• How Pick to Light Systems Increase Accuracy and Speed in Warehouse Operations

    How Pick to Light Systems Increase Accuracy and Speed in Warehouse Operations

    We know that dealing with order errors in the fulfillment process can feel like a never ending battle. It’s frustrating, time-consuming, and, frankly, a bit disheartening when the hard work of your team doesn’t translate into flawless operations. Every mispicked item or incorrect order not only reflects on the team’s efforts but can also ripple out, affecting customer satisfaction and your bottom line. It’s the kind of challenge that can keep you awake at night, wondering how to tighten up those processes and ensure that what goes out the door is exactly what your customers are expecting.

    At StreamTech, we specialize in enhancing warehouse accuracy and efficiency with smart, practical automation technologies – such as our pick-to-light systems. Designed to reduce manual order picking errors, the system relies on our WCS Picking Software and LED light devices to direct the operators. Our technology addresses key logistics challenges, improving both operational performance and customer satisfaction.

    In this post, we’ll dive deeper into how to improve warehouse picking speed and accuracy through our Pick To Light system.

    What Is  A Pick To Light System?

    Our Pick-to-light system streamlines warehouse picking by guiding workers to item locations using illuminated displays on racks or bins. This approach combines sophisticated hardware that is integrated with our Warehouse Control System (WCS) software , to enhance fulfillment accuracy.

    The system’s hardware includes light displays and sensors on storage locations. When an item needs to be picked, its corresponding light illuminates, directing the picker. After picking the item, the worker signals completion by pressing a button or triggering a sensor, telling the system to move on to the next item. This direct feedback loop ensures a smooth and efficient picking process which can increase the pick rates per person.

    The other crucial component involved is the software. The WCS Picking Software is connected to the customer’s Warehouse Management System (WMS) software, and the two software platforms work in close conjunction with one another. While the WCS Pick Software manages the hardware LED devices and screens, the WMS manages the orders and the most efficient picking routes. It dynamically adjusts to changes, managing multiple orders and maintaining real-time inventory accuracy. Integration with the WMS is seamless, allowing for instant updates and analytics, which are essential for optimizing operations.

    Learn more about our WCS software ›

    Key components like light displays, sensors, and barcode scanners are central to the system’s functionality. Barcode scanners add an extra layer of verification, ensuring the right item is picked to help keep inventory records precise.

    Picking Automation Strategies:

    There are a few different ways we can employ this picking system.  It all depends upon how each customer’s warehouse is structured, how the orders are fulfilled, and what fits best with the flow of the operation.

    Velocity Picking Mod:
    The light directs the picker which bin location to retrieve from the inventory rack. Typically in this configuration, a conveyor system is positioned along an inventory picking rack, which is filled with “high movers” – the most commonly picked items. An empty carton progresses along the conveyor, and when inducted by a scanner, the lights signal on the bin location, along with a quantity shown on the display.

    Wireless Smart Carts:
    The lights direct the picker which empty carton to place the items in. The operator pushes the smart cart to the correct aisle and bin location, and uses a gloved hand scanner to scan the bin location (as a verification step). The lights on the cart correspond with empty orders that need to be filled. When the inventory bin is scanned, the light devices indicate both a quantity on the display, and a location.

    Put to Light (Put Wall):
    This is used in reverse logistics, returns processing or inventory replenishment.  It can also be used for simply sorting and storing orders until they are completely picked, to be processed in batches.  In this method, workers start by scanning items, instead of empty order cartons. When an item is scanned, the system directs the worker to the appropriate location for restocking. Lights indicate the specific rack and bin location where the item should be placed.

    How Does The Pick-to-Light System Reduce Errors?

    Now that we understand how the Pick-to-Light system works, it’s time to explore all the ways that it can help increase accuracy and improve picking rates (or speed).

    Increasing Pick Accuracy

    By lighting up the exact location of the item that needs to be picked, the Pick-to-Light system helps take human errors out of the equation. Warehouse employees no longer need to second-guess if they’ve grabbed the right product or waste time squinting at product codes. When the light goes on, your team knows exactly where to go and what to pick. We have two different methods for this, depending upon the type of pick-to-light implementation:

    Training and Learning Curve
    Traditionally, training pickers can be a time-consuming process with the complexities of warehouse operations and the daunting task of memorizing product locations. Pick-to-light systems help make the onboarding process smoother and quicker, as new team members simply need to follow the lights. This reduces training time significantly and allows new employees to become productive members of the team faster than ever.

    Enhancing Inventory Management
    Keeping track of inventory can feel like trying to solve a complex puzzle with pieces that constantly move. A Pick-to-light system simplifies this challenge by providing real-time updates every time an item is picked. The tight connection between the WMS and the StreamTech WCS Picking Software provides a constant flow of information that keeps inventory levels accurate, reducing the chances of stock discrepancies that can lead to overstocking, stockouts or mis-picks.

    Improving Order Fulfillment Speed
    In today’s fast-paced market, speed is of the essence. Customers expect their orders to arrive yesterday, and pick-to-light systems are how we meet those expectations. By streamlining the picking process, orders are fulfilled faster, leading to quicker turnaround times and happier customers. It’s a direct link between the efficiency and effectiveness of your operations and the satisfaction of your customers, showing that when you invest in making your processes better, everyone wins.

    Example:
    An eCommerce business specializing in apparel and accessories turned to a pick-to-light system to tackle its growing issue of order inaccuracies. Before the implementation, the company faced a significant challenge with order fulfillment errors, leading to customer complaints, returns, and exchanges that not only impacted customer satisfaction but also inflated operational costs.

    Our Pick-to-Light system was integrated into their existing warehouse management system, providing a seamless transition that immediately began to show results. Each picking station was equipped with light indicators and sensors, guiding warehouse staff directly to the correct products and quantities required for each order. This visual guidance system significantly reduced the likelihood of shipping errors.

    Within the first quarter of implementation, the company reported a remarkable reduction in order fulfillment errors—down by over 60%. This improvement was directly attributable to the accuracy provided by the pick-to-light system.

    The company also observed a notable increase in order fulfillment speed, with order processing times reduced by nearly 30%. This efficiency gain not only enhanced customer satisfaction through faster delivery times but also allowed the company to handle a higher volume of orders without additional labor costs.

    Ready to Reduce Errors With Pick-to-Light?

    At StreamTech, we’re all about looking for ways to improve efficiency and streamline e-commerce fulfillment, especially when it comes to our pick-to-light system. We craft solutions that solve issues at their core and are customizable to fit seamlessly into your operations. Through a blend of expert advice and innovative engineering, we’ve guided many businesses toward smoother operations, bolstering both the reliability and efficiency in their supply chain processes.

    Let’s explore how we can do the same for you, making your operations faster, and more accurate – to the delight of your customers.

  • Navigate The Peaks And Valleys Of Seasonal Demand

    Navigate The Peaks And Valleys Of Seasonal Demand

    Seasonal demand affects numerous industries, presenting both opportunities and challenges for businesses. During peak seasons, ecommerce fulfillment companies experience a surge in sales volume and order processing. With the increasing popularity of online shopping, these periods of peak demand are becoming more frequent and intense. Preparing for peak seasons is critical for ecommerce fulfillment companies to maintain customer satisfaction. If handled effectively, peak seasons are a great opportunity for growth.

    What Is Seasonal Demand

    Seasonal demand refers to the fluctuating patterns of consumer interest and purchasing behavior that occur throughout the year due to various external factors. These fluctuations often correspond to specific seasons, holidays, or events and can significantly impact businesses across industries.

    Understanding seasonal demand is essential for businesses to effectively manage their operations, allocate resources, and capitalize on opportunities for growth. It encompasses both the predictable peaks, such as the holiday shopping season, as well as the less obvious fluctuations influenced by factors like weather, economic cycles, and cultural trends.

    By analyzing seasonal demand patterns, businesses can tailor their strategies to meet customer needs, optimize inventory management, and enhance overall performance.

    However, seasonal demand also presents challenges, such as managing inventory levels, forecasting accurately, and maintaining consistent service levels during peak periods. Therefore, businesses must adopt a proactive approach to seasonal demand, leveraging insights to maximize revenue potential while mitigating risks associated with fluctuations in consumer behavior.

    Not All Peak Seasons Are Created Equal

    Peak season is traditionally used to refer to the Fall/Winter holiday shopping months. However, every industry has its own peaks, and they may not line up with the holidays. For example, if you’re a bike parts company, Memorial Day weekend is your version of Black Friday. Or if you specialize in photo prints, you may have seasonality around the school schedule. We’ve highlighted a few key factors that most commonly impact consumer demand throughout the year.

    • Seasonal Weather:
      • Spring/Summer: gardening, pool accessories, sports, outdoors, BBQ
      • Fall/Winter: traditional holiday peak, clothing, hunting, photography
    • Holidays: Valentine’s Day, Mothers Day, Fathers Day, Easter, 4th of July, Halloween, Thanksgiving, Christmas
    • Economic Influences: tax seasons, back-to-school schedule
    • Marketing Campaigns: Prime Day, Black Friday, BOGO, etc.
    • Service Level Agreement (SLA): How fast do you need to turn around? Translates to required fulfillment velocity. Some store replenishment might be same-week, allowing you to level out across shifts or days. Direct consumer or smaller store might require a very tight window (mid afternoon for the same day shipping) and higher peak throughput.

    Peak Opportunity

    All business owners, no matter the industry, will experience shifts in consumer demand. The timing may differ, but they’re inevitable and it is important to plan accordingly. These shifts present challenges, but also great opportunities as well.

    Businesses eagerly anticipate peak seasons as they bring about heightened consumer demand, often leading to a surge in sales and revenue. We agree that this is a very exciting time but if you’re not properly prepared, it can create all sorts of problems.

    Challenges:

    • Managing Increased Workload And Production: Peak demand often puts significant pressure on operational capacity. Businesses need to scale up their production, distribution, and fulfillment processes to meet the surge in customer orders. This can strain resources, lead to potential bottlenecks, and increase the risk of quality control issues.
    • Balancing Supply And Demand: Ensuring a balance between supply and demand is crucial during peak periods. Overestimating or underestimating demand can result in either excess inventory or stockouts, negatively impacting profitability. Striking the right balance requires accurate forecasting, agile supply chain management, and efficient inventory control.
    • Maintaining Service Levels And Customer Satisfaction: With increased customer demand comes the challenge of maintaining consistent service levels and meeting customer expectations. Long wait times, sortation delays, or compromised customer support can harm the overall customer experience. Businesses must ensure adequate staffing, efficient order fulfillment, and prompt customer communication to uphold customer satisfaction.

    Opportunities:

    • Revenue Growth And Increased Sales: Peak demand periods provide businesses with the opportunity to generate significant revenue and achieve higher sales volumes. By capitalizing on the increased customer interest and purchasing power, businesses can achieve revenue growth and boost profitability during these periods.
    • Cross-Selling And Upselling Opportunities: Peak demand presents an ideal environment for cross-selling and upselling. By understanding customer needs and preferences, businesses can strategically offer complementary products or higher-tier options, increasing the average transaction value and maximizing the revenue potential of each customer interaction.
    • Brand Visibility And Customer Acquisition: With heightened market activity during peak periods, businesses have the opportunity to enhance brand visibility and acquire new customers. Effective marketing and promotional campaigns can attract a larger audience, leading to increased brand recognition and market penetration.
    • Building Customer Loyalty: Delivering exceptional customer experiences during peak demand periods can foster customer loyalty. Businesses that provide seamless ordering processes, prompt support, and timely deliveries can earn the trust and loyalty of customers, leading to repeat business and long-term customer relationships.
    • Data Collection And Insights: The influx of customer transactions during peak demand provides businesses with valuable data and insights. By analyzing customer behavior, preferences, and purchasing patterns, businesses can refine their marketing strategies, optimize product offerings, and make informed decisions for future demand cycles.

    Effectively navigating the challenges and capitalizing on the opportunities during peak demand periods requires careful planning, resource allocation, and a customer-centric approach. By addressing challenges proactively and leveraging opportunities, businesses can maximize their success during these critical periods and establish a competitive advantage in the market.

    What Can You Do To Prepare For Peak Season?

    Analyze the data from the last peak season. How did it go? Reviewing your data will provide valuable insight into areas that need improvement. Data you may want to evaluate, such as sales volume, shipping times, and customer feedback will help you identify bottlenecks or pain points in your operations.

    Streamline Warehouse Operations (Pick, Pack, Ship, Sortation Processes)
    Warehouse operations are critical to the success of eCommerce fulfillment companies. To prepare for peak seasons, companies should optimize their warehouse layout to ensure efficient movement of goods, improve inventory management to prevent stockouts or overstocking, and enhance picking and packing processes to increase order processing speed and accuracy. Do you have duplicate manual pack stations, all replete with their own individual kit of taper, void, printer, scale and PC? This represents a huge opportunity to streamline.

    Shipping and delivery are crucial components of the ecommerce fulfillment process. Ecommerce fulfillment companies should evaluate their outbound shipping processes to make sure they are operating in the most efficient manner. Capturing weights and dimensions is critical to ensuring you are not overpaying for shipments. Automated SLAM systems such as StreamTech’s Sprinter™ can handle this for you.

    Part of the SLAM system’s benefit is not just that it saves labor but that it can dramatically increase your speed, enabling you to hit these peaks. Also, unlike temporary employees and/or manual processes – the automation is just as accurate at peak speed as it is during a slower season.

    Enhance Customer Service
    During peak seasons, ecommerce fulfillment companies can rearrange staffing to handle the influx of customer inquiries. Providing customer support channels such as live chat, email, and phone can help address customer concerns promptly. Offering returns and exchanges can also improve customer satisfaction and prevent negative reviews.

    Utilize Digital Technology
    Implementing order management systems can help ecommerce fulfillment companies manage their orders and inventory more efficiently. Leveraging data analytics can provide insights into customer behavior, sales trends, and inventory levels. Software automation tools can also be utilized to reduce manual labor and increase efficiency during peak seasons:

    • Warehouse Management System (WMS): optimize warehouse operations by managing inventory, organizing storage locations, and tracking the movement of goods within the warehouse.
    • Transportation Management System (TMS): enables businesses to compare shipping rates and services from multiple carriers, choose the best option for each shipment, and generate shipping labels and documentation for all carriers in one platform.

    Peak Preparedness Design Process:

    We see a lot of good practice from our customers in working through the following design process, where we work together to define the customer’s goals, future targets, and processes to implement a system that is ready for their peak season:

    1. Define Daily Goal: Define your peak time period throughput based on your company’s value proposition (e.g. Order by 12PM, must ship same day)
    2. Design for Future State: Target your planning horizon using year-over-year growth. “Rule of 72” — double in 72 divided by growth per time period (e.g. 12% growth – double in 6 years)
    3. Peak Order Flow: Design your peak-period processes. Consider accuracy, packaging, labor, speed, redundancy. A process that may work well during off-peak may need to be re-evaluated when there is a much larger influx of orders.
    4. Define Future System Expansion: Where possible, back-out or defer future capability from the design that can be easily added later at a low cost.
    5. Implement/Install: Plan the implementation during a slower period. Expect efficiencies to initially decline. Freeze system and process changes approaching the peak period.
    6. Peak: Work your peak plan and celebrate your success when it’s over.

    6a: Take notes and implement lessons learned for your next peak!

    Conclusion

    Successfully navigating the peaks and valleys of seasonal demand is crucial for businesses to maintain profitability and customer satisfaction year-round. By understanding the factors driving seasonal fluctuations and blending operations and technology, businesses can capture revenue and customer goodwill opportunities during peak periods.

  • Why Choose Fulfillment Automation?

    Why Choose Fulfillment Automation?

    Fulfillment Automation Benefits

    So why choose fulfillment automation? There are a lot of reasons for fulfillment automation, and it ultimately comes down to increasing operational efficiency. It’s not always just about speed. As you are considering the ROI (Return On Investment) for your next warehouse improvement project, here are a few of the reasons to consider fulfillment automation. We’ll explore Labor EfficiencyLabor CostsSpeedCustomer ExperienceFlexibility, and Future Growth.

    But before we explore the reasons for automation, let’s take a look at the competitive eCommerce landscape and how it’s changing.

    Booming eCommerce Growth: Automate Or Miss Opportunities

    Fulfillment automation is no longer just for the big players. In order to understand the growing demand for fulfillment automation equipment, let’s first take a look at consumers’ penchant for eCommerce shopping, because they have a correlation.

    Over the past few years, as consumers have become less interested in brick-and-mortar retail business, eCommerce has grown. From 2010 to 2020, eCommerce’s share of total retail sales grew an average of 11% YOY, steadily. Over these years, the largest share of eCommerce growth was with Amazon.

    The pandemic changed that and accelerated eCommerce growth. As consumers were pushed toward a digital life, with fewer in-person events, gas money, and stimulus money to spend, online shopping soared. From Q1 2020 to Q2, however, it grew 37%! During this time, Amazon lost market share, down from 43.8% of all eCommerce sales to just 31.4%. The other top 100 online retailers besides Amazon had a 74.1% share of eCommerce growth, up from 49.4% in 2019.

    The above numbers point to a trend – consumers have increased spending, and are spreading their shopping around a wider variety of retailers. If the effect is measurable on the top 100 retailers, it tells us fulfillment automation is not just for the big guys.

    Labor Efficiency:

    For most fulfillment operations, it is inefficient for employees to perform lots of small repetitive manual tasks, such as scanning, label application, box closure, or sorting. By introducing automation to perform these types of tasks, one employee can now oversee the system, covering multiple tasks with one person, and freeing up the remaining staff to be productive in other areas.

    Taking away the burden of repetitive manual tasks and transferring them to more supervisory roles eliminates dangerous situations. Making the operation more ergonomic and less burdensome means employees are less fatigued and less prone to injury.

    The cost of manual labor is not fixed – it is subject to increases to match the cost of living. As inflation continues, and societal and governmental pressures push for wage increases, companies are wise to look at automation to minimize this risk. Additionally, manual labor comes with other costs such as liability insurance, personal protective equipment, and health benefits. Optimizing labor also has advantages when it comes to labor shortages. The labor force has seen a reduction in the number of general laborers, which makes automation the next logical step.

    Costs:

    Aside from the cost of labor, there are other costs associated with fulfilling orders that automation can help reduce. For example, fulfillment automation introduces opportunities to reduce shipping costs. Adding the ability to measure dimensional weight allows for more accurate shipping charges, as most carriers are no longer just charging based on the weight of the carton, but also on its dimensions of it. Another shipping cost reduction comes with the ability to rate shop carriers and ship by the most efficient means possible.

    Shipping automation can handle this process very quickly and effectively, without adding much time to the process.

    Speed & Customer Experience:

    Automation makes the fulfillment process faster. Getting more orders out the door in a shorter amount of time is often the first benefit people think of when considering automation. Increasing production allows for your business to grow, take on more orders, turn around those orders to customers faster, and more accurately, and in turn, increase sales and profits.

    The other benefit of speed and accuracy is that your customers receive their orders in a timely fashion, without missing delivery expectations. With a significant increase in the number of choices in order fulfillment, excellent customer service, and personalized order experiences become a much bigger differentiator.

    Watch Fulfillment Automation in Action:

    Flexibility & Future Growth:

    One of the most unsung heroes of fulfillment automation is flexibility and future-proofing. Fulfillment automation gives you the ability to scale with your business needs. When operations are not automated, peak periods like holidays can cause a huge strain on your business – requiring seasonal labor, shipping delays, and other constraints with meeting demand.

    Automation can also allow your business to be prepared for growth. Automation gives you the flexibility to add new products and enter new markets without concern about your fulfillment operation being overwhelmed by the capacity.

    Explore Fulfillment Automation Technologies:

    When considering a fulfillment automation system, it is most efficient when it can be centrally controlled and integrated, all the way from pickingpackingshipping, and final sortation. StreamTech offers the integration necessary to bring all the automation together and maximize your return on investment.

  • Fulfill Daily Order Volume With Automation

    Fulfill Daily Order Volume With Automation

    The Problem:

    An eyeglass fulfillment operation faced significant challenges in delivering its daily orders to over 500+ stores across the United States and Canada within designated timeframes. Despite employing several full-time workers dedicated to order fulfillment, the operation encountered difficulties in keeping up with the workload, leading to a high frequency of manual errors.

    The issue was further compounded by a typical backlog that extended a staggering 80 feet back into the packing area, severely impacting the company’s operational efficiency.

    Our Solution:

    StreamTech provided a complete bolt-on addition to the customer’s UPS Worldship application. Instead of a unique order ID or license plate, each carton had a label that simply represented a store. We also included customized end-of-day reporting. Overall the system helped the customer gain the following benefits:

    • Removing non-value added manifesting labor
    • Eliminating manual weighing and dimensioning errors
    • Clearing up backlog
    • Reclaiming floor space from many manual workstations
    • Allowing the customer supervisors to leave on-time and get home to their families.

    The local conveyor integrator noted how easily the Sprinter™ was able to control adjacent conveyors for seamless automation. Another system is on order for a second facility!