Supply Chain Automation and Robotics— Paradigm Shift

Supply Chain Automation and Robotics (S.C.A.R) as Differentiation and Disruption model (D.A.D) is a paradigm shift from the traditional approach in fulfillment design, operations, and execution. It fundamentally revolutionizes and empowers the supply chain logistics process into a significant leapfrog into meeting the high customer expectations, greater flexibility, and optimize C.A.S.E/Hr (Definition — Ref 1). The effective management for C.A.S.E/Hr directly tackles the supply chain challenges with Labor, Order, and Inventory. The traditional approach of Fulfillment centers for pushing Orders revolved around the transportation model — Pull vs. Push mechanism. The method was based on the time of pickup of the Inventory by the transportation providers for Parcel carriers, compared to pre-scheduled and optimized milk runs for dynamic routes and scheduled transportation pickup. The advent of SCAR has given a paradigm shift from traditional Pull Vs. Push model to be flexible and drive-based constraints and react dynamically to the limitations. SCAR can be designed and implemented to support a combination of Pull Vs. Push and dynamically change based on business needs. This flexibility is fundamentally a revolutionary approach for Retailers to react to fulfillment constraints and continue to optimize.

Implementation and adoption of SCAR in the fulfillment process are driven based on optimizing constraints or removal in the process and inventory flow inside the fulfillment centers — Distribution/Fulfillment Centers or Stores.

Typical vital constraints in the fulfillment centers involved and how different Supply Chain Automation and Robotics (SCAR) addresses the limitations based on the processes -

1. Travel within the warehouse.
2. Inventory Profile and Accuracy (Inventory Shrinkage, Damages)
3. Order Fulfillment / Hour (Higher Demand 24/7 — Execution)
4. Replenishment Process — (Challenge — Hostage to Picking process).
5. Dynamic Changes and adoption (Inventory / Order profile)
6. Labor Productivity and Attrition (Factor Fatigue)
7. Planning and Optimization (Cascading Effect)
8. Transportation planning — Pull Vs. Push (+ Delivery Model).

Supply Chain Automation and Robotics (S.C.A.R or SCAR) is continuously evolving and reinventing itself not over many eons but almost ‘now.’ Retailers are in the quest of gaining better C.A.S.E/Hr and are flocking to trade shows, conventions, supply chain seminars, academicians and these can be validated with the continuous growth and participation in the dominant gatherings like ProMat, Modex, Garter Supply Chain Conference, CSMP. There are different types of SCAR providers some who offer a wide variety of full circle solutions for end to end eCommerce and Supply Chain to Retailers, and some focus specific to particular processes or areas of the supply chain.

Fulfillment centers focused on Distribution and Warehouses have reinvented itself to adopt SCAR to optimize the vital constraints and focus on a continuous improvement program (CIP). There have been efforts to continuously upgrade or implement new SCAR solutions in either in the existing facilities or a greenfield facility. Retail stores that are supporting Omni Channel fulfillment are also reinventing with SCAR solutions and are still scratching the surface.

Listed below are some potential options inside the Fulfillment centers for different processes and more general availability of specialized solutions and application to the constraints. There are inherent challenges to consider further refinement for each option.

** Intricate process involving ‘VAS’ operations have a specific requirement and needs a custom or process-oriented SCAR capabilities.

Fulfillment Inbound Process — SCAR — Constraints Management (DAD Model)

Fulfillment — Order Processing / Inventory Management — SCAR -Constraints Management (DAD Model)

Fulfillment — Outbound — SCAR — Constraints Management (DAD Model)

Based on the current process and the maximum C.A.S.E/Hr accounts for the Inbound — Putaway and Outbound — Pick / Pack operations. There are multiple options and innovations with SCAR for retailers and eCommerce providers, and our specific focus on the overall solutions and aspect on the Goods to Person systems. Post packing process like Put wall or Order Consolidation is still a manual and evolving process.

Next Flexible SCAR

Flexible SCAR — Retailers DAD Game Changer

Related Reference — Articles

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SCAR as DAD Model — Future for Retail