected Under US & EU Patents and/or Patent Pending
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Nanitec, Inc.
 An IT and Engineering Consulting Company
 Established in 1990 in the State of Florida
 Provides Technology Based Solutions to Clients
– John Deere Insurance Co.
– Sandoz Pharmaceuticals
– Schwartz Electro Optics, Inc.
– Citicorp/CitiGroup Latin America
– JM Family Enterprises (Toyota Motors)
– Perfumania, Inc.
– Steiner Leisure Ltd.
– American Express
8/23/2005
Copyright 2005 Nanitec, Inc.
Confidential Information Protected Under US & EU Patents and/or Patent Pending
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Nanitec, Inc.
Thank you for taking the time to view this presentation.
We would like to follow up this presentation by scheduling a
meeting, at you convenience, to answer any questions and to
discuss any appropriate next steps
Juan Uribe
(561) 703-8601
(480) 882 0929
[email protected]